Carolyn Elefant Speaks at IEEFA Conference
-
Upload
carolyn-elefant -
Category
Law
-
view
635 -
download
1
Transcript of Carolyn Elefant Speaks at IEEFA Conference
![Page 1: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/1.jpg)
WARNING! DoesaDangerofOverbuildof
NaturalGasInterstatePipelinesLieAhead?
CarolynElefant,LawOfficesofCarolynElefantPLLCMarch2016
![Page 2: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/2.jpg)
IsthereanydoubtthatFERCpipelineproject
developmentissharplyacceleraDng?
SourceforAllTables:h;p://ferc.gov/industries/gas/indus-act/pipelines.asp
![Page 3: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/3.jpg)
FERC State of the Markets Presentation, March 2015
![Page 4: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/4.jpg)
e"
WHAT EXPLAINS THE UPWARD TREND?
![Page 5: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/5.jpg)
LNG Export
![Page 6: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/6.jpg)
MARCELLUS EXTRACTION
![Page 7: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/7.jpg)
Clean power plan & gas /
electric connection
![Page 8: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/8.jpg)
State PRE-APPROVAL OF COST RECOVERY FOR
CONTRACTS – EXAMPLES:
• InvesGgaGonofMas.sDPU(Oct.2,2015)(findingelectriccompaniescanenterintolongtermcontractsforgas)
• FloridaPower&Light,December18,2013(findingSabalTrailprojectisprudentbecauseitisneededandistheleastcostalternaGve)
![Page 9: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/9.jpg)
You can’t always get what you want...but if you try sometime, you just might get what you NEED.!
The FERC certificate process has shifted from this.......
![Page 10: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/10.jpg)
FERC, give me my pipeline!! And some eminent domain with
that too.
...to this.
![Page 11: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/11.jpg)
3 PROBLEMS WITH PIPELINE
OVERBUILD
![Page 12: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/12.jpg)
FERC’S TOOLS FOR GUARDING AGAINST
OVERBUILD G
![Page 13: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/13.jpg)
Tools: NaturalGasAct CerDficatePolicyStatement RatemakingAuthority
What SecGon7(e)publicnecessity&conveniencestandardrequiresshowingofneed.Showingof“public”needheightenedbySec.7(h)eminentdomainauthority
NoratepayersubsidizaGonBalanceneed&impacts:Needshownby:Subscribedw/precedentKsMarketstudiesorEIAdataProofoflowerelectricrates(notjustspeculaGon)StateCommissionfindings?
ReturnonEquityBillingdeterminantsbasedonfullcapacityNoratepayersubsidizaGon
Pros Minimizesoverbuildifonly“necessary”infrastructureisbuiltAllowsconsideraGonofotheracGviGesthatinformneed(CityofPi)sburghv.FPC)
RoadmapforprojectcriGcsAllowsforbroadconsideraGonoffactorsthatinformneed
FERCcouldmanipulateROEstobalanceneed(reduceROEforunsubscribedprojects)Billingdeterminantsensurespipelinepaysforoverbuild
Cons LacksproporGonality–can(anddo)buildforpeakLimitedprotecGonforcompressorstaGonsw/landacquiredbyK
PrecedentKs=CEIIIfnoratepayersubsidies,FERCinclinedtopresumethatpipelinespend=need.FERCunlikelytogranthearingstoadjudicatecontestedissueofneed.Casespecific–nobigpictureview
NoprotecGonforretailcustomerslockedintostate-PUCapprovedKsFERCnotinclinedtocutpipelinerequestedROE(e.g.,SabalCP15-17ExcepGonsforreliability(rolledinratesallowed)arelargeenoughtoswallowtheruleagainstsubsidizaGon
![Page 14: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/14.jpg)
STOP
SUGGESTIONS TO
PIPELINEOVERBUILD
![Page 15: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/15.jpg)
I. Adjudicative Proceedings for Need at FERC Usediscovery&cross-Xtoprobepipeline’sclaimedneed&explorealternaGveNecessarydueprocessprotecGonforlandowners
II. Electric-Gas Coordination and Operational Changes Be;ergas-electriccoordinaGoncanmiGgatecostincreases OperaGonalchangesarepreferabletodealingwithpeakdemandthannewinfrastructure
III. Proper Alignment of Rate Incentives -ROEstoohigh,capitalstructurestooequity-thick
IV. Enforce Non-Discrimination Tariff Policies
-MayaddresssomestatePUClong-termKapprovalsthatallowpreferenGaltreatmentV. Programmatic Approaches:
AshbackerDoctrine–Singlehearingtocompare2mutuallyexclusivepipelines
ProgrammaGc/RegionalEISANDCerGficateProceeding Basis: (1)FERC’sreliabilityplanningobligaGonsunderCleanPowerPlan (2)RecognizeddiscreGonforregionwidesoluGonsper PermianAreaBasin,(USSup.Ct.1968).
SUGGESTIONS TO ADDRESS OVERBUILD
![Page 16: Carolyn Elefant Speaks at IEEFA Conference](https://reader034.fdocuments.in/reader034/viewer/2022042722/58ad04bf1a28ab0b408b4b5d/html5/thumbnails/16.jpg)
CONTACT INFORMATION: CAROLYNELEFANT
LawOfficesofCarolynElefantPLLCWashingtonDC&BethesdaMD