§720c Pipeline Expansion

Summary

The Commission can order an Alaska natural gas pipeline project to expand if one or more people ask and, after notice and a hearing, the Commission finds the expansion is needed for the public now and in the future. Before ordering expansion, the Commission must do eight things, including set rates that recover the expansion costs (with a fair return), prevent existing shippers from subsidizing new shippers, require the expansion to follow the project’s current tariff (rules and prices), make sure the new facilities won’t hurt the project’s finances or operations or cut into existing shippers’ contract rights, finish environmental reviews, and confirm there will be downstream capacity to deliver the extra gas. Any expansion order is void unless the requester signs a firm transportation agreement within the time the order sets. Nothing here changes the Commission’s authority over pipelines outside Alaska. The Commission may make rules needed to carry out these requirements.