AGA Legal Forum - July 2017 Regulatory Concerns for LDCs

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Presentation transcript:

AGA Legal Forum - July 2017 Regulatory Concerns for LDCs Philip Bennett Mogel & Sweet, LLP pbennett@mogelsweet.com

Pipeline Testing and Recordkeeping Everyone wants to do the right thing. Utilities are a rule-based industry. Clarity and trust are needed. Pierce Norton, President & CEO ONE Gas Aliso Canyon reports should have extensive recommendations to address deplete reservoir storage. Will likely shape future federal and state regulation. Under §60102(b)(6)(c), advance notice and public procedure is not required when agency for good cause, finds that notice and public procedure are impractical, unnecessary, or contrary to public interest. Could have happened months ago. Election?

Three issues to consider There are few “authoritative” documents in the public domain regarding Traceable, Verifiable and Complete (TVC) MAOP. There is a small window available to prevent distribution recordkeeping compliance from going down the regulatory path taken for transmission pipelines. The 2016 proposed Gas Transmission and Gathering amendments may provide clarity and challenges. Last slide. In summary. Underground storage of Natural Gas (and probably Hazardous Liquids) will get new regulations. Quick federal performance regulation. - Possible state regulations for intrastate facilities - longer term prescriptive federal regulations Impact natural gas transportation and indirectly electric generation from natural gas.

Relevant Documents PHMSA Advisory Bulletin: Establishing Maximum Allowable Operating Pressure or Maximum Operating Pressure Using Record Evidence, and Integrity Management Risk Identification, Assessment, Prevention, and Mitigation, January 10, 2011 PHMSA Advisory Bulletin: Pipeline Safety, Verification of Records, May 7, 2012. Interpretation Letter, Mr. John Gale, PHMSA, to Mr. Joseph P. Como, Office of Ratepayer Advocates, California Public Utilities Commission, Dec. 11, 2013. Decision Regarding Investigation of PG&E’s Gas Distribution Facilities Records, California PUC, Decision 16-08-020, August 18, 2016 Last slide. In summary. Underground storage of Natural Gas (and probably Hazardous Liquids) will get new regulations. Quick federal performance regulation. - Possible state regulations for intrastate facilities - longer term prescriptive federal regulations Impact natural gas transportation and indirectly electric generation from natural gas.

MAOP Transmission Framework Last slide. In summary. Underground storage of Natural Gas (and probably Hazardous Liquids) will get new regulations. Quick federal performance regulation. - Possible state regulations for intrastate facilities - longer term prescriptive federal regulations Impact natural gas transportation and indirectly electric generation from natural gas.

MAOP Distribution Framework Last slide. In summary. Underground storage of Natural Gas (and probably Hazardous Liquids) will get new regulations. Quick federal performance regulation. - Possible state regulations for intrastate facilities - longer term prescriptive federal regulations Impact natural gas transportation and indirectly electric generation from natural gas.

AGA Legal Forum - July 2017 Regulatory Concerns for LDCs Philip Bennett Mogel & Sweet, LLP pbennett@mogelsweet.com