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Millennium, Iroquois Seek FERC Permission to Change Rates

Millennium Pipeline Co. LLC and Iroquois Gas Transmission System LP have submitted three filings to FERC asking for permission to amend tariff rate structures.

According to documents filed Tuesday with the Federal Energy Regulatory Commission (FERC), Millennium [RP14-395] would like to change the manner in which it collects retainage under the general terms and conditions of its tariff for service under its BH-1 rate schedule, on the grounds that several changes have occurred on its system since it initiated service. The Pearl River, NY-based company added three compressor stations between 2011 and 2013, making its system capable of bidirectional flow.

"It is no longer reasonable to presume that all east-to-west transactions will be accomplished through displacement," Millennium said. "On any given day it is possible that gas received at a receipt point on the eastern portion of Millennium's system and delivered to a western delivery point may occur through actual physical transportation of gas rather than through displacement. Further, it would be impractical for Millennium to determine on a case-by-case basis whether individual nominated transactions would occur through displacement and therefore be entitled to an exemption from the requirement to provide compressor station fuel.

"Accordingly, Millennium is proposing to amend its tariff to specify that all transportation transactions on its system will be presumed to be accomplished by physical flow and thus subject to a retainage percentage that includes a component for company use gas."

Millennium also asked FERC for permission to make "various conforming and housekeeping revisions" to its tariff sections. The company said it wanted to make the changes effective on March 4.

Meanwhile, Iroquois submitted tariff records asking for permission to change previously approved negotiated rate agreements with Trafigura AG [RP14-396] and J.P. Morgan Ventures Energy Corp. [RP14-396].

Shelton, CT-based Iroquois said both J.P. Morgan and Trafigura had agreed to a fixed daily hub commodity rate -- expiring on Jan. 26 and 28, respectively -- after which the rates would revert back to previously approved formula rates.

FERC said it would accept comments on all three requests up until 5 p.m. EST Feb. 10.

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