Notice2026-19816
Bay Gas Storage Company, LLC; Notice of Staff Protest
Primary source
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Published
September 29, 2026
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
Full Text
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<title>Federal Register, Volume 91 Issue 187 (Tuesday, September 29, 2026)</title>
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[Federal Register Volume 91, Number 187 (Tuesday, September 29, 2026)]
[Notices]
[Pages 61390-61391]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19816]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. PR26-75-000]
Bay Gas Storage Company, LLC; Notice of Staff Protest
1. Commission staff hereby protests, pursuant to section
284.123(g)(4)(i) of the Commission's regulations,\1\ the rate petition
made by Bay Gas Storage Company, LLC (Bay Gas) on July 30,
[[Page 61391]]
2026, in the above referenced docket. Pursuant to sections
284.123(b)(2) and 284.123(g) of the Commission's regulations, Bay Gas
filed a rate petition to revise rates for firm and interruptible
interstate transportation services provided under section 311 of the
Natural Gas Policy Act of 1978. Bay Gas states that the instant rate
petition complies with its commitment to file a petition for rate
approval on or before July 30, 2026, as stipulated in an amendment
filing in Docket No. PR21-58-000. Bay Gas also states that in
compliance with an agreement with Commission staff in Docket No. PR21-
58-000, it has incorporated Original Cost of plant into the cost of
service for its proposed rates. Bay Gas argues that it qualifies for an
exemption to the Commission's straight-fixed variable (SFV) rate design
policy due to its long-standing rate design that was the result of a
settlement in March 1999 which has been carried forward since without
change.
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\1\ 18 CFR 284.123(g)(4)(i) (2025).
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2. Commission staff is concerned that Bay Gas has not adequately
demonstrated that the proposed firm and interruptible transportation
rates are fair and equitable and comply with the underlying principles
of SFV rate design. For instance, Bay Gas' proposed rate design does
not properly account for variable costs. Bay Gas utilizes a 3400
horsepower Salco compressor station situated between its Whistler Spur
Facilities and Mainline Facilities and has various measuring and
regulating station equipment throughout its system. Operating these
types of plant usually incurs variable costs. However, Bay Gas'
proposed transportation rates do not have a usage or commodity charge,
and propose a minimum rate of zero. In particular, Commission staff
questions the allocation of Total Transmission plant costs for
Compressor Station Equipment in Schedule 5 and the lack of compressor
station expenses under Transmission Expenses in Schedule 8. Without
properly understanding the impact of variable costs on its transmission
system, we are unable to determine whether the proposed section 311
transportation rates are fair and equitable.
(Authority: 18 CFR 2.1)
Dated: September 23, 2026.
Debbie-Anne A. Reese,
Secretary.
[FR Doc. 2026-19816 Filed 9-28-26; 8:45 am]
BILLING CODE 6717-01-P
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</html>Indexed from Federal Register on September 29, 2026.
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