Interstate Pipeline Rate Changes: What Do These Changes Mean for Your Business?

The natural gas industry has significantly shifted over the last decade.

Technological developments allowed producers to expand hydraulic fracturing and horizontal drilling, significantly increasing supply in the United States. This event sparked the Shale Revolution, which brought prices plummeting to the lowest the market has ever seen. We’ve also watched the balance of supply and demand shift. The United States is now the largest natural gas producer in the world and a natural gas net exporter. In addition, liquefied natural gas (LNG) exports are now a staple of the market fundamentals conversation.

Currently, there is a lot of activity regarding the gas transportation rates being charged by the interstate pipelines. Some rate cases have been prompted by a review by the Federal Energy Regulatory Commission (FERC) in response to the Federal corporate tax rate reduction in January 2018. Additionally, other interstate pipelines filed rate proceedings because of a prior rate case settlement that required the pipelines to make a new rate filing by a certain date.

There are a number of reasons an interstate pipeline might look to change or update their rates or tariff in addition to the examples listed here. 

Constellation, an Exelon company, serves more than 2 million residential, public sector and business customers across the United States. Our regulatory team is actively involved in many of these rate case proceedings. As a major shipper of physical natural gas throughout the U.S., we pride ourselves in our expertise of the pipeline network and how the movement of physical natural gas effects your costs.

See below for details related to some of these individual rate cases. And if you have any questions, contact Customer Care.

Click the image to download the full infographic to learn more about interstate pipeline tariffs.