FERC Order No 636A

Order 636A makes several relatively minor changes in the original order and provides a great deal of written defense of the original order's terms. The key changes are:

• Concessions on transport and sales rates for a pipeline's traditional "small sales" customers (like municipalities).

• The option to "release" (sell) firm capacity for less than one month—without posting it on a bulletin board system or bidding.

• Greater flexibility in designing special transportation rates (i.e., off-peak service) while still requiring overall adherence to the straight fixed variable rate design.

• Recovery of 10% of the transition costs from the interruptible transportation customers (Part 284).

Court action is still likely on the Order. Further, each pipeline will submit its own unique tariff to comply with the Order. As a result, additional changes and variations are likely to occur.

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