FERC Suspends and Defers to Settlement Process a Proposal of Enbridge Southern Lights to Establish Rates for Diluent Pipeline Crossing into Canada

摘要

FERC has accepted but suspended the May 28 proposals of Enbridge Pipelines (Southern Lights) LLC (IS10-399) setting forth rules and establishing initial rates on its diluent1 pipeline from Manhattan, Illinois, to the International Border at Neche, North Dakota. Southern Lights asserts that the rates have been agreed to by at least one non-affiliated shipper who intends to use the service. Pursuant to the regulations, a pipeline may support its initial rates by attesting that the rates have been agreed to by at least one non-affiliated shipper who intends to use the service. However, if the rate is protested, the pipeline is required to support the rate with cost, revenue and throughput data. Given the protest of the Indicated Shippers, Southern Lights is required to provide cost justification. The Commission suspended the tariffs to be effective July 1, subject to refund and subject to Southern Lights filing cost, revenue and throughput data to support its initial rates. This order sets the initial rates for hearing and settlement judge procedures. The hearing will be held in abeyance pending the outcome of the settlement process.