Antero Wins DC Circuit Case Against FERC, TGP re High Pipe Prices

Here's a court case that slipped under our radar. Antero Resources Corporation challenged the Federal Energy Regulatory Commission's (FERC) approval of a two-tier fuel rate structure imposed by Tennessee Gas Pipeline Company (TGP) following an expansion project. Antero had contracted with TGP to secure firm transportation capacity by funding the construction of new compressor stations, which are energy-intensive and require substantial fuel to operate. The tariff approved by FERC stipulated that Antero would always be charged the highest marginal fuel rate, as if its gas were the last and most expensive to transport through the pipeline. In contrast, other shippers paid an average fuel rate, leading to Antero paying two to three times the fuel rate of other shippers on the same pipeline segment.

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