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Old 02-02-2014, 08:05 AM   #7
Rusty
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Thank you Misty Blue.

From what I understand, and what you just wrote, the existing forwarded Reserve Market (FCM ) rules include little incentive for capacity market resources to invest in the capability to operate at capacity under all fuel supply conditions (e.g., through firm gas contracts, dual fuel capability, or fuel storage arrangements). There are no enhanced payments related to product differentiation based on firmness of energy production, and there are effectively no penalties for failure to operate according to capacity supply obligations.

Natural gas is sold through brokered markets, and, in a separate transaction, is transported through an interstate pipeline system. The pipelines offer a number of transportation services that vary in priority (and expense). The charges for these services are based on tariffs that are approved by the Federal Energy Regulatory Commission (FERC) and provide regulated rates of return to pipeline owners.

Hence, nothing is getting done.
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