FERC approves six Order 636 restructurings

Journal Article · Mon Mar 15 04:00:00 EST 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6510712

Burkhart, L A

The Federal Energy Regulatory Commission (FERC) has approved six Order 636 restructuring orders. The orders are for Southern Natural Gas Co., Gulf States Transmission Corp., Williston Basin Interstate Pipeline Co., Michigan Gas Storage Co., Iroquois Gas Transmission Systems L.P., and Algonquin Gas Transmission Co. The February 10 FERC meeting where the action occurred was the first with Elizabeth Moler sitting as acting chairman. She took the opportunity to issue a dissenting opinion. Her action came during debate over the Iroquois Gas Transmission restructuring and rate design for the Selkirk Cogen Partners, a planned gas-fired cogeneration plant. The proposed order called for using the straight fixed-variable (SFV) rate design for natural gas deliveries to the plant as mandated by Order 636. In a footnote related to the order, the Commission would have allowed a modified fixed-variable (MFV) rate design upon evidence of financial difficulty. Commissioner Martin Allday opposed the footnote allowing the MFV to be used as an exception for a single customer, saying that Order 636 does not allow changes. He reminded his colleagues that consistency in this business is vital. Chairman Moler said she did not believe it would be unduly discriminatory to allow deviation from the SFV method, especially because Iroquois wanted to let other customers use that method. She remarked that MFV rates were critical to development of the Selkirk project, and that the entire project was based on the assumption that the MFV method would be used. She argued that the FERC was sending the wrong signal to the cogeneration and electric communities, and that she regretted the Commissioners were unwilling to offer a glimmer of hope to Selkirk.

• OSTI ID: 6510712
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:6; ISSN PUFNAV; ISSN 0033-3808
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
031000* -- Natural Gas-- Legislation & Regulations
032000 -- Natural Gas-- Transport
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& Storage
GAS UTILITIES
LEGAL ASPECTS
NATIONAL ORGANIZATIONS
NATURAL GAS DISTRIBUTION SYSTEMS
PIPELINES
PRICING REGULATIONS
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
US DOE
US FERC
US ORGANIZATIONS