New US FERC chairman opposes mandatory gas price reporting

Washington (Platts)--11Jul2005

New US Federal Energy Regulatory Commission Chairman Joseph Kelliher Monday
said he does not support a requirement in the House version of the
comprehensive energy bill that would require the agency to collect, evaluate
and make public wholesale natural gas prices. "By and large, voluntary price
reporting is working," he said in a meeting with reporters on his first
working day as chairman. "I don't see a need to go beyond that and mandate
price reporting." 

Kelliher, however, said there may be an additional need for the commission to
collect market data, and more authority would be useful. "We certainly have a
duty to prevent unjust and unreasonable rates." But in terms of the
establishment of a data hub, a proposal his predecessor, Pat Wood, wrestled
with for much of his four years in office, he said he sees little need for
mandatory energy hubs.

Kelliher said he agrees with his former boss, House Energy and Commerce
Chairman Joe Barton (Republican-Texas), who will chair a conference committee
to fashion final energy bill language, that the quality of price reporting
should be improved. "But his solution is mandatory reporting to FERC,"
Kelliher said. "It would probably impair voluntary reporting [conducted] by
the private sector." 

Platts, among others, collects price data for published indexes. On the issue
of liquefied natural gas terminals, Kelliher reiterated his position that
FERC's role in permitting terminal projects does not preempt existing state
authorities. "This notion that FERC preempts or overrides state siting law I
think is just incorrect," he said.

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