Supplemental Notice of Technical Conference, 27809-27812 [2017-12671]

Download as PDF 27809 Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices Background DEPARTMENT OF ENERGY On January 24, 2017, the Commission issued a Notice of Intent to Prepare an Environmental Assessment for the Proposed Sabine Pass Expansion Project and Request for Comments on Environmental Issues (NOI). The NOI was sent to affected landowners; federal, state, and local government agencies; elected officials; Native American tribes; other interested parties; and local libraries and newspapers. In response to the NOI, the Commission received a comment from a stakeholder stating the U.S. Army Corps of Engineers permits and authorizations that would be necessary for the various Project components. The Commission also received a comment letter from the Louisiana Department of Wildlife and Fisheries stating the Project would have minimal or no long-term adverse impacts on wetland functions and a comment from the Choctaw Nation of Oklahoma requesting to receive a copy of the EA and the cultural resources survey. Federal Energy Regulatory Commission asabaliauskas on DSKBBXCHB2PROD with NOTICES Additional Information In order to receive notification of the issuance of the EA and to keep track of all formal issuances and submittals in specific dockets, the Commission offers a free service called eSubscription. This can reduce the amount of time you spend researching proceedings by automatically providing you with notification of these filings, document summaries, and direct links to the documents. Go to www.ferc.gov/docsfiling/esubscription.asp. Additional information about the Project is available from the Commission’s Office of External Affairs at (866) 208–FERC or on the FERC Web site (www.ferc.gov). Using the eLibrary link, select General Search from the eLibrary menu, enter the selected date range and Docket Number excluding the last three digits (i.e., CP17–22), and follow the instructions. For assistance with access to eLibrary, the helpline can be reached at (866) 208–3676, TTY (202) 502–8659, or at FERCOnlineSupport@ ferc.gov. The eLibrary link on the FERC Web site also provides access to the texts of formal documents issued by the Commission, such as orders, notices, and rule makings. Dated: June 8, 2017. Kimberly D. Bose, Secretary. [FR Doc. 2017–12677 Filed 6–16–17; 8:45 am] BILLING CODE 6717–01–P VerDate Sep<11>2014 17:09 Jun 16, 2017 Jkt 241001 [Project No. 14568–002] CB Energy Park, LLC; Notice of Preliminary Permit Application Accepted For Filing And Soliciting Comments, Motions To Intervene, And Competing Applications On June 1, 2017, CB Energy Park, LLC filed an application for a preliminary permit, pursuant to section 4(f) of the Federal Power Act, proposing to study the feasibility of the Coffin Butte Pumped Storage Project (project) to be located near Two Dot in Wheatland and Meagher Counties, Montana. The sole purpose of a preliminary permit, if issued, is to grant the permit holder priority to file a license application during the permit term. A preliminary permit does not authorize the permit holder to perform any land-disturbing activities or otherwise enter upon lands or waters owned by others without the owners’ express permission. The proposed project would consist of the following: Lower Reservoir (1) A 5,000-foot-long, 50-foot-high earth and roller compacted concrete embankment; (2) a 50-acre lower reservoir with a storage capacity of 2,500-acre-foot at an elevation of 5,200 feet; (3) a temporary pump and pipeline to bring initial fill water to the lower reservoir from Martinsdale Reservoir; (4) a new well; (5) a powerhouse containing two Ternary 125-megawatt (MW) turbine/generator units, for a total installed capacity of 250 MW; and (6) an approximately 10-mile-long, 230kilovolt transmission line connecting to the proposed Gordon Butte substation. Upper Reservoir (1) A 4,600-foot-long, 50-foot-high earth and roller compacted concrete embankment; (2) a 50-acre upper reservoir with a storage capacity of 2,500-acre-foot at an elevation of 6,240 feet; (3) a 12-foot-diameter, 4,000-footlong steel-lined tunnel connecting the two reservoirs; and (4) appurtenant facilities. The estimated annual generation of the project would be 880,000 megawatthours. Applicant Contact: Carl Borgquist, CB Energy Park, LLC, 209 South Wilson Avenue, P.O. Box 309, Bozeman, MT 59771, phone: (406) 585–3006; Martin J. Weber, P.E., Stanley Consultants, Inc., 5775 Wayzata Blvd., No. 300, Minneapolis, MN 55416, phone: (952) PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 546–3669; or Steve Padula, McMillen Jacobs and Associates, 500 Broadway Street, Suite 606, Vancouver, WA 98660, phone: (360) 576–3579. FERC Contact: Kim Nguyen, (202) 502–6105. Deadline for filing comments, motions to intervene, competing applications (without notices of intent), or notices of intent to file competing applications: 60 days from the issuance of this notice. Competing applications and notices of intent must meet the requirements of 18 CFR 4.36. The Commission strongly encourages electronic filing. Please file comments, motions to intervene, notices of intent, and competing applications using the Commission’s eFiling system at http:// www.ferc.gov/docs-filing/efiling.asp. Commenters can submit brief comments up to 6,000 characters, without prior registration, using the eComment system at http://www.ferc.gov/docs-filing/ ecomment.asp. You must include your name and contact information at the end of your comments. For assistance, please contact FERC Online Support at FERCOnlineSupport@ferc.gov, (866) 208–3676 (toll free), or (202) 502–8659 (TTY). In lieu of electronic filing, please send a paper copy to: Secretary, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426. The first page of any filing should include docket number P–14568–002. More information about this project, including a copy of the application, can be viewed or printed on the ‘‘eLibrary’’ link of Commission’s Web site at http:// www.ferc.gov/docs-filing/elibary.asp. Enter the docket number (P–14568) in the docket number field to access the document. For assistance, contact FERC Online Support. Dated: June 13, 2017. Kimberly D. Bose, Secretary. [FR Doc. 2017–12669 Filed 6–16–17; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission Supplemental Notice of Technical Conference Docket Nos. Developments in Natural Gas Index Liquidity and Transparency. Price Discovery in Natural Gas and Electric Markets. Natural Gas Price Formation ISO New England Inc ............ E:\FR\FM\19JNN1.SGM 19JNN1 AD17–12–000 PL03–3–000 AD03–7–000 ER17–795–000 ER17–795–001 27810 Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices Docket Nos. Kinetica Energy Express, LLC. asabaliauskas on DSKBBXCHB2PROD with NOTICES New York Independent System Operator, Inc. RP16–1299–000 RP16–1299–001 RP16–1299–002 ER17–386–001 ER17–386–002 As announced in the Notice issued May 10, 2017,1 Federal Energy Regulatory Commission (Commission) staff will hold a technical conference on Thursday June 29, 2017 from 9:00 a.m. to 5:30 p.m. to discuss the state of liquidity and transparency in the physical natural gas markets. The agenda and list of panel participants for this conference are attached. The conference is free of charge and open to the public. Commission members may participate in the conference. If they have not already done so, those who plan to attend the technical conference are strongly encouraged to complete the registration form located at: https://www.ferc.gov/whats-new/ registration/06-29-17-form.asp. The dress code for the conference will be business casual. The technical conference will be transcribed. Transcripts will be available from Ace Reporting Company and may be purchased online at www.acefederal.com, or by phone at (202) 347–3700. In addition, there will be a free webcast of the conference. The webcast will allow persons to listen, but not participate, and will be accessible at www.ferc.gov Calendar of Events. The Capitol Connection provides technical support for the webcast and offers the option of listening to the technical conference via phone-bridge for a fee; visit www.CapitolConnection.org or call (703) 993–3100 with any webcast questions. Commission conferences are accessible under section 508 of the Rehabilitation Act of 1973. For accessibility accommodations, please send an email to accessibility@ferc.gov or call toll free 1–866–208–3372 (voice) or 202–208–1659 (TTY), or send a FAX to 202–208–2106 with the required accommodations. For more information about the technical conference, please contact: Sarah McKinley (Logistics), Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502–8368, Sarah.Mckinley@ferc.gov. Eric Primosch (Technical), Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 1 Developments in Natural Gas Index Liquidity and Transparency, Docket No. AD17–12–000 (May 10, 2017) (Notice of Technical Conference) (https:// elibrary.ferc.gov/IDMWS/common/ opennat.asp?fileID=14586688). VerDate Sep<11>2014 17:09 Jun 16, 2017 Jkt 241001 20426, (202) 502–6483, Eric.Primosch@ferc.gov. Omar Bustami (Legal), Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502–6214, Omar.Bustami@ ferc.gov. Dated: June 13, 2017 Kimberly D. Bose, Secretary. Technical Conference on Developments in Natural Gas Index Liquidity and Transparency Docket No. AD17–12–000 June 29, 2017 Agenda The purpose of the staff-led Technical Conference on Developments in Natural Gas Index Liquidity and Transparency is to solicit feedback and develop a record regarding index robustness and to discuss what, if anything, the industry and/or the Commission could do to increase transparency and support greater robustness in natural gas price formation. The technical conference will examine: (1) The current state of natural gas index liquidity and voluntary reporting to index developers; (2) the use of natural gas indices over time; and (3) possible actions that the industry and/or the Commission could take to increase transparency and support greater robustness in natural gas price formation. 9:00 a.m.–9:15 a.m. Opening Remarks Welcome and 9:15 a.m.–9:45 a.m. Natural Gas Index Presentation (Commission Staff) Staff will present an overview of natural gas transactions using FERC Form No. 552 data. The presentation will review trends in next-day and nextmonth transactions, the number of companies that report to index developers, and the volume of fixedpriced transactions that contribute to natural gas indices. Staff will also present an overview of natural gas indices referenced in jurisdictional tariffs. 9:45 a.m.–12:00 p.m. Panel 1: Robustness and Liquidity of Natural Gas Indices Most price indices are supplied as a commercial service by publishers of daily, weekly, or monthly newsletters. Price indices play a pivotal role in natural gas market price formation, and are commonly referenced in physical and financial transactions. This panel will examine the robustness and liquidity of natural gas indices, the degree of industry reliance on index- PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 based contracts rather than fixed-price contracts, the decline in fixed-price reporting to index developers, and whether natural gas indices accurately reflect market conditions. Panelists are encouraged to respond to the following: 1. Describe the current trends in natural gas fixed-price and physical basis trading that you believe positively or negatively impact price formation in the natural gas market, detailing any observable shifts in liquidity. Are there differences in market fundamentals, procedures, or policies which disproportionately impact either overall or regional liquidity? 2. How have the volume and quality of next-day and next-month fixed-price and physical basis transaction reporting changed? In addition, describe any changes in other information used to form natural gas indices. Are there market, regulatory, or other factors that discourage reporting? If so, are there ways to incent reporting? 3. For indices published by index developers and referenced in FERC jurisdictional tariffs, the Commission requires index developers to comply with five standards: (1) Code of conduct and confidentiality; (2) completeness; (3) data verification, error correction, and monitoring; (4) verifiability; and (5) availability and accessibility.2 How have index developers’ methodologies and practices changed since these standards were developed? Are the standards established in 2003 still relevant and sufficient to allow for healthy and robust natural gas price formation in today’s environment? 4. Is there a need for additional transparency regarding natural gas index price assessments and the level of liquidity underlying each natural gas index published by index developers? Should common minimum liquidity thresholds be defined? If so, who should define them, and what should be the mechanism for accomplishing this? For example, should index developers provide information about which indices are illiquid? What kind of coordination would be necessary, and what kind of information would be shared, and with whom, when a given natural gas price index is deemed illiquid? Panelists • Mark Callahan, Editorial Director for Platts North America, S&P Global • J.C. Kneale, Vice President—North American Natural Gas, Power & NGL Markets InterContinental Exchange 2 Policy Statement on Natural Gas and Electric Price Indices, 104 FERC ¶ 61,121, at P 33 (2003). E:\FR\FM\19JNN1.SGM 19JNN1 27811 Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices • Euan Craik, Chief Executive Officer, Argus Media • Tom Haywood, Editor—Natural Gas Week, Energy Intelligence • Dexter Steis, Executive Publisher, Natural Gas Intelligence • Vince Kaminski, Professor in Practice of Energy, Rice University • Orlando Alvarez, President and CEO, BP Energy Company • Edward Fortunato, Managing Director of Analytics for Constellation Energy, Exelon Corporation asabaliauskas on DSKBBXCHB2PROD with NOTICES 12:00 p.m.–1:00 p.m. Break 1:00 p.m.–3:30 p.m. Panel 2: Role of Natural Gas Indices in Price Formation Natural gas indices are used by industry for a variety of purposes, such as settling bilateral contracts of varying terms, basis swap futures, index swap futures, swing swap futures, and calendar and basis spreads. Natural gas indices also are used in FERC jurisdictional interstate natural gas pipeline and wholesale electric transmission tariffs for various purposes. For example, indices are used in many interstate natural gas pipeline tariffs to settle imbalances or determine penalties. In addition, State Commissions use indices as benchmarks in reviewing the prudence of natural gas purchases by local distribution companies. Finally, some Regional Transmission Organizations and Independent System Operators (RTOs/ ISOs) rely on natural gas indices to develop reference levels for market power mitigation. Given the prevalence of indices in the natural gas and electric industries, indices must be robust and have the confidence of market participants for such markets to function properly and efficiently. Panelists are encouraged to respond to the following: 1. Describe current industry uses of physical natural gas price indices. Are natural gas price indices sufficiently reflecting the locational value of natural gas to permit decision-making by those with an interest in the value of natural gas such as: End users, producers, marketers, and other buyers and sellers? 2. Are there improvements that should be made to increase the likelihood that natural gas indices will reflect the market value at particular locations? For example, could index publishers provide increased transparency when there are insufficient transactions to formulate an index price? What additional information could signal that market activity is sufficiently robust to create accurate prices? 3. For RTOs/ISOs that rely on natural gas indices to develop reference levels VerDate Sep<11>2014 17:09 Jun 16, 2017 Jkt 241001 for market power mitigation, do you have concerns about the robustness or liquidity of the natural gas indices used in your tariffs? If so, please explain why. 4. Recognizing that the use of natural gas indices in FERC jurisdictional tariffs is different from their use in commercial transactions, the Commission established liquidity thresholds for indices referenced in jurisdictional tariffs.3 Do these thresholds accurately capture minimum liquidity thresholds over an appropriate time period? Should the liquidity of indices referenced in FERC jurisdictional tariffs be reassessed periodically, and if so, who should assess it, and what should be the mechanism for accomplishing this? What kind of coordination would be necessary, and what kind of information should be shared and with whom, should a given index be deemed illiquid? Panelists • Paul Greenwood, Vice PresidentAmericas, Africa, and Asia Pacific New Markets for ExxonMobil, Natural Gas Supply Association Representative • Pallas LeeVanSchaik, External Market Monitor, Potomac Economics • Guillermo Bautista Alderete, Director—Market Analysis and Forecasting, California ISO • Christopher Hamlen, Regulatory Counsel, ISO–NE • George Wayne, Director of Account Services for the Western Pipelines, Kinder Morgan • Edward Fortunato, Managing Director of Analytics for Constellation Energy, Exelon Corporation • Corey Grindal, Senior Vice President—Gas Supply, Cheniere Energy • David Louw, Division Director—Risk Management and Compliance, Macquarie Energy • Donnie Sharp, Senior Natural Gas Supply Coordinator for Huntsville Utilities, American Public Gas Association Representative • Lee Bennett, Manager, Pricing and Business Analysis for Transcanada, on behalf of Interstate Natural Gas Association of America Representative • Susan Bergles, Assistant General Counsel, American Gas Association 3 Price Discovery in Natural Gas and Electric Markets, 109 FERC ¶ 61,184 at P60 (2004). PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 3:30 p.m.–3:45 p.m. Break 3:45 p.m.–5:25 p.m. Panel 3: Options To Increase Transparency and Liquidity of Natural Gas Indices Should action be taken to foster more meaningful, reliable, and transparent price information in natural gas markets? What changes may be necessary to incent voluntary price reporting and improve the accuracy, reliability, and transparency of natural gas price indices? Discuss the degree to which the level of voluntary reporting and other developments within the commercial service model of natural gas index development impact the robustness of natural gas indices. Panelists are encouraged to respond to the following: 1. Is there a need to develop industry wide liquidity thresholds? While the Commission maintains certain liquidity thresholds for indices referenced in jurisdictional tariffs, should standards be developed that would apply to other uses of natural gas indices? If so, how can such standards be developed and by whom? Can this be addressed through voluntary consensus or through other regulatory processes? Are there legal, commercial, or technical impediments to doing so? 2. Should the Commission take steps to provide greater natural gas price transparency and market information, promote index developer competition, and enhance confidence in natural gas price formation through increased transparency and accessibility of natural gas index information? For example, should the Commission consider exercising its authority under section 23(a)(1) through (3) of the Natural Gas Act to require market participants to report price forming transactions to index developers? 3. Is index data sufficiently available and transparent? Does the commercial service model negatively or positively impact price formation? What actions, policies, or trends have impacted price discovery? Is there additional information market participants need to ensure robust natural gas price formation? Who should provide that information? How would that information be shared? Panelists • Greg Leonard, Vice President, Cornerstone Research • Orlando Alvarez, President and CEO, BP Energy Company • Mark Callahan, Editorial Director for Platts North America, S&P Global • J.C. Kneale, Vice President—North American Natural Gas, Power & NGL Markets InterContinental Exchange E:\FR\FM\19JNN1.SGM 19JNN1 27812 Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices • Vince Kaminski, Professor in Practice of Energy, Rice University • Curtis Moffatt, Deputy General Counsel and Vice President, Kinder Morgan • Joe Bowring, President, Monitoring Analytics • Corey Grindal, Senior Vice President—Gas Supply, Cheniere Energy • Tom Haywood, Editor—Natural Gas Week, Energy Intelligence • Drew Fossum, Senior Vice President and General Counsel, Tenaska Inc. • Joan Dreskin, Vice President and General Counsel, Interstate Natural Gas Association of America 5:25 p.m.–5:30 p.m. Closing Remarks [FR Doc. 2017–12671 Filed 6–16–17; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. CP17–58–000] asabaliauskas on DSKBBXCHB2PROD with NOTICES Transcontinental Gas Pipe Line Company, LLC; Notice of Schedule for Environmental Review of the St. James Supply Project On February 6, 2017, Transcontinental Gas Pipe Line Company, LLC (Transco) filed an application in Docket No. CP17–58–000 requesting a Certificate of Public Convenience and Necessity pursuant to Section 7(c) of the Natural Gas Act to construct and operate certain natural gas pipeline facilities. The proposed project is known as the St. James Supply Project (Project), and would deliver 161,500 dekatherms per day of firm transportation capacity from Transco’s existing mainline Compressor Station 65 in St. Helena Parish, Louisiana to the planned Yuhuang Chemical Plant in St. James Parish, Louisiana. On February 21, 2017, the Federal Energy Regulatory Commission (Commission or FERC) issued its Notice of Application for the Project. Among other things, that notice alerted agencies issuing federal authorizations of the requirement to complete all necessary reviews and to reach a final decision on a request for a federal authorization within 90 days of the date of issuance of the Commission staff’s Environmental Assessment (EA) for the Project. This instant notice identifies the FERC staff’s planned schedule for the completion of the EA for the Project. Schedule for Environmental Review Issuance of EA—July 24, 2017. VerDate Sep<11>2014 17:09 Jun 16, 2017 Jkt 241001 90-day Federal Authorization Decision Deadline—October 22, 2017. If a schedule change becomes necessary, additional notice will be provided so that the relevant agencies are kept informed of the Project’s progress. Project Description The St. James Supply Project would consist of 0.7 mile of 20-inch-diameter pipeline, one new pig receiver site,1 a new interconnection to the planned Yuhuang Chemical Plant site, one new valve and piping to tie the Old River Road M&R Station into the existing Southeast Lateral Pipeline, and piping and valve modifications at existing Transco Compressor Stations 63 and 65. Background On March 17, 2017, the Commission issued a Notice of Intent to Prepare an Environmental Assessment for the Proposed St. James Supply Project and Request for Comments on Environmental Issues (NOI). The NOI was sent to affected landowners; federal, state, and local government agencies; elected officials; environmental and public interest groups; Native American tribes; other interested parties; and local libraries. In response to the NOI, the Commission received letters from the Seminole Nation of Oklahoma, the Quapaw Tribe of Oklahoma, and the Choctaw Nation of Oklahoma. No concerns about historic resources were raised. Additional Information In order to receive notification of the issuance of the EA and to keep track of all formal issuances and submittals in specific dockets, the Commission offers a free service called eSubscription. This can reduce the amount of time you spend researching proceedings by automatically providing you with notification of these filings, document summaries, and direct links to the documents. Go to www.ferc.gov/docsfiling/esubscription.asp. Additional information about the Project is available from the Commission’s Office of External Affairs at (866) 208–FERC or on the FERC Web site (www.ferc.gov). Using the eLibrary link, select General Search from the eLibrary menu, enter the selected date range and Docket Number excluding the last three digits (i.e., CP17–58), and follow the instructions. For assistance with access to eLibrary, the helpline can be reached at (866) 208–3676, TTY (202) 1 A pig is a tool that the pipeline company inserts into and pushes through the pipeline for cleaning the pipeline, conducting internal inspections, or other purposes. PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 502–8659, or at FERCOnlineSupport@ ferc.gov. The eLibrary link on the FERC Web site also provides access to the texts of formal documents issued by the Commission, such as orders, notices, and rule makings. Dated: June 12, 2017. Kimberly D. Bose, Secretary. [FR Doc. 2017–12661 Filed 6–16–17; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission Combined Notice of Filings #2 Take notice that the Commission received the following electric rate filings: Docket Numbers: ER17–1774–000. Applicants: NextEra Energy Bluff Point, LLC. Description: Baseline eTariff Filing: NextEra Energy Bluff Point, LLC Application for Market-Based Rates to be effective 8/7/2017. Filed Date: 6/8/17. Accession Number: 20170608–5077. Comments Due: 5 p.m. ET 6/29/17. Docket Numbers: ER17–1775–000. Applicants: Arizona Public Service Company. Description: § 205(d) Rate Filing: Rate Schedule No. 265, Amendment No. 1 PV-Morgan 500kV to be effective 8/8/ 2016. Filed Date: 6/8/17. Accession Number: 20170608–5083. Comments Due: 5 p.m. ET 6/29/17. Docket Numbers: ER17–1776–000. Applicants: Southwest Power Pool, Inc. Description: § 205(d) Rate Filing: Bylaws 3.1 and 3.3.2 Revisions (Chair and Vice Chair Terms) to be effective 8/7/2017. Filed Date: 6/8/17. Accession Number: 20170608–5096. Comments Due: 5 p.m. ET 6/29/17. Docket Numbers: ER17–1777–000. Applicants: Midcontinent Independent System Operator Inc., Entergy Services, Inc. Description: Compliance filing: 2017– 06–08_Filing to implement Entergy settlement in Docket No. ER16–227 to be effective 1/1/2016. Filed Date: 6/8/17. Accession Number: 20170608–5117. Comments Due: 5 p.m. ET 6/29/17. Take notice that the Commission received the following electric reliability filings: Docket Numbers: RR17–5–000. E:\FR\FM\19JNN1.SGM 19JNN1

Agencies

[Federal Register Volume 82, Number 116 (Monday, June 19, 2017)]
[Notices]
[Pages 27809-27812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12671]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission


Supplemental Notice of Technical Conference

------------------------------------------------------------------------
                                                   Docket Nos.
------------------------------------------------------------------------
Developments in Natural Gas Index       AD17-12-000
 Liquidity and Transparency.
Price Discovery in Natural Gas and      PL03-3-000
 Electric Markets.
Natural Gas Price Formation...........  AD03-7-000
ISO New England Inc...................  ER17-795-000
                                        ER17-795-001

[[Page 27810]]

 
Kinetica Energy Express, LLC..........  RP16-1299-000
                                        RP16-1299-001
                                        RP16-1299-002
New York Independent System Operator,   ER17-386-001
 Inc.                                   ER17-386-002
------------------------------------------------------------------------

    As announced in the Notice issued May 10, 2017,\1\ Federal Energy 
Regulatory Commission (Commission) staff will hold a technical 
conference on Thursday June 29, 2017 from 9:00 a.m. to 5:30 p.m. to 
discuss the state of liquidity and transparency in the physical natural 
gas markets. The agenda and list of panel participants for this 
conference are attached. The conference is free of charge and open to 
the public. Commission members may participate in the conference.
---------------------------------------------------------------------------

    \1\ Developments in Natural Gas Index Liquidity and 
Transparency, Docket No. AD17-12-000 (May 10, 2017) (Notice of 
Technical Conference) (https://elibrary.ferc.gov/IDMWS/common/opennat.asp?fileID=14586688).
---------------------------------------------------------------------------

    If they have not already done so, those who plan to attend the 
technical conference are strongly encouraged to complete the 
registration form located at: https://www.ferc.gov/whats-new/registration/06-29-17-form.asp. The dress code for the conference will 
be business casual.
    The technical conference will be transcribed. Transcripts will be 
available from Ace Reporting Company and may be purchased online at 
www.acefederal.com, or by phone at (202) 347-3700. In addition, there 
will be a free webcast of the conference. The webcast will allow 
persons to listen, but not participate, and will be accessible at 
www.ferc.gov Calendar of Events. The Capitol Connection provides 
technical support for the webcast and offers the option of listening to 
the technical conference via phone-bridge for a fee; visit 
www.CapitolConnection.org or call (703) 993-3100 with any webcast 
questions.
    Commission conferences are accessible under section 508 of the 
Rehabilitation Act of 1973. For accessibility accommodations, please 
send an email to accessibility@ferc.gov or call toll free 1-866-208-
3372 (voice) or 202-208-1659 (TTY), or send a FAX to 202-208-2106 with 
the required accommodations.
    For more information about the technical conference, please 
contact:

Sarah McKinley (Logistics), Federal Energy Regulatory Commission, 888 
First Street NE., Washington, DC 20426, (202) 502-8368, 
Sarah.Mckinley@ferc.gov.
Eric Primosch (Technical), Federal Energy Regulatory Commission, 888 
First Street NE., Washington, DC 20426, (202) 502-6483, 
Eric.Primosch@ferc.gov.
Omar Bustami (Legal), Federal Energy Regulatory Commission, 888 First 
Street NE., Washington, DC 20426, (202) 502-6214, 
Omar.Bustami@ferc.gov.

    Dated: June 13, 2017
Kimberly D. Bose,
Secretary.

Technical Conference on Developments in Natural Gas Index Liquidity and 
Transparency

Docket No. AD17-12-000

June 29, 2017
Agenda
    The purpose of the staff-led Technical Conference on Developments 
in Natural Gas Index Liquidity and Transparency is to solicit feedback 
and develop a record regarding index robustness and to discuss what, if 
anything, the industry and/or the Commission could do to increase 
transparency and support greater robustness in natural gas price 
formation. The technical conference will examine: (1) The current state 
of natural gas index liquidity and voluntary reporting to index 
developers; (2) the use of natural gas indices over time; and (3) 
possible actions that the industry and/or the Commission could take to 
increase transparency and support greater robustness in natural gas 
price formation.
9:00 a.m.-9:15 a.m. Welcome and Opening Remarks
9:15 a.m.-9:45 a.m. Natural Gas Index Presentation (Commission Staff)
    Staff will present an overview of natural gas transactions using 
FERC Form No. 552 data. The presentation will review trends in next-day 
and next-month transactions, the number of companies that report to 
index developers, and the volume of fixed-priced transactions that 
contribute to natural gas indices. Staff will also present an overview 
of natural gas indices referenced in jurisdictional tariffs.
9:45 a.m.-12:00 p.m. Panel 1: Robustness and Liquidity of Natural Gas 
Indices
    Most price indices are supplied as a commercial service by 
publishers of daily, weekly, or monthly newsletters. Price indices play 
a pivotal role in natural gas market price formation, and are commonly 
referenced in physical and financial transactions. This panel will 
examine the robustness and liquidity of natural gas indices, the degree 
of industry reliance on index-based contracts rather than fixed-price 
contracts, the decline in fixed-price reporting to index developers, 
and whether natural gas indices accurately reflect market conditions.
    Panelists are encouraged to respond to the following:
    1. Describe the current trends in natural gas fixed-price and 
physical basis trading that you believe positively or negatively impact 
price formation in the natural gas market, detailing any observable 
shifts in liquidity. Are there differences in market fundamentals, 
procedures, or policies which disproportionately impact either overall 
or regional liquidity?
    2. How have the volume and quality of next-day and next-month 
fixed-price and physical basis transaction reporting changed? In 
addition, describe any changes in other information used to form 
natural gas indices. Are there market, regulatory, or other factors 
that discourage reporting? If so, are there ways to incent reporting?
    3. For indices published by index developers and referenced in FERC 
jurisdictional tariffs, the Commission requires index developers to 
comply with five standards: (1) Code of conduct and confidentiality; 
(2) completeness; (3) data verification, error correction, and 
monitoring; (4) verifiability; and (5) availability and 
accessibility.\2\ How have index developers' methodologies and 
practices changed since these standards were developed? Are the 
standards established in 2003 still relevant and sufficient to allow 
for healthy and robust natural gas price formation in today's 
environment?
---------------------------------------------------------------------------

    \2\ Policy Statement on Natural Gas and Electric Price Indices, 
104 FERC ] 61,121, at P 33 (2003).
---------------------------------------------------------------------------

    4. Is there a need for additional transparency regarding natural 
gas index price assessments and the level of liquidity underlying each 
natural gas index published by index developers? Should common minimum 
liquidity thresholds be defined? If so, who should define them, and 
what should be the mechanism for accomplishing this? For example, 
should index developers provide information about which indices are 
illiquid? What kind of coordination would be necessary, and what kind 
of information would be shared, and with whom, when a given natural gas 
price index is deemed illiquid?

Panelists

 Mark Callahan, Editorial Director for Platts North America, 
S&P Global
 J.C. Kneale, Vice President--North American Natural Gas, Power 
& NGL Markets InterContinental Exchange

[[Page 27811]]

 Euan Craik, Chief Executive Officer, Argus Media
 Tom Haywood, Editor--Natural Gas Week, Energy Intelligence
 Dexter Steis, Executive Publisher, Natural Gas Intelligence
 Vince Kaminski, Professor in Practice of Energy, Rice 
University
 Orlando Alvarez, President and CEO, BP Energy Company
 Edward Fortunato, Managing Director of Analytics for 
Constellation Energy, Exelon Corporation
12:00 p.m.-1:00 p.m. Break
1:00 p.m.-3:30 p.m. Panel 2: Role of Natural Gas Indices in Price 
Formation
    Natural gas indices are used by industry for a variety of purposes, 
such as settling bilateral contracts of varying terms, basis swap 
futures, index swap futures, swing swap futures, and calendar and basis 
spreads. Natural gas indices also are used in FERC jurisdictional 
interstate natural gas pipeline and wholesale electric transmission 
tariffs for various purposes. For example, indices are used in many 
interstate natural gas pipeline tariffs to settle imbalances or 
determine penalties. In addition, State Commissions use indices as 
benchmarks in reviewing the prudence of natural gas purchases by local 
distribution companies. Finally, some Regional Transmission 
Organizations and Independent System Operators (RTOs/ISOs) rely on 
natural gas indices to develop reference levels for market power 
mitigation. Given the prevalence of indices in the natural gas and 
electric industries, indices must be robust and have the confidence of 
market participants for such markets to function properly and 
efficiently.
    Panelists are encouraged to respond to the following:
    1. Describe current industry uses of physical natural gas price 
indices. Are natural gas price indices sufficiently reflecting the 
locational value of natural gas to permit decision-making by those with 
an interest in the value of natural gas such as: End users, producers, 
marketers, and other buyers and sellers?
    2. Are there improvements that should be made to increase the 
likelihood that natural gas indices will reflect the market value at 
particular locations? For example, could index publishers provide 
increased transparency when there are insufficient transactions to 
formulate an index price? What additional information could signal that 
market activity is sufficiently robust to create accurate prices?
    3. For RTOs/ISOs that rely on natural gas indices to develop 
reference levels for market power mitigation, do you have concerns 
about the robustness or liquidity of the natural gas indices used in 
your tariffs? If so, please explain why.
    4. Recognizing that the use of natural gas indices in FERC 
jurisdictional tariffs is different from their use in commercial 
transactions, the Commission established liquidity thresholds for 
indices referenced in jurisdictional tariffs.\3\ Do these thresholds 
accurately capture minimum liquidity thresholds over an appropriate 
time period? Should the liquidity of indices referenced in FERC 
jurisdictional tariffs be reassessed periodically, and if so, who 
should assess it, and what should be the mechanism for accomplishing 
this? What kind of coordination would be necessary, and what kind of 
information should be shared and with whom, should a given index be 
deemed illiquid?

    \3\ Price Discovery in Natural Gas and Electric Markets, 109 
FERC ] 61,184 at P60 (2004).
---------------------------------------------------------------------------

Panelists

 Paul Greenwood, Vice President-Americas, Africa, and Asia 
Pacific New Markets for ExxonMobil, Natural Gas Supply Association 
Representative
 Pallas LeeVanSchaik, External Market Monitor, Potomac 
Economics
 Guillermo Bautista Alderete, Director--Market Analysis and 
Forecasting, California ISO
 Christopher Hamlen, Regulatory Counsel, ISO-NE
 George Wayne, Director of Account Services for the Western 
Pipelines, Kinder Morgan
 Edward Fortunato, Managing Director of Analytics for 
Constellation Energy, Exelon Corporation
 Corey Grindal, Senior Vice President--Gas Supply, Cheniere 
Energy
 David Louw, Division Director--Risk Management and Compliance, 
Macquarie Energy
 Donnie Sharp, Senior Natural Gas Supply Coordinator for 
Huntsville Utilities, American Public Gas Association Representative
 Lee Bennett, Manager, Pricing and Business Analysis for 
Transcanada, on behalf of Interstate Natural Gas Association of America 
Representative
 Susan Bergles, Assistant General Counsel, American Gas 
Association
3:30 p.m.-3:45 p.m. Break
3:45 p.m.-5:25 p.m. Panel 3: Options To Increase Transparency and 
Liquidity of Natural Gas Indices
    Should action be taken to foster more meaningful, reliable, and 
transparent price information in natural gas markets? What changes may 
be necessary to incent voluntary price reporting and improve the 
accuracy, reliability, and transparency of natural gas price indices? 
Discuss the degree to which the level of voluntary reporting and other 
developments within the commercial service model of natural gas index 
development impact the robustness of natural gas indices.
    Panelists are encouraged to respond to the following:
    1. Is there a need to develop industry wide liquidity thresholds? 
While the Commission maintains certain liquidity thresholds for indices 
referenced in jurisdictional tariffs, should standards be developed 
that would apply to other uses of natural gas indices? If so, how can 
such standards be developed and by whom? Can this be addressed through 
voluntary consensus or through other regulatory processes? Are there 
legal, commercial, or technical impediments to doing so?
    2. Should the Commission take steps to provide greater natural gas 
price transparency and market information, promote index developer 
competition, and enhance confidence in natural gas price formation 
through increased transparency and accessibility of natural gas index 
information? For example, should the Commission consider exercising its 
authority under section 23(a)(1) through (3) of the Natural Gas Act to 
require market participants to report price forming transactions to 
index developers?
    3. Is index data sufficiently available and transparent? Does the 
commercial service model negatively or positively impact price 
formation? What actions, policies, or trends have impacted price 
discovery? Is there additional information market participants need to 
ensure robust natural gas price formation? Who should provide that 
information? How would that information be shared?

Panelists

 Greg Leonard, Vice President, Cornerstone Research
 Orlando Alvarez, President and CEO, BP Energy Company
 Mark Callahan, Editorial Director for Platts North America, 
S&P Global
 J.C. Kneale, Vice President--North American Natural Gas, Power 
& NGL Markets InterContinental Exchange

[[Page 27812]]

 Vince Kaminski, Professor in Practice of Energy, Rice 
University
 Curtis Moffatt, Deputy General Counsel and Vice President, 
Kinder Morgan
 Joe Bowring, President, Monitoring Analytics
 Corey Grindal, Senior Vice President--Gas Supply, Cheniere 
Energy
 Tom Haywood, Editor--Natural Gas Week, Energy Intelligence
 Drew Fossum, Senior Vice President and General Counsel, 
Tenaska Inc.
 Joan Dreskin, Vice President and General Counsel, Interstate 
Natural Gas Association of America
5:25 p.m.-5:30 p.m. Closing Remarks
[FR Doc. 2017-12671 Filed 6-16-17; 8:45 am]
 BILLING CODE 6717-01-P