ANR Pipeline Co. applied Jan. 20 with the Federal Energy Regulatory Commission’s for a Certificate of Public Convenience and Necessity authorizing the construction, ownership and operation of its Collierville Expansion Project, which will help supply gas for the Tennessee Valley Authority‘s planned Allen combined-cycle power project.
The ANR project will consist of modifications to upgrade ANR’s existing Collierville Meter Station, and installation of one new compressor station consisting of one new, approximately 4,700 horsepower (HP) turbine compressor unit and appurtenant facilities, in Shelby County near Memphis, Tennessee. Upon completion, the project will expand the delivery capability of ANR’s existing Collierville Meter Station by an additional 200,000 Dth/d, while maintaining ANR’s current certificated capacity levels.
ANR asked that the commission issue this authorization on or before Sept. 1, 2016, so that ANR can achieve its targeted in-service date of Nov. 1, 2016.
This project will enable ANR to provide the firm transportation service requested by TVA to supply its pending 1,070-MW Allen Combined Cycle Power Plant, located in Memphis. ANR will deliver the requested gas supply from its Southeast Head Station into Memphis Light, Gas and Water’s (MLGW) high-pressure local distribution system through the Collierville Meter Station for subsequent delivery to TVA’s Allen CC Project. The meter station modification and new compression will also provide shippers on the ANR system additional access to market opportunities in the greater Memphis market area served by MLGW.
ANR noted: “TVA proposes to meet a portion of existing and future electric demand by constructing and operating the Allen CC Project, a combined cycle gas-fired power plant. The proximity of the Allen CC Project to the existing ANR 501 mainlines provides a highly economical solution to provide a source of clean energy that satisfies the requirements of this critically important power generation resource. After conducting a detailed Request for Proposal process, TVA elected to contract with ANR for 200,000 Dth/d of firm transportation service under ANR’s Rate Schedule FTS-31 to provide the means necessary to deliver the required natural gas to its new combined cycle gas-fired power plant.
“The existing Collierville Meter Station was constructed pursuant to Section 157.211 of the Commission’s regulations under ANR’s blanket authority and placed into service on November 23, 2004, with an initial design capacity of 100,000 Dth/d. With this instant request, ANR proposes modifications to its existing Collierville Meter Station to increase the design capacity by an additional 200,000 Dth/d. In addition to the meter station modifications, ANR proposes to construct and install a new compressor station, which will deliver compressed gas into MLGW’s distribution system. By installing the integrated compression and modifying the meter station facility as proposed herein, ANR increases access to TVA and MLGW markets, which in turn provides additional outlets for the supply areas located along ANR’s Southeast Mainline, to the benefit of all ANR shippers. The Project does not change ANR’s certificated mainline capacity and the FTS-3 service will be provided using existing mainline capacity.”
ANR posted a notice on Aug. 5, 2015, reserving 200,000 Dth/d of unsubscribed transportation capacity for the project beginning Nov. 1, 2017. ANR and TVA subsequently entered into a Precedent Agreement dated Oct. 5, 2015, wherein TVA agreed to contract for 200,000 Dth/d of FTS-3 transportation service for a term of twenty years at a negotiated rate. ANR conducted an open season from Oct. 14, 2015, through Oct. 21, 2015, to explore the possibility of market demand beyond TVA’s Allen CC Project requirement. TVA was the sole bidder in ANR’s open season, with no other potential shipper expressing interest in the unsubscribed capacity.
Said the TVA website about the existing Allen coal plant: “Allen’s three units have a total summer net capability of 741 megawatts. … Allen’s three coal-fired units are scheduled to be retired by June 2018 and replaced with cleaner natural gas generators that will help ensure low-cost and reliable electricity for the greater Memphis area and TVA’s western service territory.”