The FERC has proposed major revisions to the secondary market for interstate capacity, offering interstate pipelines and holders of interstate capacity the opportunity to participate in experimental programs to help determine the effectiveness of the proposed changes (Docket Nos. RM96-14-000 and RM96-14-001).
The Notice of Proposed Rulemaking (NOPR):
s Requires comparable procedures for pipeline capacity-release and interrruptible transportation transactions
s Increases the flexibility of released capacity by allowing replacement shippers to release capacity in segments and change primary receipt and delivery points
s Eliminates the requirement to bid on release transactions
s Lifts the price cap for released capacity, interruptible transportation, and short-term firm pipeline capacity in markets where the shippers or pipeline demonstrates lack of market power.
While reviewing NOPR comments, the FERC will launch experimental pilot programs that implement the proposed revisions during the 1996-97 heating season. The pilots call for the FERC to lift the price cap in designated geographic areas. FERC is seeking local distribution companies and pipelines willing to participate.
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