Natural Gas Pipeline Company of America LLC Submits Document to FERC for Negotiated Rate Agreements

Strategic Insights -

Natural Gas Pipeline Company of America LLC has submitted a document to the Federal Energy Regulatory Commission (FERC) for the implementation of new negotiated rate firm transportation agreements between the company and two shippers, East Texas Electric Cooperative, Inc. and Northeast Texas Electric Cooperative, Inc. The agreements, which will be effective on June 1, 2025, represent negotiated rate arrangements between Natural and the shippers containing fixed negotiated rates during the term of the agreements. The company is also removing references to expired agreements from its FERC Gas Tariff and revising its tariff records to reflect the new agreements.

Key Takeaways:

  • The Natural Gas Pipeline Company of America LLC has submitted a document to the Federal Energy Regulatory Commission (FERC) for the implementation of new negotiated rate firm transportation agreements with East Texas Electric Cooperative, Inc. and Northeast Texas Electric Cooperative, Inc.
  • The agreements will be effective on June 1, 2025, and contain fixed negotiated rates during the term of the agreements.
  • The company is removing references to expired agreements from its FERC Gas Tariff and revising its tariff records to reflect the new agreements.
  • The company is requesting a waiver of the 30-day notice period pursuant to Section 154.207 of the Commission's regulations to permit the proposed tariff records to become effective on June 1, 2025.
  • The company has submitted the proposed tariff records in an eTariff XML filing package, which includes the transmittal letter, list of tendered tariff records, and marked version of the tendered tariff records.
  • The company has designated Rahul Singh, Director of Regulatory, and Maria K. Pavlou, Vice President of Legal, as contacts for any questions or concerns regarding the filing.

Statistics:

  • June 1, 2025: Proposed effective date for the proposed tariff records and negotiated rate firm transportation agreements.
  • 30 days: Notice period waived by the company pursuant to Section 154.207 of the Commission's regulations.
  • 2: Number of shippers entering into negotiated rate firm transportation agreements with Natural.
  • 5: Number of tariff records being revised to reflect the new agreements.
  • 1: Date of the Commission's Policy Statement on the alternatives to Traditional Cost of Service Ratemaking for Natural Gas Pipelines, issued January 31, 1996.
  • 74 FERC P 61,076: Docket number for the Policy Statement.

Sources:

  • Natural Gas Pipeline Company of America LLC to Federal Energy Regulatory Commission, "Negotiated Rate Agreements Filing Docket No. RP25," (submitted April 29, 2023).
  • 74 FERC P 61,076 (1996): Policy Statement on the alternatives to Traditional Cost of Service Ratemaking for Natural Gas Pipelines.