Supplemental Notice of Technical Conference, 29065-29068 [2017-13391]
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Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
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blanket authorization, under 18 CFR
part 34, of future issuances of securities
and assumptions of liability.
Any person desiring to intervene or to
protest should file with the Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC 20426,
in accordance with Rules 211 and 214
of the Commission’s Rules of Practice
and Procedure (18 CFR 385.211 and
385.214). Anyone filing a motion to
intervene or protest must serve a copy
of that document on the Applicant.
Notice is hereby given that the
deadline for filing protests with regard
to the applicant’s request for blanket
authorization, under 18 CFR part 34, of
future issuances of securities and
assumptions of liability, is July 11,
2017.
The Commission encourages
electronic submission of protests and
interventions in lieu of paper, using the
FERC Online links at https://
www.ferc.gov. To facilitate electronic
service, persons with Internet access
who will eFile a document and/or be
listed as a contact for an intervenor
must create and validate an
eRegistration account using the
eRegistration link. Select the eFiling
link to log on and submit the
intervention or protests.
Persons unable to file electronically
should submit an original and 5 copies
of the intervention or protest to the
Federal Energy Regulatory Commission,
888 First Street NE., Washington, DC
20426.
The filings in the above-referenced
proceeding are accessible in the
Commission’s eLibrary system by
clicking on the appropriate link in the
above list. They are also available for
electronic review in the Commission’s
Public Reference Room in Washington,
DC. There is an eSubscription link on
the Web site that enables subscribers to
receive email notification when a
document is added to a subscribed
docket(s). For assistance with any FERC
Online service, please email
FERCOnlineSupport@ferc.gov. or call
(866) 208–3676 (toll free). For TTY, call
(202) 502–8659.
Dated: June 21, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017–13384 Filed 6–26–17; 8:45 am]
BILLING CODE 6717–01–P
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DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Combined Notice of Filings #2
Take notice that the Commission
received the following electric corporate
filings:
Docket Numbers: EC17–132–000.
Applicants: FPL Energy Wyman IV
LLC, Public Service Company of New
Hampshire.
Description: Application for
Authorization for Disposition of
Jurisdictional Facilities Under Section
203 of the Federal Power Act and
Request for Expedited Action of FPL
Energy Wyman IV LLC, et. al.
Filed Date: 6/21/17.
Accession Number: 20170621–5146.
Comments Due: 5 p.m. ET 7/12/17.
Take notice that the Commission
received the following exempt
wholesale generator filings:
Docket Numbers: EG17–119–000.
Applicants: Buckthorn Wind, LLC.
Description: Notice of SelfCertification of Exempt Wholesale
Generator Status of Buckthorn Wind,
LLC.
Filed Date: 6/21/17.
Accession Number: 20170621–5118.
Comments Due: 5 p.m. ET 7/12/17.
Docket Numbers: EG17–120–000.
Applicants: Bearkat Wind Energy I,
LLC.
Description: Bearkat Wind Energy I,
LLC’s Notice of Self-Certification of
Exempt Wholesale Generator Status.
Filed Date: 6/21/17.
Accession Number: 20170621–5149.
Comments Due: 5 p.m. ET 7/12/17.
Take notice that the Commission
received the following electric rate
filings:
Docket Numbers: ER17–1877–000.
Applicants: Southern California
Edison Company.
Description: § 205(d) Rate Filing:
Letter Agreement Huntington Beach
Energy Project SA No. 193 to be
effective 6/22/2017.
Filed Date: 6/21/17.
Accession Number: 20170621–5087.
Comments Due: 5 p.m. ET 7/12/17.
Docket Numbers: ER17–1878–000.
Applicants: Southern California
Edison Company.
Description: § 205(d) Rate Filing:
Letter Agreement Alamitos Energy
Center Project SA No. 194 to be effective
6/22/2017.
Filed Date: 6/21/17.
Accession Number: 20170621–5088.
Comments Due: 5 p.m. ET 7/12/17.
Docket Numbers: ER17–1879–000.
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Applicants: New York Independent
System Operator, Inc.
Description: § 205(d) Rate Filing: 205
filing of Rate Schedule 1 revisions for
Ramapo PARs cost recovery to be
effective 7/1/2017.
Filed Date: 6/21/17.
Accession Number: 20170621–5124.
Comments Due: 5 p.m. ET 7/12/17.
Docket Numbers: ER17–1880–000.
Applicants: Midcontinent
Independent System Operator, Inc.
Description: § 205(d) Rate Filing:
2017–06–21_SA 900 Termination of
Entergy—Southcoast Wind LGIA to be
effective 9/4/2017.
Filed Date: 6/21/17.
Accession Number: 20170621–5147.
Comments Due: 5 p.m. ET 7/12/17.
The filings are accessible in the
Commission’s eLibrary system by
clicking on the links or querying the
docket number.
Any person desiring to intervene or
protest in any of the above proceedings
must file in accordance with Rules 211
and 214 of the Commission’s
Regulations (18 CFR 385.211 and
385.214) on or before 5:00 p.m. Eastern
time on the specified comment date.
Protests may be considered, but
intervention is necessary to become a
party to the proceeding.
eFiling is encouraged. More detailed
information relating to filing
requirements, interventions, protests,
service, and qualifying facilities filings
can be found at: https://www.ferc.gov/
docs-filing/efiling/filing-req.pdf. For
other information, call (866) 208–3676
(toll free). For TTY, call (202) 502–8659.
Dated: June 21, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017–13382 Filed 6–26–17; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket Nos. AD17–12–000; PL03–3–000;
AD03–7–000; ER17–795–000; ER17–795–
001; RP16–1299–000; RP16–1299–001;
RP16–1299–002; ER17–386–001; ER17–386–
002]
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 ...............
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AD17–12–000
PL03–3–000
AD03–7–000
ER17–795–000
ER17–795–001
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Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
Kinetica Energy Express, LLC
New York Independent System
Operator, Inc.
RP16–1299–000
RP16–1299–001
RP16–1299–002
ER17–386–001
ER17–386–002
Supplemental Notice of Technical
Conference
As announced in the Notices issued
May 10, 2017,1 and June 13, 2017,2
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. A
revised 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.
This Supplemental Notice contains
the following changes to the previouslyissued technical conference agenda: (1)
Edward Fortunato, Managing Director of
Analytics for Constellation Energy,
Exelon Corporation is not participating
as a panelist on Panels 1 and 2 of the
technical conference and; (2) Gregg
Bradley, Supervisor of Market
Compliance for the Internal Market
Docket No. AD17–12–000
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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
1 Developments in Natural Gas Index Liquidity
and Transparency, Docket No. AD17–12–000 (May
10, 2017) (Notice of Technical Conference) (https://
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Monitor, ISO New England Inc. will be
a panelist on Panel 2 of the technical
conference. Christopher Hamlen,
Regulatory Counsel, ISO–NE, is not
participating as a panelist.
In addition, please take note that the
Commission will accept post technical
conference comments up to 30 days
after the technical conference. Please
file any comments with the Commission
by July 31, 2017.
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;
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)
elibrary.ferc.gov/IDMWS/common/
opennat.asp?fileID=14586688).
2 Developments in Natural Gas Index Liquidity
and Transparency, Docket No. AD17–12–000 (June
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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 21, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
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.
13, 2017) (Supplemental Notice of Technical
Conference) (https://elibrary.ferc.gov/IDMWS/
common/opennat.asp?fileID=14613488).
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Docket Nos.
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Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
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 indexbased 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.3 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
3 Policy Statement on Natural Gas and Electric
Price Indices, 104 FERC ¶ 61,121, at P 33 (2003).
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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 of
Platts North America, S&P Global
• J.C. Kneale, Vice President of North
American Natural Gas, Power & NGL
Markets, InterContinental Exchange
• Euan Craik, Chief Executive Officer,
Argus Media
• Tom Haywood, Editor of 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
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
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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.4 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 President of
the 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
of Market Analysis and Forecasting,
California ISO
• Gregg Bradley, Supervisor of Market
Compliance for the Internal Market
Monitor, ISO New England Inc.
• George Wayne, Director of Account
Services for the Western Pipelines,
Kinder Morgan
• Corey Grindal, Senior Vice President
of Gas Supply, Cheniere Energy
• David Louw, Division Director of 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,
Interstate Natural Gas Association of
America Representative
• Susan Bergles, Assistant General
Counsel, American Gas Association
4 Price Discovery in Natural Gas and Electric
Markets, 109 FERC ¶ 61,184 at P60 (2004).
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Federal Register / Vol. 82, No. 122 / Tuesday, June 27, 2017 / Notices
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?
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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 of North
American Natural Gas, Power & NGL
Markets, InterContinental Exchange
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• 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
of Gas Supply, Cheniere Energy
• Tom Haywood, Editor of 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
Northwest Pipeline, LLC; Notice of
Intent To Prepare an Environmental
Assessment for the Proposed North
Seattle Lateral Upgrade Project,
Request for Comments on
Environmental Issues, and Notice of
Public Scoping Session
This notice is being sent to the
Commission’s current environmental
mailing list for this project. State and
local government representatives should
notify their constituents of this
proposed project and encourage them to
comment on their areas of concern.
If you are a landowner receiving this
notice, a pipeline company
representative may contact you about
the acquisition of an easement to
construct, operate, and maintain the
proposed facilities. The company would
seek to negotiate a mutually acceptable
agreement. However, if the Commission
approves the project, that approval
conveys with it the right of eminent
domain. Therefore, if easement
negotiations fail to produce an
agreement, the pipeline company could
initiate condemnation proceedings
where compensation would be
determined in accordance with state
law.
Northwest provided landowners with
a fact sheet prepared by the FERC
entitled ‘‘An Interstate Natural Gas
Facility On My Land? What Do I Need
To Know?’’ This fact sheet addresses a
number of typically asked questions,
including the use of eminent domain
and how to participate in the
Commission’s proceedings. It is also
available for viewing on the FERC Web
site (www.ferc.gov).
The staff of the Federal Energy
Regulatory Commission (FERC or
Commission) will prepare an
environmental assessment (EA) that will
discuss the environmental impacts of
the North Seattle Lateral Upgrade
Project involving construction and
operation of facilities by Northwest
Pipeline, LLC (Northwest) in
Snohomish County, Washington. The
Commission will use this EA in its
decision-making process to determine
whether the project is in the public
convenience and necessity.
This notice announces the opening of
the scoping process the Commission
will use to gather input from the public
and interested agencies on the project.
You can make a difference by providing
us with your specific comments or
concerns about the project. Your
comments should focus on the potential
environmental effects, reasonable
alternatives, and measures to avoid or
lessen environmental impacts. Your
input will help the Commission staff
determine what issues they need to
evaluate in the EA. To ensure that your
comments are timely and properly
recorded, please send your comments so
that the Commission receives them in
Washington, DC on or before July 21,
2017.
Public Participation
For your convenience, there are four
methods you can use to submit your
comments to the Commission. The
Commission will provide equal
consideration to all comments received,
whether filed in written form or
provided verbally. The Commission
encourages electronic filing of
comments and has expert staff available
to assist you at (202) 502–8258 or
FercOnlineSupport@ferc.gov. Please
carefully follow these instructions so
that your comments are properly
recorded.
(1) You can file your comments
electronically using the eComment
feature on the Commission’s Web site
(www.ferc.gov) under the link to
Documents and Filings. This is an easy
method for submitting brief, text-only
comments on a project; or
(2) You can file your comments
electronically by using the eFiling
feature on the Commission’s Web site
(www.ferc.gov) under the link to
Documents and Filings. With eFiling,
you can provide comments in a variety
of formats by attaching them as a file
with your submission. New eFiling
users must first create an account by
clicking on ‘‘eRegister.’’ If you are filing
a comment on a particular project,
[FR Doc. 2017–13391 Filed 6–26–17; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. CP17–441–000]
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Agencies
[Federal Register Volume 82, Number 122 (Tuesday, June 27, 2017)]
[Notices]
[Pages 29065-29068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13391]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. AD17-12-000; PL03-3-000; AD03-7-000; ER17-795-000; ER17-
795-001; RP16-1299-000; RP16-1299-001; RP16-1299-002; ER17-386-001;
ER17-386-002]
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 29066]]
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
------------------------------------------------------------------------
Supplemental Notice of Technical Conference
As announced in the Notices issued May 10, 2017,\1\ and June 13,
2017,\2\ 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. A revised 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).
\2\ Developments in Natural Gas Index Liquidity and
Transparency, Docket No. AD17-12-000 (June 13, 2017) (Supplemental
Notice of Technical Conference) (https://elibrary.ferc.gov/IDMWS/common/opennat.asp?fileID=14613488).
---------------------------------------------------------------------------
This Supplemental Notice contains the following changes to the
previously-issued technical conference agenda: (1) Edward Fortunato,
Managing Director of Analytics for Constellation Energy, Exelon
Corporation is not participating as a panelist on Panels 1 and 2 of the
technical conference and; (2) Gregg Bradley, Supervisor of Market
Compliance for the Internal Market Monitor, ISO New England Inc. will
be a panelist on Panel 2 of the technical conference. Christopher
Hamlen, Regulatory Counsel, ISO-NE, is not participating as a panelist.
In addition, please take note that the Commission will accept post
technical conference comments up to 30 days after the technical
conference. Please file any comments with the Commission by July 31,
2017.
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 21, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[GRAPHIC] [TIFF OMITTED] TN27JN17.000
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.
[[Page 29067]]
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.\3\ 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?
---------------------------------------------------------------------------
\3\ 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 of Platts North America, S&P
Global
J.C. Kneale, Vice President of North American Natural Gas,
Power & NGL Markets, InterContinental Exchange
Euan Craik, Chief Executive Officer, Argus Media
Tom Haywood, Editor of 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
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.\4\ 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?
---------------------------------------------------------------------------
\4\ Price Discovery in Natural Gas and Electric Markets, 109
FERC ] 61,184 at P60 (2004).
---------------------------------------------------------------------------
Panelists:
Paul Greenwood, Vice President of the 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 of Market Analysis and
Forecasting, California ISO
Gregg Bradley, Supervisor of Market Compliance for the
Internal Market Monitor, ISO New England Inc.
George Wayne, Director of Account Services for the Western
Pipelines, Kinder Morgan
Corey Grindal, Senior Vice President of Gas Supply, Cheniere
Energy
David Louw, Division Director of 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, Interstate Natural Gas Association of America
Representative
Susan Bergles, Assistant General Counsel, American Gas
Association
[[Page 29068]]
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 of North American Natural Gas,
Power & NGL Markets, InterContinental Exchange
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 of Gas Supply, Cheniere
Energy
Tom Haywood, Editor of 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. 2017-13391 Filed 6-26-17; 8:45 am]
BILLING CODE 6717-01-P