The Federal Energy Regulatory Commission has received many requests to reconsider portions of Order 636.
It is expected to consider the requests at its July 30 meeting.
FERC June 10 rejected three pipelines' requests to relax the implementation schedule for Order 636.
It said, "While the commission seeks to ensure that all pipelines will be in full compliance with the final rule for the 1993-94 winter heating season, it strongly encourages compliance with the rule this calendar year.
"We anticipate that many pipelines will be able to implement all required elements of the final rule in advance of the 1993 winter heating season."
In another development, FERC partially agreed to a request by Natural Gas Clearinghouse and ordered pipelines to give interveners in Order 636 restructuring proceedings access to more information on system operations.
IT'S A PACKAGE
When FERC commissioners consider rehearing requests on Order 636 this month, they will have before them an array of issues.
FERC Chairman Martin Allday told an industry meeting in Washington, "There will be some fine tuning in the rehearing process, but it's a package, folks."
The Coalition Against Straight Fixed Variable, mostly a group of gas distributors, complained to FERC in its rehearing request that the switch to straight fixed variable tariffs required by Order 636 will shift about $3 billion/year to residential and commercial customers.
It said the rule violates the Natural Gas Act by failing to protect residential consumers against unreasonable natural gas costs.
OTHER VIEWS
Other natural gas groups found the order more palatable.
The American Gas Association did not file for rehearing of the rulemaking.
The Interstate Natural Gas Association of America said, "The rule is a good balance of all interests. It needs to be fine tuned, not revamped."
Ingaa asked for clarification on a number of issues. It said FERC should recognize that the shift to straight fixed variable rates does not assure a pipeline a recovery of all costs, and lines should be given a higher rate of return because risk will increase in some instances.
It said FERC should make it clear that pipelines no longer guarantee gas supplies in some cases, as they did in bundled sales services.
And it said pipelines should be able to renegotiate contracts with current shippers to establish operating terms and conditions that reflect the new competitive market.
The Natural Gas Supply Association and Indicated Producers group, in a joint filing, said the three key elements of restructured service-gas borrowing, cost unbundling, and no-notice transportation-need further definition.
They said gas supply contracts that resulted from negotiations under FERC Orders 500 or 528 should be accorded a presumption of reasonableness, and pipelines should be directed to detail terms and conditions governing access to their electronic bulletin boards.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
