FERC eyes effect of retail unbundling

The Federal Energy Regulatory Commission has scheduled a Feb. 25 conference in Washington, D.C., on the relationship between U.S. regulation of interstate gas pipelines and the unbundling of retail gas service at the state level.

FERC said, "Retail unbundling of natural gas services must be recognized as an important element in the evolving national energy market."

It said the relationship between state retail unbundling and federal regulation of the pipeline system has important implications for the smooth functioning of the pipeline grid. FERC said it wants to encourage an environment that will allow state commissions and local distribution companies to implement retail unbundling in a manner that also accommodates the commissions's goals for the pipeline grid. The agency wants to hear different views on how to coordinate federal and state regulations in the new competitive gas market. It also wants a briefing on the status of retail unbundling.

"The commission's goal is to ensure an environment in which natural gas users can reap the benefits of both the restructured interstate natural gas market created by Order 636 and retail unbundling, when chosen as the preferred policy at the state level."

Copyright 1998 Oil & Gas Journal. All Rights Reserved.