[Federal Register Volume 65, Number 157 (Monday, August 14, 2000)]
[Notices]
[Pages 49561-49562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20266]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PL00-1-000]


Dialog Concerning Natural Gas Transportation Policies Needed to 
Facilitate Development of Competitive Natural Gas Markets

August 4, 2000.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION:  Notice of staff conference.

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SUMMARY: In Order No. 637 (65 FR 10156), issued on February 9, 2000, 
the Federal Energy Regulatory Commission (Commission) revised its 
regulatory policies, amended its regulations, and established new 
procedures to enhance the competitiveness and efficiency of markets for 
the transportation of natural gas in interstate commerce. As part of 
the effort to achieve these goals, the Commission determined to 
institute a dialog between the industry and Commission staff so that 
Commission staff could achieve a better understanding of industry 
trends and regulatory changes that better meet the changing character 
of the industry. This notice establishes the first of several public 
staff conferences that will permit an industry-wide discussion of 
issues affecting natural gas transportation policies and the role such 
natural gas transportation services play in energy markets in general.

DATES: The conference will take place on September 19, 2000, starting 
at 9:30 a.m., Requests to participate are due by September 1, 2000.
    A second and third conference will be held in January 2001, and 
April 2001. The second conference will focus on affiliate issues. The 
third conference will focus on the potential need for fundamental 
changes to the Commission's regulatory model are needed, such as the 
use of performance based rates or two-track regulatory models with 
different approaches for captive and non-captive customers.

ADDRESSES: Federal Energy Regulatory Commission 888 First Street, NE 
Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: Robert A. Flanders, Office of Markets, 
Tariffs and Rates, Federal Energy Regulatory Commission, 888 First 
Street, NE Washington, DC 20426, (202) 208-2084.

SUPPLEMENTARY INFORMATION:

Notice of Staff Conference

    Take notice that on September 19, 2000, the Staff of the Federal 
Energy Regulatory Commission will hold a public conference to discuss 
the impact of Commission transportation policies on the development of 
natural gas markets as contemplated in the Commission's Final Rule 
issued in Order No. 637 on February 9, 2000.\1\ The conference will 
begin at 9:30 a.m. at the Commission's offices, 888 First Street, NE., 
Washington, DC in the Commission's Meeting Room. All interested persons 
are invited to attend.
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    \1\ Regulation of Short-Term Natural Gas Transportation 
Services, Order No. 637, Final Rule, 65 FR 10156 (Feb. 25, 2000), 
FERC Stats. & Regs. Regulations Preambles (Jan. 2000-June 2000). 
para. 31,091 (Feb. 9, 2000), Order No. 637-A, Order on Rehearing, 65 
FR 35705 (June 5, 2000) FERC Stats. & Regs. para. 31,099 (May 19, 
2000)

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[[Page 49562]]

    This conference begins the industry dialog as discussed in Order 
No. 637 \2\ that will enable the industry and market participants to 
discuss with staff, as well as each other, issues relating to the 
development of Commission policy and regulatory responses to rate and 
service revisions to meet the needs of the changing natural gas market. 
These conferences will provide an opportunity for Commission staff to 
``achieve a better understanding of industry trends and regulatory 
changes that better meet the changing character of the industry.'' \3\ 
The conferences will assist staff in developing recommendations for the 
Commission about whether to initiate rulemaking proceedings, changes in 
policy for individual cases, or Commission conferences on specific 
issues.
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    \2\ Id., FERC Stats. & Regs. para. 31,091 at pp. 31,268-69.
    \3\ Id., FERC Stats. & Regs. para. 31,091 at pp. 31,268.
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    While the topics listed for discussion in Order No. 637 are 
interrelated, the initial set of topics have been divided into three 
conferences to better focus the discussions at each conference. This 
first conference will focus on commodity markets and transportation 
policies and practices that will make these markets more liquid. The 
second conference will be held in January 2001 and will focus on 
affiliate issues. The third conference will be held in April 2001 and 
will focus on whether fundamental changes to the Commission's 
regulatory model are needed, such as the use of performance based rates 
or two-track regulatory models with different approaches for captive 
and non-captive customers.
    The first conference on commodity markets will examine whether 
regulatory changes are needed now or in the foreseeable future to 
promote further development of liquid markets for natural gas at both 
upstream and downstream trading points, to reflect the changing 
character of the market, such as new markets resulting from increased 
electric generation load and retail unbundling, and to further 
standardize services to meet market needs, particularly the development 
of eCommerce. Examples of issues that should be examined are:
     Whether downstream and upstream natural gas commodity 
markets are liquid today. What are the key downstream trading points?
     What are the factors that improve or impede market 
liquidity at upstream and downstream trading points?
     Whether rate design changes are needed to further 
facilitate development of upstream or downstream markets, including 
revisions to SFV rate design or use of volumetric firm rates.
     Whether liquidity in downstream markets facilitates retail 
unbundling by reducing the need for firm capacity upstream of the 
liquid trading point. For instance, would a reliable downstream market 
enable marketers participating in retail unbundling programs or 
electric generators to rely on the purchase of gas at the market center 
in lieu of subscribing to firm primary point capacity to the LDC's 
city-gate.
     Whether changes or revisions to the ``shipper must have 
title'' rule will facilitate the development of downstream markets. If 
so, how should the rule be changed?
     Whether master or umbrellas contracts aggregating released 
capacity contracts would further the development of markets. Does the 
proposal for cross-contract ranking and entity-to-entity confirmation 
provide the aggregation necessary?
     Whether changes to capacity allocation procedures would 
facilitate commodity market liquidity.
     Whether greater commoditization of capacity, such as 
standardized terms and conditions of service, would further the 
development of upstream and downstream markets and the trading of 
capacity.
     Whether greater standardization of penalty procedures 
nationally or regionally would reduce penalty arbitrage and facilitate 
the further growth of commodity markets.
    Participants will not be limited to these areas of inquiry, but can 
put forth for discussion other issues or proposals to improve the 
liquidity of the commodity market. Among the topics for discussion at 
the conference will be procedural avenues for further Commission 
action, such as periodic published staff reports, changes in policy 
through individual proceedings, or the use of rulemaking proceedings.
    The conference will consist of short presentations but with an 
emphasis on roundtable discussions of the issues. Persons interested in 
participating in the discussions should indicate their interest by 
September 1, 2000, by a letter addressed to the Secretary, Federal 
Energy Regulatory Commission, 888 First Street, NE, Washington, DC 
20426, and should refer to Docket No. PL00-1-000. Each request to 
participate must include a contact person, telephone number and E-mail 
address.
    Comments addressing these issues also may be filed on September 1, 
2000, but those wishing to participate do not have to file comments. 
Comments also may be submitted within 30 days after the conference. 
Comments should include a one-page single spaced summary of the 
participant's position.
    The request to participate should also state which of the issues 
the participant wishes to address in order of preference. Every effort 
will be made to accommodate requests to make presentations, but 
depending on the number of requests received, a limit may need to be 
placed on the number of participants or the time for presentations. To 
provide for a more productive conference, interested persons should 
coordinate their efforts and choose one spokesperson to make a 
statement on behalf of a group where interests coincide. Upon receipt 
of these requests, a subsequent notice of the conference presentation 
schedule will be issued.
    The Capitol Connection may broadcast this conference in the 
Washington, DC area if there is sufficient interest. For those 
interested persons outside the Washington, DC area, the Capitol 
Connection may broadcast the conference via live satellite for a fee if 
there is sufficient interest to justify the cost. To indicate interest 
in either the local or national broadcast, please call David Reininger 
or Julia Morelli at the Capitol Connection (703-993-3100) as soon as 
possible, or e-male to www.capitolconnection.gmu.edu.
    In addition, National Narrowcast Network Hearing-On-The-Line 
service covers all FERC meetings live by telephone so that interested 
persons can listen at their desks, from their homes, or from any phone, 
without special equipment. Billing is based on time on-line. Call 202-
966-2211 for further details. Anyone interested in purchasing 
videotapes of the meeting should call VISCOM at (703) 715-7999.
    Questions about the conference should be directed to: Robert A. 
Flanders, Office of Markets Tariffs and Rates, Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, 202-
208-2084, [email protected]

David P. Boergers,
Secretary.
[FR Doc. 00-20266 Filed 8-11-00; 8:45 am]
BILLING CODE 6717-01-M