FERC Affirms El Paso’s Right to Apply ROFR Terms of its Existing Tariff Without Prior Rate Protections After Existing Agreements With Texas Gas and UNS Expire

摘要

On 7/2/13 FERC granted a declaratory order request lodged by El Paso Natural Gas Co. LLC (RP13-787) on April 5 that was aimed at resolving a dispute with shippers over application of the right-of-first-refusal (ROFR) obligations in its tariff and related contracts to certain settlement rates expiring 8/31/13. El Paso had asked for clarification whether it is required to continue to provide service to shippers UNS Gas Inc. (UNS) and Texas Gas Service Co., a Division of ONEOK, Inc. (Texas Gas), at settlement rates when the current service agreements expire, or whether Texas Gas and UNS (and any other bidders) will bid for the capacity at rates up to the maximum recourse rate under ROFR provisions in El Paso’s tariff.