News 2007
Statement: December 20, 2007 | View Printable PDF Version |
Docket No: RM07-10-000 |
Commissioner Spitzer's statement on transparency provisions of Section 23 of the Natural Gas Act and pipeline posting requirements
"The Energy Information Administration (EIA) predicts that natural gas demand in the
United States will grow from 22 trillion cubic feet (Tcf) to 26.1 Tcf by 2030. Likewise,
demand for natural gas in the electric power sector is expected to peak in 2020. Further,
electricity demand is projected to grow by 39% to 2030 in the residual sector, 63% in the
commercial sector, and by 17% in the industrial sector. Consequently, investing in both gas
and electric infrastructure is critical to ensure these growing needs are met.
As investment in natural gas infrastructure increases, however, the Commission must
ensure that consumers have faith and confidence that wholesale markets are working
properly. Today, we issue a final rule that will result in greater transparency to the physical
natural gas markets.
The Transparency Final Rule requires certain natural gas market participants to report
information regarding their annual purchases and sales. Specifically, market participants
must inform us of their reports to price index publishers, their blanket sales certificate
status, and annually report certain information regarding their wholesale, physical natural
gas transactions for the previous calendar year.
Moreover, recognizing that the record was incomplete as to the question of whether posting
requirements for interstate pipelines should be changed; we also issue a notice of proposed
rulemaking soliciting further comment on whether the Commission should require actual
flow information from both interstate and non-major interstate pipelines. The NOPR also
considers whether the posting requirements for both interstate and non-major interstate
pipelines should be similar. In addition, we seek further comment regarding how the
posting requirements should apply to storage facilities.
I look forward to reading comments on the NOPR's proposed definition of market participant
and its interpretation of the interrelationship of NGA §§ 1 and 23. I also support our
decision to seek more information on the costs and benefits of increasing the pipelines'
posting requirements. I ask that respondents provide thoughtful, in-depth comments as to
the technical, operational or other concerns that may arise relating to the proposed posting
requirements both at the technical conference that will be held in this proceeding, as well as
in written comments.
For these reasons, I support these orders."
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