New regulatory environment changing pipeline operations

This paper reviews the effects of deregulation of the natural gas and pipeline industry as a result of the Federal Energy Regulatory Commission's Orders 436, 500, and 636. It describes the changes as they affected Northwest Pipeline's structure and marketing strategies as the company had to move from a gas merchandiser to a gas transporter. It describes the capacity release options of the pipeline which allow the customers to buy, release, and renegotiate prices whenever they need to because of an increase or decrease in demand using current market prices. The paper discusses the natural gas distribution system which has evolved as a result of these regulations.