FERC has issued a final rule requiring interstate pipelines toidentify the names and addresses of their marketing affiliates ontheir web sites on the Internet. The new rule is aimed at assistingthe Commission in its oversight efforts and at helping shippers tobetter monitor transportation transactions between pipelines andtheir affiliated marketers.

The rule, which amends existing Commission regulation, wouldrequire an interstate pipeline to update this information withinthree business days of any change in the status of its marketingaffiliate, and to indicate when the information was last updated.The rule would only apply to interstate pipelines engaged intransactions with their affiliates.

This reporting requirement, FERC believes, is especiallyimportant as marketing-affiliate names and addresses are in aconstant state of flux due to acquisitions, divestitures,consolidations and/or other market changes [RM98-7].

In response to the notice of proposed rulemaking (NOPR) issuedlast May, a couple of pipelines – Enron Interstate Pipelines andMichigan Gas Storage – protested the three-day requirement formaking changes to an affiliate’s status on the Internet. Theycalled it too “burdensome” and said it would lead to moreday-to-day communications between pipelines and their affiliates,possibly in violation of the standards of conduct that call forthem to act independently of each other.

But FERC wasn’t swayed by their arguments, saying that threedays was a “sufficient and reasonable period” within which to makeschanges to an affiliate’s status. Also, “we are unconvincedthat…keeping track of changes in the names and addresses ofmarketing affiliates is inconsistent with the principles ofseparation between pipelines and their marketing affiliates,” itnoted in the final rule.

The final rule will take effect 30 days after its publication inthe Federal Register.

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