96-4607. Regulation of Negotiated Transportation Services of Natural Gas Pipelines; Order Granting Clarification

[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Notices]
[Pages 7789-7790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4607]



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DEPARTMENT OF ENERGY
[Docket No. RM96-7-000]


Regulation of Negotiated Transportation Services of Natural Gas 
Pipelines; Order Granting Clarification

Issued February 23, 1996.
    United Distribution Companies (UDC) and Associated Gas Distributors 
(AGD) request clarification of the scope of the comments solicited in 
the Commission's January 31, 1996 Policy Statement and Request for 
Comments (Policy Statement).\1\ Among other things, the Policy 
Statement announced that the Commission is willing to accept, on a 
shipper-by-shipper basis, filings to charge negotiated rates if 
shippers retain the ability to choose a cost-of-service based tariff 
rate. In the Policy Statement, the Commission also established this 
separate proceeding and requested that interested parties file comments 
within 60 days on the appropriateness of negotiated terms and 
conditions of service.

    \1\ 74 FERC para. 61,076 (1996), 61 FR 4633 (February 7, 1996).
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    UDC and AGD assert that the stated purpose of the proceeding 
established in Docket No. RM96-7-000 was to consider ``the 
ramifications of negotiated terms of service.'' \2\ UDC and AGD contend 
that this language limits public comment to questions solely relating 
to negotiated terms and conditions of service, excluding any comments 
that may also raise rate issues. UDC and AGD also cite language in the 
Policy Statement that permits parties to comment on ``any other issue 
that should be considered before permitting pipelines to negotiate 
terms of service with individual shippers.'' \3\ They assert that the 
concerns raised by the Commission with respect to the implementation of 
negotiated rates, and even aspects of the Statement of Policy on 
Market-Based Rates and changes to the Commission's Policy on Incentive 
Rates, ``could qualify as issues that should be considered before 
permitting pipelines to negotiate terms of service with individual 
shippers.'' \4\ Thus, UDC and AGD request that the Commission clarify 
the scope of Docket No. RM96-7-000 such that public comments are 
solicited on rate issues as well as on issues concerning terms and 
conditions of service.

    \2\ Policy Statement, slip op. at 61.
    \3\ Policy Statement, slip op. at 62.
    \4\ Request for Clarification at 3-4.
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    UDC and AGD state they recognize the January 31 Policy Statement as 
setting forth the Commission's final decision to permit negotiated 
rates and that the Commission is not soliciting further comment on its 
statutory 

[[Page 7790]]
authority to permit individual pipelines to file proposals for 
negotiated rates. They acknowledge that any questions regarding the 
legality of the Commission's action in determining to permit pipelines 
to file proposals for negotiated rates, therefore, would be subject to 
the time deadlines applicable to appeal final Commission action.
    The Commission recognizes that issues concerning negotiated terms 
and conditions of service may in fact be related to various rate 
issues. The Commission will not reconsider in Docket No. RM96-7-000 the 
policies it announced in Docket No. RM96-6-000 for market-based and 
incentive rates, or the permission it gave for market-based and 
incentive rates. However, the Commission will accept comments that 
discuss issues relevant to the Commission's consideration of whether to 
permit negotiated services, including relevant rate issues.

By the Commission.
Lois D. Cashell,
Secretary.
[FR Doc. 96-4607 Filed 2-28-96; 8:45 am]
BILLING CODE 6717-01-M