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Federal Energy Regulatory Commission

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Statement: March 20, 2008 Print this page
Docket No: RM07-9-000

Chairman Joseph T. Kelliher's statement on reporting requirements for natural gas pipelines

"Today FERC approves a final rule designed to enhance the usefulness of the financial forms filed by natural gas pipeline companies to, among other things, provide pipeline customers and the public the information they need to assess the justness and reasonableness of pipeline rates. This rule is an additional safeguard against unjust and unreasonable transportation rates.

In part, this rulemaking was initiated in response to two section 5 rate complaints where the responding pipelines challenged the adequacy of Form 2 information as the foundation for a section 5 rate complaint. These pipelines argued that Form 2 is an inadequate basis for a rate complaint. The Commission rejected this argument in National Fuel and Southwest Gas.

However, we went further and began a rulemaking to strengthen Form 2 and increase the amount of publicly available market and cost information about individual pipelines. This final rule strikes the right balance between increasing public information without imposing undue burdens on pipelines.

The Natural Gas Act provides that in a section 5 rate complaint the burden is on the shipper to demonstrate that pipeline rates are unjust and unreasonable. If the law places the burden on the shipper, it is only fair that the Commission ensure that shippers have access to the information necessary for them to meet their burden "

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