FERC approved a ANR Pipeline Co. natural gas transportation project thatwill help deliver gas to a Tennessee Valley Authority power plant.
A Sept. 22 FERC order granted authorization for theCollierville expansion project, which will provide the 1,070-MW combined-cyclepower generation project in Memphis, Tenn., with firm gas transportationservice.
FERC denied ANR's request for a predetermination forrolled-in rate treatment because revenues for the first three years will beless than the costs of the estimated $36.8 million project.
"To receive a predetermination favoring rolled-in ratetreatment … a pipeline must show that the revenues to be generated by anexpansion project will exceed the costs of the project," the order said.
ANR applied to build the project on Jan. 20. In addition tosupplying the power plant, the project will let Memphis-area customers get gasfrom multiple supply basins and will give shippers and upstream suppliersaccess to more markets.
In the project, ANR will modify its Collierville meterstation in Shelby County, Tenn., and construct a 4,700-horsepowercompressor station nearby. The project will increase delivery capacity of themeter station by 200,000 Dth/d to 300,000 Dth/d, which will allow ANR totransport 200,000 Dth/d on a firm basis from Louisiana to the distribution system. Memphis Light will then move the gas to TVA for deliveryto the Allen project. ANR and TVA entered into a binding precedent agreementfor a 20-year term for all of the service provided by the project.
FERC's order mandated that the project must be completed andready to be placed into service by Sept. 22, 2018.
ANR is a subsidiary of TransCanada Corp.. (CP16-64)