COURT UPHOLDS MOST ORDER 500 CHANGES

The U.S. Circuit Court of Appeals in Washington has upheld most of the Federal Energy Regulatory Commission's Order 500 revisions and the take or pay crediting mechanism in the original rule. The court upheld Orders 500 H and 500 1 and accepted FERC's explanation about why it did not use Natural Gas Act Section 5 powers to change take or pay contracts. Pipelines had argued for the latter course, but the court agreed with FERC that such an action would extend commission jurisdiction to

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