[Federal Register Volume 64, Number 75 (Tuesday, April 20, 1999)] [Notices] [Pages 19352-19353] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-9846] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. PL99-2-000] Anticipated Demand for Natural Gas in the Northeastern United States; Notice of Public Conference April 14, 1999. Take notice that the Federal Energy Regulatory Commission will convene a public conference on June 7, 1999, to conduct an inquiry into anticipated natural gas demand projections in the northeastern United States over the next 10 to 20 years.\1\ --------------------------------------------------------------------------- \1\ For purposes of the conference, this includes those States lying east of the Mississippi River and north of Tennessee and North Carolina. --------------------------------------------------------------------------- Currently, there are numerous, varying projections concerning the growth of natural gas markets in the Eastern United States. These projections, however, do not shed light on the impact this potential growth will [[Page 19353]] have on existing pipelines. Thus, the Commission believes that it is important to examine these projections and to understand more about the assumptions, data sources, and perspectives upon which these growth forecasts are based. To this end, the Commission is interested in hearing all views concerning growth projections in natural gas markets in the northeastern United States over the next one to two decades and how these projections correlate to existing pipeline capacity. The Commission is also interested in learning when this increase in demand will occur. Will growth occur at varying rates over the next five, ten, or twenty years? Will the projected demand occur during a certain time of the year, e.g., during the winter when pipeline use is at its peak (mainly heating); off peak periods when capacity is more readily available (mainly air conditioning); or year-round? The Commission would like to explore the assumptions that underlie these projections. In addition, the Commission is interested in hearing forecasts concerning the type of growth that is anticipated. Specifically, the Commission is interested in determining if the contemplated growth will serve electric generation facilities, residential customers, industrial concerns, other consumers, or some combination thereof. As a secondary matter, the Commission wishes to be informed about the effect projected growth will have on existing capacity. For example, where, when, and how much existing capacity is currently available? If the projected growth takes place as forecast, where will excess capacity exist in the future? How often will existing facilities be constrained? Are existing pipeline systems being effectively used? Is it possible to increase the utilization of existing systems? Will the projected growth materialize in the form of firm or interruptible demand for capacity? How much capacity will be available through releases? How much capacity will be available through turn backs? What conclusions can be reached concerning how much new capacity may be required, within what time frame, and in what regions? The conference will be held at the offices of the Federal Energy Regulatory Commission, in the Commission Meeting Room, 888 First Street, NE, Washington, DC 20426. The Commission seeks the views of the public and all segments of the energy industry. Any person who wishes to participate in the conference should submit a written request to the Secretary of the Commission by May 10, 1999. The request should indicate the scope of the participants' planned remarks. Speakers that have audio/visual requirements should contact Wanda Washington at (202) 208-1460. Any written comments may 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 (703) 993-3100, no later than May 22, 1999. In addition, National Narrowcast Networks' Hearing-On-The-Line service covers all FERC meetings live by telephone. Call (202) 966-2211 for details. Billing is based on time on-line. All questions concerning the format of the conference should be directed to: Joel Arneson, Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street, N.E., Washington D.C. 20426, (202) 208-2169. By direction of the Commission. Commissioner Breathitt concurred with a separate statement attached. David P. Boergers, Secretary. Breathitt, Commissioner, Concurring I agree with the majority that an inquiry into the anticipated demand for natural gas will provide valuable insight into the development of a rational certificates policy. As the notice highlights, there are numerous, varying projections concerning the growth of natural gas markets. An exploration of the assumptions underlying these projections will add clarity to the Commission's analyses. I also believe the questions posed in the notice will elicit an informative discussion about natural gas markets. While I support the idea of an inquiry into demand for natural gas, I wish to make several points with respect to my views about the conference. First, I would have preferred that the scope of the conference be much broader. I believe that limiting the conference to the Northeast fails to recognize a fundamental change that is taking place in the natural gas industry as a result of the issuance of Order No. 636 in 1992. One of the primary goals of pipeline restructuring was to promote policies supporting the creation of a national natural gas pipeline grid. The Commission's efforts in that regard continue to be successful, not in small part due to our capacity release rules, and due to the participation of marketers as holders of interstate pipeline capacity. For us to restrict this conference to the Northeast does not recognize the fact that in today's dynamic natural gas market, changes in capacity serving one region may affect pipeline operations in another region of the country. New pipeline capacity in the Northeast could result in changes in the utilization of the systems that now feed that region--pipelines, say, that originate in the Gulf Coast. For example, capacity utilization of those pipelines could be reduced as a result of such expansions. The value and use of capacity release also could be affected. I believe that broadening the scope of the conference would have enabled the Commission to look at any ``ripple effect'' that expansion of the grid anywhere--not just in the Northeast--could cause in today's marketplace. Furthermore, I believe that the majority's approach of limiting the scope of the conference to the Northeast fails to recognize the fact that other regions of the country are also expected to experience substantial growth in the demand for natural gas. Certificate filings that are pending before the Commission and reports in the trade press indicate to me that projected demand for natural gas in the Mid- Atlantic and Southeast regions warrant an equal examination by the Commission. Finally, I question the timing and the forum that have been chosen for this inquiry. I do not believe that the Commission has reached a consensus concerning the ultimate goals of this conference. Before establishing a public conference, I would have preferred the Commission to have had a meeting of the minds on our specific objectives for building a record, and a mutual understanding of how we would want such a record to be used. I don't believe the Commission has a unified sense of how this conference fits in with other generic and case-specific proceedings currently before us. However, I am supporting this inquiry to the extent it will provide at least a piece of the puzzle about the future demand for natural gas. Linda K. Breathitt, Commissioner. [FR Doc. 99-9846 Filed 4-19-99; 8:45 am] BILLING CODE 6717-01-M