Negotiating Away from Rate Regulation

04/23/19

Since the Federal Energy Regulatory Commission (FERC) mandated open access service more than 25 years ago, interstate natural gas pipelines have moved incrementally to where most of their capacity now appears to be sold at discounted or negotiated rates. FERC-regulated recourse rates are therefore becoming less and less important, which means that customers that are captive to a single pipeline will have to work harder to ensure that recourse rates are set at reasonable levels.

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