Brooklyn Union Gas Co. v. Federal Energy Regulatory Commission

TATEL, Circuit Judge.

This case presents the following question: may the Federal Energy Regulatory Commission hold a gas pipeline and its customers to a rate settlement when all parties but one agree to abrogate it? Under the circumstances of this case, we conclude that it may.

I

In the spring of 2002, two natural gas pipelines, Equitrans, L.P. and Carnegie Interstate Pipeline Co., sought FERC’s approval to merge their two companies. Fearing the merger would lead to higher shipping rates, several parties objected. To appease them, Equitrans proposed a settlement under which it would maintain…