Tennessee Settlement with New England LDCs Works Around Limitations of FERC's Right-of-First-Refusal Rules

摘要

On 11/30/09 a letter order issued by FERC approved a settlement filed on October 9 by Tennessee Gas Pipeline Co. (RP10-59) and various non-conforming service agreements with respect to customer members of the New England LDCs, i.e. the local distribution companies, including Bay State Gas Co., Connecticut Natural Gas Corp., (CNG), NStar Gas Co., Northern Utilities. Inc., and The Southern Connecticut Gas Co. The terms of the settlement provide for various extensions of and revisions to firm natural gas transportation Rate Schedule FT-A service agreements. Under the settlement, shippers with negotiated rate agreements that were the result of Rate Schedule NET and NET-284 conversions have been given the option to extend their agreements at a fixed negotiated rate, in lieu of a contractual or regulatory right-of-first-refusal (ROFR). In the event NET-284 is later rolled into Rate Schedule FT-A, eligible shippers' rates will change from the fixed negotiated rate to the maximum FT-A rates and be eligible for a ROFR. The Commission accepted and approved the settlement, service agreements, and a proposed tariff sheet setting out the non-conforming arrangements, to be effective 12/1/09.