FERC REJECTS NORTHERN'S REHEAR- ING BID TO OVERTURN DENIAL OF AUTHORIZATION TO RESELL REDFIELD STORAGE CAPACITY AT MARKET-BASED RATES

摘要

On 4/28/11 FERC revisited and denied rehearing of its 12/10/10 order that rejected a proposal of Northern Natural Gas Co. (RP10-841) to resell, at market-based rates, capacity for which Northern had previously received authorization to sell only pursuant to the initial shippers' contracts subscribing to such capacity. The Commission affirmed its earlier finding that since the storage capacity at Redfield was already constructed Northern could not satisfy the threshold requirements of section 4(f) of the Natural Gas Act that the market-based rates be "necessary to encourage the construction of the storage capacity." Northern had also failed to provide any other justification under the regulations for permitting it to establish market-based rates for the resale of this capacity.