FERC Reaffirms Columbia Gas' Daily Delivery Point Scheduling Penalties, Denying Another Challenge by Honeywell but Adopting Some Clarification Sought by Allegheny

摘要

On 12/16/10 FERC denied a petition by Honeywell International Inc., which continues to challenge Commission orders that had conditionally accepted and suspended revised tariffs filed by Columbia Gas Transmission Corp. (RP07-340) and allowed a 3.0% tolerance level for the Critical Day in the compliance filing. Honeywell asserts that, at a minimum, Columbia Gas' tolerance level should be no lower than that approved in Panhandle Eastern Pipe Line Co. in 2001. Honeywell further asserts that the Commission has approved tolerance levels for scheduling penalties in excess of 3.0% in other cases. Honeywell also argues that the Commission's interpretation that imbalance management services required by Order No. 637 are intended to avoid imbalance penalties, not scheduling penalties, is mistaken. On rehearing, the Commission denied Honeywell's several challenges and reaffirmed its finding that Columbia Gas, by reducing the scheduling tolerance level to 3.0%, consistent with its other Critical Day penalties, has satisfied the direction in the June 2007 order. Honeywell has not demonstrated that a 5.0% scheduling penalty tolerance is just and reasonable or that a 3.0% scheduling penalty tolerance should not be adopted as just and reasonable.