Standards of Conduct Initial Comments of INGAA 3-30-07

INGAA comments are in response to FERC’s Notice of Proposed Rulemaking to establish new permanent affiliate regulations.  INGAA requests that the Commission issue a Final Rule in this docket consistent with the following comments:

1.The Commission should permanently exclude non-marketing affiliates from the reach of the Standards of Conduct.

2.The Commission should revise its definition of “marketing, sales or brokering” and “marketing affiliate.”

    a) The Commission properly recognized in Order No. 690-A that the Standards of Conduct apply only to a natural gas Transmission Provider that “conducts transportation transactions with its marketing or brokering affiliate.”

    b) The Commission should retain Order No. 690-A’s clarification of the relationship between “marketing, sales or brokering,” “marketing” and “marketing affiliates.” 

     c) Affiliates exempted from the Order No. 2004 Standards of Conduct should not be subject to the proposed rule. 

3. The Standards of Conduct should not be expanded to include a new class of “asset manager” affiliates, but could lawfully apply to marketing affiliates that hold or control capacity on an affiliated pipeline.

4. The Commission should reaffirm that previously granted waivers remain in effect.

5. The Commission should clarify the rules applicable to risk management employees and senior officers and directors.

6. The Commission should require transmission providers to log only tariff waivers; Concerns about exercises of discretion should be addressed by evaluating tariff language on case-by-case basis.  

7. The Commission should clarify that certain sales will not result in producers losing the exemption for sellers selling solely from their own production.

8. The Commission should expressly provide that the Standards of Conduct apply to natural gas transmission providers when they commence transportation service.