Peoples Gas of Pennsylvania and Affiliate Storage Company Present FERC with Unique Leasing Agreement That Raises Dual-Jurisdiction Questions with Respect to Intrastate-Interstate Storage

摘要

Peoples Natural Gas Co. LLC (CP11-6) filed at FERC on October 7 an application for a limited jurisdiction certificate authorizing the lease and operation of intrastate storage capacity "in support of interstate storage activity" at Peoples' Rager Mountain Storage Facility to Rager Mountain Storage Co. LLC (RMSC). RMSC (CP11-5) contemporaneously applied to FERC for authorization to provide interstate storage services under market-based rates subject to a Commission-approved open access tariff. RMSC will offer 4 Bcf annually of newly-available capacity to producers, marketers and other shippers in the heart of the Marcelius Shale region, and would provide access via Texas Eastern Transmission LLC to east coast markets of the U.S. The applicants told FERC there is "a clear and continuing need for market area storage in the Northeast generally, and particularly in the burgeoning production zone of the Marcelius Shale." Peoples and RMSC requested the authorizations by 2/18/11. RMSC said this date would enable it to enter into pro forma contracts for the entire 2011-2012 storage year (4/1/11-3/31/12).