December 22, 2024
FERC Denies Bid to Block Algonquin Pipeline Expansion
FERC turned aside attempts to block Spectra Energy’s Algonquin pipeline expansion, allowing construction to continue on the 37-mile span.

By Tom Kleckner

FERC turned aside attempts to block Spectra Energy’s Algonquin pipeline expansion, allowing construction to continue on the 37-mile span, which is expected to be completed in November.

The commission rejected requests for a rehearing and a stay by eight parties, primarily impacted landowners, municipalities and environmental interests (CP14-96).

The ruling reiterated the commission’s order last March granting Algonquin Gas Transmission a certificate of public convenience and necessity for the Algonquin Incremental Market (AIM) project in New York, Connecticut, Rhode Island and Massachusetts.

The challengers complained that FERC erred in not ordering an evidentiary hearing and said it violated the Clean Water Act. They also raised questions over the staff’s National Environmental Policy Act analysis and whether the project was required “by the public convenience and necessity.” (See related story, Dueling Studies Dispute Need for More Pipelines in New England.)

Algonquin Incremental Market (AIM) Project (Source: Spectra Energy)
Algonquin Incremental Market (AIM) Project (Source: Spectra Energy)

The commission found the written record was sufficient for it to act and said a “trial-type hearing” was unnecessary. It said its March order complied with the CWA, despite objections from several applicants that the “conditioned certificate order” came before state agencies in Connecticut, Massachusetts and New York had issued their water-quality certifications.

“The commission routinely issues certificates for natural gas pipeline projects subject to the federal permitting requirements of the CWA,” FERC said. “The practical reason is that, in spite of the best efforts of those involved, it may be impossible for an applicant to obtain all approvals necessary to construct and operate a project in advance of the commission’s issuance of its certificate without unduly delaying the project.”

The commission affirmed its original finding that Algonquin demonstrated a need for the AIM project, pointing to “executed long-term firm transportation agreements” with its 10 project shippers for the expansion’s full capacity.

The AIM project will include six new compressor units and have an expected capacity of 342,000 dekatherms/day.

Spectra Energy said the Algonquin and a related Maritimes expansion were a response to the New England governors’ initiative on new energy infrastructure. It said the AIM project will provide the Northeast “with a unique opportunity to secure a cost effective, domestically produced source of energy to support its current demand, as well as its future growth.”

FERC & Federal

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