Any attempt by Congress to re-regulate natural gas prices to putan end to the escalation in wholesale prices seen this year wouldbe a “mistake,” said FERC Chairman James Hoecker, even though hebelieves $4 gas is too high.

“It’s much better for us to have a more stable price [that’s]higher than $1.60 and lower than the $4-plus we’re seeing,” he saidin an interview with Daily GPI. “I think Wall Street andWashington ought to be focused on how to create a sustainable pricestructure so that we don’t have inordinately low or excessivelyhigh gas prices.”

Hoecker thinks supply will be sufficient to meet demand. “Withthe drilling resurgence in the Lower 48 and in Canada, and with theprospect of Canadian supplies to the Lower 48, I think that theoutlook for natural gas is a very bright one.”

On the pipeline front, Transcontinental Gas Pipe Line has”suddenly [said] they are going to slow down the construction of[their MarketLink expansion] project because the market hasn’tmatured yet,” he noted.

Transco spokesman Chris Stockton confirmed the pipeline hasdecided to take a phased approach to constructing its 700 MMcf/d,150-mile MarketLink project because some of the customers haverequested that their service dates be pushed back. Transco plans tofile an implementation plan for MarketLink at FERC on Sept. 15.

Hoecker also believes the “economics are right” for a gasdelivery system from Alaska, and expects the Commission to play a”key role in trying to make this happen.” Hoecker wouldn’t saywhich of the existing Alaska pipe proposals he prefers, noting itwas much too soon to identify which was in the public’s interest.Also, producers haven’t decided “which horse they’re going to rideyet.”

As for Hoecker’s future at FERC, he acknowledged that the chanceof his renomination being confirmed by the Senate before his reignis up in October “doesn’t look very good.” He noted the nominationhas been pending before the Senate Energy and Natural ResourcesCommittee since last November. Asked about his job prospects, hesaid “I don’t have an answer for you [now], but I might nextmonth.”

If Hoecker goes, this would leave the Commission with twovacancies as it heads into the critical winter heating season. Foran energy industry that thrives on “certainty,” this prospect won’tbe “very helpful,” Hoecker noted.

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