Dc Circuit Calls On Ferc To Justify Decision In Contract Case Involving Williston Basin, Nsp

摘要

A federal appellate court last week demanded a better explanation from FERC of a 2005 decision that allowed a customer to change the nature of its service agreement with Williston Basin Interstate Pipeline.rnThe case involves two contracts under which Williston Basin provides gas transportation service in North Dakota to Northern States Power. In the course of a rate proceeding initiated by Williston Basin, FERC declared that the individually certificated service of one of the contracts, conducted under part 157 of the commission's regulations, should be converted to part 284 open-access service.rnAmong other things, part 284 service allows a customer to release to a third party capacity it does not need and enjoy the revenue paid by the replacement shipper, either directly or as a credit to the pipeline's charges.