FERC's Regulation of the Natural Gas Industry
Live Streaming Online July 20-21, 2022
An EUCI Program
Click Here to register ($1195)
If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event
FERC’s Regulation of the Natural Gas Industry provides a comprehensive overview of the agency’s impact on the natural gas and LNG industries. This day and a half course is for those seeking a basic knowledge of FERC’s natural gas and LNG policies and regulations, those desiring a look at the setting of transportation and storage rates, those wanting a refresher course, and those who want to learn about the current hot topics at the agency.
Learning Outcomes
- Discuss fundamentals of natural gas regulation
- Review jurisdictional reach of and limits on FERC’s power
- Explain how FERC’s exercise of that power affects the regulated entities that it oversees
- Evaluate FERC policies and decisions on issues such as capacity management, secondary markets, and certification of projects; ratemaking, including developing cost-of- service rates and market-based rates; storage; standards of conduct and enforcement; LNG; as well as other timely issues
- Identify future challenges
Agenda
WEDNESDAY, JULY 20, 2022
9:00 a.m. – 4:00 p.m. Central Time
FERC from a Historical Perspective – Evolution of an Agency
- FPC/FERC
- Growth and increased oversight
- Current organization and divisional responsibilities
- Prospective changes
FERC Jurisdiction and Regulatory Overview – How FERC Regulates the Natural Gas Industry
- FERC responsibilities and oversight – what does FERC regulate
- Interstate facilities- pipelines and storage
- Production?
- Different docket classifications
- Interactions with other federal agencies and state regulators
- Current FERC objectives (LNG)
- Enforcement and brief overview of compliance
Major Orders and Regulations Impacting the Natural Gas Industry
- Key terms
- Regulatory initiatives
- Open access
- Recent major orders
- Regulatory trends for the future
Pipeline Tariffs – How FERC Regulates Interstate Pipelines and Storage
- Purpose
- Structure and components
- Rate design
Capacity Transactions – How Gas Flows and is Regulated by FERC
- Capacity- what is it?
- Market transparency
- Capacity releases – primary regulations and posting and bidding requirements;
- Secondary market transactions and oversight – shipper must have title; prohibition on buy/sell arrangements; anti-tying policy; flipping
- Asset management agreements
FERC Enforcement – Increased Oversight and Penalties
- Jurisdiction over natural gas activities
- Penalties authority/penalty guidelines
- FERC enforcement’s current areas of focus
- Market manipulation
- Trends and overview of recent investigations and penalties
- Compliance
The Impact of Natural Gas/Electric Coordination
- FERC’s role
- Impact of fracking production
- Regional supply and flow changes
- Increased reliance of power generation on natural gas
THURSDAY, JULY 21, 2022
9:00 a.m. – 12:00 p.m. Central Time
FERC Ratemaking Authorities
- Section 7 of the Natural Gas Act
- Section 5 of the Natural Gas Act (Burden of Proof-Remedies)
- Section 4 of the Natural Gas Act (Burden of Proof-Mechanics)
FERC Pipeline Rates – The Procedure
- Filing
- Participants
- Settlements
- Litigation
FERC “Just & Reasonable” Rates – Cost of Service
- Base period, adjustment period, test period
- Operating expenses
- Administrative & general expenses
- Rate base
- Return on Investment
FERC “Just & Reasonable” Rates – Allocation & Rate Design
- Transportation, storage, incremental facilities
- Allocation factors
- Billing determinants
- Firm vs. interruptible rates
- Discounted and negotiated rates
- FERC pipeline rate walkthrough (example and sample problem)
Additional topics
- Certificates authorizing the construction of interstate pipeline and storage facilities
- Interruptible transportation
- Receipt and delivery point flexibility
- Periodic reporting requirements
- Gas quality and interchangeability
- FERC policy on limited section 4 filling
- Blanket certificates