Shippers Challenge Basis of Settlement Between Tennessee and Kinetica Energy Express; Kinetica Challenges Parts of FERC Ruling on Rates and Service To Be Provided on Facilities Abandoned by Tennessee

摘要

Indicated Shippers1, seeking rehearing, urged FERC to reject the settlement that underpins the deal on abandonment and jurisdiction negotiated between Tennessee Gas Pipeline Co. LLC (CP12-490, RP12- 887)) and Kinetica Energy Express LLC (CP12-489) and approved subject to conditions on May 31.2 Indicated Shippers alleged the Commission’s approval of the settlement contravenes the Natural Gas Act (NGA), the objectives underlying the Commission’s settlement policy, and prior orders. Indicated Shippers insisted they do not oppose policies that encourage settlements. However, the spin-off settlement, they argued, differs materially from the settlements approved in the orders relied upon by the May 31 order, and adversely affects shippers and other stakeholders that were excluded from the negotiations, but provides them with no forum to protect their interests. On rehearing, the Commission must reject or revise the settlement.