Mar. 21, 2024

NGSA Statement on FERC Action Addressing Pipeline Aggregation of Bids on Non-contiguous Capacity Segments

(Washington, D.C.) – The Natural Gas Supply Association reacted to today’s action by FERC to issue a Notice of Inquiry (NOI) on the pipeline practice of aggregating essential pipeline capacity with non-contiguous unwanted pipeline capacity with the following statement.

Casey Hollers, NGSA’s Senior Director, Regulatory Affairs and Policy, said:

“We’re pleased that FERC is taking action to consider this practice that forces pipeline customers to bid on unwanted and operationally unrelated pipeline capacity or else lose access to the high-value capacity that is needed to get natural gas to customers. The practice has become increasingly common and unnecessarily inflates the price of pipeline service, thus harming shippers, especially captive industrial customers, local gas utilities, marketers and the millions of customers that together we serve. We look forward to providing additional comments in the record demonstrating the importance of prohibiting this practice.”

Background: NGSA filed jointly in 2022 with the American Gas Association, the American Public Gas Association and the Process Gas Consumers Group to request a FERC proceeding precluding this natural gas pipeline practice. The original NGSA-AGA-APGA-PCG Group filing can be found here. For more information about NGSA’s infrastructure policies and pursuit of fair and reasonable rates for natural gas customers, visit our “Infrastructure and Rate Regulation” page.