PanEnergy Louisiana Intrastate LLC submits its Statement of Operating Conditions under PR04-5 et al.

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Texas Eastern Transmission, LP ) Docket No. RP03-542-002 MOTION FOR LEAVE TO ANSWER AND ANSWER OF TEXAS EASTERN TRANSMISSION, LP TO REQUEST FOR REHEARING UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Texas Eastern Transmission, LP ) Docket No. RP03-542-002 MOTION FOR LEAVE TO ANSWER AND ANSWER OF TEXAS EASTERN TRANSMISSION, LP TO REQUEST FOR REHEARING TABLE OF CONTENTS I. EXECUTIVE SUMMARY ............................................................................................. 2 II. BACKGROUND............................................................................................................ 3 III. ANSWER...................................................................................................................... 6 A. The Commission Is Justified In Convening A Hearing On Texas Eastern's EPC Allocation Methodology. ................................................................................................ 6 1. The Commission has not previously rejected Texas Eastern's allocation methodology. .............................................................................................................. 6 2. The matter set for hearing is narrow and clearly defined. .................................. 8 3. The Commission appropriately set this matter for hearing to compile a full record on the allocation of TIME Project EPC........................................................... 9 a. The Commission has discretion to set matters for hearing. ............................ 9 b. ConEd has failed to demonstrate why a hearing is not proper in this proceeding............................................................................................................. 10 c. ConEd's claims that Texas Eastern has failed to meet its burden of proof in this proceeding are without merit. ........................................................................ 11 B. Texas Eastern's Proposed EPC Methodology Appropriately Reflects The Significant Benefits Of This Project In Terms Of Operational Flexibility, Reliability, Integrity And Fuel Efficiencies..................................................................................... 14 1. The proposed methodology complies with the Certificate Policy Statement. .. 17 2. The proposed methodology complies with the Commission's directives in the certificate proceeding................................................................................................ 19 3. The precedent cited by ConEd is inapposite..................................................... 22 IV. CONCLUSION........................................................................................................... 23 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Texas Eastern Transmission, LP ) Docket No. RP03-542-002 MOTION FOR LEAVE TO ANSWER AND ANSWER OF TEXAS EASTERN TRANSMISSION, LP TO REQUEST FOR REHEARING Pur