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FERC Issues New Rule For Pipeline Open Seasons

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November 29, 2011

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The Federal Energy Regulatory Commission (FERC) acted to prevent entities from using multiple affiliates to game the natural gas pipeline open season bidding process, saying it frustrates competition and denies access to capacity for customers who value it the most.FERC will prohibit multiple affiliates of the same entity from bidding in an open season for pipeline capacity in which the pipeline may allocate capacity on a pro rata basis, except in cases in which an affiliate has an independent business reason for submitting a bid.This final rule adopts in part ...

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