Section 5

The Natural Gas Act (NGA) establishes the Federal Energy Regulatory Commission’s (FERC) role in regulating gas utilities, just as the Federal Power Act (FPA) does for electric utilities. Part of both laws outline the processes to deal with over-collections , instances in which shippers are charged an “unjust and unreasonable” rate as determined by FERC.

For electric utilities if FERC finds that an electric transmission company has charged an “unjust and unreasonable” rate, then FERC may order that entity to refund overcharged funds from the time that the complaint was filed.

The NGA offers no such protections for gas consumers. Under Section 5 of the NGA, entities can still file a complaint against an interstate natural gas pipeline – just like the FPA. However, unlike the FPA, FERC does not have authority to order refunds of over-collections under Section 5.  This has resulted in billions of dollars in overcharges to gas consumers, and no recourse to recoup those losses.

APGA's Position

Congress should amend the NGA (15 U.S.C. 717d(a)) to allow FERC to set a refund effective date for Section 5 rate cases and give FERC the authority to order refunds from overcharges. This would mirror the FPA and allow FERC to require a pipeline to pay back overcharged funds from the date that the Section 5 complaint was filed with FERC.

What can you do?

APGA urges distribution utilities to contact their Members of Congress and ask them to support the MPACT Act.

Contact your Senator Contact your Representative