A District of Columbia appeals court has upheld the Federal Energy Regulatory Commission's approval of a bypass agreement involving Williams Natural Gas Co. and Atlas Power Co.
In 1987, Atlas built a pipeline connecting its Kansas nitrogen and explosives plants, the former served by Williams and the latter by Kansas Power & Light Co., with gas from Williams. Atlas then stopped using the KPL line.
KPL sued, saying FERC had abandoned its policy of using local distribution companies (LDCs) to serve end users. But the court said FERC was right in relying on competition to serve the public interest.
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