Tuesday, March 28, 2023 | Back issues
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Bidding on Gas Pipeline|Capacity to Be Limited

WASHINGTON (CN) - Natural gas companies sharing common ownership may not bid for capacity on the same pipelines unless each company can show an independent business reason for submitting a bid, according to proposed Federal Energy Regulatory Commission rules.

The proposed rules would revise regulations under the Natural Gas Act.

The revisions also would forbid a company that acquires capacity through an open bidding process from releasing that capacity to any of its sibling companies.

The goal of the regulation is to prevent anticompetitive gaming of the open bidding process by preventing multiple affiliates of the same entity from acquiring a larger share of available capacity than any one sibling would be able to acquire on its own.

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