FERC acted on a number of other key items last week, includingthe Gas Research Institute’s (GRI) budget, new firm transportationservices on Transcontinental Gas Pipe Line’s production-area supplylaterals, and tariff sheets enabling Tennessee Gas Pipeline toenter into certain types of discount agreements with customerswithout first getting prior approval.

The Commission approved a five-year budget for GRI: $132 millionin 1999, $98 million in 2000, $70 million in 2001 and $60 millionin both 2002 and 2003. The order is in keeping with a settlementapproved earlier this year between the institute and its members,which called for GRI to be funded by voluntary efforts by 2004[RP98-235]. Over the years, the institute – which sponsors researchand development projects for the industry – has been funded by amandatory surcharge that has been included in pipeline rates.

The second time was a charm for the revised tariff sheets ofTennessee that would permit it to enter into certain types ofdiscount agreements without having to seek up-front FERC approvalfor each transaction [RP98-378]. The Commission had rejected thepipeline’s initial proposal in late July, saying the proposedamended rate schedules were “overly broad and ill-defined” to thepoint that “almost any discount arrangement entered into could fallwithin this list.” The order last week directed Tennessee to makeone change – to place a restriction on charges below its minimumrate. The tariff sheets took effect Oct. 1.

The Commission also conditionally accepted and suspended for themaximum five-month period, subject to refund, three new firmtransportation services on Transco’s production-area laterals. Theproposed services would replace the so-called “IT-Feeder” servicecurrently in place on the laterals. The services would becomeeffective March 1, subject to FERC’s decision on a thresholddecision concerning whether Transco is barred from proposing thechanges to its tariff because of prior settlement agreements andthe outcome of a technical conference that will address severalother issues.

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