In a development on November 16, 2023 pertinent to stakeholders in the energy and LNG industry, the Federal Energy Regulatory Commission (FERC) granted Dominion Energy Virginia, also known as Virginia Electric and Power Company’s petition. Dominion’s request centered on FERC declaring that its planned liquefied natural gas (LNG) production, storage, and regasification facility in Greensville County, Virginia – termed the “Back-up Fuel Project” – would remain exempt from the Commission’s jurisdiction under section 7 of the Natural Gas Act (NGA).
According to the decision, FERC determined that the Back-up Fuel Project materially satisfies the Hinshaw Exemption. For those unfamiliar, the Hinshaw Exemption essentially pertains to the NGA’s section 1(c), which states that the provisions of the Act shall not apply to any company engaged in or legally authorized to engage in the transportation or sale of natural gas, exclusively within a state, when such gas is delivered to customers wholly within that state. Named after Congressman Carl Hinshaw who introduced this amendment in 1953, the exemption has far-reaching implications, especially in this context.
For further details of the decision, here is the link to the original article. This development undoubtedly holds significance for Dominion along with similar entities, and casts light on broader concerns involving regulatory oversight in the energy sector. Importantly, it accentuates policy nuances of the NGA, further helping to shape the narratives surrounding exemptions and interstate energy operations.