A group of 27 LDCs Monday proposed eliminating thestraight-fixed variable (SFV) rate design for all interstatepipelines in favor of a rate design for base or “recourse” servicethat recovers 35% of a pipeline’s fixed costs in the usage rate.
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A daily auction process to allocate pipeline transportationcapacity in the secondary market is the “linchpin” to removingprice caps for short-term transportation, FERC Commissioner LindaBreathitt said yesterday at the seventh annual DOE-NARUC NaturalGas Conference in Pittsburgh, PA. “Without market power mitigation,I am unwilling to release the price cap.”
California regulators are scheduled today to take additionalsteps to open up the natural gas business by removing allrestrictions to the core aggregation program and unbundling gasutility billing services so nonutility firms can compete to providethat function. The actions are part of a larger program aimed atmaking a final decision on gas industry restructuring by the end ofthis year.