TENNESSEE GAS PIPELINE CO. v. F.E.R.C.

No. 88-1166.

867 F.2d 688 (1989)

TENNESSEE GAS PIPELINE COMPANY, Petitioner, v. FEDERAL ENERGY REGULATORY COMMISSION, Respondent, Boundary Gas, Inc., Granite State Gas Transmission, Inc., Long Island Lighting Company, Brooklyn Union Gas Co., Consolidated Edison Company of New York, Inc., New Jersey Natural Gas Co., Intervenors.

United States Court of Appeals, District of Columbia Circuit.

Decided February 10, 1989.


Attorney(s) appearing for the Case

Douglas O. Waikart, with whom Harold L. Talisman, Robert H. Benna, David D. Withnell, Terence J. Collins and Ernest B. Abbott, Washington, D.C., were on the brief, for petitioner.

Margaret L. Bollinger, Houston, Tex., also entered an appearance, for petitioner.

Dwight C. Alpern, Atty., F.E.R.C., with whom Catherine C. Cook, Gen. Counsel and Jerome M. Feit, Sol., F.E.R.C., Washington, D.C., were on the brief, for respondent.

Frederick M. Lowther, Washington, D.C., entered an appearance, for intervenor Boundary Gas, Inc.

Thomas F. Brosnan and Andrea J. Ercolano, Washington, D.C., entered appearances, for intervenor Granite State Gas Transmission, Inc.

James J. Stoker, III, Mineola, N.Y., Arnold H. Quint and James F. Bowe, Jr., Washington, D.C., entered appearances, for intervenor Long Island Lighting Co.

David L. Konick, Washington, D.C., entered an appearance, for intervenor Brooklyn Union Gas Co.

William I. Harkaway, Douglas M. Canter, Washington, D.C., and Barbara M. Gunther, New York City, entered appearances, for intervenor Consolidated Edison Co. of New York.

Nicholas W. Mattia, Jr., Roseland, N.J., entered an appearance, for intervenor New Jersey Natural Gas Co.

Before EDWARDS, WILLIAMS and FRIEDMAN, Circuit Judges.


Opinion for the Court filed by Circuit Judge STEPHEN F. WILLIAMS.

STEPHEN F. WILLIAMS, Circuit Judge:

Customers of a pipeline commonly pay a "demand charge" that is set according to the number of units they are entitled to buy or ship, times some portion of the unit cost of service, and a "commodity charge" that is set according to their actual use, times a portion (typically the remainder) of the unit cost of service. The allocation of costs...

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