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Destin Customer Asks for Limited Waiver of Suspension
Southern Company Services Inc. last week asked FERC to grant a”limited waiver” of Destin Pipeline Co. L.L.C.’s suspension of itsblanket-certificate authority so it can complete a delivery pointto supply gas to a generation plant being developed in Mississippi.
Southern Company, acting as an agent for Mississippi Power Co.(MPC), said Destin contacted MPC to inform it that it wouldn’t beable to complete the new delivery point for MPC’s generation plantuntil mid-September 2000, when its blanket-certificate would bereinstated.
“Although [Southern Company] and MPC appreciate thecircumstances that led the Commission to issue its order suspendingDestin’s blanket-certificate authority, in this instance the impactof the Commission’s order is to penalize MPC — not Destin,”Southern Company said [CP98-238]. Having based its constructionschedule on Destin’s blank-certificate authority, the suspensionhas the potential to adversely affect both MPC’s schedule andconstruction costs, it said.
A major reason why MPC chose to build its 1,000 MW combinedpower generating facility in Jackson County, MS, was its “proximityto Destin and, through an interconnection with Destin, access tothe significant offshore reserves transported through Destin,”according to Southern Company. MPC has entered into a number of gassupply contracts with producers served by Destin’s system.
Granting the waiver “would avoid any delay or increase in costassociated with the construction of the….Destin delivery point.Although this will benefit MPC, it will not generate additionaltransportation revenues for, or otherwise reward, Destin,” SouthernCompany said.
FERC pulled Destin’s blanket-certificate authority for sixmonths for grossly exceeding the $19.6 million cost cap duringconstruction of an offshore lateral, and for dragging its feet inreporting the cost overrun to the Commission (See NGI 3/20/00).
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