While coming closer this time to what the Federal Energy Regulatory Commission had in mind, Kern River Gas Transmission still must make further revisions to its request to reserve excess capacity for use in future expansions, according to a Commission order issued Friday.

While conditionally accepting the revised tariff sheets that were submitted in August, FERC took issue with broadness of Kern River’s provision.

In the submitted revisions, Kern River said that before it is able to reserve capacity for future expansion projects, such capacity will be posted for bid. Under these new tariff provisions, if no bids are received that meet Kern River’s minimum acceptable price and terms, Kern River could elect to reserve all or a portion of the capacity for future expansion projects.

Kern River also argued that its proposed language is based on the provision that the Commission approved in Tennessee Gas Pipeline Co. case.

While admitting that it allows pipelines to reserve unsubscribed capacity for use in expansion projects and establish minimum contract terms, the Commission found that Kern River’s proposed tariff provisions “are not consistent with our policy” in the Tennessee case.

“Kern River’s provision does not explain where in the expansion timeline it may impose the new restrictive provision,” the Commission said Friday. “We find that this provision is too broad in that it allows Kern River to impose a minimum term in circumstances where Kern River may not have even announced an expansion project.”

While noting that Kern River has “satisfactorily complied” with the other parts of the Commission’s July 29 order, FERC gave Kern River 20 days to file revised tariff sheets reflecting the revisions discussed.

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