FERC Revises Interstate Natural Gas Pipeline Nomination Timelines
The Federal Energy Regulatory Commission issued a much-anticipated final rule modifying some of the scheduling practices used by interstate natural gas pipelines to better coordinate the scheduling of the wholesale natural gas and electricity markets (Order No. 809 or Final Rule), reports Reed Smith LLP is a new white paper.
“In the Final Rule, FERC retreated from certain changes it proposed in its April 1, 2014, Notice of Proposed Rulemaking (NOPR), which initiated this proceeding,” wrote authors Amy S. Koch, Michael A. Yuffee, Todd L. Brecher. “Notably, FERC did not implement its proposal to change the start of the Gas Day to better align it with the electric operating day. Based on the response of the electric and natural gas industries to this proposal, FERC determined that the record did not establish that the benefits of such a change outweighed the costs. FERC noted that ISO-NE and PJM – two of the regions of most concern – have recently undertaken operational and market actions to address generator availability and performance, and that all of the ISOs and RTOs are considering changes to better align their markets with the Gas Day.”
