Natural's Negotiated-Rate Plan Called 'Premature'
FERC last week rejected Natural Gas Pipeline Company of
America's (NGPL) proposal to implement negotiated rates on its
system, saying that such a move would be "premature" until it could
act on the pipeline's proposed auction procedures that are pending
as part of a comprehensive settlement.
The complexity of merging the two proposals demands that the
Commission put the proposed capacity-allocation procedures
[RP97-431] in place ahead of proposed negotiated rates on Natural's
system, the Commission said. Only then will it be in a position to
judge the appropriateness of the negotiated-rate proposal
[RP98-362], and order the elimination of any discrepancies between
the two. The Commission said Natural could re-file its
negotiated-rate plan after it issues an order on the settlement
package that calls for the new auction procedures.
"We want to get their primary way of allocating capacity, which
is their auction process, squared away first. And once they get
that in, then they can integrate negotiated rates into that
process," said a FERC staff member. "[I]t did not appear that
Natural itself had integrated their negotiated-rate process into
their auction process, and they need to do that," he told NGI.
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