EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Part II: Mini-Lecture: Natural Gas Regulation & Rates


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.