Allowance for Funds Used During Construction INGAA Motion to Interevene and Request for Rehearing 9-28-09


INGAA seeks rehearing of the Commission’s order of August 27, 2009, in Southern Natural Gas Co., et al., 128 FERC ¶ 61,198 (“Order Granting Abandonment Authority and Issuing Certificates”) and its order of September 4, 2009 in Ruby Pipeline, LLC, 128 FERC ¶ 61,224 (“Preliminary Determination On Non-Environmental Issues”).  

INGAA aruges that, pursuant to Rule 713(a)(1)), the Commission erred in denying Southern Natural Gas Company’s and Ruby Pipeline’s proposals to recover an allowance for funds used during construction (“AFUDC”) insofar as those funds accrued prior to the date of their certificate applications. See Southern, 128 FERC 61,198 at PP 40-45; Ruby Pipeline, 128 FERC ¶ 61,224 at PP 85-92.  INGAA argues that the Commission’s orders do not meet the standards of reasoned decision making under the Administrative Procedure Act (APA), 5 U.S.C. § 706(2), and pertinent judicial precedent. See, e.g., Motor Vehicle Mfrs. Ass’n of U.S. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 (1983).

INGAA requests that the Commission grant rehearing and reverse its orders denying Southern and Ruby Pipeline recovery through the AFUDC mechanism of funds spent in connection with their projects prior to the date of their certificate applications.