Sign in Subscribe
Independent regulatory commissions

Southern Company Services, Inc. Supports Southern Natural Gas Company, LLC's Application for Certificate of Public Convenience and Necessity

Strategic Insights

— 2 min read

Southern Company Services, Inc. (SCS), as agent for Alabama Power Company, Georgia Power Company, Mississippi Power Company, and Southern Power Company, has submitted comments in support of Southern Natural Gas Company, LLC's (SNG) and Elba Express Company, L.L.C.'s (Elba) joint abbreviated application for a certificate of public convenience and necessity. The application seeks authorization for the South System Expansion 4 Project (Project), which will provide firm transportation service of 1,323,079 dekatherms per day of natural gas to markets in the Southeastern United States.

Key Takeaways:

  • The Project will enable SNG to provide incremental capacity to markets in the Southeastern United States, alleviating the strain on existing gas transportation infrastructure.
  • The Project has already secured 100% of its capacity under long-term precedent agreements, demonstrating significant market need.
  • The Companies estimate that key interstate pipelines serving the Southeast are operating near or above peak capacity, highlighting the need for the Project.
  • The Project has been designed to minimize environmental and landowner impacts, with 92% of the pipeline route co-located adjacent to existing SNG pipelines and other utility corridors.
  • The Project will not be subsidized by existing shippers, as the costs will be supported by long-term commitments from six shippers.
  • The Companies propose incremental rates designed to recover the cost of service attributable to the incremental Project facilities.
  • The Project will not have an adverse impact on existing customers, as it will provide SNG with a timely opportunity to replace certain old, inefficient, and difficult-to-maintain infrastructure.
  • The Companies stress that they are proposing no changes to their Tariffs in this proceeding or to their existing general system rates for transportation service on their existing pipeline systems.
  • The Commission is requested to issue a certificate order approving the Project by no later than July 1, 2026, to allow the Companies to achieve their planned in-service dates of November 1, 2028 (for Phase I) and November 1, 2029 (for Phase II).
  • SCS supports the Companies' assertions that the Project meets all of the requirements listed within the Commission's Policy Statement.

Statistics:

  • The Project will provide firm transportation service of 1,323,079 dekatherms per day of natural gas to markets in the Southeastern United States.
  • The Companies estimate that key interstate pipelines serving the Southeast are operating near or above peak capacity.
  • 100% of the Project's capacity has already been committed under long-term precedent agreements.
  • The Project has been designed to minimize environmental and landowner impacts, with 92% of the pipeline route co-located adjacent to existing SNG pipelines and other utility corridors.
  • The Project will not be subsidized by existing shippers, as the costs will be supported by long-term commitments from six shippers.

Sources:

  • Application for Certificate of Public Convenience and Necessity, Southern Natural Gas Company, LLC and Elba Express Company, L.L.C. (CP25-517)
  • Certification of New Interstate Natural Gas Pipeline Facilities, Statement of Policy, 88 FERC P 61,227, at p. 61,748 (1999)
  • Order Clarifying Statement of Policy, 90 FERC P 61,128 (2000)
  • Order Further Clarifying Statement of Policy, 92 FERC P 61,094 (2000)

Read more