Capacity brokering: Does texas eastern provide all the answers?
✍ Scribed by Gilliam, Carroll L. ;Garikes, George C.
- Publisher
- John Wiley and Sons
- Year
- 2008
- Weight
- 491 KB
- Volume
- 7
- Category
- Article
- ISSN
- 0743-5665
No coin nor oath required. For personal study only.
✦ Synopsis
New questions have arisen as the FERC continues to lead the natural gas industry towards the implementation of capacity-brokering mechanisms on interstate pipelines. In recent orders focusing on the proposals of Texas Eastem Transmission Corporation and reiterated in a Transcontinental Gas pipe Line Corporation proceeding, the commission established general principles intended to govern capacity-brokeringmechanisms. Now,vital questions arise as to whether the principles enunciated in these cases readily transfer without changes to the circumstances that govern the operations of other interstate pipelines.
Such questions have been raised as to a number of proposals, but now are most clearly discernible in review of the capacity-brokering proposals of interstate pipelines serving the vast market in California.
Texas Eastern: A Proposal For All Seasons, For All Pipelines?
The series of orders approving capacity brokering on the Texas Eastern pipeline system have served as the commission's vehicle for establishing guidelines goveming the assignment of f i r m capacity rights to third-party shippers. The commission, and others, have =lied on the Texas Eastern line of orders for support of capacity-brokering concepts on other interstate pipelines.
In August 1989, the commission issued its first order authorizing firm shippers of Texas Eastern to assign their capacity rights to third parties> Multiple reassignment of capacity rights was provided, althoughTexasEasteminitiallyproposedtorestrictany such reassignment rights to interstate piplines that received capacity rights from firm shippeis. CapaciQcouldonlybebrokeredonanondiscximinatory manner.
No party could charge in excess of Texas Eastern's asbilled rate for brokered capacity. 8 Texas Eastern continued to have an obligation to CarroP L GiUiorn and George C. G&s am attorneys at Katten Muchin a v i s & Donbroff, in Washington, LX.
provide interruptible transportation, and the commission granted shippers the right to repackage firm capacity rights as interruptible transportation.
Texas Eastern received authority to operate its capacity brokering program for a term of ten years.