NGI The Weekly Gas Market Report
Florida Gas Transmission went too far in special rate treatmentand terms — not offered to other customers — to get TampaElectric on board for its Phase V expansion, according to FloridaPower. FGT’s current customers would unlawfully be required to bearextra costs and operate under less favorable conditions, FloridaPower told the Federal Energy Regulatory Commission in its protestto FGT’s amendment to its expansion certificate (CP00-40-001).
FGT had filed Aug. 1, revising its proposed Phase V expansion,including construction of 191.5 miles of new pipe, plus compression,to add service to Tampa Electric to re-power its Gannon Power stationfrom coal to natural gas and to delete capacity no longer needed byEnron North America and Dynegy (see Daily GPI, June 20).
Florida Power said that phased rate caps offered on service toTampa could result in subsidies by other customers if costs goabove the caps. If the rate caps are approved the Commission shouldprohibit FGT from seeking a discount adjustment for under-recoveryin any future rate case.
Beyond the capping mechanism, Florida Power maintains Tampa hasbeen offered special services which “amounts to unduediscrimination in favor of Tampa Electric and against such othersimilarly situated shippers.” For instance, a phase-in schedule forpayment of reservation charges allows Tampa Electric “to avoidpayment of firm transportation rate reservation charges on most ofits Phase V FT capacity until well after the in-service date of theother Phase V facilities for which FGT seeks certificateauthorization.” The pipeline also has offered Tampa greaterflexibility in hourly rates of gas flow and a greater deliverypressure, which Florida Power labeled “unduly discriminatorynegotiated terms and conditions of service.”
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