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
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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