𝔖 Bobbio Scriptorium
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FERC takes the wrong path in pricing policy

✍ Scribed by Makholm, Jeff D.

Publisher
John Wiley and Sons
Year
2007
Weight
496 KB
Volume
12
Category
Article
ISSN
0743-5665

No coin nor oath required. For personal study only.

✦ Synopsis

Commission (FERC) issued a Statement of Policy about how it intends to deal with the costs of pipeline capacity additions. The question before the Commission was whether to charge those requesting new capacity the actual cost of that capacity ("incremental" rates), or to place those costs in the "common pot" of costs from which all customers' prices are derived ("rolled-in'' rates). The choice greatly affects the future of pipeline-on-pipeline competition.

Whether one or the other regime is chosen for the future greatly affects -.

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