FERC Updates Voluntary Gas Price Reporting Policy

On April 21, 2022, the Federal Vitality Regulatory Committee (FERC) revised its pointers pertaining to the voluntary reporting of pure gasoline transaction costs by market contributors to cost index builders (e.g., NGI, S&P, OPIS, Argus, ICIS, and others). Particularly, FERC issued a Revised Policy Assertion (RPS) modifying the requirements for such reporting to cost index builders. In doing so, FERC largely adopted insurance policies first proposed in late 2020. The RPS is efficient on December 31, 2022. 

There was a dramatic decline in voluntary reporting to cost index builders by market contributors of pure gasoline transaction costs since 2010. FERC hopes the adjustments within the RPS will assist encourage extra market contributors to report their transactions to cost index builders.  

The RPS revises value index coverage requirements for market contributors. It should enable market contributors to report both their next-day or their next-month transactions. Beforehand, for these market contributors selecting to report, reporting each was required. Moreover, FERC will now allow market contributors that present such information to self-audit twice per yr quite than yearly. 

The RPS additionally modifies FERC value reporting requirements to require value index builders to reveal after they use a market evaluation aside from trades on the index specified location to calculate the value index. Moreover, value index builders might want to search approval or re-approval from FERC each seven years that they meet the requirements set forth within the Preliminary Policy Assertion (IPS). Lastly, starting six months after the efficient date of the RPS, interstate pure gasoline pipelines and public utilities utilizing value indices in jurisdictional tariffs will now not be entitled to a rebuttable presumption that such indices present for simply and affordable charges, until the referenced value index developer has obtained the IPS-related FERC approval. 

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