Request for Rehearing and Clarification of FERC's Order Issued 2/28/03 of North Baja Pipeline, LLC under RP02-363-003.

200303315046 Received FERC OSEC 03/31/2003 04:09:00 PM Docket# RP02-363-005 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION North Baja Pipeline, LLC ) Docket No. RP02-363-003 REQUEST FOR REHEARING AND CLARIFICATION OF NORTH BAJA PIPELINE, LLC Pursuant to Rule 713 of the Federal Energy Regulatory Commissions (FERC or the Commission), 18 C.F.R. 385.713, North Baja Pipeline, LLC (North Baja) hereby respectfully requests rehearing and clarification of the Commissions February 28, 2003 Order Granting Rehearing and Modifying Prior Order (North Baja Order) in the above-captioned docket.1 In this proceeding, the Commission has, sua sponte, imposed credit requirements that it found to be just and reasonable for two other pipelines Tennessee Gas Pipeline Company and Northern Natural Gas Company on North Baja, without any consideration of the facts and circumstances of North Bajas system. As a result, the North Baja Order is in error. In support hereof, North Baja states as follows: I. BACKGROUND North Baja is a new pipeline, extending 79.8 miles from an interconnection with El Paso Natural Gas Company near Ehrenberg, Arizona to an interconnection with Gasoducto Bajanorte, a Mexican pipeline located at the border near Mexicali, Baja California, Mexico. North Baja is designed to serve the gas-fired electric generation needs of southern California and northern Mexico. FERC issued a preliminary 1NBP is contemporaneously making the compliance filing FERC required in its North Baja Order. Nothing contained in that compliance filing should be construed to prejudice NBPs request for rehearing herein. 200303315046 Received FERC OSEC 03/31/2003 04:09:00 PM Docket# RP02-363-005 determination on North Bajas certification application on May 18, 20012 and a final certificate order on January 16, 2002.3 As required by its certificate, North Baja submitted its initial tariff on June 6, 2002, which FERC accepted on August 9, 2002.4 North Baja requested rehearing of a limited part of the Commissions August 9th Order, unrelated to the creditworthiness provisions at issue here. In the intervening time between North Bajas rehearing request and the North Baja Order, FERC issued two orders regarding pipeline tariff proposals by other pipelines to modify creditworthiness standards to more appropriately address pipeline risk in todays challenging capital environment.5 In both instances, FERC held technical conferences to consider the specific facts facing the individual pipelines, and established credit requirements applicable to those individual pipelines, including that collateral required of non-creditworthy shippers wishing to continue receiving service or take new capacity should be limited to three months of charges, although a pipeline may require additional collateral for new ...