Refunds

The question of what to do about millions of dollars in refunds from the 2000-2001 energy crisis was passed back to FERC last Thursday by the Ninth U.S. Circuit Court of Appeals with instructions to regulators to reconsider their decision in conformance with a U.S. Supreme Court decision last June regarding the long-term power contracts (see NGI, June 30).

A Victoria, TX-based energy company is seeking refunds of at least $5.9 million from Energy Transfer Partners LP (ETP) for allegedly manipulating the price of natural gas at the Houston Ship Channel (HSC).

A consultant and attorneys for bankrupt Enron did not withhold information during a 2001 FERC hearing involving refunds to Pacific Northwest power customers, the agency’s chief judge said. As a result, he recommended that the parties not be barred from appearing and practicing before the Federal Energy Regulatory Commission.

Some Roanoke Gas Co. customers in Virginia will be receiving refunds, with interest, following a decision Friday by the State Corporation Commission of Virginia (SCC), which approved a reduced rate increase request by the utility. Roanoke Gas customers have been paying higher natural gas rates since Oct. 23, 2004, the date that a requested increase was allowed to go into effect on an interim basis pending an SCC decision. The company originally sought an increase of $1.13 million, or 1.31%. Upon a review of the request, the company and SCC staff reached an agreement to lower the request by $278,306. Roanoke Gas was directed to recalculate all bills issued since Oct. 23, 2004, and in cases where the application of the new rates results in a reduced bill for a customer, the company will refund the difference with interest. The SCC’s final order allows Roanoke Gas to collect an additional $856,859 in annual operating revenue, an increase of 0.99%. For the average residential customer using 75 therms of natural gas in a month, the gas bill will increase by 85 cents.

Questar Pipeline Co., a subsidiary of Questar Corp., last Wednesday filed an 8-K report with the Securities and Exchange Commission to reflect a FERC order that it refund $3.8 million to transmission customers.

A federal appeals court last Tuesday vacated a pipeline rate decision and sent it back to the Federal Energy Regulatory Commission for a second time, calling the “different rationales” cited by the agency for approving significantly higher initial Section 7 rates for natural gas transportation service on the then-Kansas Pipeline Co. “arbitrary and capricious.”

A federal appeals court on Tuesday vacated a pipeline rate decision and sent it back to the Federal Energy Regulatory Commission for a second time, calling the “different rationales” cited by the agency for approving significantly higher initial Section 7 rates for natural gas transportation service on the then-Kansas Pipeline Co. “arbitrary and capricious.”

Bruce Birchman, the FERC administrative law judge (ALJ) overseeing proceedings related to possible refunds for electricity overcharges in California, last Thursday issued a revised trial schedule related to the proceeding under which he now plans to certify proposed findings of fact in mid-December.

The pace of stopgap measures for California’s expected powershortages this summer picked up Tuesday with the governorannouncing rebates to customers cutting their summer power use by20% and Calpine Corp. striking an immediate two-month deal forproviding 550 MW to southern California markets starting todaythrough May 15. The short-term power pact is an interim one withthe state water resources department.