Federal changes bring more choices
In the mid-1980s, federal regulators started making dramatic changes in the natural gas industry to replace regulation with
competitive markets, where appropriate. These changes followed a trend of federal restructuring that occurred in the telecommunications,
banking, airline, trucking and railroad industries.
In 1985, the Federal Energy Regulatory Commission (FERC) issued Order 436, which ended the monopoly interstate pipelines had on
selling and transporting natural gas. Order 436 allowed utilities and large gas customers to buy gas at the wellhead and use
interstate pipelines to transport gas.
The next major restructuring event occurred in 1993, when FERC Order 636 prohibited pipeline companies from buying and selling gas.
Order 636 required utilities and transportation customers to start buying, nominating and balancing gas use.
These changes have led to increased competition among gas suppliers and to more customer choices. Today, many businesses can contract
with a variety of suppliers such as their local gas utility, marketers, brokers or producers.
Wisconsin responds
In response to FERC Order 636, the Public Service Commission of Wisconsin established rules on daily balancing, daily cashout, gas
constraint days and other gas issues, to guide how gas customers, gas utilities and pipelines interact in Wisconsin.
Tracking issues
As the Commission continues to look at restructuring the natural gas industry, the public hearing process will play an important role
in ensuring all opinions are heard. It's critical for gas customers to participate in this process because the Commission uses information
from public hearings to reach decisions about how to restructure Wisconsin's natural gas industry.
Easy-to-identify dockets
The Commission opened Docket 05-SG-100 to evaluate the future of the natural gas industry in Wisconsin.
A docket number is assigned to each issue the Commission places on its agenda in order to more easily track its progress through the
process. In the docket number that introduced a study into natural gas deregulation in Wisconsin, the 05 indicates it is a generic study,
SG stands for "study gas," and 100 is the actual tracking number.
Interested in learning more?
The Public Service Commission's website provides a quick
link to updates on the status of gas deregulation issues.
The GasLine site is designed to keep you informed about your gas service, regulatory changes, pricing, gas supply and other issues that may
affect your company's bottom line. For more details, please contact us.
