RCA 1

RCA Policy Goals

For gas pipelines within its jurisdiction, the RCA’s policy goal is to ensure:

• Non-Discriminatory Access

• Just and Reasonable Rates

RCA 2

RCA Jurisdiction

• Our jurisdiction over intrastate movements within an interstate pipeline appears limited– Commingling doctrine generally makes

intrastate gas “interstate” in nature– Opinion of State AG in 1977– Alaska Natural Gas Transportation Act, Sec.

13(b)

RCA 3

RCA Jurisdiction (cont.)

• Preemption issues aside, the RCA has no authority over an interstate pipeline unless the line starts off with an intrastate certificate. – Federal Case Law– State Pipeline Act

RCA 4

RCA Jurisdiction (cont.)

• RCA generally has jurisdiction over lateral lines.

• We are looking into these issues further. It appears though that if the State wants RCA to regulate intrastate transport, then:– Litigation or Federal legislation may be needed– RCA’s authority would be greater if instate

volumes were nominated at the beginning.

RCA 5

RCA Jurisdictional Pipelines

• For gas pipelines under its jurisdiction, the RCA can regulate a pipeline either as:– Pipeline Carriers (42.06) – Public Utilities (42.05)

• The Commission’s powers to ensure shippers access tend to be greater for Pipeline Carriers than for Public Utilities.

RCA 6

Access

The RCA can:• Allocate capacity if nominations exceed

space (Pipeline Carriers);• Order facilities expansion (Pipeline

Carriers and Public Utilities); • Order facilities interconnection (Pipeline

Carriers and Public Utilities);

RCA 7

Access (cont.)

• Order installation of off-take facilities during construction (Pipeline Carriers).

RCA 8

Tariffs

• The RCA is charged with ensuring that tariffs under its jurisdiction are just and reasonable. This usually means that rates reflect the costs of providing service, including a reasonable return on capital.

RCA 9

Who pays for capacity additions?

• No clear rulemaking, nor much precedent for gas pipelines.

• The RCA would generally look at allocation of benefits arising from facilities expansion.– Connection costs generally paid by

interconnecting entity– Costs of expansions conferring wider benefits

would be paid for those who might benefit.

RCA 10

Who pays for capacity additions (cont.)?

• Capacity expansion costs for pipelines certificated under the Pipeline Act are more likely to be paid for by all users, since common carrier status means that all users may eventually benefit.