HomeMy WebLinkAbout20140957 Ver 2_More Info Received_20170907701 East Cary Street
Richmond, VA 23219
September 7, 2017
The Honorable Neil Chatterjee
The Honorable Cheryl A. LaFleur
The Honorable Robert F. Powelson
Federal Energy Regulatory Commission
888 First Street, NE
Washington, DC 20402
Re: Docket No. CP15-554-000 — Atlantic Coast Pipeline
Dear Chairman Chatterjee, Commissioner LaFleur and Commissioner Powelson:
,ripel..
As partners responsible for executing and delivering expanded supplies of natural gas through the
proposed 600 -mile Atlantic Coast Pipeline (ACP), we respectfully request that the Federal Energy
Regulatory Commission (FERC) issue an order granting the Certificate for the project at the earliest
possible time, consistent with the rules and regulations of the Commission.
The Commission Staff issued the Final Environmental Impact Statement (EIS) for the project July 21,
2017. In the EIS, FERC staff concluded that the majority of impacts would be reduced to less -than -
significant levels with the implementation of ACP's proposed mitigation and the additional measures
recommended in the EIS. We are pleased by the favorable findings in the EIS and have every confidence
that the Staff recommended conditions can be incorporated into our construction framework. Further,
activities by other federal agencies including the US Forest Service, US Fish and Wildlife Service, Army
Corps of Engineers and the National Park Service for permits and related authorizations remain on
schedule. Similarly, State actions for section 401 Water Quality Certifications and other state
requirements are proceeding and align with our anticipated construction schedule to begin tree clearing
in November 2017.
ACP will deliver 1.5 MMDt/day and has commitments for 93 percent of the pipeline capacity. Of this
amount, 68 percent of the supplies will serve the electric generation needs in North Carolina and
Virginia, thereby improving regional air quality. In addition, 24 percent of ACP's capacity will provide
expanded supplies of natural gas for local gas utilities to meet the critical needs of residential,
commercial and industrial customers in gas constrained areas. Virginia Natural Gas, a gas distribution
subsidiary of Southern Company Gas serving nearly 300,000 customers in Eastern Virginia, best
exemplifies the urgency with this statement on the FERC docket:
"There is not currently enough interstate pipeline capacity to serve any substantial economic
development east of Richmond, Virginia, and often throughout the heating season, large transportation
customers are adversely impacted by having their natural gas use restricted by operational flow orders
issued from existing interstate pipelines." (VNG, April, 2015)
Piedmont Natural Gas of North Carolina has documented similar critical needs:
"Increasing demand for natural gas in Piedmont's rapidly growing Carolinas market is the
primary driver for the Atlantic Coast Pipeline, which is the most competitively -priced option for our
The Honorable Neil Chatterjee
The Honorable Cheryl A. La Fleur
The Honorable Robert F. Powelson
Page Two
customers. Not only will ACP deliver the needed additional supplies to support customer growth, but it
also will provide operational pressure critical to Piedmont's physical infrastructures at strategic locations
on its pipeline system. The significant natural gas pipeline also will create much needed economic
development opportunities through a portion of North Carolina that historically has been economically
challenged."
The established record about the project confirms that natural gas delivered by ACP will enhance energy
security and fuel diversity for the region. The associated economic benefits are well documented as the
project will bring over 17,000 new jobs in the construction industry, $377 million in annual energy cost
savings for customers and $28 million in new, annual tax revenues for local governments along the
pipeline route. These are only a few of the project's benefits. Since ACP formally filed with FERC in
September, 2015 for permission to build the project, it has gained an expansive record of support from
state and local governments, skilled craft labor organizations and leading business groups.
We recognize the Commission has a number of cases pending consideration with the restoration of
quorum. The Commission's timely issuance of the order for the ACP project, however, is essential to
meeting our contract obligations, ensuring customers realize the energy savings, providing
manufacturing access to needed supplies of natural gas, and offering enhanced energy security and
reliability to the region. For these reasons, we respectfully request that the Commission issue an order
approving the ACP certificate in September, so that the initial construction activities and tree clearing
can begin in November and conclude in early 2018 as described in the Final EIS.
Thank you for your attention to and consideration of this request.
Respectfully,
Andrew W. Evans
President & CEO
Southern Company Gas
Cc: Ms. Kimberly Bose, Secretary
Diane Leopold
Franklin H. Yoho
President & CEO
Executive Vice President & President
Gas Infrastructure Group
Natural Gas
Dominion Energy
Duke Energy
Andrew W. Evans
President & CEO
Southern Company Gas
Cc: Ms. Kimberly Bose, Secretary