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Has the FERC bitten off more than the LDC's can chew?

โœ Scribed by Willett, Robert E.

Book ID
102218483
Publisher
John Wiley and Sons
Year
2008
Weight
364 KB
Volume
9
Category
Article
ISSN
0743-5665

No coin nor oath required. For personal study only.

โœฆ Synopsis

Unakr Order 636, the LDCs seem to be assuming the risk of assuring adequate supply, a risk that the pipelines have long held. However, the LDCs may or may not be in a position to cover all the bases, according to Thomas J. Norris, vicepresident, rates and regulatory affairs, Tenneco Gas, which is a subsidiary of Tenneco Inc. of Houston. This interview is a continuation of the one that I did with Norris last month concerning deliverability. Supply Risk Has Always Been Present NG: Basically, Order 636 and the other new rules have added risk to the supply assurance equation, right? N o h : Whether it's risk or not, I don't know. But I think really what's happened is that responsibility has been handed downstream. NG: From and to which parties? N o h : From the pipeline to the next level. NG: To the W C , right? N o h : To the LDC, and then it's up to the LDC to make a move to. . . push that back off to an aggregator or producer or somebody else. But right now, under 636 that monkey has been put on the LDCs' back.

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