Order on petition for waiver re Gas Research Institute, Interstate Natural Gas Association of America et al under RP97-391 et al.

# 113 FERC * 61,193 UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Before Commissioners: Joseph T. Kelliher, Chairman; Nora Mead Brownell, and Suedeen G. Kelly. Gas Research Institute Docket No.RP97-391-004 Interstate Natural Gas Association of AmericaDocket No.RP06-51- 000 Viking Gas Transmission Company Docket No.RP05-676-000 Midwestern Gas Transmission Company Docket No.RP05-677-000 CenterPoint Energy - Mississippi River Docket No.RP05-681-000 Transmission Corporation ORDER ON PETITION FOR WAIVER (Issued November 21, 2005) 1. On October 7, 2005, Interstate Natural Gas Association of America (INGAA), on behalf of its natural gas pipeline company members listed below,[1] requested the Commission waive Article II, section 1.1 of Gas Research Institutes (GRI) settlement, with supporting pipelines, that obligates the pipelines to pass through certain GRI refunds. Instead of distributing refunds to pipeline customers, INGAA requests that the Commission authorize the pipelines to donate the money to certain charitable organizations.[2] Background 2. On July 1, 2005, GRI filed a "True Up and Accounting Report" to comply with the settlement approved in Gas Research Institute, 83 FERC * 61,093, order on rehg, 83 FERC * 61,331 (1998) (1998 Settlement). In that filing, GRI requested relief from its obligation under the 1998 Settlement to refund over-collected amounts to its member pipelines. Two customer groups who were parties to the Settlement, Process Gas Consumers and the Georgia Industrial Group (collectively, the Industrials), protested and urged the Commission to direct GRI to adhere to the 1998 Settlements provisions regarding GRIs refund obligation. 3. On August 23, 2005, the Commission accepted GRIs July report, but denied GRIs request for relief from its refund obligation. The Commission directed GRI to refund approximately $47,000 to 42 pipelines for further distribution to their customers, and to file a refund report with the Commission by September 29, 2005.[3] 4. Article II, section 1.1 of the 1998 Settlement provides, inter alia, that "pipelines will refund the amount received from GRI within 60 days of receipt from GRI in proportion to GRI surcharges paid by customers over the relevant period."[4] In compliance with the Commissions August 2005 Order, GRI distributed the refunds to INGAA pipeline members. INGAA submits, however, that it is administratively impractical for the pipelines to comply with the requirement to disburse the refunds to customers in proportion to the GRI surcharges actually paid. INGAA states that from the perspective of the individual pipelines, the GRI refunds are very small. INGAA points out that the largest pipeline share is $6,161.69, and that many are much lower.[5] INGAA adds that another practical problem is that the refunds are to flow ...