FERC Filings
Order Proposing Reporting Requirement on Natural Gas Sales to California Market-Docket No. RM01-9-000
III. Reporting Requirements Do Not Address Infrastructure Adequacy
The Commission can and should continue to improve the current operation of the natural gas system. Gathering excessive data on natural gas market participants in California will not provide the Commission with new insights on the California natural gas market. There are several infrastructure questions outside of the volume and price data requested that significantly affect supply adequacy in California and the west that is in turn reflected in the region’s price volatility. The California Energy Commission recently concluded that “an inadequate natural gas infrastructure is a major contributor to high prices for natural gas” in the State . The addition of new pipeline capacity and improvements to the natural gas transmission system will often limit or alleviate existing higher prices through the facilitation of greater supply. Since these factors are under the jurisdiction of the Commission, a continued examination of these issues would better prepare the Commission to respond to any future price volatility.
The Commission received extensive information on infrastructure adequacy at its recent technical conference on California natural gas infrastructure. Additionally, the Commission should be getting valuable insight regarding the operation of the natural gas system in California and the west through several pending California proceedings and the additional information involved in those proceedings.