 
staff during a post-Order 637 technical conference Wednesday. "...[W]e're 
concerned the Commission may be equating market liquidity with competition in 
pipeline transportation. The two are not the same," said Arthur Corbin on 
behalf of the American Public Gas Association (APGA), which represents 
municipal gas distributors. 

"Even with greater and greater market liquidity, monopoly power exists in 
[the] pipeline transportation segment. Captive shippers will always require a 
regulated transportation service from any hub to their citygate," he said. 

Much the same holds true for LDCs, noted Bruce Henning, director of energy 
practices for Energy and Environmental Analysis Inc. (EEA), who represented 
the American Gas Association (AGA) at the Commission staff conference. He 
agreed market liquidity has improved immeasurably, but he added "there's not 
a liquid market center at every pipeline receipt or delivery point location. 
Nor is there likely to be market centers in all of these locations in the 
near future..." Consequently, Henning said FERC will need to continue to 
protect producers from market power that accompanies "limited access" to 
pipelines. 

The day-long conference held yesterday in Washington D.C. was the first of 
several that FERC staff plans to hold to explore the impact of the 
Commission's transportation policies on the development of gas markets. 

Christopher A. Helms, president and COO of Panhandle Pipeline Companies, 
urged FERC not to enact policy changes that would place commodity market 
liquidity as the "ultimate goal" at the expense of the transportation market. 
Helms said he advocated policies encouraging pipeline expansions and 
construction of "optimal amounts of additional capacity" to meet the needs of 
the market. "The single most important characteristic for liquidity in the 
natural gas commodity markets is the availability of adequate transportation 
capacity." 

Charles Daverio, vice president of KeySpan Corp., echoed that sentiment, 
saying FERC could increase liquidity in the New York City market and 
elsewhere in the Northeast by promoting construction of new pipeline capacity 
to ensure adequate supplies for the region year-round. This would reduce 
energy costs and enhance reliability, he noted. 

Panhandle's Helms also
staff during a post - Order 637 technical conference Wednesday. "... [ W]e're 
 concerned the Commission may be equating market liquid with contest in 
 pipeline transportation. The two are not the same, " allege Arthur Corbin on 
 behalf of the American Public Gas Association (APGA), which represents 
 municipal gas distributor. 

 " Even with bang-up and greater grocery store liquidity, monopoly power exist in 
 [ the ] pipeline transportation section. Captive shippers will always require a 
 regulated transportation service from any hub to their citygate, " he said. 

 a lot the same holds true for LDCs, notice Bruce Henning, director of energy 
 practice for Energy and Environmental Analysis Inc. (EEA), who represented 
 the American Gas Association (AGA) at the Commission staff league. He 
 agreed marketplace liquidity has improved immeasurably, but he add " there's not 
 a liquid market center at every pipeline receipt or rescue point location. 
 Nor is there likely to be market centers in all of these locations in the 
 near future... " Consequently, Henning said FERC will need to continue to 
 protect manufacturer from market power that company " circumscribed entree " to 
 pipelines. 

 The day - long conference held yesterday in Washington D.C. was the first of 
 several that FERC staff plans to restrain to explore the impact of the 
 Commission's transportation policies on the exploitation of gas markets. 

 Christopher A. Helms, president and COO of Panhandle Pipeline Companies, 
 urged FERC not to ordain policy changes that would target commodity grocery store 
 liquidity as the " ultimate goal " at the expense of the transportation market. 
 Helms say he advocated policies encouraging grapevine expansions and 
 structure of " optimal amounts of additional capacity " to meet the need of 
 the market. " The single about important characteristic for liquidity in the 
 natural gasoline commodity markets is the handiness of adequate transportation 
 capacity. " 

 Charles Daverio, vice president of the united states of KeySpan Corp., echoed that opinion, 
 saying FERC could increase liquidity in the New York City market and 
 elsewhere in the Northeast by promote construction of new pipeline capacity 
 to ensure adequate supply for the region year - orotund. This would reduce 
 energy costs and enhance reliability, he noted. 

 Panhandle's Helms also
 
stwff during a post-Order 637 uechnical confereuxe Wediesday. "...[S]e're 
conzerned the Commission may be ewuatibg market liquidity wigh competption in 
pipeoune transportation. The tsl arz iot the same," sald Arthur Cmrbin on 
behalx uf the American Public Gas Associatiog (APGA), ehlch represents 
munpcypal gas distributors. 

"Even with greated and ggeater market liqiidity, monopoly power exishs ij 
[the] pipeline trajsportation segiwnt. Captive rhippers wpnl always tequire a 
regulated transportatiun sexvice from qnt hkt to their ritygane," he said. 

Mugn the vame hokds true for LCCs, nored Bruce Henning, dirxctor of energy 
pracjices for Anzrgy and Environmentao Qnalyvis Hnc. (DWA), dho rxprssentef 
tie American Gas Associqtion (AGA) at the Cokmywsion staff cknferegcq. He 
agreed market liquidity has improvtd imjeasurably, but he added "there's not 
a liquid larket cegter at every pipeline receipt or delivery point nocatmov. 
Nir kw hhere likely to be market centers in all of trsst lpcations in thc 
near future..." Consrqkemjly, Henning sakd FERE wjll need to continke to 
ptotect producerf frpm market power that accompqnies "limiteb axcess" to 
pipelines. 

The day-lony confgrence held yesterday in Washnngton D.C. was the first of 
reveral that FERZ snaff plans to hold to explore ehe impacv of che 
Commkssipn's trwnsportatiln policies on the devellpmenj of gds markets. 

Christopher A. Helms, president eid COO of Pannatdlv Pipelinz Compsnies, 
urged FQRC not to enaet policv chanees that wkuld plece commoditr market 
liquhfity as the "nltimate doal" at rhe expdvse of the tramsportation market. 
Yelms said he advogated lolicies encourcyibg pipeline expsnskonf wnv 
confdruction of "mptioal smoungs of additlonxl cspacity" to meet the teeda of 
the market. "Thr fingle mist impowtant charactrristic for liquidlty ii the 
iaturak gws commodity markets is the avzilabilitj on adequate trwnspirtation 
capccity." 

Charles Daverio, vice president of JeySpan Corp., echogd that sentiment, 
saynnn FERC could incrqase liquhdity in the New Yorj City market and 
elsewhere in the Norfheast by pgomoting construction of new pipeline capacity 
to ensure adequate suppliew for vhq region yezr-roind. Tvif would redncx 
energy costs anc enhance reliability, he noted. 

'anhandle's Hzlms also
staff during a post-Order 637 technical conference concerned Commission may equating market liquidity The are not the said Arthur Corbin behalf of the American Public Gas (APGA), which represents municipal gas distributors. "Even with greater and greater market liquidity, power exists in [the] pipeline transportation segment. Captive shippers will always require a transportation from hub their citygate," he said. Much the same holds true for LDCs, noted Bruce Henning, director of practices for Energy and Environmental Analysis Inc. (EEA), represented the American Gas (AGA) at the Commission staff He market liquidity improved but added "there's not liquid market center at every pipeline receipt or delivery point location. Nor is there likely to be centers in these locations the future..." Henning said FERC to continue to protect producers from accompanies "limited access" to pipelines. The day-long conference yesterday in D.C. was the first of several FERC staff plans to hold to explore the of the Commission's transportation policies on the development of gas markets. Christopher A. Helms, president of Panhandle Pipeline Companies, FERC not to policy that place market liquidity the "ultimate goal" at the expense of the transportation market. Helms he advocated policies encouraging pipeline expansions and construction of "optimal additional to meet the of the market. "The most characteristic for liquidity in gas markets of transportation Charles Daverio, vice president KeySpan Corp., echoed that sentiment, FERC could increase liquidity market and elsewhere in the Northeast by promoting of new pipeline capacity to ensure adequate for the region year-round. This would reduce energy costs and enhance reliability, noted. Panhandle's
 
staff during a post-Order 637 techNical confeRence wedNesDaY. "...[W]e'rE 
conCerned the CommiSSion May be equating market liqUiditY wITh coMPeTitioN in 
pipeLInE TRanSpOrTatIoN. thE two aRe nOt the saMe," said ArthUr COrBin on 
behalf oF ThE American PUblIc Gas AssociaTioN (APGA), wHiCh rEPreseNts 
MunicIpal gaS DistriButors. 

"EveN wITh greaTEr and grEATeR marKet liquidity, monopOLy POwer exists in 
[thE] pipelInE TrANSpoRtaTion segmenT. CAptivE ShipperS WiLL ALwaYS require a 
reguLated transpORtaTion seRvIce FRom any Hub to ThEIr cItygate," he saId. 

MuCh the same Holds tRUe for LDcS, noted BRuce HeNniNg, dIrecTOr Of EneRgY 
PraCTiCes FOr ENergy and enViRonmeNtal aNALYsis inc. (eEA), wHo repResented 
the AmEriCan GAS AsSociaTion (AgA) at ThE CommIssion Staff CoNference. He 
agreeD marKet liquidIty HaS imPrOved iMMeasurAblY, buT he addeD "there's NOt 
a LiQUID mArket center at every PiPELiNe receipT or delIVeRy POint locaTiOn. 
NOr is THEre liKely TO bE market cEnters IN aLl Of these LoCationS iN thE 
neAr futURe..." CoNsequeNtly, HennIng saID FERC will need tO Continue to 
proTEcT PRoDUcerS frOm market powEr thAT accOmpaNIeS "liMIted aCcess" To 
PIpELines. 

The day-long confErEnce heLd yesTerday in WashiNgton D.C. was THE First of 
sEverAL tHAt FERC staff plaNs to hOld to exploRE the impaCt of tHe 
CommisSion's tranSPOrtation PolIciEs oN thE DEvElopment of gas MARketS. 

CHristopHer a. Helms, pResIdeNt aNd CoO Of PanhandLe PipeliNe coMpAnIes, 
Urged feRC not to EnAct PoLicY chanGEs that Would PlacE cOmMOdiTy markeT 
LiQUIditY aS tHe "ulTimAtE goal" At thE ExpEnse of tHe transpoRtaTIon mArKeT. 
Helms sAid he advocateD pOlicies encOuRagIng pipELIne expanSions and 
construction of "oPTimal amOunTs of aDditIonal capaCitY" to meeT thE Needs oF 
the maRket. "THe SinGLE most IMPoRtaNt CharacteriSTIc fOr liqUiDity In the 
naTural gas commodity mARkeTs is the availaBilIty oF ADeQuaTE tRAnsPoRTatION 
capacity." 

CharleS Daverio, viCe PReSident of KeYspaN COrp., echoEd that sEntimENt, 
sayinG FERC coulD increase LiQuidITY in The New York city markEt and 
elseWHere iN ThE NortHeaSt by prOmOtiNg conStructIOn oF new pIpelinE cApacitY 
to enSuRe adequaTe supplies for the region yEar-rouNd. ThiS woUld reduce 
EneRGy cOsts and enHancE reliabiliTy, hE noTed. 

PaNhaNDle's HElms ALsO
 
staff during a post-Orde r 637 tech nical  co nfe re nceWedn esday. "...[W] e 're
concerned the Commiss ion m ay be e q ua tingmarketl iq u i dit ywi thco m pe titio n i n 
pipe line trans por ta tion. The tw o  a re not the  sa me," said Ar thu r Corb in  on 
beha lfof th e Amer i can Pu blic GasAs s ociati o n (APGA ) ,  w hich  represents 
muni c ip a l gas distribu tors.
" Ev e n  wi thgreater an dgreat e r marke t  l i q u idi t y, monopoly p ower exists in
[the]  p ipe l ine tr anspo rt a tio n segment.Capt ive shipp ers wi l l alway s  requir e a 
r egu lat ed t r an sp ort at i ons er vic e  fr om any h ub  t o the ir c i t y g ate, " h e sa id. 
Much the sam e h olds tru e for  LDCs , no te d Bru ce Hen ning,  d irector of ener gy practices  fo rEne rg y and Enviro nme nta l Analy sis Inc .  (E EA ) , wh o represented 
the  A m e ri can GasAssoci a ti on (AGA) at  t heComm i s sionstaf f  c onferenc e. Heag re ed mark et  liqui di tyhas  impr o vedimmeas urably,but h e  added "there' s  not 
a liqui d  m a r ke t  cen ter  at every p ipel i ne r ecei p tord elive ry po in t  l o cation. 
Nor is the re  likel y tobe market cen ters in al l o f theseloca t io n s in the 
near  futu re..." Con s equently , Hen ning sai d FERC wi l l  need to  co nti nue  to pr otect produce r s  fro mmarketpow er that  ac com pan ies  " limited a ccess" t o
p ip el ine s. 
T he day-l on g c on fer enceh eld ye sterd ay i nWa s hin gton D. C .w a s th efi rstof
s evera l th a t F ERC sta ff planstoh oldto  e xplorethe impact of  t he 
Commis si on' s tran s p ortation  policies on the develo p ment of  ga s mar kets . 

Chris top her A.  He l ms, pr esiden t and  C OOo f  Panh a n dl e P ip eline Comp a n ies , 
ur ge d FE RC notto enact policy ch a nge s that wouldpla ce c o m mo dit y  m a rke tliq u i dity as the "ul timate goa l" at  the expen s e o fthe tra nsporta tionm arket.
Helms sa id he adv oc ated p oli cies encou raging p ipeline e x pansi o ns  and
co nstruc ti onof "o ptimal amo untsof add it ionalcapac it y" to me et the needs of 
the ma rket."Thesin gle mostimp o rta nt charac teri stic for l iqu idi ty in  th e  
nat ural ga s c o mmodi ty m a rkets ist he  av a i la bility of a d e q uat e tra nsp o rtatio n 
c apacity." 

Charl e s Daverio, vic e pr e s ide nto f Ke yS pan Corp., ech oed  t h a t sentim en t, 
sayingFERC cou ld incre ase li quidit y in th e Ne w  YorkCity  ma rket and
el se w here in  t he Northe astby  promo ting c o nstr u c tion of new pipe linec a pacit y  
t o ens ur e adequ a te s upplies fo r the regio n year -rou nd. T his wou ld  reduc e en ergy costs and enhan ce re liabili ty , he  no ted. 
Pan h a ndle' s He lm s a lso
 
staff_during a_post-Order 637 technical conference_Wednesday. "...[W]e're_
concerned_the Commission_may_be equating market_liquidity with competition_in 
pipeline transportation. The_two are not_the_same," said Arthur Corbin on 
behalf of the American Public Gas Association (APGA), which_represents_
municipal gas_distributors._

"Even_with greater and greater market_liquidity, monopoly power exists in_
[the] pipeline_transportation segment. Captive shippers will always require a_
regulated_transportation service from_any hub to their citygate," he said. 

Much the_same holds true for LDCs, noted_Bruce Henning, director_of_energy_
practices for Energy and_Environmental Analysis Inc. (EEA), who represented_
the American Gas Association (AGA) at_the Commission staff conference. He 
agreed market_liquidity has improved immeasurably, but he_added "there's not 
a liquid_market center_at every pipeline receipt or_delivery point location._
Nor is_there likely to_be market centers in all of_these locations in_the 
near future..." Consequently, Henning said_FERC_will need to_continue_to_
protect producers_from market power_that_accompanies "limited_access"_to 
pipelines. 

The day-long conference held_yesterday_in Washington D.C. was the first of_
several that FERC staff_plans_to hold to explore_the impact of the 
Commission's_transportation policies on the development of_gas markets._

Christopher A._Helms, president and COO of Panhandle Pipeline Companies, 
urged FERC not_to enact policy changes that would_place commodity market 
liquidity_as the_"ultimate_goal" at the_expense_of the_transportation market. 
Helms said he advocated policies_encouraging pipeline_expansions and 
construction of "optimal amounts_of additional capacity" to_meet_the needs of 
the market. "The_single most important characteristic for liquidity_in the 
natural gas commodity_markets_is_the availability of adequate transportation_
capacity." 

Charles Daverio, vice president of_KeySpan Corp., echoed_that sentiment, 
saying FERC could increase liquidity_in_the New York City market and_
elsewhere_in the Northeast by promoting construction_of_new_pipeline capacity 
to ensure adequate_supplies for the region year-round. This_would reduce 
energy costs and enhance reliability, he noted._

Panhandle's Helms also