WESTERN TENNESSEE MUNICIPAL GROUP, PLUS TENNESSEE AND KENTUCKY CITIES, REQUEST REHEARING OF TEXAS GAS TRANSMISSION'S TARIFF DEALING WITH DISCOUNT ADJUSTMENTS AND NEGOTIATED RATES

摘要

On 8/12/11, the Western Tennessee Municipal Group, the Jackson Energy Authority, City of Jackson, Tennessee, and the Kentucky Cities (together, Cities) requested rehearing of FERC's 7/13/11 order involving a Texas Gas Transmission LLC (RP11-1999) tariff addressing the circumstances in which pipelines should be permitted to adjust their rate design volumes based on negotiated rate transactions. The issues Cities raise on rehearing are common to all interstate pipelines, the Cities argued. Cities would prefer not to litigate with Texas Gas in this pipeline-specific proceeding but advocated an industry-wide policy debate. Cities argued that the Commission failed to explain its departure from precedent that strictly limits the situations in which a pipeline may seek discount adjustments for negotiated rates. They also said FERC improperly shifted the burden of proof to customers when permitting Texas Gas to decide whether to keep revenues from negotiated rate agreements in excess of the recourse rate. The decision to give Texas Gas a unilateral right to seek adjustments to recourse rates based on negotiated rate agreements fails to give appropriate weight to the interest of customers.