Negotiated/recourse rate alternative-A reasonable step forward

✍ Scribed by Smead, Richard G.

• Book ID: 102220320
• Publisher: John Wiley and Sons
• Year: 2007
• Weight: 318 KB
• Volume: 12
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410121206

✦ Synopsis

I Edwards made some Fairly extensive comments about the Commission's negotiated-rate policy, in her article "Negotiated/Recourse Rate Alternative-A Giant Step Backward." Ms. Edwards, a Washington attorney who largely represents producers, does not seem to like the policy very much. Her article was more or less an unbroken stream of criticism for the Commission and for pipelines, combined with quite a few dire predictions as to where the policy initiative might lead. Subsequent to publishing her article, Ms. Edwards confirmed the concerns of producers by filing an appeal of the Commission's policy statement in the U.S. Court of Appeals for the District of Columbia Circuit.

In writing this column, I do not generally discuss things my own company has done. However, in this instance my company was the first interstate pipeline to file for the authority described in the Commission's policy statement. Meanwhile, Ms. Edwards quoted me, somewhat out of context. Thus, I have a particularly focused interest in answering her criticisms and concerns.

Rates versus Terms and Conditions

The Commission is dealing separately with rate negotiability as opposed to any negotiability of tariff terms and conditions of service. All the formal comments should be in now on terms and conditions, but to date the Commission has not made any decisions in the area. Much of the underpinning of Ms. Edwards's concerns con-

Richard G. Smead is senior vice president of Colorado lnterstate Gas Company, a subsidiary of The Coastal Corporation. He is past chairman of the Rate

Committee of the American Gas Association.