The Federal Energy Regulatory Commission (FERC) has issued a certificate allowing Steuben Gas Storage Co. (SGS) to construct and operate an underground natural gas storage field, the Thomas Corners Field.
In a preliminary finding that SGS lacked market power, the FERC authorized the company to charge market-based rates, subject to reexamination (Docket Nos. CP95-119-000 et al.). But SGS argued that the provision requiring reexamination should be removed because it created regulatory uncertainty that adversely affected its ability to market storage services and finance the project.
The FERC disagreed, noting that although the storage facility will be directly interconnected only to CNG Transmission Corp.'s system, SGS is affiliated through ownership with ANR Pipeline Co., and lies close to Tennessee Gas Pipe Line Co.'s 24-inch diameter interstate pipeline. The FERC said it would reexamine SGS's market power and ability to charge market-based rates, should ANR, its affiliate Coastal Corp., or any other affiliate of either ANR or Coastal enter the New York/Pennsylvania storage market or acquire interest in a transportation facility connected to Steuben, or should SGS connect its storage system to Tennessee's transmission system or other interstate pipeline.