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Transcontinental Gas Pipe Line Corp. v. Federal Energy Regulatory Comm'n

ELR Citation: 38 ELR 20065
Nos. No. 06-1286, (D.C. Cir., 03/07/2008)

The D.C. Circuit denied a petition challenging a Federal Energy Regulatory Commission (FERC) order directing a pipeline operator that expanded its pipeline and added compressors to carry gas shipped by several new customers to allocate the added electricity costs only to the customers for whom the expansion was undertaken. The operator presented no proof of any specific benefits to its existing customers from the expansion project. And although existing customers indirectly benefit from the added compressors, FERC’s policy decision that such benefits fail to justify imposing substantial new costs on captive customers who have no need for the added compression is not arbitrary or capricious. In addition, FERC's proposal of allocating the costs among new customers was just and reasonable.