FERC DEFERS ACTION ON IROQUOIS PROJECT

The Federal Energy Regulatory Commission has deferred a full regulatory decision on the proposed Iroquois Gas Transmission System until late November. Yielding to public criticism, FERC ordered an "expedited and narrowly focused" hearing on U.S. market demand and pipeline rate issues. The Iroquois application was approved on all other matters.

July 30, 1990

2 min read

The Federal Energy Regulatory Commission has deferred a full regulatory decision on the proposed Iroquois Gas Transmission System until late November.

Yielding to public criticism, FERC ordered an "expedited and narrowly focused" hearing on U.S. market demand and pipeline rate issues. The Iroquois application was approved on all other matters.

Iroquois is a $582.6 million pipeline project to move 575.9 MMcfd of western Canadian gas from Waddington, N.Y., through Connecticut to South Commack, N.Y., on Long Island. About 80% of the gas would go to distribution companies in Connecticut, Massachusetts, New York, New Hampshire, New Jersey, and Rhode Island and the rest to power plants.

The project has TransCanada PipeLines Ltd. as its major owner with a 29% interest.

U.S. producers, northeastern U.S. fuel oil dealers, and local landowners oppose the pipeline.

FERC commissioners voted 3-1, with Commissioner Elizabeth Moler dissenting, to hold a "policy hearing" rather than give Iroquois full approval. Moler argued such an action is contrary to the U.S.Canada Free Trade Agreement.

Robert Reid, Iroquois president, said the pipeline can adjust to approval in November.

He said the project probably will not be completed by the November 1991 target date because of delay in right-of-way acquisitions. But the line could go on stream in the 1991-92 winter season.

Reid said the delay should not affect its arrangements for Alberta gas. Canadian producers will accept a "limited extension."