Promotion of a More Efficient Capacity Release Market

The Federal Energy Regulatory Commission (Commission) is issuing an order addressing the requests for rehearing and clarification of Order No. 712-A [73 FR 72692, December 1, 2008]. Order No. 712 [73 FR 37058, June 30, 2008], as modified by Order No. 712-A, revised the Commission's regulations governing interstate natural gas pipelines to reflect changes in the market for short-term transportation services on pipelines and to improve the efficiency of the Commission's capacity release program. The orders lifted the maximum rate ceiling on secondary capacity releases of one year or less provided that such releases take effect within a year of the date that a pipeline is notified of the release. The revised regulations facilitated asset management arrangements (AMA) by relaxing the Commission's prohibition on tying and on its bidding requirements for certain capacity releases. The Commission further clarified in Order No. 712 that its prohibition on tying does not apply to conditions associated with gas inventory held in storage for releases of firm storage capacity. Finally, the Commission waived its prohibition on tying and bidding requirements for capacity releases made as part of state-approved retail access programs. This Order denies rehearing and grants clarification in part and denies clarification in part of Order No. 712-A. This order also terminates Docket Nos. RM06-21-000 and RM07-4-000.