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Appellate Court Orders FERC to Clarify Decision in LNG Case

In a ruling issued Friday, the U.S. Court of Appeals for the District of Columbia Circuit ordered FERC to explain why it declined to award restitution to Virginia Natural Gas for an alleged financial loss stemming from a breach of contract by Columbia Ga
May 15, 2006

In a ruling issued Friday, the U.S. Court of Appeals for the District of Columbia Circuit ordered FERC to explain why it declined to award restitution to Virginia Natural Gas for an alleged financial loss stemming from a breach of contract by Columbia Gas Transmission Corp. in 2003. This case arose out of a complaint filed at FERC by VNG that Columbia failed to fully honor its service agreement with VNG to deliver regasified LNG as a result of Columbia’s LNG facility malfunctioning on Feb. 19, 2003. In its earlier order, FERC stated that it is up to a court of law to determine financial compensation in breach of contract cases. Further coverage is in SNL Financial.

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