Request for Rehearing of ANR Storage Company of the October 15, 2015 Order under RP12-479.

Public Version UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ) ANR Storage Company ) Docket No. RP12-479-000 ) REQUESTOFANRSTORAGECOMPANY FOR REHEARING David R. Hammel Mark F. Sundback Senior Legal Counsel Kenneth L. Wiseman U.S. Pipelines Central William M. Rappolt 717 Texas Street Andrews Kurth LLP Houston, Texas 77002 1350 I Street, NW Suite 1100 Washington, DC 20005 ATTORNEYSFORANRSTORAGECOMPANY November 13,2015 WAS:275673.1 Public Version TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1 II. STATEMENT OF ISSUES AND SPECIFICATIONS OF ERROR ................................. 4 A. Statement of Issues ................................................................................................. 4 B. Specifications of Error .......................................................................................... 12 III. DISCUSSION ................................................................................................................... 14 A. Op. No. 538's Market Metrics Calculations Were Incorrect and Failed to Reflect the Most Updated Data in the Record ...................................................... 14 B. ANR Storage's Status as an Incumbent Storage Provider Does Not Trump Its Relatively Low 14.83 and 15.81 Percent Market Shares and Does Not Require ANR Storage to Show it Lacks Market Power Beyond the Commission's Traditional Market Share and HHI Analyses ............................... 16 1. The Commission Has Found In Prior Proceedings That a Market Share, at the Same Level As Op. No. 538 Attributes To ANR Storage, is "Relatively Small" .................................................................. 16 2. Asserting That ANR Storage is the Largest Storage Provider in the Relevant Market Ignores the Market Share for Daily Deliverability and is Duplicative of the Market Metrics (i.e., Considering Market Share and HHI Levels) the Commission Traditionally Relies Upon ........ 24 C. Op. No. 538 Erred In Creating a New Requirement-- That the Applicant Show It Lacks Significant Market Power Based Upon The Number of Good Alternatives Included in The Commission's Analysis That Were State-Regulated or That Would Require Capacity Release -- and Finding ANR Storage Had Not Satisfied It ........................................................................ 27 1. The Commission Has Used State-Regulated Storage in Calculating An Applicant's Market Share Without Considering Whether There was a Substantial Amount of Such Storage .............................................. 28 2. The Commission Erred By Failing to Account for How State Regulated Storage Capacity Affects Demand and Prices for Federally-Regulated Storage ..................................................................... 31 3. The Commission Erred By Failing to Consider Circumstances Related to Michigan State-Regulated Storage Capacity and Canadian