Daily GPI / NGI All News Access

Board 'Outs' Trip Up ANR Expansion at FERC

Board 'Outs' Trip Up ANR Expansion at FERC

It took FERC only a few days to recognize that ANR Pipeline Co.'s March 8 application for a second Wisconsin expansion project in 18 months fails to meet the Commission's test for showing market need.

An application for a pipeline expansion must include "long-term.executed or binding precedent agreements for a substantial amount of the firm capacity resulting from the proposed facilities." But two of ANR's precedent agreements, representing 28% of the proposed 194,000 Dth/d of firm capacity additions, "appear to fall short" of satisfying that test because they contain "shipper board-of-director" out provisions, Kevin P. Madden, FERC's director of the office of pipeline regulation, told ANR in a letter last week.

As a result, the status the project "will remain uncertain until each affected shipper notifies ANR that it has received the requisite board-of-director approval for its agreements and/or that the out provision has been waived or modified." ANR's application is considered incomplete and is not being noticed, Madden said. He threatened to dismiss the application if the pipeline doesn't come up with the required material within 20 days.

The $37.5 million expansion would consist mainly of 20,000 additional horsepower at ANR's Woodstock, IL, compressor station; 1,500 additional horsepower each at the Existing Janesville, WI, and Weyauwega, WI, stations; and three miles of 42-inch pipe looping adjacent to ANR's existing system in Kendall County, IL. Service is scheduled to being in November 2000.

©Copyright 1999 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1231
Comments powered by Disqus