FERC sets gas line electronic standards

The Federal Energy Regulatory Commission has approved a rule setting uniform policies for business transactions and electronic communications to facilitate movement of gas in the U.S. interstate pipeline grid.

FERC said the current pipeline communications system relies on proprietary pipeline electronic bulletin board systems with unique log-on software and other procedures.

"The uniqueness of each pipeline's communication system reduces efficiency and raises the costs for those shipping across multiple pipelines."

FERC said by June 1, 1999, pipelines must provide all information and conduct all business using the public Internet and standardized protocols.

Specifically, they must follow the latest version of the Gas Industry Standards Board's (GISB) business practice standards, which include a uniform template for conducting business with multiple pipelines.

The details

The rule requires pipelines to give firm intraday nominations priority over already nominated and scheduled interruptible transportation service. Pipelines also must permit firm intraday nominations submitted on the day prior to gas flow to go into effect at 9 a.m. the following day.

Intraday nominations are those submitted after the 11:30 a.m. deadline that change a nominated quantity for the next day.

Lines must enter into operational balancing agreements (OBAs) at all intrastate and interstate pipeline-to-pipeline interconnects.

And they must permit shippers to offset imbalances across contracts and trade imbalances among themselves when such imbalances have similar operational effects on the pipeline's systems.

FERC said the rule also adopts communications protocols that require pipelines to meet standards for information posted on pipeline web sites, retain electronic records of transactions for 3 years, and notify shippers of critical events such as operational flow orders by posting the data on web sites or sending it through electronic mail.

FERC delayed implementation of intraday nominations, OBAs, imbalance trading, and critical notice regulations until GISB develops, and the commission adopts, the necessary technical standards.

On Mar. 23, GISB proposed standards for intraday nominations and FERC has issued a rule proposing to adopt them. The agency expects that will be implemented Sept. 1.

GISB is expected to develop OBA and imbalance trading standards by June 30, 1998, and critical notice standards by Dec. 31, 1998.