NATURAL GAS SUPPLY ASSOCIATION

CONTACT: Charlotte LeGates

PHONE: 202/326-9316

FAX: 202/326-9334

E-MAIL: clegates@ngsa.org

Washington, DC -- Nicholas Bush, President of the Natural Gas Supply Association, said today that natural gas producers see the need for the Federal Energy Regulatory Commission (FERC) to continue vigorous oversight of interstate natural gas pipelines.

"We believe that the monopolistic nature of natural gas transmission will persist into the indefinite future," Bush said. "If the interstate gas pipelines are provided greater rate and service flexibility, then the protection of the public will require greater Commission vigilance and additional regulatory safeguards."

Bush’s comments reflect NGSA’s filing in the FERC proceeding "Issues and Priorities for the Natural Gas Industry" (Docket PL97-1-000). To further protect the public from pipeline monopoly power, NGSA recommends the following refinements to FERC’s regulations and procedures:

• Use of detailed rulemaking procedures prior to the implementation of any fundamentally new Commission program.
• An expedited Section 5 complaint procedure.
• A requirement that pipelines electronically post, on a timely basis, all relevant operational data available to the pipeline.
• The requirement that all pipeline transportation transactions with their affiliates be publicly posted, with an opportunity for other parties to receive identical rates, terms, and conditions as the pipeline affiliate.
• The initiation of a Commission rulemaking procedure to develop a set of guidelines and methods for determining pipeline operational tolerances and penalties, which would be implemented on a case-specific basis.
• The crediting to customer rates of those pipeline revenues collected through the assessment of operational penalties.

For the complete filing, call the NGSA receptionist at 202/326-9300.

This page was last updated August 31, 1997.