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Presumed Power

Growing gas storage depends on fair regulatory treatment.

Fortnightly Magazine - September 2010

Gas , No. 11, 25-28 (June 2000).

4. H.R. Rep. No. 109-190, at 97 (2005) (Conf. Rep.), as reprinted in 2005 U.S.C.C.A.N. 448; S. Rep. No. 109-78 (2005), 2005 WL 6486104, at *26.

5. Bay Gas Storage Co. , 66 FERC ¶ 61,354, 62,189-90 (1994); Bay Gas Storage Co. , 131 FERC ¶ 61,034, text para. (P) 2 (2010).

6. New York State Elec. & Gas Corp. , 81 FERC ¶ 61,020, 61,133-37 (1997).

7. 15 U.S.C. § 717c(f)(1).

8. 18 C.F.R. § 284.505(b); accord Rate Regulation of Certain Natural Gas Storage Facilities, Order No. 678 , Final Rule, 71 Fed. Reg. 36,612 (June 27, 2006), FERC Stats. & Regs. ¶ 31,220, P 186, order denying reh’g & granting clarification, Order No. 678-A , 117 FERC ¶ 61,190 (2006). Order No. 678 confirms that the NGA §4(f) final rule extends to NGPA intrastate pipelines and other intrastate entities providing interstate storage services. PP 102 & n.54, 156, 158 n.70.

9. Order No. 678 , FERC Stats. & Regs. ¶ 31,220, P 186.

10. The NGA §4(f) Final Rule added a new subpart “M” to Part 284 of FERC’s regulations: “Applications for Market-Based Rates for Storage,” which includes 18 C.F.R. §284.505(a).

11. Order No. 678 , FERC Stats. & Regs. ¶ 31,220, PP 127-29, 131.

12. Southern Star Cent. Gas Pipeline, Inc. , 131 FERC ¶ 61,154, PP 8, 36-39 (2010).

13. Columbia Gas Transmission Corp., 126 FERC ¶ 61,237, PP 25-30 (2009).

14. FERC Staff, Current State of and Issues Concerning Underground Natural Gas Storage , Docket No. AD04-11-000 ( Staff Report, Sept. 30, 2004), accessible at http://www.ferc.gov/EventCalendar/Files/20041020081349-final-gs-report.pdf.

15. Texas Gas Transmission , LLC, 122 FERC ¶ 61,190, PP 24-31; order denying reh’g & granting clarification, 123 FERC ¶ 61,198; order on compliance filing, 125 FERC ¶ 61,189 (2008).

16. Northern Natural Gas Co. , 117 FERC ¶ 61,191, PP 13-18 (2006), reh’g denied, 119 FERC ¶ 61,072, PP 9-17 (2007); accord Northern Natural Gas Co. , 122 FERC ¶ 61,227, P 7, Ordering P (E) (one Commissioner dissented as to FERC’s public interest and customer protection determinations), order granting reh’g & clarification, 122 FERC ¶ 61,270 (2008).

17. Order No. 678 , FERC Stats. & Regs. ¶ 31,220, PP 153-59, 163-65.

18. Storage service providers must comply with the non-discriminatory access requirements of FERC’s transportation service regulations found at Part 284. 18 C.F.R. §284.7(b), 284.7(c), 284.9(b).

19. FERC open access regulations in Part 284 require non-discriminatory service only to the extent capacity is available. Order No. 678 , FERC Stats. & Regs. ¶ 31,220, PP 163-65; 18 C.F.R. §284.7(f).

20. 18 C.F.R. Part 225, “Preservation of Records of Natural Gas Companies.”

21. 131 FERC ¶ 61,154, PP 40-47.

22. Regulation of Short-Term Natural Gas Transp. Servs. & Regulation of Interstate Natural Gas Transp. Servs. , Order No. 637 , FERC Stats. & Regs. ¶ 31,091, 31,294-96 (2000) (later FERC & Court rulings didn’t concern auction design).

23. 18 C.F.R. § 154.309, “Incremental expansions.”

24. 126 FERC ¶ 61,237, PP 31, 35-43, 45-47.

25. 122 FERC ¶ 61,190, PP 32-40.

26.