FERC’s Decision in Natural Gas Pay Dispute Is Upheld on Appeal

The Federal Energy Regulatory Commission reasonably exercised primary jurisdiction over a natural gas transportation rate dispute and provided sufficient explanations for its ultimate decision, the D.C. Circuit said Friday.

Fairless Energy LLC, which has an electric power plant in Fairless Hills, Pa., claimed that it pays too much for natural gas transportation services provided by Transcontinental Gas Pipe Line Co. When FERC determined that the appropriate rate was the incremental one under Transco’s rate schedule, Fairless petitioned the US Court for Appeals for the D.C. Circuit for review.

The D.C. Circuit said that FERC satisfied all three prerequisite ...