โ Scribed by Grenier, Edward J.
No coin nor oath required. For personal study only.
A Commission (FERC) is still deliberating about most of the issues raised in its major notice of proposed rule-making (NOPR) and notice of inquiry (NOI) (Docket Nos. RM98-10-000 and RM98-12-000), the commission has begun to make some decisions. Among the most important so far is its new policy about pipeline certificates1 To say the least, the commission has made a significant policy shift in the way it intends to deal with pipeline certificate applications.
By 1995, pipelines were expressing increasing frustration and dissatisfaction with the commission's way of handling pricing decisions in certificate matters. Specifically, the commission did not determine whether the costs of a pipeline project would be recovered through incremental or rolled-in rates until the pipeline's next general Section 4 rate case. According to the pipelines, this greatly complicated the marketing of new capacity: Customers for the new capacity would not know up front what rates they would be charged for the long term.
In response to the pipelines' concerns, the commission adopted a Policy Statement addressing pricing policy for new facilities in Docket No. PL94-4-000.2 There, the commission indicated that it would apply a presumption in favor of rolled-in rates. Specifically, the costs of the new facilities would be rolled in with those of the existing facilities if two Edward J. Grenier Jr. is a partner in the Washington, DC law firm of Sutherland, Asbill & Brennan. He is also general counsel of the Process Gas Consumers Group.
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