FERC Announces Order Banning Nonjurisdictional Pipeline Transactions

Recently, the Federal Energy Regulatory Commission announced a decision under which it will have broader regulatory power over buy-sell transactions on small pipelines. The unexpected decision, stemming from a case involving Arizona Public Service Co. and Sequent Energy Management LP, expands FERC's prohibition of transactions involving transportation through open access interstate pipelines to apply to intrastate pipelines as well. SNL Financial interviewed Bracewell & Giuliani Partner Mark Lewis about the decision and its potential effects on these common pipeline transactions. Click here to read the article.