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Long-term capacity turnbacks not a short-term problem

✍ Scribed by Michaels, Robert J.

Publisher: John Wiley and Sons
Year: 2007
Weight: 509 KB
Volume: 12
Category: Article
ISSN: 0743-5665
DOI: 10.1002/gas.3410121103

No coin nor oath required. For personal study only.

✦ Synopsis

apacity turnback is the unsolved prob-C lem that was created in the process of solving most of the gas industry's other problems. Recent events give little cause for optimism that the problem will decrease. Transwestern Pipeline recently agreed with Southern California Gas, its largest customer, to share turnedback capacity costs for five years with no promise of renewal. FERC rejected Natural Gas Pipeline of America's proposal to defer recovery of turned-back capacity charges for five years, with interest. Similarly, FERC disappointed El Paso Natural Gas by squelching a proposed exit fee on customers who declined to recontract for 1.8 billion cubic feet a day. Since then, El Paso and its customers have arrived at a ten-year cost-sharing agreement similar to Transwestern's.

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