What is an Interstate Pipeline?

Interstate pipelines are those that serve two or more U.S. states, and are therefore fall under the jurisdiction of the U.S. Federal Energy Regulatory Commission (FERC). As a result of federal legislation enacted in the late 1980s/early 1990s, U.S interstate pipelines act solely as transporters of and storage providers for the fuel, and therefore no longer have a merchant function. All regulated interstate pipelines in the U.S. are required to have electronic bulletin boards (EBBs) in order to relay vital operating information, including flow volume and capacity information, and be available to the public at large. These interstate pipeline EBBs tend to conform to reporting standards as determined by the North American Energy Standards Board (NAESB), and such uniformity helps shippers move gas across a number of disparate systems. U.S. intrastate pipelines, on the other hand, are not required to provide open access to their EBBs, and they are permitted to hold capacity for them to use in more of a merchant / marketing company capacity.