Article | REF: BE7012 V1

Natural gas transmission tariffs in a market economy

Author: Jacques PERCEBOIS

Publication date: December 10, 2024

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3. ATR pricing on the US natural gas network

The focus here is on the federal transmission network, which is subject to FERC (Federal Energy Regulatory Commission) regulations. Each state has its own legislation, and tolls are set by a regional commission. FERC is responsible for the interstate network, and applies an entry-exit access tariff. FERC sets the rules of the game in terms of network access tariffs, but does not set the tariff itself, since pipelines can compete with each other to attract customers. This differs from the situation in Europe, particularly in France. In particular, it sets the method for allocating costs between reservation and use, which has evolved over time, as shown in the table 1 . It also ensures that the fare proposed by the network covers the posted costs.

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ATR pricing on the US natural gas network