Fuel Retention Practices of Natural Gas Companies, 55762-55765 [E7-19386]
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Federal Register / Vol. 72, No. 189 / Monday, October 1, 2007 / Notices
(866) 208–3676 (toll free). For TTY, call
(202) 502–8659.
Nathaniel J. Davis, Sr.,
Acting Deputy Director.
[FR Doc. E7–19283 Filed 9–28–07; 8:45 am]
BILLING CODE 6717–01–P
I. Current Commission Policy on Fuel
Retention
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. RM07–20–000]
Fuel Retention Practices of Natural
Gas Companies
September 20, 2007.
Federal Energy Regulatory
Commission, DOE.
ACTION: Notice of Inquiry.
AGENCY:
SUMMARY: The Federal Energy
Regulatory Commission is seeking
comments on its policy regarding the inkind recovery of fuel and lost and
unaccounted-for gas by natural gas
pipeline companies. The Commission is
inviting interested persons to submit
comments, and other information on the
matters, issues and specific questions
identified in this notice.
DATES: Comments are due November 30,
2007.
ADDRESSES: You may submit comments,
identified by Docket No. RM07–20–000.
by one of the following methods:
Æ Agency Web Site: https://
www.ferc.gov. Follow the instructions
for submitting comments via the eFiling
link found in the Comment Procedures
Section of the preamble.
Æ Mail: Commenters unable to file
comments electronically must mail an
original and 14 copies of their
comments to: Federal Energy NE.,
Washington, DC, 20426. Please refer to
the Comment Procedure Section of the
preamble for additional information on
how to file paper comments.
FOR FURTHER INFORMATION CONTACT:
Ingrid M. Olson, Office of the General
Counsel, Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502–8406.
SUPPLEMENTARY INFORMATION:
Notice of Inquiry
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September 20, 2007.
1. In this Notice of Inquiry, the
Commission is seeking comments on its
policy regarding the in-kind recovery of
fuel and lost and unaccounted-for gas by
natural gas pipeline companies. Current
policy, described below, gives pipelines
two options for recovering these costs,
and pipelines follow a variety of
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18:31 Sep 28, 2007
practices regarding fuel and lost and
unaccounted-for gas. The Commission is
seeking comments on whether it should
change its current policy and prescribe
a uniform method for all pipelines to
use in recovering these costs.1
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2. Interstate natural gas pipelines
frequently require that customers
contribute a small percentage of the
volumes of natural gas tendered for
transportation service to provide fuel for
compressors and to make up for lost and
unaccounted-for gas.2 Each pipeline
states the percentage it retains in its
open access tariff. Currently effective
tariff fuel retention rates range from
fractions of a percent to as high as 13
percent.3
3. The Commission established its
current policy concerning the in-kind
recovery of fuel and unaccounted-for
gas in ANR Pipeline Company (ANR).4
In its January 2005 order in the ANR
case,5 the Commission stated that
pipelines have two options to recover
these costs. The first option is to
establish a fixed fuel retention
percentage in a general section 4 rate
case, and leave that percentage
unchanged until the pipeline files its
next general section 4 rate case. The
1 In this proceeding, the Commission is seeking
comments on several specific proposals for rate
recovery of fuel and lost and unaccounted-for gas,
as well as answers to specific questions. It also
should be noted that the Commission has initiated
a separate proceeding in Docket No. RM07–9–000
inquiring about the need for changes or revisions
in the Commission’s reporting requirements for its
financial forms including the Form Nos. 2 and 2–
A, Annual Reports of Major and Nonmajor Natural
Gas Companies. Assessment of Information
Requirements for FERC Financial Forms, Notice of
Inquiry, FERC Stats & Regs. ¶ 35,554 (February 15,
2007). The Commission received a number of
comments and suggestions in that proceeding
regarding the adequacy of information reported in
the Form No. 2 concerning gas retained, used for
compression, and lost and unaccounted-for.
Accordingly, the reporting requirements related to
gas retained, used for compression, and lost and
unaccounted-for will be addressed in the Notice of
Proposed Rulemaking which the Commission is
concurrently issuing in Docket No. RM07–9–000,
120 FERC ¶ 61,256.
2 Some pipelines do not require shippers to
contribute in-kind a portion of the gas tendered to
the pipeline for transportation for the pipeline’s
use.
3 See, e.g., MIGC, Inc., FERC Gas Tariff, First
Revised Volume No. 1, Eleventh Revised Sheet No.
6 (fuel retention percentages up to 13 percent); Gas
Transmission Northwest, FERC Gas Tariff, Third
Revised Volume No. 1–A, Seventh Revised Sheet
No. 6 (0.005 percent fuel retention).
4 ANR Pipeline Co., order on compliance filing,
108 FERC ¶ 61,050 (2004), order inviting comments,
109 FERC ¶ 61,038 (2004), order on reh’g and
compliance filing, 110 FERC ¶ 61,069 (2005), order
on reh’g and compliance filing, 111 FERC ¶ 61,290
(2005).
5 110 FERC ¶ 61,069, at P18–28.
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second option allows the pipeline to
include in its tariff a mechanism
permitting periodic changes in its fuel
retention percentage outside of a general
section 4 rate case, as allowed by
section 154.403 of the Commission’s
regulations.6 ANR held that, if a
pipeline chooses the second option, it
must include in its tariff a mechanism
to true-up any over- and underrecoveries of fuel, absent agreement
otherwise by all interested parties.
4. In ANR, the Commission explained
that its general ratemaking policy,
established in Order No. 436, is that
pipelines must design their rates based
on estimated units of service without
any type of true-up mechanism.7 This
means that the pipeline is at risk for
under-recovery of its costs between rate
cases and may retain any over-recovery.
This gives pipelines an incentive both to
minimize their costs and maximize the
service they provide. A cost tracker
undercuts these incentives by
guaranteeing the pipeline revenues
sufficient to recover its costs regardless
of the level of costs or services
provided.
5. However, as the Commission
explained in ANR, it had permitted an
exception to this policy for a few cost
items that are subject to significant
changes from year to year and thus are
difficult to predict. Among these cost
items is fuel. The Commission
explained that section 154.403 of its
regulations permits a pipeline to adjust
its fuel retention percentages in periodic
limited section 4 rate filings pursuant to
a methodology set forth in the pipeline’s
tariff. The Commission stated that
section 154.403 does not expressly
require that pipelines include true-up
mechanisms as part of the tariff
provision permitting periodic
adjustments to their fuel retention
percentages. Instead, the Commission
stated, it had addressed this issue on a
case-by-case basis and required a trueup when the facts of a particular case so
warranted.
6. In ANR, the Commission changed
this approach and held that, if a
pipeline wishes to take full advantage of
the incentives underlying our general
ratemaking policy with respect to inkind fuel recovery, then it can choose
the first option which requires
establishing a fixed fuel retention
percentage. However, if the pipeline
chooses the second option and tracks its
fuel costs, then there must be an
assurance that the fuel costs are tracked
accurately so that the pipeline does not
over-recover its fuel costs under any
6 18
7 18
CFR 154.403.
CFR 284.10(c)(2).
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Federal Register / Vol. 72, No. 189 / Monday, October 1, 2007 / Notices
circumstances. Therefore, the second
option requires a true-up mechanism.
The Commission explained that
allowing a particular cost item to be
tracked gives the pipeline the
opportunity to increase that cost item
without regard to the possibility of any
offsetting cost reductions. The
Commission stated that in return for this
opportunity, there should be an
assurance that the individual cost item
is tracked accurately, and the pipeline
should not in any circumstances be
permitted to over-recover those costs.
7. In reaching this conclusion, the
Commission rejected ANR’s contention
that it should be permitted to retain its
existing tracker without a true-up
mechanism because the existing tracker
provided it with an incentive to reduce
fuel costs and a true-up mechanism
would eliminate this incentive. ANR
argued that because its fuel recovery
mechanism bases each year’s fuel
retention percentage on the average of
fuel use on its system during the three
preceding years, ANR was able to retain
a portion of any over-recoveries of fuel
resulting from a downward trend in fuel
use and, on the other hand, must absorb
a portion of any under-recoveries if fuel
use trends upward. ANR argued that
with this tracker in place, it had in fact
reduced its fuel use which resulted in
savings to its customers.
8. The Commission rejected ANR’s
argument, stating that allowing ANR to
over-recover fuel from its customers is
not a necessary incentive to encourage
the company to minimize its use of fuel
gas. The Commission concluded, with
regard to fuel use and lost and
unaccounted-for gas, that the benefits of
requiring a true-up outweigh any
disadvantages.
9. While ANR established a general
policy of requiring pipelines such as
ANR that have a fuel tracker to include
true-up mechanisms, the Commission
has only enforced that policy in
individual cases where parties raise the
issue. Thus, pipelines continue to
follow a variety of practices regarding
fuel and lost and unaccounted-for gas
which can be described as fitting into
one of three categories.
• The first category is the stated-rate
approach, where a fixed percentage is
stated in the tariff as a non-negotiable
fee-in-kind retained from the volumes
tendered for shipment by each shipper
and changed only in a general section 4
rate case. Of 70 major pipelines, 24 have
a stated rate.8
8 These categories and the number of pipelines
noted within each category were identified in a
Commission staff analysis of the FERC tariffs of 70
major pipelines.
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• The second category is the tracker
approach, where provisions in a
pipeline’s tariff allow the pipeline to
make prospective adjustments to its fuel
retention rates from time-to-time, but do
not include a mechanism to allow the
pipeline to reconcile past over-or underrecoveries of fuel. Eight pipelines have
tracker mechanisms without true-up
requirements.
• The third category is the tracker
with a true-up approach, where
provisions in a pipeline’s tariff allow for
periodic adjustments to its fuel
retention rates, and also provide for a
true-up of past over- and underrecoveries of fuel and lost and
unaccounted-for gas. Thirty-eight
pipelines have tracker mechanisms with
true-ups in their tariffs.
II. Discussion
10. Pipeline customers have
expressed concerns that in-kind gas
retained by pipelines for fuel and
unaccounted-for gas requirements is
excessive, and provides pipelines with
significant profits. For example, the
Natural Gas Supply Association, in its
recent study of pipeline returns,
estimated that in aggregate 32 pipelines,
representing 80 percent of interstate
throughput, generated about $2.1 billion
in excess retained fuel over the five-year
period ending in 2005.9 In a recent
complaint against National Fuel Gas
Supply Corporation, the principal
concern was excessive fuel retention.10
11. The Commission’s review of
information filed by pipelines in their
2005 Form No. 2 filings indicates that
major pipelines appear to have retained
or carried over in their accounts a net
sum of over 97 Bcf in fuel beyond what
was consumed, lost, or unaccountedfor.11 At average 2005 prices, this
represents over $711 million in value.12
Of that amount, 58 Bcf, with a value of
$427 million, is attributable to those
pipelines that do not have a tracker
mechanism in their tariff, and nearly 39
Bcf, with a value of over $285 million,
9 Natural Gas Supply Association, Pipeline Cost
Recovery of 32 Major Pipelines, FERC Form No. 2
Data (2001–2005) at 4, available upon request at
Natural Gas Supply Association, 805 15th Street,
N.W., Suite 510, Washington, D.C. 20005.
10 Pub. Serv. Comm’n of N.Y. v. National Fuel Gas
Supply Corp., 115 FERC ¶ 61,299, reconsideration
granted in part, 115 FERC ¶ 61,368 (2006), order
on settlement, 118 FERC ¶ 61,091 (2007).
11 Commission staff examined available Form No.
2 data for 2005 to derive the sum of the net fuel
retained (the amount received from shippers minus
the amount consumed for operations or lost or
unaccounted-for).
12 The Energy Information Administration (EIA)
reports the average wellhead price of natural gas for
2005 was $7.33 per MMBtu. (https://
tonto.eia.doe.gov/dnav/ng/
ng_sum_lsum_dcu_nus_a.htm).
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is attributable to pipelines with a tracker
and no true-up or a tracker with a trueup mechanism.
12. Moreover, with the tightening in
natural gas supplies in recent years,
there have been substantial increases in
the price of natural gas. As a result, the
pipeline’s fuel charges now make up a
significantly greater percentage of the
overall cost of transporting natural
gas.13
13. The increasing significance of
pipeline fuel charges in the overall cost
of transportation and the concerns about
pipeline cost over-recoveries suggest
that further investigation of in-kind fuel
retention practices is warranted.
Therefore, the Commission is seeking
comments on whether its current policy
with regard to the in-kind recovery of
fuel and unaccounted for gas should be
modified, both for the purpose of
providing pipelines a greater incentive
to reduce their fuel use and lost gas and
for the purpose of minimizing pipeline
over-recoveries of these costs.
Specifically the Commission is
requesting comments on the following
questions:
(1) Should the Commission Continue to
Allow Recovery of Pipeline Fuel Costs
Through Fixed Fuel Retention
Percentages?
14. As described above, the
Commission’s review of pipeline Form
No. 2 data indicates that some pipelines,
particularly those with fixed fuel
retention percentages, are overrecovering their fuel costs. By contrast,
a properly designed fuel tracker and
true-up mechanism would ensure that a
pipeline does not over-recover its fuel
costs. However, allowing pipelines to
establish a fixed in-kind fuel retention
percentage in a general section 4 rate
case is consistent with the
Commission’s general ratemaking
13 A comparison between 2002 and 2006 data for
Texas Eastern Transmission Corporation (Texas
Eastern) illustrates this point. According to EIA, the
average wellhead natural gas price rose from $2.95
per MMBtu in 2002, to $6.42 per MMBtu in 2006.
Texas Eastern’s maximum rate for interruptible
transportation through the full length of the system
(Zone STX to Zone M3) in 2002 was $0.6639 per
MMBtu, and Texas Eastern retained 8.94 percent of
the gas for fuel use, at an additional cost to the
shipper of $0.2637 (fuel retention rate times the
wellhead price). FERC Gas Tariff, Seventh Revised
Volume No. 1, Seventh Revised Sheet No. 49. Thus,
the shipper’s total cost was $0.9276 per MMBtu.
The fuel cost equaled 28.4 percent of the total. In
2006, the maximum rate for interruptible
transportation was $0.6231, and Texas Eastern
retained 7.94 percent of the gas for fuel, at an
additional cost to the shipper of $0.5097. FERC Gas
Tariff, Seventh Revised Volume No. 1, ThirtySecond Revised Sheet No. 49. Thus, in 2006, the
shipper’s total cost was $1.1328 per MMBtu. Here,
the fuel cost equaled 45 percent of the total, an
increase of about 17 percentage points over the
2002 figure.
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policies and section 154.403 of the
Commission’s regulations. In ANR, the
Commission continued to permit
pipelines to use that recovery method,
stating that the method gives pipelines
an incentive to minimize their fuel use
through more efficient operations. These
efficiencies could benefit customers
when the pipeline files its next general
section 4 rate case, although until the
pipeline does file a new section 4 rate
case it would retain the benefit from any
savings. Also, a fixed in-kind fuel
retention percentage avoids potentially
disruptive changes in the pipeline’s fuel
rates outside a general section 4 rate
case, thereby giving customers the
benefit of greater certainty as to the
pipeline’s fuel rates. For that reason,
shippers may favor fixed fuel retention
percentages.
15. Do the benefits of a fixed retention
percentage for recovery of fuel in-kind
outweigh the potential for cost overrecovery? Have pipelines with fixed
retention percentages reduced their fuel
use? If so, provide specific examples.
Have pipelines with fixed in-kind
retention percentages that have reduced
their fuel use filed section 4 rate cases,
thereby passing through to customers
the benefit of any prospective fuel cost
savings? Do pipelines with fixed fuel
retention percentages have less
incentive to file new section 4 rate
cases, such that shippers are not
receiving the benefit of any reduced fuel
use? Are there barriers that make it
difficult for shippers to file section 5
complaints to police over-recovery of
fuel costs?
Does the benefit to shippers of greater
rate certainty from a fixed fuel
percentage justify continuing to permit
pipelines to use a fixed fuel retention
rate? If pipelines were to be allowed to
continue using the fixed fuel retention
rate approach, should the Commission
consider imposing explicit incentive
requirements, such as the application of
an RPI–X methodology 14 on either a
generic or case-specific basis? If the
Commission were to adopt incentive
provisions to encourage pipelines to
reduce fuel use and lost and
unaccounted-for gas, should the
Commission adopt a standardized
incentive approach, such as the sharing
between the pipeline and its shippers of
any fuel cost over-recoveries and/or
14 An ‘‘RPI–X’’ methodology would allow fuel
costs to rise with inflation minus some X-factor
deduction to provide a strong incentive towards
efficiency and an implicit sharing of future
efficiencies with ratepayers. Such methods, if
employed in fuel retention provisions, would need
to be adapted to fit the circumstances of in-kind
retention requirements, rather than monetary
payments.
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18:31 Sep 28, 2007
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under-recoveries? If so, which
standardized incentive approach should
the Commission consider?
16. New compressor stations can be
designed to minimize fuel use through,
for example, motor selection (size, fuel
efficiency, throughput flexibility) as
well as minimizing pressure drops
through the station (yard pipe and
facility sizing). Existing compressors
stations can also be redesigned to
reduce fuel by minimizing pressure
drops through the station or installing
gas coolers to reduce the need for
compression. How does the type of fuel
cost recovery mechanism (fixed fuel
retention percentages, tracker with no
true-up or tracker with true-up) affect
these decisions, if any? Similarly, is the
fuel cost recovery or other mechanism a
factor when deciding whether to
construct a larger diameter pipe instead
of compression or use advanced
SCADA/control systems to manage line
pack?
17. As stated above, if the
Commission were to adopt incentive
provisions to encourage pipelines to
reduce fuel use and lost and
unaccounted-for gas, one option would
be a mechanism for sharing between the
pipeline and its shippers of any fuel
cost recoveries and/or under-recoveries.
How could such a cost-and-benefitsharing mechanism affect the decisions
discussed immediately above? Could a
cost-and-benefit-sharing mechanism
between the pipeline and its customers
ameliorate any concerns that fuel
efficient investment is ‘‘gold plating’’
rate base, i.e., making an investment
that increases the rate base and the
corresponding return without
necessarily creating a corresponding
benefit to the pipeline’s customers?
18. What are the barriers to cost
effective, fuel efficient investment, it
any? If barriers exist, how does the
Commission remove such barriers?
What factors, including, if applicable,
the type of fuel cost recovery
mechanism, affect the amount of
research and development (R&D) being
done to advance technology in these
areas? How could a cost-and-benefitsharing mechanism between the
pipeline and its customers affect the
level of R&D? Could fuel efficiency
measures impact either directly or
indirectly throughput or reliability on
the pipeline grid, and if so, in what
manner?
19. Some fixed fuel retention
provisions were established through
settlements. How important are fixed
fuel retention provisions to these
settlements? If the Commission adopts a
new generic policy, should it modify
these existing settlements to apply its
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new policy? If the Commission adopts a
generic fuel retention policy, should it
permit pipelines and shippers to reach
settlements thereafter that provide for
recovery of fuel costs in a manner
different from that policy?
(2) Should the Commission Mandate
That All Pipelines Must Have a Tracker
Mechanism for the Recovery of Fuel?
20. While the Commission’s general
policy is that rates should be based on
projections of future costs based on test
period experience, the Commission
permits certain costs that are volatile
and thus particularly difficult to project,
to be tracked. Is fuel use and lost and
unaccounted-for gas difficult to predict
with precision? If so, does the volatility
of pipeline fuel use and the experience
with the fixed retention percentage
justify a blanket requirement that all
pipelines recover their fuel costs
through a tracker? If not, should the
Commission continue the exception that
permits pipelines to make limited
section 4 filings tracking their fuel
costs? Do the recent increases in the cost
of fuel further justify use of a tracker?
21. In Order No. 637, the Commission
established a principle that pipelines
should not profit from the penalty
provisions in their tariffs for
imbalances, unauthorized overruns,
scheduling violations, etc.15 This was
intended to eliminate any incentive for
pipelines to propose unnecessary
penalties that hinder efficiency.16 Does
permitting pipelines to profit from fuel
retention also create undesirable
incentives for pipelines? For example,
do the profits from excess fuel retention
lead some pipelines to avoid updating
their base tariff rates because, on
balance, they are receiving an adequate
cash flow in aggregate?
(3) If the Commission Requires Pipelines
To Use a Tracker, Should It Require a
True-Up Mechanism?
As stated above, in ANR, the
Commission concluded that if a
pipeline has a tracker and is therefore
able to recover its fuel costs outside of
a general section 4 proceeding, it should
track those costs accurately and not be
permitted to over-recover its fuel costs
in any circumstances. Accordingly, the
Commission required all pipelines with
trackers to include a true-up
mechanism. With both a tracker and a
true-up mechanism, the pipeline simply
passes through its fuel costs to its
customers, and, therefore, there may in
15 18
CFR 284.12(b)(v).
No. 637, FERC Stats. & Regs. ¶ 31,091 at
16 Order
31,315.
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fact be little incentive for the pipeline
to try to reduce those costs.
22. In ANR, the Commission found
that the inclusion of a true-up
mechanism in a tracker does not remove
all incentives for the pipeline to reduce
its fuel use. The Commission explained
that pipelines do face some competitive
pressures in obtaining marginal
throughput, for example, obtaining
customers with access to alternative
fuels. Because the Commission has held
that pipelines may not discount their
fuel use percentages since those costs
are variable, the only way a pipeline can
reduce its fuel percentages in order to
help obtain marginal business is by
reducing its fuel usage.
23. Was the Commission’s conclusion
in ANR, that the benefits of requiring a
true-up as part of a tracker outweigh the
disadvantages of reduced incentives for
efficient operation accurate? What
impact does a true-up mechanism have
on a pipeline’s incentive to reduce fuel
costs? Is there evidence that pipelines
with tracker and true-up mechanisms
operate less efficiently than pipelines
without such mechanisms?
24. Is there a benefit to giving
pipelines an incentive to reduce fuel
use, such as the inclusion in the tracker
of a profit or loss sharing mechanism?
If the pipeline could retain some benefit
of fuel cost reductions, would it have a
greater incentive to reduce those costs?
Would customers benefit from the
reduced costs and from sharing in any
cost over-recoveries? How important are
fuel costs relative to total transportation
costs?
(4) Should the Commission Retain Its
Current Policy?
25. Finally, the Commission seeks
comments on whether it should retain
its current policy which gives pipeline
discretion over whether to have a
tracker mechanism governing the
recovery of fuel costs. What are the
benefits and/or costs of retaining the
current policy? What factors should the
Commission consider in deciding
whether a change in fuel retention
policy is warranted at this time?
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III. Procedure for Comments
26. The Commission invites interested
persons to submit comments, and other
information on the matters, issues and
specific questions identified in this
notice. Comments are due 60 days from
the date of publication in the Federal
Register. Comments must refer to
Docket No. RM07–20–000, and must
include the commenter’s name, the
organization it represents, if applicable,
and its address.
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18:31 Sep 28, 2007
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27. To facilitate the Commission’s
review of the comments, commenters
are requested to provide an executive
summary of their position. Commenters
are requested to identify each specific
question posed by the Notice of Inquiry
that their discussion addresses and to
use appropriate headings. Additional
issues the commentors wish to raise
should be identified separately. The
commenters should double space their
comments.
28. Comments may be filed on paper
or electronically via the eFiling link on
the Commission’s Web site at https://
www.ferc.gov. The Commission accepts
most standard word processing formats
and commentors may attach additional
files with supporting information in
certain other file formats. Commentors
filing electronically do not need to make
a paper filing. Commenters that are not
able to file comments electronically
must send an original and 14 copies of
their comments to: Federal Energy
Regulatory Commission, Secretary of the
Commission, 888 First Street, NE.,
Washington, DC 20426.
29. All comments will be placed in
the Commission’s public files and may
be viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
are not required to serve copies of their
comments on other commenters.
IV. Document Availability
30. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the Internet through the
Commission’s Home Page (https://
www.ferc.gov) and in the Commission’s
Public Reference Room during normal
business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE.,
Room 2A, Washington, DC 20426.
31. From the Commission’s Home
Page on the Internet, this information is
available in the Commission’s document
management system, eLibrary. The full
text of this document is available on
eLibrary in PDF and Microsoft Word
format for viewing, printing, and/or
downloading. To access this document
in eLibrary, type the docket number
(excluding the last three digits) in the
docket number field.
32. User assistance is available for
eLibrary and the Commission’s Web site
during normal business hours. For
assistance, please contact the
Commission’s Online Support at 1–866–
208–3676 (toll free) or 202–502–6652 (email at FERCOnlineSupport@ferc.gov or
the Public Reference Room at 202–502–
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55765
8371, TTY 202–502–8659 (e-mail at
public.referenceroom@ferc.gov).
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Acting Deputy Secretary.
[FR Doc. E7–19386 Filed 9–28–07; 8:45 am]
BILLING CODE 6717–01–P
ENVIRONMENTAL PROTECTION
AGENCY
[FRL–8476–3]
Proposed Settlement Agreement,
Clean Air Act Citizen Suit
Environmental Protection
Agency (EPA).
ACTION: Notice of Proposed Settlement
Agreement; Request for Public
Comment.
AGENCY:
SUMMARY: In accordance with section
113(g) of the Clean Air Act, as amended
(‘‘Act’’), 42 U.S.C. 7413(g), notice is
hereby given of a proposed settlement
agreement, to address a lawsuit filed by
Rocky Mountain Clean Air Action
(‘‘RMCAA’’) in the United States Court
of Appeals for the D.C. Circuit: Rocky
Mountain Clean Air Action v. EPA, No.
07–1012 (D.C. Cir.). Petitioner filed a
petition for review challenging EPA’s
final rule entitled ‘‘Final Extension of
the Deferred Effective Date for 8-Hour
Ozone National Ambient Air Quality
Standards (‘‘NAAQS’’) for Early Action
Compact Areas,’’ 71 FR 69022 (Nov. 29,
2006). Under the terms of the proposed
settlement agreement, deadlines have
been established for EPA and the State
of Colorado to take specific actions
related to the Denver Early Action
Compact (‘‘Denver EAC’’) area.
Petitioner’s sole remedy if EPA or the
State fails to take one of these actions
is to request the court to lift the stay and
to set a briefing schedule.
DATES: Written comments on the
proposed settlement agreement must be
received by October 31, 2007.
ADDRESSES: Submit your comments,
identified by Docket ID number EPA–
HQ–OGC–2007–0991, online at https://
www.regulations.gov (EPA’s preferred
method); by e-mail to
oei.docket@epa.gov; mailed to EPA
Docket Center, Environmental
Protection Agency, Mailcode: 2822T,
1200 Pennsylvania Ave., NW.,
Washington, DC 20460–0001; or by
hand delivery or courier to EPA Docket
Center, EPA West, Room 3334, 1301
Constitution Ave., NW., Washington,
DC, between 8:30 a.m. and 4:30 p.m.
Monday through Friday, excluding legal
holidays. Comments on a disk or CD–
E:\FR\FM\01OCN1.SGM
01OCN1
Agencies
[Federal Register Volume 72, Number 189 (Monday, October 1, 2007)]
[Notices]
[Pages 55762-55765]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19386]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. RM07-20-000]
Fuel Retention Practices of Natural Gas Companies
September 20, 2007.
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of Inquiry.
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SUMMARY: The Federal Energy Regulatory Commission is seeking comments
on its policy regarding the in-kind recovery of fuel and lost and
unaccounted-for gas by natural gas pipeline companies. The Commission
is inviting interested persons to submit comments, and other
information on the matters, issues and specific questions identified in
this notice.
DATES: Comments are due November 30, 2007.
ADDRESSES: You may submit comments, identified by Docket No. RM07-20-
000. by one of the following methods:
[cir] Agency Web Site: https://www.ferc.gov. Follow the instructions
for submitting comments via the eFiling link found in the Comment
Procedures Section of the preamble.
[cir] Mail: Commenters unable to file comments electronically must
mail an original and 14 copies of their comments to: Federal Energy
NE., Washington, DC, 20426. Please refer to the Comment Procedure
Section of the preamble for additional information on how to file paper
comments.
FOR FURTHER INFORMATION CONTACT: Ingrid M. Olson, Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8406.
SUPPLEMENTARY INFORMATION:
Notice of Inquiry
September 20, 2007.
1. In this Notice of Inquiry, the Commission is seeking comments on
its policy regarding the in-kind recovery of fuel and lost and
unaccounted-for gas by natural gas pipeline companies. Current policy,
described below, gives pipelines two options for recovering these
costs, and pipelines follow a variety of practices regarding fuel and
lost and unaccounted-for gas. The Commission is seeking comments on
whether it should change its current policy and prescribe a uniform
method for all pipelines to use in recovering these costs.\1\
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\1\ In this proceeding, the Commission is seeking comments on
several specific proposals for rate recovery of fuel and lost and
unaccounted-for gas, as well as answers to specific questions. It
also should be noted that the Commission has initiated a separate
proceeding in Docket No. RM07-9-000 inquiring about the need for
changes or revisions in the Commission's reporting requirements for
its financial forms including the Form Nos. 2 and 2-A, Annual
Reports of Major and Nonmajor Natural Gas Companies. Assessment of
Information Requirements for FERC Financial Forms, Notice of
Inquiry, FERC Stats & Regs. ] 35,554 (February 15, 2007). The
Commission received a number of comments and suggestions in that
proceeding regarding the adequacy of information reported in the
Form No. 2 concerning gas retained, used for compression, and lost
and unaccounted-for. Accordingly, the reporting requirements related
to gas retained, used for compression, and lost and unaccounted-for
will be addressed in the Notice of Proposed Rulemaking which the
Commission is concurrently issuing in Docket No. RM07-9-000, 120
FERC ] 61,256.
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I. Current Commission Policy on Fuel Retention
2. Interstate natural gas pipelines frequently require that
customers contribute a small percentage of the volumes of natural gas
tendered for transportation service to provide fuel for compressors and
to make up for lost and unaccounted-for gas.\2\ Each pipeline states
the percentage it retains in its open access tariff. Currently
effective tariff fuel retention rates range from fractions of a percent
to as high as 13 percent.\3\
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\2\ Some pipelines do not require shippers to contribute in-kind
a portion of the gas tendered to the pipeline for transportation for
the pipeline's use.
\3\ See, e.g., MIGC, Inc., FERC Gas Tariff, First Revised Volume
No. 1, Eleventh Revised Sheet No. 6 (fuel retention percentages up
to 13 percent); Gas Transmission Northwest, FERC Gas Tariff, Third
Revised Volume No. 1-A, Seventh Revised Sheet No. 6 (0.005 percent
fuel retention).
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3. The Commission established its current policy concerning the in-
kind recovery of fuel and unaccounted-for gas in ANR Pipeline Company
(ANR).\4\ In its January 2005 order in the ANR case,\5\ the Commission
stated that pipelines have two options to recover these costs. The
first option is to establish a fixed fuel retention percentage in a
general section 4 rate case, and leave that percentage unchanged until
the pipeline files its next general section 4 rate case. The second
option allows the pipeline to include in its tariff a mechanism
permitting periodic changes in its fuel retention percentage outside of
a general section 4 rate case, as allowed by section 154.403 of the
Commission's regulations.\6\ ANR held that, if a pipeline chooses the
second option, it must include in its tariff a mechanism to true-up any
over- and under-recoveries of fuel, absent agreement otherwise by all
interested parties.
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\4\ ANR Pipeline Co., order on compliance filing, 108 FERC ]
61,050 (2004), order inviting comments, 109 FERC ] 61,038 (2004),
order on reh'g and compliance filing, 110 FERC ] 61,069 (2005),
order on reh'g and compliance filing, 111 FERC ] 61,290 (2005).
\5\ 110 FERC ] 61,069, at P18-28.
\6\ 18 CFR 154.403.
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4. In ANR, the Commission explained that its general ratemaking
policy, established in Order No. 436, is that pipelines must design
their rates based on estimated units of service without any type of
true-up mechanism.\7\ This means that the pipeline is at risk for
under-recovery of its costs between rate cases and may retain any over-
recovery. This gives pipelines an incentive both to minimize their
costs and maximize the service they provide. A cost tracker undercuts
these incentives by guaranteeing the pipeline revenues sufficient to
recover its costs regardless of the level of costs or services
provided.
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\7\ 18 CFR 284.10(c)(2).
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5. However, as the Commission explained in ANR, it had permitted an
exception to this policy for a few cost items that are subject to
significant changes from year to year and thus are difficult to
predict. Among these cost items is fuel. The Commission explained that
section 154.403 of its regulations permits a pipeline to adjust its
fuel retention percentages in periodic limited section 4 rate filings
pursuant to a methodology set forth in the pipeline's tariff. The
Commission stated that section 154.403 does not expressly require that
pipelines include true-up mechanisms as part of the tariff provision
permitting periodic adjustments to their fuel retention percentages.
Instead, the Commission stated, it had addressed this issue on a case-
by-case basis and required a true-up when the facts of a particular
case so warranted.
6. In ANR, the Commission changed this approach and held that, if a
pipeline wishes to take full advantage of the incentives underlying our
general ratemaking policy with respect to in-kind fuel recovery, then
it can choose the first option which requires establishing a fixed fuel
retention percentage. However, if the pipeline chooses the second
option and tracks its fuel costs, then there must be an assurance that
the fuel costs are tracked accurately so that the pipeline does not
over-recover its fuel costs under any
[[Page 55763]]
circumstances. Therefore, the second option requires a true-up
mechanism. The Commission explained that allowing a particular cost
item to be tracked gives the pipeline the opportunity to increase that
cost item without regard to the possibility of any offsetting cost
reductions. The Commission stated that in return for this opportunity,
there should be an assurance that the individual cost item is tracked
accurately, and the pipeline should not in any circumstances be
permitted to over-recover those costs.
7. In reaching this conclusion, the Commission rejected ANR's
contention that it should be permitted to retain its existing tracker
without a true-up mechanism because the existing tracker provided it
with an incentive to reduce fuel costs and a true-up mechanism would
eliminate this incentive. ANR argued that because its fuel recovery
mechanism bases each year's fuel retention percentage on the average of
fuel use on its system during the three preceding years, ANR was able
to retain a portion of any over-recoveries of fuel resulting from a
downward trend in fuel use and, on the other hand, must absorb a
portion of any under-recoveries if fuel use trends upward. ANR argued
that with this tracker in place, it had in fact reduced its fuel use
which resulted in savings to its customers.
8. The Commission rejected ANR's argument, stating that allowing
ANR to over-recover fuel from its customers is not a necessary
incentive to encourage the company to minimize its use of fuel gas. The
Commission concluded, with regard to fuel use and lost and unaccounted-
for gas, that the benefits of requiring a true-up outweigh any
disadvantages.
9. While ANR established a general policy of requiring pipelines
such as ANR that have a fuel tracker to include true-up mechanisms, the
Commission has only enforced that policy in individual cases where
parties raise the issue. Thus, pipelines continue to follow a variety
of practices regarding fuel and lost and unaccounted-for gas which can
be described as fitting into one of three categories.
The first category is the stated-rate approach, where a
fixed percentage is stated in the tariff as a non-negotiable fee-in-
kind retained from the volumes tendered for shipment by each shipper
and changed only in a general section 4 rate case. Of 70 major
pipelines, 24 have a stated rate.\8\
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\8\ These categories and the number of pipelines noted within
each category were identified in a Commission staff analysis of the
FERC tariffs of 70 major pipelines.
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The second category is the tracker approach, where
provisions in a pipeline's tariff allow the pipeline to make
prospective adjustments to its fuel retention rates from time-to-time,
but do not include a mechanism to allow the pipeline to reconcile past
over-or under-recoveries of fuel. Eight pipelines have tracker
mechanisms without true-up requirements.
The third category is the tracker with a true-up approach,
where provisions in a pipeline's tariff allow for periodic adjustments
to its fuel retention rates, and also provide for a true-up of past
over- and under-recoveries of fuel and lost and unaccounted-for gas.
Thirty-eight pipelines have tracker mechanisms with true-ups in their
tariffs.
II. Discussion
10. Pipeline customers have expressed concerns that in-kind gas
retained by pipelines for fuel and unaccounted-for gas requirements is
excessive, and provides pipelines with significant profits. For
example, the Natural Gas Supply Association, in its recent study of
pipeline returns, estimated that in aggregate 32 pipelines,
representing 80 percent of interstate throughput, generated about $2.1
billion in excess retained fuel over the five-year period ending in
2005.\9\ In a recent complaint against National Fuel Gas Supply
Corporation, the principal concern was excessive fuel retention.\10\
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\9\ Natural Gas Supply Association, Pipeline Cost Recovery of 32
Major Pipelines, FERC Form No. 2 Data (2001-2005) at 4, available
upon request at Natural Gas Supply Association, 805 15th Street,
N.W., Suite 510, Washington, D.C. 20005.
\10\ Pub. Serv. Comm'n of N.Y. v. National Fuel Gas Supply
Corp., 115 FERC ] 61,299, reconsideration granted in part, 115 FERC
] 61,368 (2006), order on settlement, 118 FERC ] 61,091 (2007).
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11. The Commission's review of information filed by pipelines in
their 2005 Form No. 2 filings indicates that major pipelines appear to
have retained or carried over in their accounts a net sum of over 97
Bcf in fuel beyond what was consumed, lost, or unaccounted-for.\11\ At
average 2005 prices, this represents over $711 million in value.\12\ Of
that amount, 58 Bcf, with a value of $427 million, is attributable to
those pipelines that do not have a tracker mechanism in their tariff,
and nearly 39 Bcf, with a value of over $285 million, is attributable
to pipelines with a tracker and no true-up or a tracker with a true-up
mechanism.
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\11\ Commission staff examined available Form No. 2 data for
2005 to derive the sum of the net fuel retained (the amount received
from shippers minus the amount consumed for operations or lost or
unaccounted-for).
\12\ The Energy Information Administration (EIA) reports the
average wellhead price of natural gas for 2005 was $7.33 per MMBtu.
(https://tonto.eia.doe.gov/dnav/ng/ng_sum_lsum_dcu_nus_a.htm).
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12. Moreover, with the tightening in natural gas supplies in recent
years, there have been substantial increases in the price of natural
gas. As a result, the pipeline's fuel charges now make up a
significantly greater percentage of the overall cost of transporting
natural gas.\13\
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\13\ A comparison between 2002 and 2006 data for Texas Eastern
Transmission Corporation (Texas Eastern) illustrates this point.
According to EIA, the average wellhead natural gas price rose from
$2.95 per MMBtu in 2002, to $6.42 per MMBtu in 2006. Texas Eastern's
maximum rate for interruptible transportation through the full
length of the system (Zone STX to Zone M3) in 2002 was $0.6639 per
MMBtu, and Texas Eastern retained 8.94 percent of the gas for fuel
use, at an additional cost to the shipper of $0.2637 (fuel retention
rate times the wellhead price). FERC Gas Tariff, Seventh Revised
Volume No. 1, Seventh Revised Sheet No. 49. Thus, the shipper's
total cost was $0.9276 per MMBtu. The fuel cost equaled 28.4 percent
of the total. In 2006, the maximum rate for interruptible
transportation was $0.6231, and Texas Eastern retained 7.94 percent
of the gas for fuel, at an additional cost to the shipper of
$0.5097. FERC Gas Tariff, Seventh Revised Volume No. 1, Thirty-
Second Revised Sheet No. 49. Thus, in 2006, the shipper's total cost
was $1.1328 per MMBtu. Here, the fuel cost equaled 45 percent of the
total, an increase of about 17 percentage points over the 2002
figure.
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13. The increasing significance of pipeline fuel charges in the
overall cost of transportation and the concerns about pipeline cost
over-recoveries suggest that further investigation of in-kind fuel
retention practices is warranted. Therefore, the Commission is seeking
comments on whether its current policy with regard to the in-kind
recovery of fuel and unaccounted for gas should be modified, both for
the purpose of providing pipelines a greater incentive to reduce their
fuel use and lost gas and for the purpose of minimizing pipeline over-
recoveries of these costs. Specifically the Commission is requesting
comments on the following questions:
(1) Should the Commission Continue to Allow Recovery of Pipeline Fuel
Costs Through Fixed Fuel Retention Percentages?
14. As described above, the Commission's review of pipeline Form
No. 2 data indicates that some pipelines, particularly those with fixed
fuel retention percentages, are over-recovering their fuel costs. By
contrast, a properly designed fuel tracker and true-up mechanism would
ensure that a pipeline does not over-recover its fuel costs. However,
allowing pipelines to establish a fixed in-kind fuel retention
percentage in a general section 4 rate case is consistent with the
Commission's general ratemaking
[[Page 55764]]
policies and section 154.403 of the Commission's regulations. In ANR,
the Commission continued to permit pipelines to use that recovery
method, stating that the method gives pipelines an incentive to
minimize their fuel use through more efficient operations. These
efficiencies could benefit customers when the pipeline files its next
general section 4 rate case, although until the pipeline does file a
new section 4 rate case it would retain the benefit from any savings.
Also, a fixed in-kind fuel retention percentage avoids potentially
disruptive changes in the pipeline's fuel rates outside a general
section 4 rate case, thereby giving customers the benefit of greater
certainty as to the pipeline's fuel rates. For that reason, shippers
may favor fixed fuel retention percentages.
15. Do the benefits of a fixed retention percentage for recovery of
fuel in-kind outweigh the potential for cost over-recovery? Have
pipelines with fixed retention percentages reduced their fuel use? If
so, provide specific examples. Have pipelines with fixed in-kind
retention percentages that have reduced their fuel use filed section 4
rate cases, thereby passing through to customers the benefit of any
prospective fuel cost savings? Do pipelines with fixed fuel retention
percentages have less incentive to file new section 4 rate cases, such
that shippers are not receiving the benefit of any reduced fuel use?
Are there barriers that make it difficult for shippers to file section
5 complaints to police over-recovery of fuel costs?
Does the benefit to shippers of greater rate certainty from a fixed
fuel percentage justify continuing to permit pipelines to use a fixed
fuel retention rate? If pipelines were to be allowed to continue using
the fixed fuel retention rate approach, should the Commission consider
imposing explicit incentive requirements, such as the application of an
RPI-X methodology \14\ on either a generic or case-specific basis? If
the Commission were to adopt incentive provisions to encourage
pipelines to reduce fuel use and lost and unaccounted-for gas, should
the Commission adopt a standardized incentive approach, such as the
sharing between the pipeline and its shippers of any fuel cost over-
recoveries and/or under-recoveries? If so, which standardized incentive
approach should the Commission consider?
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\14\ An ``RPI-X'' methodology would allow fuel costs to rise
with inflation minus some X-factor deduction to provide a strong
incentive towards efficiency and an implicit sharing of future
efficiencies with ratepayers. Such methods, if employed in fuel
retention provisions, would need to be adapted to fit the
circumstances of in-kind retention requirements, rather than
monetary payments.
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16. New compressor stations can be designed to minimize fuel use
through, for example, motor selection (size, fuel efficiency,
throughput flexibility) as well as minimizing pressure drops through
the station (yard pipe and facility sizing). Existing compressors
stations can also be redesigned to reduce fuel by minimizing pressure
drops through the station or installing gas coolers to reduce the need
for compression. How does the type of fuel cost recovery mechanism
(fixed fuel retention percentages, tracker with no true-up or tracker
with true-up) affect these decisions, if any? Similarly, is the fuel
cost recovery or other mechanism a factor when deciding whether to
construct a larger diameter pipe instead of compression or use advanced
SCADA/control systems to manage line pack?
17. As stated above, if the Commission were to adopt incentive
provisions to encourage pipelines to reduce fuel use and lost and
unaccounted-for gas, one option would be a mechanism for sharing
between the pipeline and its shippers of any fuel cost recoveries and/
or under-recoveries. How could such a cost-and-benefit-sharing
mechanism affect the decisions discussed immediately above? Could a
cost-and-benefit-sharing mechanism between the pipeline and its
customers ameliorate any concerns that fuel efficient investment is
``gold plating'' rate base, i.e., making an investment that increases
the rate base and the corresponding return without necessarily creating
a corresponding benefit to the pipeline's customers?
18. What are the barriers to cost effective, fuel efficient
investment, it any? If barriers exist, how does the Commission remove
such barriers? What factors, including, if applicable, the type of fuel
cost recovery mechanism, affect the amount of research and development
(R&D) being done to advance technology in these areas? How could a
cost-and-benefit-sharing mechanism between the pipeline and its
customers affect the level of R&D? Could fuel efficiency measures
impact either directly or indirectly throughput or reliability on the
pipeline grid, and if so, in what manner?
19. Some fixed fuel retention provisions were established through
settlements. How important are fixed fuel retention provisions to these
settlements? If the Commission adopts a new generic policy, should it
modify these existing settlements to apply its new policy? If the
Commission adopts a generic fuel retention policy, should it permit
pipelines and shippers to reach settlements thereafter that provide for
recovery of fuel costs in a manner different from that policy?
(2) Should the Commission Mandate That All Pipelines Must Have a
Tracker Mechanism for the Recovery of Fuel?
20. While the Commission's general policy is that rates should be
based on projections of future costs based on test period experience,
the Commission permits certain costs that are volatile and thus
particularly difficult to project, to be tracked. Is fuel use and lost
and unaccounted-for gas difficult to predict with precision? If so,
does the volatility of pipeline fuel use and the experience with the
fixed retention percentage justify a blanket requirement that all
pipelines recover their fuel costs through a tracker? If not, should
the Commission continue the exception that permits pipelines to make
limited section 4 filings tracking their fuel costs? Do the recent
increases in the cost of fuel further justify use of a tracker?
21. In Order No. 637, the Commission established a principle that
pipelines should not profit from the penalty provisions in their
tariffs for imbalances, unauthorized overruns, scheduling violations,
etc.\15\ This was intended to eliminate any incentive for pipelines to
propose unnecessary penalties that hinder efficiency.\16\ Does
permitting pipelines to profit from fuel retention also create
undesirable incentives for pipelines? For example, do the profits from
excess fuel retention lead some pipelines to avoid updating their base
tariff rates because, on balance, they are receiving an adequate cash
flow in aggregate?
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\15\ 18 CFR 284.12(b)(v).
\16\ Order No. 637, FERC Stats. & Regs. ] 31,091 at 31,315.
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(3) If the Commission Requires Pipelines To Use a Tracker, Should It
Require a True-Up Mechanism?
As stated above, in ANR, the Commission concluded that if a
pipeline has a tracker and is therefore able to recover its fuel costs
outside of a general section 4 proceeding, it should track those costs
accurately and not be permitted to over-recover its fuel costs in any
circumstances. Accordingly, the Commission required all pipelines with
trackers to include a true-up mechanism. With both a tracker and a
true-up mechanism, the pipeline simply passes through its fuel costs to
its customers, and, therefore, there may in
[[Page 55765]]
fact be little incentive for the pipeline to try to reduce those costs.
22. In ANR, the Commission found that the inclusion of a true-up
mechanism in a tracker does not remove all incentives for the pipeline
to reduce its fuel use. The Commission explained that pipelines do face
some competitive pressures in obtaining marginal throughput, for
example, obtaining customers with access to alternative fuels. Because
the Commission has held that pipelines may not discount their fuel use
percentages since those costs are variable, the only way a pipeline can
reduce its fuel percentages in order to help obtain marginal business
is by reducing its fuel usage.
23. Was the Commission's conclusion in ANR, that the benefits of
requiring a true-up as part of a tracker outweigh the disadvantages of
reduced incentives for efficient operation accurate? What impact does a
true-up mechanism have on a pipeline's incentive to reduce fuel costs?
Is there evidence that pipelines with tracker and true-up mechanisms
operate less efficiently than pipelines without such mechanisms?
24. Is there a benefit to giving pipelines an incentive to reduce
fuel use, such as the inclusion in the tracker of a profit or loss
sharing mechanism? If the pipeline could retain some benefit of fuel
cost reductions, would it have a greater incentive to reduce those
costs? Would customers benefit from the reduced costs and from sharing
in any cost over-recoveries? How important are fuel costs relative to
total transportation costs?
(4) Should the Commission Retain Its Current Policy?
25. Finally, the Commission seeks comments on whether it should
retain its current policy which gives pipeline discretion over whether
to have a tracker mechanism governing the recovery of fuel costs. What
are the benefits and/or costs of retaining the current policy? What
factors should the Commission consider in deciding whether a change in
fuel retention policy is warranted at this time?
III. Procedure for Comments
26. The Commission invites interested persons to submit comments,
and other information on the matters, issues and specific questions
identified in this notice. Comments are due 60 days from the date of
publication in the Federal Register. Comments must refer to Docket No.
RM07-20-000, and must include the commenter's name, the organization it
represents, if applicable, and its address.
27. To facilitate the Commission's review of the comments,
commenters are requested to provide an executive summary of their
position. Commenters are requested to identify each specific question
posed by the Notice of Inquiry that their discussion addresses and to
use appropriate headings. Additional issues the commentors wish to
raise should be identified separately. The commenters should double
space their comments.
28. Comments may be filed on paper or electronically via the
eFiling link on the Commission's Web site at https://www.ferc.gov. The
Commission accepts most standard word processing formats and commentors
may attach additional files with supporting information in certain
other file formats. Commentors filing electronically do not need to
make a paper filing. Commenters that are not able to file comments
electronically must send an original and 14 copies of their comments
to: Federal Energy Regulatory Commission, Secretary of the Commission,
888 First Street, NE., Washington, DC 20426.
29. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters are not required to
serve copies of their comments on other commenters.
IV. Document Availability
30. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through the Commission's Home Page (https://www.ferc.gov) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5 p.m. Eastern time) at 888 First Street, NE., Room 2A,
Washington, DC 20426.
31. From the Commission's Home Page on the Internet, this
information is available in the Commission's document management
system, eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number (excluding the last three digits) in the docket number field.
32. User assistance is available for eLibrary and the Commission's
Web site during normal business hours. For assistance, please contact
the Commission's Online Support at 1-866-208-3676 (toll free) or 202-
502-6652 (e-mail at FERCOnlineSupport@ferc.gov or the Public Reference
Room at 202-502-8371, TTY 202-502-8659 (e-mail at
public.referenceroom@ferc.gov).
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Acting Deputy Secretary.
[FR Doc. E7-19386 Filed 9-28-07; 8:45 am]
BILLING CODE 6717-01-P