Federal Energy Regulatory Commission Approves Revised Tariff for Portland Natural Gas Transmission System

Strategic Insights -

The Federal Energy Regulatory Commission (FERC) has approved a revised tariff for Portland Natural Gas Transmission System, L.P. (PNGTS) regarding its bid evaluation process. The revised tariff introduces a probability of default factor to evaluate bids and award capacity in open seasons for long-term firm capacity. The factor will consider a bidder's credit rating and probability of default, with non-investment grade bidders having their bids downgraded by a factor equal to their probability of default minus the probability of default associated with a BBB- rating.

Key Takeaways:

  • The revised tariff introduces a probability of default factor to evaluate bids and award capacity in open seasons for long-term firm capacity.
  • The factor will consider a bidder's credit rating and probability of default, with non-investment grade bidders having their bids downgraded by a factor equal to their probability of default minus the probability of default associated with a BBB- rating.
  • PNGTS proposes to use data from S&P Global Market Intelligence LLC to quantify a bidder's probability of default.
  • The Commission finds that PNGTS' proposed probability of default factor is just and reasonable if applied only to non-creditworthy bidders.
  • To comply with Commission policy, PNGTS is required to file a revised tariff record within 15 days to reflect the exact language proposed in its answer.
  • The revised tariff is effective July 26, 2025, subject to a compliance filing within 15 days.
  • The Commission orders PNGTS to file a revised tariff record to reflect the exact language proposed in its answer.

Statistics:

  • FERC has approved a revised tariff for PNGTS regarding its bid evaluation process.
  • The revised tariff introduces a probability of default factor to evaluate bids and award capacity in open seasons for long-term firm capacity.
  • The factor will consider a bidder's credit rating and probability of default, with non-investment grade bidders having their bids downgraded by a factor equal to their probability of default minus the probability of default associated with a BBB- rating.

Sources:

  • [Portland Natural Gas Transmission System, L.P. (PNGTS) Tariff Record](https://www.ferc.gov/docs-filing/elibrary/2025-126-0.pdf)
  • [Federal Energy Regulatory Commission (FERC) Order](https://www.ferc.gov/docs-filing/49970.pdf)
  • [Creditworthiness Policy Statement, 111 FERC P 61,412](https://www.ferc.gov/docs-filing/33925.pdf)
  • [Great Lakes Gas Transmission Ltd. P'ship, 189 FERC P 61,154](https://www.ferc.gov/docs-filing/55153.pdf)
  • [Algonquin Gas Transmission, LLC, 120 FERC P 61,072](https://www.ferc.gov/docs-filing/32285.pdf)
  • [Tuscarora Gas Transmission Co., 127 FERC P 61,217](https://www.ferc.gov/docs-filing/36967.pdf)