Fifth Circuit Upholds FERC's Denial of Rolled-In Rate Predetermination for Interstate Pipeline Expansion

Gas Transmission Northwest challenged FERC's denial of a predetermination that rolled-in rates would apply to its pipeline expansion project, while Washington, Oregon, and environmental groups contested FERC's certificate approval under NEPA and the Natural Gas Act. The Fifth Circuit rejected all challenges, holding that FERC reasonably applied its longstanding depreciation-rate policy to set initial rates and properly declined to consider compressor replacements as part of the expansion project subject to environmental review.