FERC could and would preempt Georgia regulators if they adopted a plan to permanently assign the interstate pipeline capacity assets held by Atlanta Gas Light (AGL) to certificated natural gas marketers to participate in the state’s retail choice program, the Commission said Wednesday in response to a petition for a declaratory order by the Georgia Public Service Commission (GPSC).

FERC said its reply was “based on [its] exclusive jurisdiction over allocation of interstate pipeline capacity and…FERC’s capacity-release rules and regulations.”

Chairman Pat Wood brought the case up for discussion at Wednesday’s regular Commission meeting, noting that “this has been kind of a recurring event every year” since he joined the agency [RP04-92].

Although Georgia did not get the answer that it had hoped for, he said the Commission wanted to work closely with the state to support its retail gas program, which he called the “bright star” in the world of retail choice.

“I think this program…is something that…we’re willing to engage in a continuing dialogue” on with the GPSC, Wood noted. As part of the order, the Commission also provided Georgia with guidance on FERC policies and directed AGL to file a capacity-release rate schedule.

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