FERC Natural Gas 101
October 12-13, 2021 | Online :: Central Time
“EUCI offers the best course for general overview on how FERC operates.” FERC Compliance Analyst, Enbridge
“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
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.
- 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
Tuesday, October 12, 2020 Central Time
8:45 – 9:00 a.m.
Log In and Welcome
12:00 – 12:30 p.m.
9:00 a.m. – 4:00 p.m.
FERC from a Historical Perspective – Evolution of an Agency
- 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
- 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
- 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
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
Wednesday, October 13, 2021 Central Time
8:45 – 9:00 a.m.
9:00 a.m. – 12:00 p.m.
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
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)
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.
Bill Rappolt, Partner, SheppardMullin
Bill Rappolt is a partner in the firm’s Washington, D.C. office. He is a member of the Energy Industry Team and Real Estate, Land Use and Environmental Practice Group.
Bill represents clients in the natural gas, electric and oil/liquids industries in commercial transactions and before federal agencies, including the Federal Energy Regulatory Commission (FERC), state utility commissions and appellate courts. Bill often represents natural gas pipelines and storage providers, electric generators, power marketing and trading companies, commercial class electric customers, electric utilities, independent electric transmission providers and oil/liquids pipelines and storage providers. He has worked across the renewable energy sector, including on wind, solar and biomass projects, and on electric battery storage projects.
Bill aids clients with rate-making issues involving cost of service, return on equity and rate design. He also advises and represents energy industry participants regarding tariff-related issues, natural gas pipeline certificates, Department of Energy (DOE) export and import authorizations, market-based rate authorizations, compliance with energy market rules and regulations, standards of conduct, interconnection rules and negotiations, and purchases and sales of energy facilities and companies.
Prior to practicing law, Bill was an energy industry analyst in the Federal Energy Regulatory Commission’s (FERC) Office of Administrative Litigation. In this role, he worked on numerous natural gas, oil/liquids and electric matters dealing with utilities’ rate making issues, interconnection requests and complaints concerning tariff compliance. He was responsible for developing and presenting positions on regulatory issues set for hearing before administrative law judges at FERC.
On a pro bono basis, Bill represents victims of domestic violence seeking Civil Protection Orders and victims of employer based discrimination in violation of Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), District of Columbia Human Rights Act (DCHRA) and the District of Columbia Family and Medical Leave Act (DCFMLA).
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.
- 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.
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
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 1.0 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.
This program will use PowerPoint presentations and group discussions, as well as active participation.
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.