[Federal Register Volume 60, Number 110 (Thursday, June 8, 1995)]
[Rules and Regulations]
[Pages 30186-30188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14012]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 284
[Docket No. RM95-5-001; Order No. 577-A]
Release of Firm Capacity on Interstate Natural Gas Pipelines
Issued May 31, 1995.
AGENCY: Federal Energy Regulatory Commission; Energy.
ACTION: Final rule; order granting rehearing.
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SUMMARY: The Federal Energy Regulatory Commission is amending its
capacity release regulations, which permit shippers to release capacity
without having to comply with the Commission's advance posting and
[[Page 30187]] bidding requirements. The current regulation permits
such releases for a full calendar month. The Commission is revising the
regulation to permit exempt releases for up to 31 days in order to
accommodate releases crossing calendar months.
EFFECTIVE DATE: The final rule becomes effective July 10, 1995.
FOR FURTHER INFORMATION CONTACT: Michael Goldenberg, Federal Energy
Regulatory Commission, 825 North Capitol Street, NE., Washington, DC
20426, (202) 208-2294.
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission also provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours in Room 3104, 941 North
Capitol Street NE., Washington DC 20426.
The Commission Issuance Posting System (CIPS), an electronic
bulletin board service, provides access to the texts of formal
documents issued by the Commission. CIPS is available at no charge to
the user and may be accessed using a personal computer with a modem by
dialing (202) 208-1397. To access CIPS, set your communications
software to use 19200, 14400, 12000, 9600, 7200, 4800, 2400, 1200, or
300 bps, full duplex, no parity, 8 data bits, and 1 stop bit. The full
text of this document will be available on CIPS for 60 days from the
date of issuance in ASCII and WordPerfect 5.1 format. After 60 days the
document will be archived, but still accessible. The complete text on
diskette in WordPerfect format may also be purchased from the
Commission's copy contractor, La Dorn Systems Corporation, also located
in Room 3104, 941 North Capitol Street, NE., Washington DC 20426.
Before Commissioners: Elizabeth Anne Moler, Chair; Vicky A.
Bailey, James J. Hoecker, William L. Massey, and Donald F. Santa,
Jr.
Order Granting Rehearing
On May 1, 1995, Great Lakes Gas Transmission Limited Partnership
(Great Lakes) filed a request for rehearing and clarification of Order
No. 577, issued March 29, 1995.\1\ For the reasons discussed below, the
Federal Energy Regulatory Commission (Commission) will grant rehearing
and revise Sec. 284.243(h) of its regulations.
\1\ Release of Firm Capacity on Interstate Natural Gas
Pipelines, Order No. 577, 60 FR 16979 (Apr. 4, 1995), III FERC
Stats. & Regs. Preambles para. 31,017 (Mar. 29, 1995).
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Background
In Order No. 577, the Commission revised Sec. 284.243(h) of its
capacity release regulations to promote a more effective and efficient
capacity release mechanism as well as reduce administrative burdens.
The prior regulations permitted shippers to release their firm capacity
for less than one calendar month without having to comply with the
Commission's requirements to post release offers for bidding. In Order
No. 577, the Commission extended the advance posting and bidding
exception to one full calendar month to comport with the industry's
practice of making gas and capacity decisions on a calendar month basis
and to reduce administrative burdens resulting from the use of so-
called ``29/1'' day deals to effectuate full month releases.
Great Lakes seeks rehearing or clarification as to whether the
Commission intended to exempt short term capacity release transactions
spanning two calendar months from the bidding requirements. Great Lakes
states that, in its restructuring proceeding under Order No. 636, the
Commission required Great Lakes to permit an exception from its bidding
requirements for short-term capacity releases of less than 30 days that
extended over parts of two months.\2\ Great Lakes argues that in the
March 29, 1995 order in this rulemaking docket, the Commission seemed
to adopt a different approach to short-term releases spanning two
calendar months.
\2\ Great Lakes Gas Transmission Limited Partnership, 64 FERC
para. 61,017 at 61,171 (1993).
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Great Lakes points to the Commission's rejection of a request by a
commenter that the regulation refer to releases of 31 days, rather than
to a calendar month, in order to permit releases of 31 days spanning
two calendar months (i.e., January 15 to February 15). The Commission
found that limiting the exception to a calendar month synchronized the
short-term exception with the industry's practice of purchasing gas and
capacity on a monthly basis. The Commission further concluded that
substitution of the phrase ``31 days'' was not needed to effectuate
mid-month releases. Great Lakes points out that this procedure is not
only inconsistent with its tariff, but is burdensome because it entails
two postings and two separate contracts.
Discussion
The Commission's restructuring orders were inconsistent in
interpreting whether releases crossing calendar months were
permissible.\3\ To ensure that this rule does not limit flexibility
shippers already possess, the Commission will revise the language of
the regulation to substitute ``31 days'' for ``calendar month.'' This
will permit parties to execute releases of up to 31 days without
complying with the Commission's advance posting and bidding
requirements. This revision will increase shipper flexibility and also
reduce administrative burdens by eliminating the need for one bid, two
postings, and two contracts in order to consummate short-term releases
across calendar months.
\3\ Compare Northwest Pipeline Corporation, 63 FERC para. 61,124
at 61,803 (1993); Kern River Gas Transmission Company, 62 FERC para.
61,191 at 62,270 (1993) (no cross month releases) with Great Lakes
Gas Transmission Limited Partnership, 64 FERC para. 61,017 at 61,171
(1993); Columbia Gas Transmission Corporation, 64 FERC para. 61,060
at 61,530 (1993) (permitting cross month releases).
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Effective Date
The final rule will take effect July 10, 1995.
List of Subjects in 18 CFR Part 284
Continental shelf, Natural gas, Reporting and recordkeeping
requirements.
By the Commission.
Linwood A. Watson, Jr.,
Acting Secretary.
In consideration of the foregoing, the Commission amends Part 284,
Chapter I, Title 18, Code of Federal Regulations, as set forth below.
PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES
1. The authority citation for Part 284 continues to read as
follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C 7101-7532; 43
U.S.C 1331-1356.
2. In Sec. 284.243, paragraph (h)(1) is revised to read as follows:
Sec. 284.243 Release of firm capacity on interstate pipelines.
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(h)(1) A release of capacity by a firm shipper to a replacement
shipper for any period of 31 days or less, or for any term at the
maximum tariff rate applicable to the release, need not comply with the
notification and bidding requirements of paragraphs (c) through (e) of
this section. A release under this paragraph may not exceed the maximum
rate. Notice of a firm release under this paragraph must be provided on
the [[Page 30188]] pipeline's electronic bulletin board as soon as
possible, but not later than forty-eight hours, after the release
transaction commences.
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[FR Doc. 95-14012 Filed 6-7-95; 8:45 am]
BILLING CODE 6717-01-P
