[Federal Register Volume 68, Number 204 (Wednesday, October 22, 2003)]
[Notices]
[Pages 60358-60359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E3-00089]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD03-7-002]


Natural Gas Price Formation; Notice of Staff Workshop on Market 
Activity and Price Indicators

October 15, 2003.
    The Commission said in its Policy Statement on Natural Gas and 
Electric Price Indices, Docket No. PL03-3-000,

[[Page 60359]]

Paragraph 41 that price indices used in natural gas pipeline tariffs 
must ``reflect adequate liquidity'' at the point referenced in the 
tariff. Furthermore, in Northern Natural Gas Company, Docket No. RP03-
533-000 and in Natural Gas Pipeline Company of America, Docket No. 
RP99-176-089, the Commission directed its Staff to assess whether the 
price indices proposed to be used in those pipelines' tariffs reflect a 
level of liquidity that would ensure reliability.
    In order to respond to the Commission, and to develop a basis for 
evaluating adequacy of liquidity in future pipeline tariff filings, 
staff will seek information as to what factors must be considered to 
evaluate available data sources of market activity at reference points. 
To get a better understanding of standard measurements of market 
activity and the reliability of price indicators, staff is holding a 
workshop from 10 a.m. to 5 p.m. on Tuesday, November 4, 2003, at the 
Federal Energy Regulatory Commission, 888 First Street, NE., in 
Washington, DC.
    The previously held conferences and workshop in this docket 
addressed price indices and the reporting process, i.e., the mechanisms 
for reporting and creating price indices. In this workshop, we intend 
to focus on characteristics of the underlying markets that support 
price discovery. How should the Commission decide if a particular 
market (or index point) represents sufficient activity to provide a 
reliable price? How can and should minimum levels of market activity 
required to support a reliable index be measured? What alternatives can 
be used in the event the underlying data is deemed inadequate?
    The workshop will be in roundtable format and we request that the 
discussion be candid, factual and practical. We strongly encourage 
anyone with direct knowledge of evaluating liquidity and measuring 
market activity to participate actively in the workshop. This would 
include those who trade, manage risk, purchase and sell gas and 
electricity, report prices, and any others who use energy market 
information. A supplemental notice will be issued to provide key 
discussion questions on the issues to be addressed at the workshop.
    The workshop is open to the public, and we would like to hear from 
as many as possible on these important price formation issues. It would 
be helpful, however, if people with a strong interest in speaking call 
in or e-mail their desire to participate, including name, company 
represented and involvement in energy market activities and price 
indicators, as well as the topic to be addressed. For those unable to 
attend in person, teleconferencing will be available during the 
workshop. Details and dial-in instructions will be included in the 
supplemental notice.
    The conference will be transcribed. Those interested in acquiring 
the transcript should contact Ace Reporters at 202-347-3700 or 800-336-
6646. Transcripts will be placed in the public record ten days after 
the Commission receives them. Additionally, Capitol Connection offers 
the opportunity for remote listening and viewing of the conference. It 
is available for a fee, live over the Internet, by phone or via 
satellite. Persons interested in receiving the broadcast, or who need 
information on making arrangements should contact David Reininger or 
Julia Morelli at Capitol Connection (703-993-3100) as soon as possible 
or visit the Capitol Connection Web site at http://www.capitolconnection.org and click on ``FERC.''
    For additional information please contact Jolanka Fisher, 202-502-
8863 or by e-mail at [email protected].

Linda Mitry,
Acting Secretary.
 [FR Doc. E3-00089 Filed 10-21-03; 8:45 am]
BILLING CODE 6717-01-P