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FERC Natural Gas Pipeline Cost Orders Challenged by Utilities

Bloomberg Law News · last updated

The Federal Energy Regulatory Commission was wrong to grant a pipeline company its requested method for allocating costs for its project, an association of municipal utilities alleged.

The commission’s previous records “strongly indicated that FERC’s initial grant of rolled-in rate treatment had been prematurely and improvidently granted,” the East Tennessee Group said in its brief filed Monday with the US Court of Appeals for the D.C. Circuit.

The group includes utilities in Tennessee, Virginia, and Alabama—some of which also serve as shippers on the natural gas pipeline system.

The association is challenging FERC’s approval of East …

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