proposed rule extends marketing affiliate regulations to all affiliates
ngi ' s daily gas price index
breaking news : posted sep 26 , 4 : 16 pm
proposed rule extends marketing affiliate regulations to all affiliates
federal energy regulatory commissioners wednesday agreed to issue a notice of proposed rulemaking broadening the application of standards of conduct for transmission providers , including both natural gas pipelines and power lines , to require separation of the regulated monopolies from any other company affiliate .
previously , the rules simply required creation of a firewall , including separate operations in separate locations staffed by separate personnel , between gas pipelines and their marketing affiliates . the proposed rule would wall off both gas and electric transmission operations from any other affiliate , gas or electric , including financial affiliates .
the commission was presented with two options regarding the application of the proposed rule to electric transmission affiliates , which still in many cases have bundled operations . one option would enforce complete separation , while a second would have exempted employees who deal in sales or purchases of bundled retail native load . staff and commissioners wood , william massey and nora brownell appeared to favor walling off all affiliated personnel , so they would not be privy to market information about transmission operations that other non - affiliated competitors did not have access to .
commissioner linda breathitt , however , argued for exempting personnel dealing solely with retail native load . breathitt said that while she supported the eventual separation of the entities , she was concerned about the timing . " i see no compelling reason at this time ; there have been no complaints and no evidence . " she said she thought state commissions might consider the move an infringement on their jurisdiction . " i agree with concept philosophically , but i think there will be other opportunities later on , after we do a little more bridge - building with state commissions . "
wood said he understood " the political issue here with respect to federal - state relations , but i think this is an opportunity for discrimination that ought to be eliminated . " staff pointed out that if there were any problems with transmission reliability or if some small utilities had problems , waivers could be granted . staff was questioned by the commissioners as to how much information was available to affiliate personnel . " if i am an affiliate employee dealing solely with retail native load , i can go into the control room and get all the information i want , " one staffer responded .
wood proposed , and the commissioners ratified , a proposed rule with no exceptions , but which makes clear that in the final rule the commission may reverse field and determine that separation of employees dealing with sales of native load is not required . commenting parties should provide cost / benefit analysis on both sides of the question . state commissions are also invited to comment . wood had suggested the commission extend the separation to all sales employees , " but make it clear that if we don ' t hear from people that they really want this separation , we ain ' t going to do it . "
proposed rule extends marketing affiliate regulations to all
affiliates
ngi ' s daily gas price index
breaking news : posted sep 26 , 4 : 16 pm
proposed rule extends marketing affiliate regulations to all affiliates
federal energy regulatory commissioners wednesday agreed to issue a notice of proposed rulemaking broadening the application of standards of conduct for transmission providers , including both natural gas pipelines and power lines , to require separation of the regulated monopolies from any other company affiliate .
previously , the rules simply required creation of a firewall , including separate operations in separate locations staffed by separate personnel , between gas pipelines and their marketing affiliates . the proposed rule would wall off both gas and electric transmission operations from any other affiliate , gas or electric , including financial affiliates .
the commission was presented with two options regarding the application of the proposed rule to electric transmission affiliates , which still in many cases have bundled operations . one option would enforce complete separation , while a second would have exempted employees who deal in sales or purchases of bundled retail native load . staff and commissioners wood , william massey and nora brownell appeared to favor walling off all affiliated personnel , so they would not be privy to market information about transmission operations that other non - affiliated competitors did not have access to .
commissioner linda breathitt , however , argued for exempting personnel dealing solely with retail native load . breathitt said that while she supported the eventual separation of the entities , she was concerned about the timing . " i see no compelling reason at this time ; there have been no complaints and no evidence . " she said she thought state commissions might consider the move an infringement on their jurisdiction . " i agree with concept philosophically , but i think there will be other opportunities later on , after we do a little more bridge - building with state commissions . "
wood said he understood " the political issue here with respect to federal - state relations , but i think this is an opportunity for discrimination that ought to be eliminated . " staff pointed out that if there were any problems with transmission reliability or if some small utilities had problems , waivers could be granted . staff was questioned by the commissioners as to how much information was available to affiliate personnel . " if i am an affiliate employee dealing solely with retail native load , i can go into the control room and get all the information i want , " one staffer responded .
wood proposed , and the commissioners ratified , a proposed rule with no exceptions , but which makes clear that in the final rule the commission may reverse field and determine that separation of employees dealing with sales of native load is not required . commenting parties should provide cost / benefit analysis on both sides of the question . state commissions are also invited to comment . wood had suggested the commission extend the separation to all sales employees , " but make it clear that if we don ' t hear from people that they really want this separation , we ain ' t going to do it . "