A CMS Trunkline spokesman said executives had not had time to studythe 110-page order, but based on a quick reading expected it would resultin some reduction of rates. The new formulas included in the order wouldhave to be applied to the underlying data to calculate a specific number.

Commissioner Linda K. Breathitt dissented in part to the Commission’sdecision to change its policy and not allow $400,000 in charitable contributionsto be included in the cost of service. The order stated FERC’s traditionalpolicy of including contributions as a business expense “has, in effect,allowed ratepayer funds to be used simply to purchase customers good willand employee loyalty, primarily for the benefit of company shareholders,”the order stated.

Breathitt said the contributions do not appear to be out of line withcontributions credited to other pipelines and rejected the notion thereis a national trend to disallow them. Before making such a policy change,Breathitt said the Commission should have conducted a ratepayer benefitanalysis instead of relying on sketchy evidence.

On other issues the order did the following:

Ellen Beswick

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