Natural Gas Pipeline Certification

Policy Considerations for a Changing Industry 

 

Susan Tierney, Ph.D.

 Analysis Group

November 6, 2017

 

Natural Gas Pipeline Certification Policy

Analysis Group

 Acknowledgments

This report reviews the changing circumstances regarding the production, transportation, and consumption of natural gas in the United States and the potential impact of these changes on federal policies governing the certification and pricing of new interstate natural gas pipeline developments. This is an independent report by Susan Tierney at Analysis Group, supported with funding from the Natural Resources Defense Council. She thanks NRDC for its support and appreciates the assistance of Katie Franklin, Jacob Silver and Grace Howland of Analysis Group in the analysis and development of the report. The report, however, reflects the judgment of the author alone.

 About Analysis Group

Analysis Group provides economic, financial, and business strategy consulting to leading law firms, corporations, and government agencies. The firm has more than 800 professionals, with offices in Boston, Chicago, Dallas, Denver, Los Angeles, Menlo Park, New York, San Francisco, Washington, D.C., Montreal, London, Brussels, and Beijing. Analysis Group’s energy and environment practice area is distinguished by expertise in economics, finance, market modeling and analysis, regulatory issues, and public policy, as well as significant experience in environmental economics and energy infrastructure development. We have worked for a wide variety of clients including (among others) energy producers, suppliers and consumers; utilities; regulatory commissions and other public agencies; tribal governments; power system operators; foundations; financial institutions; and start-up companies.

 

Natural Gas Pipeline Certification Policy

Analysis Group

Table of Contents

I.

 

Executive Summary

1 

II.

 

Context: FERC’s Policy Statement and Certification Process

 7 

FERC’S 1999 Policy Statement

 7 

The Certification Process

 10 

Pipeline Certification Reviews

 12 

III.

 

Factors Affecting FERC Certification Review Policies

 14 

Major Changes in the Natural Gas Industry Have Occurred Since the 1999 Policy Statement

 15 

Other Changes Affecting the U.S. Energy System Have Occurred Since 1999

 26 

IV.

 

Recommendations for Federal Pipeline Certification Policy, Given the Implications of a Rapidly Changing Industry

 36