✦ LIBER ✦

Market-based rates: The new frontier

✍ Scribed by Grenier, Edward J.

Publisher: John Wiley and Sons
Year: 2007
Weight: 343 KB
Volume: 11
Category: Article
ISSN: 0743-5665
DOI: 10.1002/gas.3410110907

No coin nor oath required. For personal study only.

✦ Synopsis

Market-Based Rates:

The New Frontier ne might have thought that the FERC 0 would take a breather after its mighty effort to implement Order 636, especially in light of its ambitious electricity agenda. But that is not to be. Instead, the Commission has just issued a provocative Notice in Docket No. RM95-6-000 entitled "Alternatives to Traditional Cost-of-Service Ratemaking for Natural Gas Pipelines." The Commission is seeking comments on a wide range of alternatives to traditional pipeline cost-of service rate making, including: use of market-based rates; use of incentive rates or some version of performance-based rates; and use of other rdte-making methodologies, such as reference pricing.

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