Gas groups ask FERC to reconsider Internet standards rule

The major gas pipelines and producer associations have urged the U.S. Federal Energy Regulatory Commission to reconsider its recent order requiring pipelines to conduct all transactions over the Internet by June 1, 1999. FERC directed pipelines to provide all information and conduct all business on the Internet using standardized protocols (OGJ, May 4, 1998, p. 53).

Aug. 10, 1998

2 min read

FERC directed pipelines to provide all information and conduct all business on the Internet using standardized protocols (OGJ, May 4, 1998, p. 53).

EDI protested

The Natural Gas Supply Association told FERC that it is impossible to accomplish the change by next June, and it is impractical to use Electronic Data Interchange (EDI) as the only mode of Internet communication. It warned, "The requirement to achieve full Internet implementation solely through EDI could result in a major disruption of pipeline transportation service."

The American Gas Association said FERC's goal should be standardized interactive web sites, not particularly conversion to the EDI format.

Jane Lewis, an AGA counsel, said, "Mandating EDI as an exclusive standard does not achieve the goal of cost-effective interactive electronic communication. It enables the electronic transmission of documents using a standardized format but does not provide the necessary combination of interactive functionality and standardization that shippers could get from standardized interactive web sites."

AGA said FERC's decision to effectively mandate the use of EDI as an exclusive electronic communication standard was made without any analysis of the cost to the industry, especially compared with other choices. It said the rule's cost estimates cover only pipelines, not the cost to shippers of developing compatible systems.

AGA said industry needs more time, until June 2000, to standardize interactive sites.

The Interstate Natural Gas Association of America said FERC appeared to have the goals of moving the industry to the Internet, facilitating standardized modes of communication, and promoting unregulated third-party electronic communication services.

"The problem is that, in trying to accomplish these goals, the commission has moved beyond creating industry standards into creating prescriptive rules that dictate what forms of communication pipelines and customers must use."