โ Scribed by O'Reilly, Brian T.
No coin nor oath required. For personal study only.
the FERC issued two orders temporarily waiving the commission's purchased gas adjustment regulations restricting pipeline recovery of producer gas supply costs to pipelines' commodity rates only. The orders, issued in response to w e s t s for waiver filed by CNGTransmissionColporation(FERCDocketNo. et al.) and Quitrans (FERC Docket No. Rp90-162-OOO), allow CNG and Equitrans to flow through demand charges that are paid under specified producer contracts on an as-billed basis to their firm sales customers.
The orders Rpresent the commission's most recent attempt to encourage pipelines and producers to execute long-term gas supply contracts. Though at first blush the initiativemay appealtoproducers,closeexammn ' 'onreveals that the benefits of producer demand charges (PDCs) may be reserved only for those producers with sufficient market clout (including pipeline affiliates) to obtaindemand-clwge clauses in their pipeline sales contracts. For less-fortunate producers (particularly independents), the disparate treat- ment may make the already daunting task of competing against pipelines for sales even more difficult.
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