Pipeline Purchases of High-Cost Natural Gas: Extent and Contested Issues

GAO compiled information on certain aspects of pipeline company purchases of high-cost natural gas. Pipeline tariff rates are established at least every 3 years based on a cost-of-service review. One aspect of such a review is a determination of the cost of gas purchased by the pipeline for resale. A pipeline's request to change its base tariff rates to reflect purchased gas costs is known as a purchased gas adjustment filing. These filings have become more controversial in recent years, as wellhead prices have accounted for a larger share of retail gas costs.