ALLDAY: FERC TO EXPEDITE UNCONTESTED FILINGS

The Federal Energy Regulatory Commission plans to act more quickly on uncontested applications in U.S. pipeline matters. FERC Chairman Martin Allday said a number of industry witnesses at a hearing on pipeline rate design issues had complained about the long time the agency takes to process uncontested settlement agreements. Allday then ordered FERC staff to bring all of the uncontested settlement agreements before the full commission within 45 days of the initial filing.

Feb. 25, 1991

2 min read

The Federal Energy Regulatory Commission plans to act more quickly on uncontested applications in U.S. pipeline matters.

FERC Chairman Martin Allday said a number of industry witnesses at a hearing on pipeline rate design issues had complained about the long time the agency takes to process uncontested settlement agreements.

Allday then ordered FERC staff to bring all of the uncontested settlement agreements before the full commission within 45 days of the initial filing.

"This general policy is only going to apply when it is a true settlement, not when it is a settlement conditioned upon the commission doing such and such."

Allday admitted, "Sometimes these settlements languish at the staff level, and that shouldn't be."

ASSOCIATIONS RESPOND

At the rate design hearing, a number of witnesses urged FERC to provide better guidance to staff in implementing commission policy, notably by improving communications between the commission and staff.

Natural Gas Supply Association said meaningful rate design is needed if true, nondiscriminating open access transportation is to be successful.

NGSA Pres. Nicholas Bush said FERC's rate design policy statement in May 1989 has not prevented some problems.

"Even on pipelines with highly seasonal usage profiles and load factors, staff have either rejected seasonal assignment of transmission costs or have been silent on the subject."

NGSA said the commission staff has failed on interruptible rates, which are important to producers because that transportation method frequently is the only form available to them.

"Almost without exception, however, FERC staff have opposed any lowering of maximum interruptible service rates below the 100% load factor rate. So recalcitrant have been staff on this issue that they have opposed lower interruptible rates even when lower rates are proposed by the pipeline."

American Gas Association said FERC's goal should be "to set broad parameters for parties to rate proceedings and allow the parties sufficient flexibility to agree to rate structures that are best suited to their specific system operational characteristics, load factors, and customer profiles."

Interstate Natural Gas Association recommended FERC "focus chiefly on gaining additional experience and not attempt a detailed analysis of the modest experience gained to date."

It said a survey of its members found only 10 rate settlements have been approved with features consistent with the policy statement and they have been in effect only 7 months.