The Pipeline Customer Coalition (PCC) says it supports FERC’sproposed revisions to its complaint procedures that would fosterinformal resolution of commercial differences upfront. Theobjective is to speed up the complaint process at the Commission bycutting down on the number of formal complaints filed. Thecoalition believes this can be accomplished by the FERC mandatingthat regulated energy companies make available “carefullydelineated” pre-filing dispute resolution measures for theircustomers’ use.

Specifically, the coalition proposes that each FERC-regulatedentity, such as natural gas pipelines, be required to maintain intheir tariffs informal complaint resolution procedures. A customer,however, shouldn’t be compelled to use the procedures as acondition to filing a formal complaint, it said. But if it shouldchoose this option, a regulated energy company would have 48 hoursto take the “first step” towards resolving a customer’s complainton an informal basis [RM98-13]. The time limit is to ensure againstdispute-resolution procedures becoming a “vehicle forprocrastination.”

“The mandatory availability of this kind of procedure in theenergy industries regulated by FERC would send a clear message tothe industry that the Commission expects each party to a dispute totake all reasonable steps to resolve its disputes promptly withoutfederal government intervention,” the coalition noted. Industrycomments on a notice of proposed rulemaking (NOPR) recommendingreforms to the complaint process, which was issued in July, are dueat the Commission today (Oct. 5th).

In its filing, the coalition – which is made up of producers,marketers, distributors and end-users – primarily proposed”refinements” rather than “broad structural changes” to the NOPRthat would apply uniformly to natural gas pipelines, electricutilities, oil pipelines and hydroelectric concerns, said FredMoring, a Washington D.C. attorney representing the group. Itbelieves the Commission is “basically on the right track.” As anexample of some refinements, the coalition recommended FERC extendthe time for parties to respond to complaints to 20 days from 10days.

Coalition members still are concerned that the Commission’semphasis on the use of arbitration or other resolution measuresprior to filing a complaint could delay the process and could meanlost money for producers and other pipeline customers since theNatural Gas Act doesn’t provide for retroactive refunds, he said.”That’s still a problem. There’s no question about it. We’re notsaying that [this] disappears somehow.” As “one way of finessingthe refund problem,” however, Moring believes FERC has theauthority to provide interim relief in certain cases to complaininggas pipeline customers up front – based on the “prima facie factsalleged” – pending final resolution of the “particulars” of acomplaint. This way pipeline customers could avoid having to “gothrough an evidentiary proceeding and the whole nine yards” beforereceiving some relief. Such action by FERC, however, would be theexception since the complaining parties would have a “heavy burden”to prove that the interim relief was warranted, he said.

Susan Parker

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