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June 07, 2010 --- Vol. 16, No. 50June 2010

FERC approves Denali open season plan

The Federal Energy Regulatory Commission issued an order today approving, with modifications, the open season plan proposed by Denali--The Alaska Gas Pipeline LLC’s open season plan.

Responding to comments it received on the proposed plan from BP Exploration (Alaska) Inc., ConocoPhillips Alaska Inc. and ConocoPhillips Co., ExxonMobil Gas & Power Marketing Co. and the State of Alaska, FERC referred to its finding on the open season plan filed by TransCanada and said an open season review determines “whether potential bidders will be treated in a non-discriminatory manner” and whether the proposed plan conforms to the commission’s open season regulations “regarding transparency and non-discrimination.”

FERC said it agreed “with Denali that many of the issues raised by the commenters deal with rate and tariff matters that either we will address in the future or may be resolved through negotiations between Denali and prospective shippers.”

Among issues where the commission required changes, it told Denali to “more clearly delineate in its open season notice the procedures it will follow for notifying bidders of any reduction in their maximum daily quantity allotment and also to explicitly provide bidders the opportunity to decline any reduced award of capacity.”

FERC also directed Denali “to include a process for notifying bidders of any design reconfiguration that results in a material change in transportation rates or capacity allotment” and provide bidders an opportunity to modify or withdraw bids if changes in capacity allotment or rates occur due to a system reconfiguration.

The State of Alaska objected to Denali’s requirement that the only entities given access to Denali’s shipper reader room are potential shippers. FERC sided with Denali, and said provisions similar to those granting access in the Trans-Alaska Pipeline System proceedings would be appropriate.

Editor’s note: See story in the June 13 issue, available online to subscribers at noon Alaska time Friday, June 11.

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