FERC actions change face of US energy pipelines

In 1992, the US Federal Energy Regulatory Commission issued Order 636 requiring pipeline companies to "provide open-access transportation and storage, and to separate sales from transportation services completely." The ruling sought to encourage new downstream marketing venues and to produce favorable conditions for acquisitions, mergers, and joint ventures among pipeline companies. Subsequent FERC Orders 888 and 889 in 1997 promoted competition and established standards of conduct. Altogether, these orders advanced changes in the industry, served to unbundle services, and motivated development of independent gas marketing companies. EffectsSome companies ventured into large geographical...

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