Lander's Capacity Center Reports Shift in Trading Trends since FERC Order 712 Went into Effect on August 1

摘要

Greg Lander, President, CapacityCenter.com, issued a statement recently touting the benefits of FERC's decision to remove any rate cap on short-term releases of natural gas, as provided in Order 712 (RM08-1), which only took effect on August 1. "We believe the markets are just beginning to feel the impact on secondary capacity market values that Order 712 will bring. In the normally quite month of August, the ruling has already generated an additional 5.7 million in above max rate payments," said Lander. By his reckoning, there have been 1,864 capacity trades in the first 36 days where the Order 712 rules have applied. Of these trades, in 61 trades the releasing shipper (seller) realized a price that exceeded the pipeline's maximum rate for the capacity traded.