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ANR Hourly Services Get Second Chance

ANR Hourly Services Get Second Chance

As opposed to rejecting it outright, FERC last week gave ANR Pipeline another bite at the apple to justify its proposal to establish firm and interruptible hourly flow services to meet the growing gas demand of electric generators. In the meantime, it accepted and suspended the pipeline's tariff sheets for the proposed services.

The Commission suspended ANR's proposal until May 1, 2000 or a date established by a subsequent order (whichever is earlier), subject to refund and other conditions. ANR had asked for the proposed services to be effective Dec. 1.

FERC directed ANR to submit an "explanation and justification of certain operational and rate-related matters" associated with the proposed services within 20 days of the order. It further ordered ANR to file workpapers that show the estimated effect of the new services on the pipeline's revenue and costs. "ANR's explanation that it does not have actual cost or revenue experience [with the proposed services] does not provide a basis for waiving the regulation," the order said [RP00-30].

Within 15 days after ANR submits the requested information, parties will have a second chance to protest or comment. After that FERC said it "will issue a subsequent order to address the [protest] issues or institute further proceedings, such as a technical conference, as appropriate."

A number of existing ANR shippers are opposed to the proposed hourly services, saying that they would degrade existing firm services on the pipeline and would be discriminatory because the services would be limited only to power generators or shippers serving generators.

Susan Parker

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ISSN © 2577-9877 | ISSN © 1532-1266
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