New tactics expected in order 636-restructuring game

✍ Scribed by Moring, Frederick

• Publisher: John Wiley and Sons
• Year: 2008
• Weight: 251 KB
• Volume: 9
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410090107

✦ Synopsis

As pipelines and their customers restructure, there will no doubt be a diverse pattern of Order 636 adaptation and compliance among the major interstate pipelines. But the new functional relationships between the several segments of the restructured natural gas industry are those dictated by that Order and will not likely be that different from One pipeline to the next. Because t hi s new environment will require LDCs and other players to revise or discard old habits and assumptions, the next twelve months or so will be a break-in period: New approaches, new techniques and

Frederick Moring

their systems and services. This discretion, taken together with the pipeline's market power in gas transportation services, presents an unusually risky situation for an LDC/ pipeline customer.

. . . there ispressure on thepipeline to convertortransform realignment costs into gas purchase costs recoverable through Account z9z. president of the ~e d e r a l Energy ~a r Association.