FERC-538, Gas Pipeline Certificates: Section 7(a) Mandatory Initial Service (PL24-1-000)

Under the Natural Gas Act (NGA) (Public Law 75-688) (15 USC. 717-717w), upon application by a local distribution company or municipality, a natural gas pipeline company may be ordered by the Commission to extend or improve transportation facilities, to establish physical connections to serve, and sell natural gas to the applicant. As stated in Section 156 (18 CFR 156), filings pursuant to the provisions of Section 7(a) of the NGA are to contain all information necessary to advise the Commission fully concerning the service which the applicant has requested the Commission to direct the natural gas pipeline company to render. Included in the information to be provided as stated in 18 CFR 156.5 (1-16) are included (but not limited to): • A description of any improvement or extension of facilities which the natural gas pipeline company will be required to make in connection with the requested rendition of the service; • The applicant's present and proposed operations, construction, service, and sales, together with a description of any extension or improvement of facilities by the applicant which will be required in order to enable applicant to engage in the local distribution of natural gas. If the request is granted, the natural gas pipeline company must extend or improve transportation facilities and establish physical connection to serve the local distribution companies. The Commission uses the FERC-538 data to perform its regulatory functions. The Commission must determine whether the distributor applicant can economically construct and manage its facilities. A request is made by a person or municipality to have the Commission, by order, direct a natural gas company to extend or improve its transportation facilities, and sell natural gas to the municipality or person and, for such purpose, to extend its transportation facilities to communities immediately adjacent to such facilities or to territories served by the natural gas pipeline company. In addition, the Commission uses the flow data and market data to evaluate existing and future customer requirements on the system in order to determine if sufficient capacity will be available. Likewise, the Commission uses the cost of facilities and the rate data to evaluate the financial impact of the project to both the pipeline company and its customers. The information collection cannot be discontinued nor collected less frequently because of statutory requirements. The Commission is required to review applications concerning improvement or extensions of facilities and services for local distributors of natural gas. The consequences of not collecting this information are that the Commission would be unable to fulfill its statutory mandate under the NGA and its Rules of Practice and Procedure, and the distribution companies would be unable to request the Commission to direct pipelines to serve them.

The latest form for FERC-538, Gas Pipeline Certificates: Section 7(a) Mandatory Initial Service (PL24-1-000) expires 2022-09-30 and can be found here.