Statement of Commissioner Norris

RM14-2-Norris Statement-20140320-3093.pdf

FERC-545 (NOPR in RM14-2) Gas Pipeline Rates: Rate Change (Non-formal)

Statement of Commissioner Norris

OMB: 1902-0154

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March 20, 2014
Commissioner John R. Norris

Docket Nos. RM14-2-000, EL14-22-000, EL14-23-000, EL14-24-000, EL14-25-000, EL14-26-000,
EL14-27-000, and RP14-442-000
Item Nos. M-1, M-2 and M-3

Statement of Commissioner John R. Norris on
Gas-Electric Coordination Orders
“I wanted to first recognize the hard work of this team over the last two years. You have conducted extensive industry
outreach, organized the technical conferences that the Commission and Commission staff have held, and now have
prepared these draft orders.
“I know that many in industry have been working hard, particularly over the last several months, to find solutions to
gas-electric coordination issues. I appreciate all the work that has been done thus far to offer solutions. I especially
commend the Natural Gas Council for its efforts. I recognize that finding solutions is particularly challenging for the
natural gas industry which faces a greater share of the burden with respect to necessary changes to allow for the
better coordination of the gas and electric industries.
“I support today’s order because I believe a more formal process with a specific timeline for action is needed now to
bring together all segments of the gas and electric industries to find solutions to gas-electric issues facing our industry.
NAESB is an appropriate, consensus-building forum for the next step in that formal process. I believe that industry
efforts in recent months provide for a good head start in the NAESB process. I emphasize that today’s orders provide
industry with flexibility to find creative, consensus solutions to gas-electric coordination issues.
“I believe these orders promote a more efficient use of our existing pipeline infrastructure by looking first to how
pipelines and electric generators are operating before investing additional funds in new infrastructure.
“Our orders today offer one potential set of solutions to the challenges we are facing due to the increased reliance on
natural gas in recent years. But, these orders are not the only answer to the problems facing industry related to
reliance on natural gas as a fuel source. We will keep an open mind as we consider any results of the NAESB consensus
process and any additional comments placed in the record regarding today’s orders. While we have conducted
comprehensive outreach to industry over the last two years and today’s orders represent the results of that outreach, I
also believe that industry is in the best position to assess potential solutions. I want to emphasize that I am not
committed to the specific proposals set forth in the NOPR. Rather, I am truly open to other options that may be
proposed by industry, both the gas and electric sectors, that address the Commission’s gas-electric coordination
concerns. In that respect, I urge all of you to participate in the NAESB process and provide your essential input to find
solutions to these looming issues.”


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