FERC earlier this week gave the go-ahead to a compressionupgrade that would add 315,218 Dth/d of firm transportationcapacity to Columbia Gulf Transmission, bringing its system up toits certificated capacity level and then some.

Columbia Gulf’s Mainline ’99 Project was in response to a 1997order approving a consent agreement in which the pipeline was citedfor its failure to maintain its system capacity at its fullcertificated level. The erosion in the pipeline’s certificatedcapacity was owing to the deteriorated nature of its facilities.

Columbia Gulf sought, and FERC granted, authority to add 218,000Dth/d to return its system to its original certificated capacity of2.1 MMDth/d, plus another 96,555 Dth/d. This would bring itsmaximum certificated capacity to 2.2 MMDth/d. The Commissionapproved the project over the objections of some Columbia Gulfshippers, who argued the pipeline’s application raised issuesrelated to the controversial consent agreement and Columbia Gulf’srestructuring proceeding.

The added capacity would be brought about by replacingcompressor units at Columbia Gulf’s Corinth Compressor Station inAlcorn County, MS; Iverness Compressor Station in Humphreys County,MS; and the Hampshire Compressor Station in Maury County, TN, withlarger units over the next two years. As a result, compressionhorsepower at the Corinth station would rise to 49,982 hp from44,750 hp; Iverness station, 45,832 hp from 38,100 hp; and theHampshire station, 43,100 hp from 40,050 hp.

The pipeline said 18 shippers already have requested 270,334Dth/d of the new firm transportation service beginning Dec. 1,1999, and an additional 44,884 Dth/d of firm service starting Nov.1, 2000.

The cost of the compression expansion has been estimated at$37.6 million. FERC granted Columbia Gulf permission to roll in theconstruction costs into its existing rate base in its next Section4 rate proceeding, “provided there is no significant change in thecircumstances underlying the Commission’s decision in thiscertificate proceeding.”

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