US FERC issues 90-day certificate to avoid Spire pipeline disruption

The US Federal Energy Regulatory Commission Sept. 14 issued a 90-day certificate to allow Spire STL Pipeline to continue operating and avoid supply disruptions in the St. Louis region once a federal appeals court decision vacating the pipeline's certificate goes into effect.

A June 22 decision by the US Court of Appeals for the District of Columbia Circuit found the regulator failed to adequately consider arguments that STL Pipeline's sole precedent agreement to deliver gas to an affiliate, Spire Missouri, did not demonstrate a market need for the project (Environmental Defense Fund v. FERC, 20-1016).

Spire, in turn, petitioned FERC to grant temporary emergency authorization to prevent a shutdown to ensure customers can continue receiving service through the upcoming winter, while FERC considered whether pipeline was needed, on remand from the court.

The temporary relief from FERC, granted Sept. 14, does not run through the winter, but avoids a disruption while FERC considers Spire's pending emergency certificate application.

In its Sept. 14 order, the commission said: "We find that once the DC Circuit's mandate issues and until the commission can complete its assessment of the validity of these claims and determine an appropriate course of action, an emergency exists under [Natural Gas Act] section 7(c)(1)(B) insofar as the vacatur presents the potential for 'a sudden unanticipated loss of gas supply or capacity that requires an immediate restoration of interrupted service for protection of life or health or for maintenance of physical property.'"

FERC issued the temporary certificate under previously approved terms and said the permit would not allow Spire to engage in any construction or provide any new service, while the pipeline company must continue all restoration activities along its right-of-way.

Spire has warned a shutdown will force Spire Missouri, the local distribution company served by the STL Pipeline, to curtail gas service during the upcoming winter season. EDF has urged FERC to put strict limits on any temporary certificate it grants.