Gas groups object to pipeline tariff charges

The Pipeline Transportation Customer Coalition (PTCC), a broad group of pipeline customers, has complained to US Federal Energy Regulatory Commission Chairman James Hoecker about the way pipelines are attempting to implement Order 637.


The Pipeline Transportation Customer Coalition (PTCC), a broad group of pipeline customers, has complained to US Federal Energy Regulatory Commission Chairman James Hoecker about the way pipelines are attempting to implement Order 637.

In an Oct. 31 letter to Hoecker, PTCC said many pipelines are interpreting Order 637 to mean they can propose a tariff structure and operational changes that are more costly to customers.

PTTC said such changes are not in the spirit of FERC's Order 637, which was designed to develop a more fluid and competitive interstate grid with fewer impediments to doing business on interstate pipelines.

"We are disappointed by these developments and strongly urge the commission to hew to the course it established in Order 637 for evaluating pipeline penalties and other mechanisms that restrict operational flexibility," PTCC said.

The group said Order 637 requires interstate natural gas pipelines to increase operational flexibility and decrease reliance on penalties. PTCC said there was widespread support for this structure among natural gas shippers.

PTCC consists of the American Forest & Paper Association, the American Iron and Steel Institute, the American Public Gas Association, the Domestic Petroleum Council, Dynegy Marketing and Trade, the Georgia Industrial Group, the Independent Petroleum Association of America, the Natural Gas Supply Association, and the Process Gas Consumers Group.

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