FGT's Tampa Contract Questioned
Florida Gas Transmission went too far in special rate treatment
and terms --- not offered to other customers --- to get Tampa
Electric on board for its Phase V expansion, according to Florida
Power. FGT's current customers would unlawfully be required to bear
extra costs and operate under less favorable conditions, Florida
Power told the Federal Energy Regulatory Commission in its protest
to FGT's amendment to its expansion certificate (CP00-40-001).
FGT had filed Aug. 1, revising its proposed Phase V expansion,
including construction of 191.5 miles of new pipe, plus
compression, to add service to Tampa Electric to re-power its
Gannon Power station from coal to natural gas and to delete
capacity no longer needed by Enron North America and Dynegy.
Florida Power said that phased rate caps offered on service to
Tampa could result in subsidies by other customers if costs go
above the caps. If the rate caps are approved the Commission should
prohibit FGT from seeking a discount adjustment for under-recovery
in any future rate case.
Beyond the capping mechanism, Florida Power maintains Tampa has
been offered special services which "amounts to undue
discrimination in favor of Tampa Electric and against such other
similarly situated shippers." For instance, a phase-in schedule for
payment of reservation charges allows Tampa Electric "to avoid
payment of firm transportation rate reservation charges on most of
its Phase V FT capacity until well after the in-service date of the
other Phase V facilities for which FGT seeks certificate
authorization." The pipeline also has offered Tampa greater
flexibility in hourly rates of gas flow and a greater delivery
pressure, which Florida Power labeled "unduly discriminatory
negotiated terms and conditions of service."
©Copyright 2000 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.