Iroquois Gas Transmission System Submits Revised Tariff Sheet to Federal Energy Regulatory Commission

Strategic Insights -

Iroquois Gas Transmission System, L.P. has submitted a document to the Federal Energy Regulatory Commission (FERC) detailing a revised tariff sheet for its negotiated rate agreement with Freepoint Commodities LLC. The revised sheet reflects a negotiated rate for Iroquois' transportation services, with a proposed effective date of November 1, 2025. This filing includes a 30-day notice requirement waiver request to expedite the process.

Key Takeaways:

  • The revised tariff sheet reflects a negotiated rate agreement between Iroquois and Freepoint Commodities LLC for Iroquois' transportation services, with a proposed effective date of November 1, 2025.
  • The tariff sheet includes a formula rate for the Daily Demand Charge, which can be readily calculated using the values specified in the contract.
  • Iroquois has confirmed it will file a revised negotiated rate tariff sheet within one day after it and the RTS Shipper agree to an actual, fixed Daily Demand Charge different from the formula rate.
  • Iroquois has requested a waiver of the 30-day notice requirement to allow the attached subject tariff records to take effect as of November 1, 2025.
  • The Commission's rules permit pipelines to submit negotiated rates in the form of a tariff sheet reflecting the terms of the agreement in cases where the negotiated rate service agreement conforms to the form of service agreement in all material respects.
  • The Daily RTS Rate agreed to by the parties will be specified in place of the formula rate on the affected negotiated rate tariff sheet.

Statistics:

  • The revised tariff sheet has a proposed effective date of November 1, 2025.
  • The Daily Demand Charge is a formula rate calculated using the values specified in the contract.
  • Iroquois will file a revised negotiated rate tariff sheet within one day after it and the RTS Shipper agree to an actual, fixed Daily Demand Charge different from the formula rate.
  • The Commission has issued 74 FERC P 61,076 (1996) on Natural Gas Pipeline Negotiated Rate Policies and Practices, and 104 FERC P 61,134 at P 32 and n.28 (2003) on the Commission's rules for pipeline negotiated rates.

Sources:

  • 18 C.F.R. Part 154 (Federal Energy Regulatory Commission regulations)
  • 18 C.F.R. § 154.7 (Section 154.7 of the Commission's regulations)
  • 18 C.F.R. § 154.201(a) (Section 154.201(a) of the regulations)
  • Iroquois Gas Transmission System, L.P., 81 FERC P 61,190 (1997)
  • Natural Gas Pipeline Negotiated Rate Policies and Practices, 104 FERC P 61,134 at P 32 and n.28 (2003)
  • Alliance Pipeline L.P., 122 FERC P 61,250 at P 10 (2008)
  • Columbia Gulf Transmission Company, 101 FERC P 61,039 (2002)
  • Iroquois Pipeline Operating Company, Docket No. RP13-158-000, Letter Order, Nov. 8, 2012
  • https://elibrary.ferc.gov (link to the complete document)