Process Gas Consumers Group v. Federal Energy Regulatory Commission

Opinion for the Court filed by Circuit Judge WALD.

WALD, Circuit Judge:

Tennessee Gas Pipeline Company (“Tennessee”) filed a tariff revision with the Federal Energy Regulatory Commission (“FERC” or “Commission”) in 1996. The company sought to change the method it uses to allocate requests for available capacity on its natural gas pipeline, switching from “first come-first served” to “net present value,” or “NPV.” Over objections, FERC ultimately approved a twenty-year cap on bids evaluated under NPV. It also approved the use of NPV to evaluate requests from shippers to change the primary points…