Northern Natural Blasts FERC's Rejection of its Proposal to Resell Redfield Expansion Capacity at Market-Based Rates

摘要

Northern Natural Gas Co. (RP10-841) argues in a rehearing request that FERC's December 10 order denying it authority to resell capacity at market-based rates is a contradiction of a prior decision in 2007 which held that it could propose market-based rates for resales of Redfield Storage expansion capacity after construction is completed. Northern cited in its petition a declaratory order issued by the Commission on 11/16/06 authorizing Northern to charge market-based rates for firm storage (FDD) service resulting from an expansion of Northern's Redfield storage field. Because Northern's petition for declaratory order then had not proposed any customer protections in the event that it became necessary to re-market the Redfield expansion capacity "either after contract expiration or upon bankruptcy or another event leading to turn back of the capacity," that 2006 order had stated that Northern's market-based rate authority did not extend to subsequent sales of the capacity.