FR 2025-00833

Summary

In this Federal Register notice, the Transwestern Pipeline Company has submitted an application to the Federal Energy Regulatory Commission (FERC) for a project that proposes the construction of a new compressor station in Chaves County, New Mexico. This project, known as the WT-0 Compressor Station Project, aims to enhance natural gas transportation capacity. With an estimated budget exceeding $51 million, this project seeks to address energy transportation needs in the region. Public participation is invited, with a deadline of January 29, 2025, for submitting comments, protests, or a motion to intervene.

Significant Issues and Concerns

Several issues arise from the document. Firstly, the terms of the negotiated rate for the project are not specified, leaving some ambiguity about how cost recovery will be handled. Understanding these financial terms is crucial for stakeholders assessing the project's feasibility.

Moreover, the project’s budget of $51,990,551 lacks a detailed cost breakdown. This absence may hinder the public and other stakeholders from evaluating whether the proposed budget is justified or excessive. Transparency in the financial aspects of such projects is essential for maintaining trust and ensuring economic efficiency.

Additionally, the document does not explore alternative options or solutions, which could suggest to some that the current proposal places undue advantage on specific parties, potentially those with direct or indirect interests in this project.

The procedural language used to describe ways to intervene or submit protests can be seen as complex and intimidating for the general public, potentially discouraging wider public participation. References to Code of Federal Regulations (CFR) sections further complicate understanding for individuals who are not familiar with those regulatory frameworks.

Broad Public Impact

The document and the proposed project have the potential to significantly impact both the local and broader public. On a positive note, increasing natural gas transportation capacity can lead to improved energy supply stability, potentially leading to economic benefits such as reduced energy prices and enhanced support for industries reliant on natural gas.

However, community concerns may arise regarding environmental impacts, disruption due to construction, and safety. Ensuring a robust and open process for input is vital to address and mitigate these concerns.

Impact on Specific Stakeholders

Local Residents and Committees: Residents in Chaves County and surrounding areas may experience both disruptions during construction and potential long-term changes depending on the environmental ramifications of increased natural gas throughput. They are significant stakeholders whose concerns must be taken into account and actively addressed throughout the decision-making process.

Environmental and Energy Advocacy Groups: These groups may raise concerns regarding the environmental assessment and long-term implications of infrastructure projects that support fossil fuel use. They are likely to advocate for thorough environmental reviews and promote discussions around more sustainable energy alternatives.

Energy Sector and Businesses: For businesses, specifically those involved in energy supply and transportation, the project presents an opportunity to increase capacity and improve service reliability, potentially benefiting from economic growth opportunities and improved infrastructure.

Regulatory Bodies and Policy Makers: Ensuring compliance with environmental and regulatory standards while supporting energy infrastructure development presents a complex challenge. Feedback from diverse stakeholders will help policymakers balance economic growth with sustainability and public interest considerations.

Overall, while the project holds promise for advancing regional energy infrastructure, the concerns and procedural complexities outlined need careful address to ensure that the resultant decisions reflect both public interest and sustainable development principles.

The document under review concerns an application by Transwestern Pipeline Company, LLC for the construction of the WT-0 Compressor Station Project. This project is detailed with a financial estimate and a proposed method of cost recovery, which raises several issues that need attention.

Financial Overview

The project's estimated cost is $51,990,551. This figure pertains to the entire undertaking of constructing the new compressor station, which includes installing a natural gas turbine-driven compressor unit in Chaves County, New Mexico. The financial aspect also involves a proposal for a negotiated rate under Rate Schedule FTS-1, which is intended for recovering the costs incurred through service provision.

Lack of Financial Detail

A notable issue with the financial reporting in the document is the absence of a detailed breakdown of the $51,990,551 estimated cost. Without itemization, stakeholders cannot effectively gauge whether the budget allocations are justified or identify potential areas of over-expenditure. Such information would be crucial for understanding how funds will be utilized and could address concerns about fiscal responsibility and transparency.

Ambiguity in Negotiated Rates

The mention of a "negotiated rate with service provided under Rate Schedule FTS-1" introduces uncertainty regarding how the project intends to recoup its costs. The document does not specify the terms or structure of these negotiated rates. This lack of clarity can lead to complications in understanding the financial implications for end-users and the broader economic impacts.

Regulatory Complexity

Additionally, the document's references to procedural and regulatory sections of the Code of Federal Regulations (CFR) are steeped in formal language that may not be easily comprehensible to the general public. For individuals interested in understanding or potentially contesting the financial aspects of the project, this poses a barrier to effective participation in the regulatory process.

Conclusion

In summary, while the document provides a high-level financial overview of the WT-0 Compressor Station Project, it lacks transparency and detailed explanation in several key areas. The absence of a detailed financial breakdown and the ambiguity regarding negotiated rate terms are primary issues that could benefit from further clarification to ensure informed participation from all stakeholders.