FERC FINAL RULE PROHIBITS CERTAIN MULTI-AFFILIATE BIDDING IN NATURAL GAS CAPACITY OPEN SEASON CONTESTS THAT EMPLOY PRO RATA ALLOCATIONS IN TIE- BREAKERS

摘要

On 11/17/11 FERC issued a Final Rule (Order No. 894, RM11-15) revising its regulations (Part 284) governing interstate natural gas pipelines in order to prohibit multiple affiliates of the same entity from bidding in any open season that has a pro rata allocation fallback for the pipeline, but with a proviso that each affiliate can participate if it can give an independent business reason for submitting a bid. Each affiliate has the responsibility to ensure that it has an independent business reason for submitting a bid, not the pipeline conducting the open season.