Nopr

The Department of Energy (DOE) on Friday submitted to FERC a notice of proposed rulemaking (NOPR) to implement reforms on the reliability and resiliency of the electricity grid — changes that, according to some industry groups, would benefit nuclear and coal at the expense of natural gas.

Interstate pipelines would have to rise and shine a lot earlier to serve an industry segment that is growing significantly in gas-demand importance — electric power generators — under a FERC proposal released Thursday intended to better coordinate the nation's interstate pipelines and gas-fired power plants.

FERC on Monday issued a final rule that would allow interstate natural gas pipelines and electric transmission operators to voluntarily share nonpublic operational information to enhance the reliability and integrity of their systems.

Natural gas pipeline associations and electric groups are generally supportive of FERC’s proposed rule to allow the sharing of operational information between pipelines and electric transmission operators in the interests of reliable service, but some expressed concerns as to whether there would be adequate safeguards of their private commercial information.

Although the agenda for Wednesday’s FERC meeting — the last one of 2001 — is top-heavy with electricity, there are several key natural gas items slated for action, ranging from stepped-up reporting of derivatives and hedging activities to the El Paso Natural Gas complaint investigation, to two embattled gas pipeline projects that have been pending at the Commission since the Hoecker administration.

Although the agenda for Wednesday’s FERC meeting — the last one of 2001 — is top-heavy in electricity, there are several key natural gas items slated for action, ranging from stepped-up reporting of derivatives and hedging activities to the El Paso Natural Gas complaint investigation, to two embattled gas pipeline projects that have been pending at the Commission for years.

Instead of trying to tackle head-on all the issues before it inits review of the short-term and long-term transportation markets,Commissioner Linda Breathitt has proposed that FERC first issue alimited final rule addressing the less-controversial issues andsave the more complex items for later. “From what I’ve read in thecomments [filed at FERC], the approach I am proposing appears to beone that many in the market could support,” she said in a recentspeech to the American Gas Association Legal Forum in La Jolla, CA.

Instead of trying to sift through all the issues relating to theshort-term and long-term transportation markets, Commissioner LindaBreathitt proposed that FERC first issue a limited rulemakingaddressing the less-controversial issues and save the more complexissues for later. “From what I’ve read in the comments [filed atFERC], the approach I am proposing appears to be one that many inthe market could support,” she said in a speech to the American GasAssociation Legal Forum in La Jolla, CA, last week.