It took FERC only a few days to recognize that ANR Pipeline’sMarch 8 application for a second Wisconsin expansion project in 18months fails to meet the Commission’s test for showing market need.
An application for a pipeline expansion must include “long-termexecuted or binding precedent agreements for a substantial amountof the firm capacity resulting from the proposed facilities.” Buttwo of ANR’s precedent agreements, representing 28% of the proposed194,000 Dth/d of firm capacity additions, “appear to fall short” ofsatisfying that test because they contain “shipperboard-of-director” out provisions, Kevin P. Madden, FERC’s directorof the office of pipeline regulation, told ANR in a letter March15.
As a result, the status of the project “will remain uncertainuntil each affected shipper notifies ANR that it has received therequisite board-of-director approval for its agreements and/or thatthe out provision has been waived or modified.” ANR’s applicationis considered incomplete and is not being noticed, Madden said. Hethreatened to dismiss the application if the pipeline doesn’t comeup with the required material within 20 days.
The $37.5 million expansion would consist mainly of 20,000additional 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 pipelooping adjacent to ANR’s existing system in Kendall County, IL.Service is scheduled to being in November 2000.
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