[Federal Register Volume 59, Number 147 (Tuesday, August 2, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18715]


[[Page Unknown]]

[Federal Register: August 2, 1994]


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DEPARTMENT OF ENERGY
[Docket No. RP94-327-000]

 

Florida Gas Transmission Co., Notice of Tariff Filing

July 27, 1994.
    Take notice that on July 25, 1994, Florida Gas Transmission Company 
(FGT) tendered for filing to become part of its FERC Gas Tariff, Third 
Revised Volume No. 1, the following tariff sheets:

First Revised Sheet No. 166
First Revised Sheet No. 177A
Second Revised Sheet No. 178

    In its restructuring orders, the Federal Energy Regulatory 
Commission (Commission) has indicated that capacity release programs 
should be designed so as to promote the maximum use of such programs, 
thus making the maximum amount of unused/excess capacity available to 
potential shippers. FGT states that it is filing the above tariff 
sheets to reflect certain revisions to the permanent release provisions 
of its capacity relinquishment mechanism which are necessary in order 
to continue to promote the Commission's desire to allow the maximum 
amount of participation in the capacity relinquishment program while at 
the same time not degrading FGT's standing in the financial community.
    FGT notes that in recently issued orders, the Commission has stated 
that FGT must follow an ``industry standard'' of allowing a party to 
acquire transportation service upon the tendering of a three-month 
prepayment regardless of the term of the underlying service agreement. 
Specifically, pursuant to the Commission's ``Order Granting 
Clarification'' (``May 31 Order''), FGT states that any party 
apparently may now acquire relinquished capacity on a permanent basis 
on the FGT system by providing an escrow account in an amount equal to 
the charge for only three (3) months' service. Thereafter, the 
Relinquishing Shipper would not be liable for any further obligations. 
FGT believes that an unintended result of the May 31 Order is that a 
creditworthy shipper may now permanently relinquish capacity to an 
uncreditworthy shipper. Since the creditworthy Relinquishing Shipper 
would have no further liability, FGT states that its financial standing 
would be adversely affected because FGT could only look to the 
uncreditworthy Acquiring Shipper with potentially no assets for 
payment.
    In view of the potential consequences of the May 31 Order, FGT, by 
this filing, is responding to the Commission's prior express invitation 
for FGT to propose an alternative, reasonable means to assure payment. 
The instant tariff filing proposes a reasonable alternative method to 
assure payment to FGT with very limited tariff changes. The instant 
proposal would apply only to permanent relinquishments.
    Any person desiring to be heard or to protest said filing should 
file a motion to intervene or protest with the Federal Energy 
Regulatory Commission, 825 North Capitol Street, NE., Washington, DC 
20426, in accordance with Sections 385.214 and 385.211 of the 
Commission's Rules and Regulations. All such motions or protests should 
be filed on or before August 3, 1994. Protests will be considered by 
the Commission in determining the appropriate actions to be taken, but 
will not serve to make protestants parties to the proceedings. Any 
person wishing to become a party must file a motion to intervene. 
Copies of this filing are on file with the Commission and are available 
for public inspection.
Lois D. Cashell,
Secretary.
[FR Doc. 94-18715 Filed 8-1-94; 8:45 am]
BILLING CODE 6717-01-M