Board 'Outs' Trip Up ANR Expansion at FERC
It took FERC only a few days to recognize that ANR Pipeline'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 March 15.
As a result, the status of 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.
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