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Dialog Concerning Natural Gas Transportation Policies Needed to Facilitate Development of Competitive Natural Gas Markets
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[Federal Register: August 14, 2000 (Volume 65, Number 157)]
[Notices]
[Page 49561-49562]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14au00-72]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. PL00-1-000]
Dialog Concerning Natural Gas Transportation Policies Needed to
Facilitate Development of Competitive Natural Gas Markets
August 4, 2000.
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of staff conference.
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SUMMARY: In Order No. 637 (65 FR 10156), issued on February 9, 2000,
the Federal Energy Regulatory Commission (Commission) revised its
regulatory policies, amended its regulations, and established new
procedures to enhance the competitiveness and efficiency of markets for
the transportation of natural gas in interstate commerce. As part of
the effort to achieve these goals, the Commission determined to
institute a dialog between the industry and Commission staff so that
Commission staff could achieve a better understanding of industry
trends and regulatory changes that better meet the changing character
of the industry. This notice establishes the first of several public
staff conferences that will permit an industry-wide discussion of
issues affecting natural gas transportation policies and the role such
natural gas transportation services play in energy markets in general.
DATES: The conference will take place on September 19, 2000, starting
at 9:30 a.m., Requests to participate are due by September 1, 2000.
A second and third conference will be held in January 2001, and
April 2001. The second conference will focus on affiliate issues. The
third conference will focus on the potential need for fundamental
changes to the Commission's regulatory model are needed, such as the
use of performance based rates or two-track regulatory models with
different approaches for captive and non-captive customers.
ADDRESSES: Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT: Robert A. Flanders, Office of Markets,
Tariffs and Rates, Federal Energy Regulatory Commission, 888 First
Street, NE Washington, DC 20426, (202) 208-2084.
SUPPLEMENTARY INFORMATION:
Notice of Staff Conference
Take notice that on September 19, 2000, the Staff of the Federal
Energy Regulatory Commission will hold a public conference to discuss
the impact of Commission transportation policies on the development of
natural gas markets as contemplated in the Commission's Final Rule
issued in Order No. 637 on February 9, 2000.\1\ The conference will
begin at 9:30 a.m. at the Commission's offices, 888 First Street, NE.,
Washington, DC in the Commission's Meeting Room. All interested persons
are invited to attend.
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\1\ Regulation of Short-Term Natural Gas Transportation
Services, Order No. 637, Final Rule, 65 FR 10156 (Feb. 25, 2000),
FERC Stats. & Regs. Regulations Preambles (Jan. 2000-June 2000).
para. 31,091 (Feb. 9, 2000), Order No. 637-A, Order on Rehearing, 65
FR 35705 (June 5, 2000) FERC Stats. & Regs. para. 31,099 (May 19,
2000)
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[[Page 49562]]
This conference begins the industry dialog as discussed in Order
No. 637 \2\ that will enable the industry and market participants to
discuss with staff, as well as each other, issues relating to the
development of Commission policy and regulatory responses to rate and
service revisions to meet the needs of the changing natural gas market.
These conferences will provide an opportunity for Commission staff to
``achieve a better understanding of industry trends and regulatory
changes that better meet the changing character of the industry.'' \3\
The conferences will assist staff in developing recommendations for the
Commission about whether to initiate rulemaking proceedings, changes in
policy for individual cases, or Commission conferences on specific
issues.
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\2\ Id., FERC Stats. & Regs. para. 31,091 at pp. 31,268-69.
\3\ Id., FERC Stats. & Regs. para. 31,091 at pp. 31,268.
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While the topics listed for discussion in Order No. 637 are
interrelated, the initial set of topics have been divided into three
conferences to better focus the discussions at each conference. This
first conference will focus on commodity markets and transportation
policies and practices that will make these markets more liquid. The
second conference will be held in January 2001 and will focus on
affiliate issues. The third conference will be held in April 2001 and
will focus on whether fundamental changes to the Commission's
regulatory model are needed, such as the use of performance based rates
or two-track regulatory models with different approaches for captive
and non-captive customers.
The first conference on commodity markets will examine whether
regulatory changes are needed now or in the foreseeable future to
promote further development of liquid markets for natural gas at both
upstream and downstream trading points, to reflect the changing
character of the market, such as new markets resulting from increased
electric generation load and retail unbundling, and to further
standardize services to meet market needs, particularly the development
of eCommerce. Examples of issues that should be examined are:
Whether downstream and upstream natural gas commodity
markets are liquid today. What are the key downstream trading points?
What are the factors that improve or impede market
liquidity at upstream and downstream trading points?
Whether rate design changes are needed to further
facilitate development of upstream or downstream markets, including
revisions to SFV rate design or use of volumetric firm rates.
Whether liquidity in downstream markets facilitates retail
unbundling by reducing the need for firm capacity upstream of the
liquid trading point. For instance, would a reliable downstream market
enable marketers participating in retail unbundling programs or
electric generators to rely on the purchase of gas at the market center
in lieu of subscribing to firm primary point capacity to the LDC's
city-gate.
Whether changes or revisions to the ``shipper must have
title'' rule will facilitate the development of downstream markets. If
so, how should the rule be changed?
Whether master or umbrellas contracts aggregating released
capacity contracts would further the development of markets. Does the
proposal for cross-contract ranking and entity-to-entity confirmation
provide the aggregation necessary?
Whether changes to capacity allocation procedures would
facilitate commodity market liquidity.
Whether greater commoditization of capacity, such as
standardized terms and conditions of service, would further the
development of upstream and downstream markets and the trading of
capacity.
Whether greater standardization of penalty procedures
nationally or regionally would reduce penalty arbitrage and facilitate
the further growth of commodity markets.
Participants will not be limited to these areas of inquiry, but can
put forth for discussion other issues or proposals to improve the
liquidity of the commodity market. Among the topics for discussion at
the conference will be procedural avenues for further Commission
action, such as periodic published staff reports, changes in policy
through individual proceedings, or the use of rulemaking proceedings.
The conference will consist of short presentations but with an
emphasis on roundtable discussions of the issues. Persons interested in
participating in the discussions should indicate their interest by
September 1, 2000, by a letter addressed to the Secretary, Federal
Energy Regulatory Commission, 888 First Street, NE, Washington, DC
20426, and should refer to Docket No. PL00-1-000. Each request to
participate must include a contact person, telephone number and E-mail
address.
Comments addressing these issues also may be filed on September 1,
2000, but those wishing to participate do not have to file comments.
Comments also may be submitted within 30 days after the conference.
Comments should include a one-page single spaced summary of the
participant's position.
The request to participate should also state which of the issues
the participant wishes to address in order of preference. Every effort
will be made to accommodate requests to make presentations, but
depending on the number of requests received, a limit may need to be
placed on the number of participants or the time for presentations. To
provide for a more productive conference, interested persons should
coordinate their efforts and choose one spokesperson to make a
statement on behalf of a group where interests coincide. Upon receipt
of these requests, a subsequent notice of the conference presentation
schedule will be issued.
The Capitol Connection may broadcast this conference in the
Washington, DC area if there is sufficient interest. For those
interested persons outside the Washington, DC area, the Capitol
Connection may broadcast the conference via live satellite for a fee if
there is sufficient interest to justify the cost. To indicate interest
in either the local or national broadcast, please call David Reininger
or Julia Morelli at the Capitol Connection (703-993-3100) as soon as
possible, or e-male to www.capitolconnection.gmu.edu.
In addition, National Narrowcast Network Hearing-On-The-Line
service covers all FERC meetings live by telephone so that interested
persons can listen at their desks, from their homes, or from any phone,
without special equipment. Billing is based on time on-line. Call 202-
966-2211 for further details. Anyone interested in purchasing
videotapes of the meeting should call VISCOM at (703) 715-7999.
Questions about the conference should be directed to: Robert A.
Flanders, Office of Markets Tariffs and Rates, Federal Energy
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, 202-
208-2084, robert.flanders@ferc.fed.us
David P. Boergers,
Secretary.
[FR Doc. 00-20266 Filed 8-11-00; 8:45 am]
BILLING CODE 6717-01-M