Public Utilities Reports

PUR Guide 2012 Fully Updated Version

Available NOW!
PUR Guide

This comprehensive self-study certification course is designed to teach the novice or pro everything they need to understand and succeed in every phase of the public utilities business.

Order Now

FERC's GulfTerra Orders: Chnages in the Pipeline

A new FERC decision veers away from congressional intent not to burden intrastate pipelines with interstate policies.
Fortnightly Magazine - May 2004
  • 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.