WATCHING WASHINGTON ALLDAY AT THE FERC HELM

Martin Allday, chairman of the Federal Energy Regulatory Commission, pledged last week to get the commission's house in order before starting new programs.

Allday, who has been on the job 4 months, says FERC will be careful with big initiatives that might shake the foundations of the industry.

He told the Washington Natural Gas Roundtable FERC will be working on its legal problems and on its own process.

At the urging of Commissioner Jerry Langdon, FERC is working with the Department of Energy to study gas deliverability. The study was prompted by gas supply problems during extremely cold weather last December.

"We want to look at all possible gas sources-the pipeline network and, to some extent, the ability to make final deliveries to the burner tip," Allday said.

ACTION ON PERMITS

FERC will try to speed decisions on project permits. Under the automatic "prior notice" procedure of the open access program, FERC is approving many transportation related applications within 60 days.

"But at the same time," Allday said, "we are receiving more major applications to upgrade the transportation grid, and that is where the big challenge lies." The average processing time is nearly 1 year.

Commissioner Elizabeth Moler is heading a group that is assessing the whole spectrum of problems and possible solutions and is to have some recommendations in a few months.

Allday said one problem is apparent: About half of the certificate applications are incomplete, and applications for major projects are almost always incomplete.

"Many times these deficiencies can be remedied only with a written data request with a 20 day response period, which is usually not met," Allday said. "So right off the bat, we have a 1-2 month delay."

He urged pipelines, "Get it right the first time. Make sure it is complete. It will save everyone time arid money."

He said industry has complained about FERC nitpicking in environmental reviews. He urged pipelines to meet beforehand with FERC staff to identify problem areas and not shortchange the environmental information required for a permit application.

On his part, he pledged to make it clear that staff members should not request unnecessary or burdensome information.

THE BIGGEST PROBLEM

Allday's No. 1 problem is that federal courts have sustained objections to all of FERC's recent, major rules.

"I don't really know how we came to be in this situation," he said. "I don't know who or what is to blame. Blame at this point is unconstructive. What I do know is that the uncertainties caused by endless legal wrangling are a very, very serious problem.

"The recent series of court reversals has jolted the commission and the staff. The new era of competition has, in a way, introduced a new era of legal accountability. The commission is acutely aware of the need to sharpen not only our explanations but also our rationale.

"We are seeking to satisfy the courts arid better explain decisions and policies we believe to be solid and well reasoned.