Natural Gas Prices: FERC Should Improve Its Initial Review of Pipelines' Natural Gas Costs
RCED-86-12
Published: Nov 04, 1985. Publicly Released: Dec 04, 1985.
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Highlights
Pursuant to a congressional request, GAO examined how the Federal Energy Regulatory Commission (FERC) reviews natural gas pipeline companies' requests to change their rates to reflect changes in their natural gas costs, focusing on whether: (1) the filings submitted were complete and consistent; and (2) FERC analysts appropriately reviewed the filings before they went into effect.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Energy Regulatory Commission | The Chairman, FERC, should have the Director of the Office of Pipeline and Producer Regulation develop: (1) criteria and guidelines for the review of filings, including, where applicable, a standard sampling method for selecting items for review; and (2) procedures for adequately documenting the analysts' review process. |
Closed – Implemented
FERC established standardized criteria and guidelines for initial review of filings. FERC stated that it will use standard sampling procedures where they can be used in conjunction with existing procedures.
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Topics
Administrative errorsNatural gas pricesPrice regulationRatesReporting requirementsNatural gasEnergy informationActual costsNatural gas purchasesConsumers