This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

U.S. FERC's Moeller Sees Need For Full Rulemaking On Gas/Electric Coordination

WASHINGTON, Sept. 18, 2012 /PRNewswire/ -- A formal rulemaking by the U.S. Federal Energy Regulatory Commission (FERC) may be needed to resolve inconsistent scheduling between the electricity and natural gas markets, FERC member Philip Moeller said Tuesday at a Platts Energy Podium newsmaker event in Washington.

Among the options available to the commission to address the increasing tension between gas suppliers and power generators: a full rulemaking. Such would be a significant procedural step, but Moeller said it could be necessary to help harmonize the two sectors during an era of growing gas-fired generation.

The issue of working out the different schedules for the two markets "needs the full attention of the commission" to ensure momentum for a solution, he said. Such a FERC rulemaking effort could take between two and three years, said Moeller, a Republican on the five-member commission.

In the meantime and in advance of the next heating season, FERC must facilitate full communication between pipelines and generators, he suggested.

However the commission proceeds on promoting better coordination, it must recognize that energy companies have tried unsuccessfully to resolve the issue before. Utilities, pipeline companies and others devoted major resources to the issue in the "last round of these discussions seven, eight, nine years ago," Moeller said.

"They're never getting those years back in their lives," he said. "If we go down this path, we need FERC invested in this process so that it's not a waste of time."

Moeller also framed some of the issues in the gas/electric markets coordination debate. "The earlier you have a trading day begin, the less you know about the following day," he said. "And it's difficult to take more gas if you don't know if you're going to be dispatched on the electric side."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs