Key Learning Points for the Mini-Lecture: Natural Gas Regulation & Rates
While watching the Mini-Lecture, keep in mind the following key points and questions:
- All interstate natural gas pipelines are regulated by the Federal Energy Regulatory Commission.
- Prior to 1985, pipelines and gas companies were the sole providers of gas supply. They bought the gas, transported it, and sold it.
- Deregulation later “unbundled” pipeline services, leading to the “spot” market and the emergence of marketing companies to take-on this role.
- Interstate pipeline companies provide different levels of service including firm and interruptible transportation and storage.
- Interstate pipeline companies must file a “tariff” of rates and services with FERC and the rates must be “just and reasonable.”
- Safety issues – all pipelines are regulated by the Department of Transportation
- Pipelines must post all tariff information on a website.
John A. Dutton e-Education Institute