Natural Gas Act Reform

The Natural Gas Act (NGA) and the Federal Power Act (FPA) establish the Federal Energy Regulatory Commission’s (FERC) authority to regulate natural gas and electric utilities, respectively. Both statutes allow consumers to file rate complaints asking FERC to determine whether interstate transmission entities are charging them fairly. If FERC determines a rate is unjust or unreasonable, the FPA allows FERC to order an electric transmission entity to refund any overcharges from the time the complaint was filed. The NGA, however, does not grant FERC refund authority in natural gas rate cases.

A sample of just 10 of the most profitable transmission pipelines received $1.1 billion in overcharges in 2019 alone. Because FERC cannot order refunds, those overcharges lead to higher prices that hurt consumers. APGA supports legislation to amend the NGA to allow our members the same protection from unfair transmission rates that electric utilities receive under the FPA.

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