THE SOURCE - Summer 2015 - (Page 7)

Q&A: Chairman Norman C. Bay O n April 15, 2015, Norman C. Bay became Chairman of the Federal Energy Regulatory Commission (FERC). In this Q&A with APGA, Chairman Bay shares his thoughts about responsibility, infrastructure, rates and legislation based on his years of experience in the energy industry. APGA: Given your extensive experience in the Office of Enforcement, do you believe that FERC currently has sufficient authority and is actively exercising that authority to ensure that customers of interstate pipelines-versus electric utilities-are being charged a "just and reasonable" rate as mandated by the Natural Gas Act (NGA)? Chairman Bay: FerC has a statutory duty to ensure that rates are "just and reasonable," and we take that responsibility very seriously. In general, I believe that the broad authority conferred by sections 4 and 5 of the Natural Gas Act, together with the antifraud, market manipulation, and civil penalty provisions of the energy Policy Act of 2005, provide the Commission with the necessary authority to ensure that rates are just and reasonable. First, FerC has developed an innovative and robust market oversight and surveillance program. The markets are monitored on a daily basis, and FerC receives live data feeds from the Commodities Futures Trading Commission and the Intercontinental exchange on physical and financial gas transactions. FerC has also created algorithms that it uses to screen the data to detect potential anomalies. Among other things, the screens allow FerC to determine whether market participants have financial positions that would benefit from manipulation of physical gas prices. second, as noted in the Office of enforcement's 2014 report on enforcement, FerC has used its antimanipulation authority under the energy Policy Act of 2005 to investigate potential wrongdoing in the gas markets. Last year, the Commission issued a show cause order to determine whether certain trading by BP of next-day, fixedprice natural gas at the Houston ship Channel violated the anti-manipulation rule. The Commission also approved a i continue to emphasize my support for developing adequate infrastructure to meet the needs of all consumers of gas, as well as developing market-based solutions to address the specific needs of certain customers. continued on page 8 » THE SOURCE | SUmmER 2015, vOl. 7, ISSUE 4 7

Table of Contents for the Digital Edition of THE SOURCE - Summer 2015

Problem Solving
First Person
APGA Events
Q&A with Chairman Bay
Natural Gas: The Fuel of Choice
Volatile Oil Prices
Home-Based Reporting
The Learning Curve
What Is Net Zero?
Legislative Outlook
The Pipeline
Marketing Matters
Advertisers’ Index/
At Last

THE SOURCE - Summer 2015