Chairman's comments

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Annual Report of Nonmajor Natural Gas Companies

Chairman's comments

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Federal Energy Regulatory Commission

September 20, 2007

Chairman Joseph T. Kelliher

Item E-3


Item G-2: Revisions to Forms, Statements, and Reporting Requirements for Natural Gas Pipelines (Docket No. RM07-9-000)


“Today the Commission acts to strengthen the ability of shippers, customers and state commissions to file section 5 complaints alleging that gas pipeline rates have become unjust and unreasonable. We do so by issuing a notice of proposed rulemaking that proposes to modify the information required to be submitted to the Commission and available to the public in FERC Form No. 2


This rulemaking has its genesis in a series of five informal out-reach sessions held last year by the Office of Enforcement and the experience gained from two complaints filed with the Commission based, in part, on Form 2 data. In both the National Fuel and Southwest Gas cases, pipelines argued that Form 2 information, by itself, was an inadequate basis for a complaint. In my view, it is essential that public information suffice as a foundation for a section 5 complaint. Otherwise, the ability of shippers to file complaints will be significantly curtailed.


The proposals we set forth today should dispel any concern about the adequacy of Form 2 information as the foundation for a section 5 complaint. The NOPR fulfills our duty to guard shippers and strikes the proper balance, assuring shippers have the information they need, but also guarding against undue burden on pipelines.”




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