98-29361. Federal and State Regulation of Natural Gas Services; Notice of Conference

[Federal Register Volume 63, Number 212 (Tuesday, November 3, 1998)]
[Notices]
[Pages 59298-59299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29361]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. PL99-1-000]


Federal and State Regulation of Natural Gas Services; Notice of 
Conference

October 28, 1998.
    Take notice that the Federal Energy Regulatory Commission 
(Commission) will host a conference on February 25, 1999, to discuss 
the relationship between the federal regulation of interstate natural 
gas pipelines and the unbundling of retail natural gas service at the 
state level.
    As the Commission has recently stated, ``[r]etail unbundling of 
natural gas services must be recognized as an important element in the 
evolving national energy market.'' \1\ The relationship between state 
retail unbundling and federal regulation of the pipeline system has 
important implications for the smooth functioning of the natural gas 
pipeline grid. Thus, the Commission is interested in encouraging an 
environment that will allow state commissions and local distribution 
companies to implement retail unbundling in a manner that also 
accommodates the Commission's goals for the pipeline grid.
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    \1\ Atlanta Gas Light Company, 84 FERC para. 61,119 at 61,638 
(1998).
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    To this end, the Commission is interested in hearing different 
views on how to coordinate federal and state regulation in the new 
competitive gas market. The Commission is also interested in 
understanding the status of retail unbundling. The Commission's goal is 
to ensure an environment in which natural gas users can reap the 
benefits of both the restructured interstate natural gas market created 
by Order No. 636 and retail unbundling, when chosen as the preferred 
policy at the state level. Since the Commission is currently engaged in 
a comprehensive reexamination of its natural gas policies,\2\ this 
appears to be an appropriate time to examine the interrelationship of 
the Commission's policies and proposals and the state retail policies. 
Therefore, the Commission has decided to convene this conference.
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    \2\ Regulation of Short-Term Natural Gas Transportation 
Services, Notice of Proposed Rulemaking, 63 FR 42982 (Aug. 11, 1998) 
and Regulation of Interstate Natural Gas Transportation Services, 
Notice of Inquiry, 63 FR 42974 (Aug. 11, 1998).
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    Scope of Discussion. The Commission is interested in determining 
the status of the unbundling of retail natural gas service. 
Specifically the Commission is interested in the following issues: 
Which states have already implemented retail unbundling programs? What 
are the chief components of these programs? What have been the benefits 
of such programs? How have local distribution companies (LDCs) 
implemented state unbundling programs? Which states are currently 
considering implementing retail unbundling programs? What are the 
various proposals for unbundling programs that are being considered? 
How do the state programs address the issue of the allocation of 
capacity on interstate pipelines? What types of stranded costs issues 
are state commissions confronting or are likely to confront? 
Specifically, how are states dealing with stranded costs of upstream 
pipeline capacity? How should an LDC's status as a supplier of last 
resort, if applicable, influence policies on both sides of the city 
gate, e.g., open access and retail unbundling? What is the relationship 
between state unbundling plans and federal regulation? For example, how 
do state unbundling plans work with the Commission's capacity release 
regulations and the ``shipper must have title'' policy? What effect do 
particular rate designs have on an LDC's ability to be competitive?
    The Commission is also interested in determining what actions by 
the Commission, or the states, could help remove any impediments to, or 
facilitate the appropriate development of, state retail unbundling, 
while at the same time maintaining the benefits of the restructured 
interstate natural gas market created by Order No. 636. Specifically, 
the Commission is interested in the following questions: How do states 
take into account federal regulations or policies when developing state 
retail unbundling plans? What types of inconsistencies may arise, or 
have arisen, between federal and state regulation when it comes to 
state retail unbundling programs? Should inconsistencies between 
federal and state regulation with respect to retail unbundling be 
resolved by waivers on a case-by-case basis or is a generic approach 
required? What effect would the proposals in the Notice of Proposed 
Rulemaking in Short Term Natural Gas Transportation Services, Docket 
No. RM98-10-000, have on state retail unbundling? What effect would the 
potential changes discussed in the Notice of Inquiry in Regulation of 
Interstate Natural Gas Transportation Service, Docket No. RM98-12-000, 
have on state retail unbundling?
    Conference location. The conference will be held at the offices of 
the Federal Energy Regulatory Commission in the Commission Meeting 
Room, Room 2C, 888 First Street, NE., Washington, DC, 20426. Speakers 
that have audio/visual requirements should contact Wanda Washington at 
[phone], no later than February 11, 1999.
    Procedures to Participate. In order to obtain a complete picture of 
the relationship between federal regulation and state unbundling, the 
Commission seeks the views of all segments of the gas industry, 
especially state commissions and LDCs. The conference will be organized 
so that a cross section of views are obtained. Any person who wishes to 
participate in the conference should submit a written request to the

[[Page 59299]]

Secretary of the Commission by January 26, 1999. The request should 
indicate the scope of the participants' planned remarks. This will 
assist in selecting the members of each panel. A separate notice 
organizing the conference will be issued at a later date.
    Written comments may be filed at any time, but should be filed 
within 15 days after the conference.
    The Capitol Connection will broadcast live the audio from the 
public conference on its wireless cable system in the Washington, DC 
area. If there is sufficient interest from those outside the 
Washington, DC metropolitan area, the Capitol Connection may broadcast 
the conference live via satellite for a fee. Persons interested in 
receiving the audio broadcast, or who need more information, should 
contact Shirley Al-Jarnai or Julia Morelli at the Capitol Connection at 
[phone], no later than February 18, 1999.
    In addition, National Narrowcast Network's Hearing-On-The-Line 
service covers all FERC meetings live by telephone. Call [phone] 
for details. Billing is based on time on-line.
    All questions concerning the format of the conference should be 
directed to:

David Faerberg, Office of the General Counsel, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
[phone]
John Carlson, Office of Pipeline Regulation, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, [phone]
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-29361 Filed 11-2-98; 8:45 am]
BILLING CODE 6717-01-M