Ruby LLC
Ruby LLC responds that FERC Rule 2004 governs the conduct of affiliates of "transmission providers," and that PG&E's Core Gas Supply and Electric Fuels Departments are not "transmission providers" under the rule.100 Ruby LLC further responds that FERC has held that discounted rates and other favorable terms for anchor shippers such as PG&E are not unduly discriminatory. However, if FERC does find that such arrangements are unduly discriminatory, Ruby LLC believes the likely remedy will be for Ruby to make such terms available on a non-discriminatory basis to other shippers, which would have no impact on the Precedent Agreement.
We cannot conclude with certainty whether FERC will find any violations of its rules. However, we find GTN has not demonstrated any violations of FERC rules. We agree with Ruby LLC that FERC Rule 2004 governs the activities of affiliates of a transmission provider, and is not applicable to transmission customers such as PG&E's Core Gas Supply and Electric Fuels Departments that are not affiliates of the transmission provider. Moreover, as noted elsewhere in today's decision, FERC previously approved a settlement agreement that allowed PG&E's Core Gas Supply and Electric Fuels Departments to each contract for capacity on the GTN pipeline.101 This FERC-approved settlement undermines GTN's claim that FERC will find that it was improper for PG&E's Core Gas Supply and Electric Fuels Departments to contract for Ruby capacity.
We also conclude for the reasons cited by Ruby LLC that FERC policies do not automatically treat as unduly discriminatory any favorable treatment given to anchor shippers such as PG&E.102 Thus, we decline to deny PG&E's application based on GTN's argument that FERC might find the Precedent Agreement unduly discriminatory.103
100 18 C.F.R. §§ 358.2 and 358.3.
101 122 FERC 61,102 at ¶ 13 (January 7, 2008).
102 Ruby LLC Opening Brief, pp. 21 - 26, and Ruby LLC Reply Brief p. 12.
103 The fact that GTN argues the Precedent Agreement is unduly preferential to PG&E is an indirect admission by GTN that the Agreement is favorable to PG&E.
