As of last Friday, 35 days away from the Federal Energy
Regulatory Commission's August recess and counting....there was
still no official sign of its promised plan to cure the gas market
of its ills. But rumors abounded that the alleged "gas options"
paper has been circulated to pipelines and producers and is
undergoing a variety of alterations. There also was one report that
the plan might not after all see daylight until after the recess.
Reportedly some of the key elements include eliminating the
rules for 30-day transactions, the ceiling prices on released
capacity and pre-arranged transactions. Everything would be posted
for bidding which should establish a market value for capacity.
Another element would allow the pipeline to recover the difference
between the market value of capacity and its rates as transition
costs which would be flowed through to customers.
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