FERC issues landmark pipeline service rule
This paper reports that the Federal Energy Regulatory Commission's (FERC) blueprint for restructuring the business of the interstate gas pipeline industry was made public April 8 in Order 636. This paper reports that under the new regulations, pipelines must unbundle their gas sales and transportation services and offer them separately to customers. FERC plans to issue blanket sales-for-resale certificates that allow the pipelines to sell gas at market-based rates and on the same basis as unregulated gas merchants. A blanket certificate allows a pipeline, as long as specific conditions are met, to automatically provide a service without having to submit each transaction in advance for FERC approval. Order 636 also establishes a no notice firm transportation service that pipelines providing sales service must include on the menu of options available to customers. This means a customer may demand on any given day the delivery of gas up to its full firm entitlement amount without incurring penalties, even if the customer did not arrange in advance to transport that amount of gas.
- OSTI ID:
- 5150829
- Journal Information:
- AGA Monthly (American Gas Association); (United States), Journal Name: AGA Monthly (American Gas Association); (United States) Vol. 74:6; ISSN 0002-8584; ISSN AGMOD
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
031000 -- Natural Gas-- Legislation & Regulations
032000* -- Natural Gas-- Transport
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