As opposed to rejecting it outright, FERC last week gave ANRPipeline another bite at the apple to justify its proposal toestablish firm and interruptible hourly flow services to meet thegrowing gas demand of electric generators. In the meantime, itaccepted and suspended the pipeline’s tariff sheets for theproposed services.

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

FERC directed ANR to submit an “explanation and justification ofcertain operational and rate-related matters” associated with theproposed services within 20 days of the order. It further orderedANR to file workpapers that show the estimated effect of the newservices on the pipeline’s revenue and costs. “ANR’s explanationthat it does not have actual cost or revenue experience [with theproposed services] does not provide a basis for waiving theregulation,” 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 thatFERC said it “will issue a subsequent order to address the[protest] issues or institute further proceedings, such as atechnical conference, as appropriate.”

A number of existing ANR shippers are opposed to the proposedhourly services, saying that they would degrade existing firmservices on the pipeline and would be discriminatory because theservices would be limited only to power generators or shippersserving generators.

Susan Parker

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