Standardization of short-term transportation services andmarket-based pricing for those services are front-burner issues atthe Federal Energy Regulatory Commission, new Commissioner Linda K.Breathitt told Washington attorneys Thursday.
“…the time may be right for the Commission to propose amarket-based solution to the pricing problem – that is, with propermonitoring, to allow the market to reflect the real value ofcapacity,” Breathitt said. “In addition, the existence of competingforms of short-term pipeline services, each operating under adifferent set of rules, leads us to question whether there ought tobe more standardization of short-term services.”
Breathitt said that for any market reforms to go forward “itwill be incumbent on us to protect against the exercise of marketpower.” She said she would condition any departure from cost-basedrates for short-term markets “on the inclusion of adequatesafeguards” to protect consumers. One such safeguard would be theavailability of “sufficient transactional information,” and”sufficient data to review new programs after they have been inoperation to determine whether the goals have been achieved.”Affiliate transactions must continue to be monitored and thecomplaint process should be improved. Breathitt spoke at the 52ndannual meeting of the Federal Energy Bar Association.
As to short-term services, Breathitt said “one option that hasmy attention involves making all short-term transactions -interruptible transportation, short-term firm transportation andcapacity release – better alternatives to one another.” This mainlywould involve having similar nomination and scheduling proceures.
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