FERC’s Regulation of the Natural Gas Industry

FERC's Regulation of the Natural Gas Industry

July 20-21, 2022 | Online :: Central Time

“EUCI offers the best course for general overview on how FERC operates.” FERC Compliance Analyst, Enbridge

“This was well worth the time and money for me!” Audit Manager, Koch Industries

“Both instructors did an excellent job disseminating a huge amount of knowledge in a very digestible way. Great course overall.” Engineering Inter, Williams

“Excellent! Packed with information.” Product Advisor, MISO

“Perfect general view of FERC’s natural gas processes and methodology.” Sr. Gas Supply Representative, Black Hills Energy

“Excellent insights into the inner workings of FERC and legal process of rate cases.” Director, Fuels & Business Support, APS

“… This course is great for those that are brand new to the industry.” Electric Generation System Specialist I, California Energy

“Great presenters, key real-world experience, candid conversations.” Sr. Business Analyst, DTE Energy

FERC’s Regulation of the Natural Gas Industry provides a comprehensive overview of the agency’s impact on the natural gas and LNG industries. This day and a half course is for those seeking a basic knowledge of FERC’s natural gas and LNG policies and regulations, those desiring a look at the setting of transportation and storage rates, those wanting a refresher course, and those who want to learn about the current hot topics at the agency.

Learning Outcomes

  • Discuss fundamentals of natural gas regulation
  • Review jurisdictional reach of and limits on FERC’s power
  • Explain how FERC’s exercise of that power affects the regulated entities that it oversees
  • Evaluate FERC policies and decisions on issues such as capacity management, secondary markets, and certification of projects; ratemaking, including developing cost-of- service rates and market-based rates; storage; standards of conduct and enforcement; LNG; as well as other timely issues
  • Identify future challenges

 

Agenda

Wednesday, July 20, 2022 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:00 – 12:30 p.m.
Lunch Break

9:00 a.m. – 4:00 p.m.
Course Timing

 

FERC from a Historical Perspective – Evolution of an Agency

  • FPC/FERC
  • Growth and increased oversight
  • Current organization and divisional responsibilities
  • Prospective changes

FERC Jurisdiction and Regulatory Overview – How FERC Regulates the Natural Gas Industry

  • FERC responsibilities and oversight – what does FERC regulate
  • Interstate facilities- pipelines and storage
  • Production?
  • Different docket classifications
  • Interactions with other federal agencies and state regulators
  • Current FERC objectives (LNG)
  • Enforcement and brief overview of compliance

Major Orders and Regulations Impacting the Natural Gas Industry

  • Key terms
  • Regulatory initiatives
  • Open access
  • Recent major orders
  • Regulatory trends for the future

Pipeline Tariffs – How FERC Regulates Interstate Pipelines and Storage

  • Purpose
  • Structure and components
  • Rate design

Capacity Transactions – How Gas Flows and is Regulated by FERC

  • Capacity- what is it?
  • Market transparency
  • Capacity releases – primary regulations and posting and bidding requirements;
  • Secondary market transactions and oversight – shipper must have title; prohibition on buy/sell arrangements; anti-tying policy; flipping
  • Asset management agreements

FERC Enforcement – Increased Oversight and Penalties

  • Jurisdiction over natural gas activities
  • Penalties authority/penalty guidelines
  • FERC enforcement’s current areas of focus
  • Market manipulation
  • Trends and overview of recent investigations and penalties
  • Compliance

The Impact of Natural Gas/Electric Coordination

  • FERC’s role
  • Impact of fracking production
  • Regional supply and flow changes
  • Increased reliance of power generation on natural gas

Thursday, July 21, 2022 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:00 p.m.
Course Timing

 

FERC Ratemaking Authorities

  • Section 7 of the Natural Gas Act
  • Section 5 of the Natural Gas Act (Burden of Proof-Remedies)
  • Section 4 of the Natural Gas Act (Burden of Proof-Mechanics)

FERC Pipeline Rates – The Procedure

  • Filing
  • Participants
  • Settlements
  • Litigation

FERC “Just & Reasonable” Rates  – Cost of Service

  • Base period, adjustment period, test period
  • Operating expenses
  • Administrative & general expenses
  • Rate base
  • Return on Investment

FERC “Just & Reasonable” Rates  –  Allocation & Rate Design

  • Transportation, storage, incremental facilities
  • Allocation factors
  • Billing determinants
  • Firm vs. interruptible rates
  • Discounted and negotiated rates
  • FERC pipeline rate walkthrough (example and sample problem) 

    Additional topics

    • Certificates authorizing the construction of interstate pipeline and storage facilities
    • Interruptible transportation
    • Receipt and delivery point flexibility
    • Periodic reporting requirements
    • Gas quality and interchangeability
    • FERC policy on limited section 4 filling
    • Blanket certificates

    Instructors

    Kenneth Sosnick, Managing Director, Black and Veatch Global Advisory

    Ken has over 18 years of experience with electric utility, natural gas pipeline and crude/product pipeline industry matters before the Federal Energy Regulatory Commission (“FERC”), state regulators, as well as civil litigation proceedings and management consulting engagements.

    Prior to joining Black and Veatch, Ken spent over 8 years as a consultant extensively engaged in the natural gas, crude/product and electricity markets.  His work has included analysis of onshore and offshore natural gas pipeline and crude/product pipeline cost of service rates, levelized rates, market-based rates, discounted and negotiated rates, incremental vs. rolled‐in project costs, Certificate Proceedings, allocation of corporate overhead costs, master‐limited partnership income taxes, throughput/system rate design quantities, fuel recovery mechanisms, NGA Section 5 rate complaints, Return on Equity calculations under the DCF/Risk Premium/CAPM/Expected Earnings methods, depreciation rate and negative salvage rate calculations, Asset Retirement Obligations, FERC Form 1 and 2 filing requirements as well as being proficient in the application of FERC’s Uniform System of Accounts. 

    Ken has prepared expert testimony and provided expert advisory services for clients in proceedings at FERC, state commissions as well as expert reports assessing and quantifying damages in civil litigation, conducted strategic analysis for a large energy company considering alternatives for its existing pipeline and storage portfolio, written a whitepaper on the impacts of the Tax Cuts and Jobs Act on FERC regulated assets as well as a whitepaper on the impacts of FERC Orders in SFPP, LP Docket No. IS08-390 related to Master Limited Partnerships and other pass-through entities income tax allowance. In addition, he conducted confidential buy-side valuations and assessments of regulated electric and natural gas utilities in the U.S. and has also utilized GPCM® to support capital investment and cost recovery of investment in natural gas pipeline infrastructure for a major U.S. utility.

    Ken spent 10 years at FERC in which he spent two years as an auditor in the Office of Enforcement, and eight years as an expert witness and one of the lead technical staff negotiators on major electric utility proceedings, interstate natural gas pipeline and crude/product pipeline in the Office of Administrative Litigation. His insights were incorporated into the revision of the FERC Form 2 in Docket No. RM07‐9‐000, which lead to the FERC-initiated Section 5 natural gas pipeline proceedings.

    Ken currently teaches multiple courses in coordination with EUCI, and previously taught at the New Mexico State University Center for Public Utilities Practical and Regulatory Training for the Natural Gas Interstate Pipeline Industry specifically addressing FERC requirements for determining “Just and Reasonable” rates.


    R.J. Colwell, Associate, White & Case LLP 

    R.J. represents companies in the energy industry in transactional and regulatory matters. He has advised clients on a wide range of domestic and international transactions involving the production, gathering, transportation, and storage of natural gas, carbon dioxide, and biomethane; the transportation, terminaling, and storage of liquid hydrocarbons; and the sale, acquisition, or marketing of natural gas, oil, and electric power commodities and assets.

    R.J. has counseled clients in pursuing applicable authorizations from the Federal Energy Regulatory Commission (FERC), the Department of Energy, and the Texas Railroad Commission. He has also represented pipeline companies, liquefied natural gas exporters, storage operators, shippers, and owners of electric generation in administrative litigation before FERC, in FERC enforcement investigations, and in ratemaking proceedings before FERC and the Texas Railroad Commission.

    Prior to entering private practice, R.J. served as an Honors Attorney and then as an Attorney-Adviser at the Department of Energy in Washington, D.C. As an Attorney-Adviser, he provided legal counsel to the Office of Fossil Energy on a broad array of transactional, operation, regulatory, and policy issues and matters involving natural gas, liquid hydrocarbons, coal, and other fossil fuels. R.J. also represented the Department’s National Laboratories and National Security Sites in administrative litigation.

    Online Delivery

    We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

    • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
    • You will receive a meeting invitation will include a link to join the meeting.
    • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
      • You will need to join the appropriate meeting at the appropriate time.
    • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
    • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

    Register

    Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

    If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

    REGISTER NOW FOR THIS EVENT:

    FERC's Regulation of the Natural Gas Industry

    July 20-21, 2022 | Online
    Individual attendee(s) - $ 1195.00 each

    Volume pricing also available

    Individual attendee tickets can be mixed with ticket packs for complete flexibility

    Pack of 5 attendees - $ 4,780.00 (20% discount)
    Pack of 10 attendees - $ 8,365.00 (30% discount)
    Pack of 20 attendees - $ 14,340.00 (40% discount)

    Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before June 17, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

    CEUs

    Credits

    AP_Logo

    EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

    EUCI is authorized by IACET to offer 1.0 CEUs for the course.

    Requirements for a Successful Completion of Program

    Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

    Instructional Methods

    This program will use PowerPoint presentations and group discussions, as well as active participation.


    Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

    Course CPE Credits: 11.0
    There is no prerequisite for this Course.
    Program field of study: Specialized Knowledge
    Program Level: Basic
    Delivery Method: Group Internet Based
    Advanced Preparation: None

    CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

     

    Who Should Attend

    Traders, marketers, natural gas utilities employees, power generation employees that utilize natural gas supply, managers, members of the financial community, compliance function employees, in-house and law firm attorneys, and anyone else interested in or who has a need to know about the laws governing FERC and its rules, policies, and procedures that affect the natural gas and LNG industry. The course will benefit those seeking a basic knowledge of FERC, those desiring a refresher course or a broader context of FERC knowledge, and those seeking insight on current agency proceedings involving natural gas and LNG.

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