Opinion ID: 394102
Heading Depth: 2
Heading Rank: 6

Heading: Illegal Preference.

Text: 86 Florida Gas is a customer located in Southern's Zone 1. Florida Gas also purchases from Southern transportation of its own gas. The Commission's order provided that Southern could charge for transportation of Florida Gas' own gas by mileage. The Commission adopted the ALJ's reasoning that there was no reason to require Florida Gas to pay for transportation by volume since with this service, it did not receive the benefits of LNG. Charging for transportation only by mileage was found to be reasonably related to the service rendered. Mississippi Valley argues that the differential in rates between Florida Gas and Zone 1 customers is an undue preference under § 4(b) of the NGA. The rate differential between transportation only and transportation of purchased gas, however, is not undue and is reasonably related to differences in services rendered. 87