By - Jon Brown

FERC Natural Gas 101
September 16-17, 2019 | Austin, TX

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Overview

FERC Natural Gas 101 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

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.1 CEUs for the course and 0.4 CEUs for the workshop.

 

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.

Agenda

Monday, September 16, 2019

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 a.m. – 5:00 p.m. :: Course Timing

12:00 – 1:00 p.m. :: Group Luncheon

 


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

Tuesday, September 17, 2019

8:00 – 8:30 a.m. :: Continental Breakfast

8:30 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) 

Workshop

FERC Project Filing Workshop

Tuesday, September 17, 2019

Overview

FERC Projects Filing Workshop provides a comprehensive analysis of the agency’s filings process for the natural gas and LNG industries’ new pipelines. This half-day workshop is for those seeking a deep dive regarding the FERC process for reviewing and approving pipeline project application.

Learning Outcomes

  • Discuss the basics of what information FERC needs in an application
  • Review jurisdictional reach of and limits on FERC’s authority over siting of pipelines
  • Explain how FERC’s exercise of that power affects the regulated entities that it oversees
  • Consider how long the review process takes and the challenges that arise that could extend the time for that review; consider issues that arise with respect to permits other than FERC approval that are needed to move a project forward; Learn practical advice about setting up a process for filing the application and seeing it through to approval
  • Identify future challenges

Workshop Agenda

12:30 – 1:00 p.m. :: Workshop Registration

1:00 p.m. – 2:00 p.m. :: FERC Siting Authority

  • Section 7(c) of the Natural Gas Act
  • Blanket Authority

2:00 p.m. – 3:00 p.m. :: FERC Project Applications: Pre-Filing

  • Participants
  • Timelines

3:00 p.m. – 4:00 p.m. :: FERC Project Applications

  • Content
  • Timing
  • Review Process
  • Opposition

4:00 p.m. – 5:00 p.m. :: FERC Approval

  • Requirement Review
  • Process
  • Timing
  • Getting Started
  • Risk Analysis

Instructor

Gary Kruse, Director of Research, LawIQ

As Director of Research for LawIQ, an energy data analytics firm, Gary Kruse leads the delivery of expert services to customers ranging from large energy project developers to leading commodities and equities asset managers. Gary’s insights into the regulatory, tax, and permitting complexities of the energy markets are derived from 20 years of experience as a lawyer in the industry, including 8 years as the General Counsel for a FERC regulated pipeline located in New York. His unique ability to infuse LawIQ’s data and quantitative analysis with context from economic, political, and market trends makes his viewpoints sought after by energy industry decision makers seeking to confidently deploy capital, minimize risk, and maximize returns.

Mr. Kruse is a graduate of the University of Virginia School of Law and received a Bachelor of Arts in Mathematics from the University of Dayton.

Instructors

Kenneth Sosnick, Senior Director, FTI Consulting

Ken Sosnick is a Senior Director in the Power and Utilities practice at FTI Consulting and is based in Boston. Mr. Sosnick has more than 15 years of experience with electric utility, natural gas pipeline and crude/product pipeline industry matters before the Federal Energy Regulatory Commission (FERC).

Prior to joining FTI Consulting, Mr. Sosnick spent over five years as a consultant, extensively engaged in the natural gas, crude/product and electricity markets. His work included analysis of 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, initial certificate rates, allocation of corporate overhead costs, master-limited partnership income taxes, throughput/system rate design quantities, fuel recover mechanisms, NGA Section 5 rate complaints, return on equity calculations under the discounted cash flow/risk premium/capital asset pricing model/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.

Mr. Sosnick has prepared expert testimony for proceedings at FERC, prepared 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 has conducted confidential buy-side valuations and assessments of regulated electric and natural gas utilities in the U.S.

Before working as a consultant, Mr. Sosnick spent 10 years at FERC and spent two years as an auditor in the Office of Enforcement and eight years as an expert witness and a lead technical staff negotiator on major electric utility, interstate natural gas pipeline and crude/product pipeline proceedings in the Office of Administrative Litigation. Mr. Sosnick’s 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 from 2009 to today.

Mr. Sosnick currently teaches an executive FERC Natural Gas 101 course for EUCI and previously taught Practical and Regulatory Training for the Natural Gas Interstate Pipeline Industry at the New Mexico State University Center for Public Utilities, specifically addressing FERC requirements for determining “just and reasonable” rates. Mr. Sosnick holds a B.S. in Accounting from the Indiana University of Pennsylvania. He is a member of the Energy Bar Association, FERC Liquids Committee, FERC Natural Gas Pipeline Committee and FERC Practice Committee.


Brian S. Heslin, Deputy General Counsel at Duke Energy Corporation

Brian Heslin is deputy general counsel for Duke Energy, one of the country’s largest electric power companies and distributors of natural gas.  Heslin manages state and federal regulatory matters for Duke Energy’s local distribution companies, power generation fuels group and midstream pipeline investments. 

Prior to joining Duke Energy, Heslin was a partner at the law firm, Moore & Van Allen PLLC (“MVA”).  At MVA, a significant portion of his practice focused on the representation of companies and public utilities in the natural gas and other regulated energy industries.  His representation included regular appearances before state public service commissions and the Federal Energy Regulatory Commission.  Heslin also has represented companies involved in the renewable energy sector, which include solar and biogas transactions.

In addition to his experience in the energy industry, Heslin has considerable experience defending clients and corporations under investigation and indictment by state and federal authorities, conducting internal and external investigations, and representing clients in civil matters including allegations of fraud, embezzlement and other civil causes of action.  While in private practice, he leveraged his experience as a prosecutor, defense appellate attorney and civil trial attorney to provide his clients with comprehensive counsel in complex and high-exposure situations.  He has defended clients and negotiated significant outcomes with regulatory and enforcement agencies such as FERC, CFTC, U.S. Department of Justice, various state and federal prosecutors’ offices, and other federal and state agencies. 

Heslin is a prolific writer and speaker about the rapidly changing energy sector, particularly on topics including the growing interdependency between natural gas and electric power generation, hydraulic fracturing and natural gas production, natural gas transportation and flow reversals, LNG exports and other industry trends.  To see more of his past writing, please visit the MVA Energy Blog. 

Prior to his time at MVA, Heslin was a trial attorney with the United States Department of Justice, defending departmental and regulatory federal agencies in various civil matters.  In addition, he served as a prosecutor and defense attorney in the United States Army Judge Advocate General’s Corps. 

Location

AT&T Executive Education and Conference Center

1900 University Ave

Austin, TX 78705

Reserve your room:

please call 1-512-404-1900

Room Block Reserved For:

Nights of September 15 – 16, 2019

Room rate through EUCI:

$209.00 single or double plus applicable taxes
Make your reservations prior to August 15, 2019.

Venue Information

Getting to and from the hotel:

https://www.meetattexas.com/page/directions

Dining options

https://www.meetattexas.com/dining

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

EventEarly Bird Before
Friday, August 30, 2019
Standard RateAttendees
FERC Natural Gas 101US $ 1195.00 US $ 1395.00

This event has the following workshops:

FERC Project FilingUS $ 495.00
US $ 595.00

Take advantage of these discounts!

  • Attend the Course and workshop and pay US $ 1,595.00 per attendee (save US $ 95.00 each)

Register 3 Send 4th Free!

Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.

Cancellation Policy

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 August 16, 2019 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

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