FERC's GulfTerra Orders: Chnages in the Pipeline
- unusual circumstances to prove anomalously high risk.
- Support depreciation rates. Intrastate pipelines may be ordered to use their intrastate depreciation rates when FERC finds NGPA depreciation proposals inadequately supported.
- Remove charitable contributions. Intrastate policy notwithstanding, charitable donations are not valid operating costs for NGPA interstate service.
Rate Design Issues
- State gathering separately. FERC's lodestar is to avoid disadvantaging customers wanting to buy gas off-system that only need to pay the transmission service rate.
- Reflect cost variations for distance of haul. Previous mileage-sensitive intrastate ratemaking can create a presumption for NGPA interstate service rates.
- Meet the heavier burden to justify affiliate discounts. Identify service alternatives for affiliates. Compare rates at affiliate and non-affiliate receipt and delivery points. Show that basis differentials determine contract rates.
Articles found on this page are available to subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.