Register Today for Courses in Cost of Service and Rate Design for Natural Gas Interstate Pipeline Companies (January 26th-27th)
Brown, Williams, Moorhead & Quinn, Inc.

Simultaneously with the pre-filing process,  the project sponsor should be conducting an open season to gauge the market and to ensure that the capacity will be made available on a not unduly discriminatory basis to all potential shippers. For an existing pipeline company, FERC’s policy also requires a “reverse open season” to determine if existing shippers desire to give up capacity permanently. These steps ensure that the new project is optimally sized. With the exception of those regulations applying to any Alaskan pipeline, there are no formal requirements for how or how long an open season must be conducted. FERC has required repeated open seasons in response to complaints by would-be shippers. The open seasons result in binding precedent agreements which form the most common basis for the applicant’s market showing. BMWQ can help plan and conduct the open seasons and provide advice on the content of precedent agreements and/or other evidence of market support.