Washington, DC – The American Gas Association (AGA) today released the following statement on the Federal Energy Regulatory Commission (FERC)’s Standards of Conduct for Transmission Providers:
“AGA believes that under FERC’s new standards of conduct, local distribution companies (LDCs) should be able to make off-system sales on non-affiliated pipelines without being subject to all of the independent functioning and transparency requirements of the standards of conduct, as LDCs were able to do under FERC’s prior standards of conduct.
“FERC should revise its regulations either to specifically exempt from the definition of gas “marketing” sales that do not involve the use of transmission capacity of an affiliated pipeline, or to expand the LDC exemption to include off-system sales that do not involve the use of transmission capacity of an affiliated pipeline.
“AGA urges FERC to make several other clarifications to the final rule, such as clarifying that pipeline marketing affiliates are not engaged in “marketing” when they make incidental purchases and sales of natural gas to remain in balance under applicable pipeline tariffs. FERC should also clarify the exemption for Hinshaw pipelines.
“Additionally, FERC should direct parties to work though the North American Energy Standards Board (NAESB) to improve and enhance the ability of shippers to review transaction information that is required to be posted on pipeline websites, and allow shippers to obtain information regarding when a pipeline deviates from the standards of conduct in emergency circumstances.”
To view AGA’s full comments, please click here.