ExxonMobil Gas & Power and Hess Request Rehearing of FERC Order Addressing Sea Robin's Hurricane Surcharge

摘要

ExxonMobil Gas & Power Marketing Co. and Hess Corp. requested rehearing of a September 30 order in which FERC accepted and suspended the 8/31/09 tariff filing by Sea Robin Pipeline Co. LLC (RP09-995) to (1) establish a surcharge mechanism for the recovery of capital and related operation and maintenance (O&M) expenses to mitigate damage to its facilities from hurricanes, and (2) to impose an initial Hurricane Surcharge of $0.0401/dth covering costs purportedly caused by damage related to Hurricane Ike in September 2008. The Commission made its acceptance subject to refund and hearing procedures, and suspended the effectiveness of the surcharge until next March, but ExxonMobil/Hess jointly argued that acceptance of the initial proposed Hurricane Surcharge based on costs incurred prior to the effective date of the surcharge mechanism violated the filed rate doctrine and the rule against retroactive ratemaking. According to the petitioners, the Commission in fact departed from well-established precedent establishing the filed rate doctrine, the rule against retroactive ratemaking, the Commission's regulations limiting use of Periodic Rate Adjustment (PRA) filings to a single cost item, regulations barring the recovery of costs pre-dating the effectiveness of the tariff language setting forth a PRA mechanism, and Commission orders enforcing this precedent and these regulations.