ADMINISTRATIVE LAW JUDGE HARDNETT’S INITIAL DECISION GOES HARD ON EL PASO NATURAL GAS CO. ON ALL ISSUES LEFT OVER FROM FORMER RATE CASE; PIPELINE COMPANY MUST SWALLOW COSTS UNANTICIPATED IN ITS NEGOTIATION OF ARTICLE 11.2 OF THE 1996 SETTLEMENT

摘要

FERC Administrative Law Judge (ALJ) Charlotte Hardnett on 1/14/11 delivered an Initial Decision, in a document of more than 250 pages, on the remaining 2008 rate proceeding issues involving the El Paso Natural Gas Co. (EPNG) (RP08-426) system. The case has been in litigation for the past two-and-half years. The section 4 case originated on 6/30/08 when EPNG submitted revised tariff sheets and proposed to increase its base transportation rates by 25% over its previously effective rates, to institute a new service, and to change certain terms and conditions of service. The original filing included both primary tariff sheets, which continue the operation of rate caps established pursuant to Article 11.2 of the 1996 Settlement (RP95-363), and alternate tariff sheets which terminate the rate caps. EPNG also proposed short-term firm and interruptible (IT) rates capped at 250% of the related long-term recourse rate. A 2006 Settlement, which terminated on 12/31/08, established the former rates for service on the EPNG system.