Bringing it Home: How the Public Utility Commission May Get the Ability to Regulate the Natural Gas Pipelines in PA

Abstract

Recently it has become apparent that the Federal Energy Regulatory Commission (FERC) cannot keep up – let alone the Commonwealth’s own regulatory body, the Public Utility Commission (PUC) – with the booming infrastructure developing in the natural gas industry. State representatives have recognized this problem and have set out to change the way in which the natural gas pipelines are regulated throughout the Commonwealth. In the past there have been attempts to remove jurisdiction from the federal agency and confer jurisdiction on the Commonwealth’s regulatory agency. A new bill by Representative Matthew Baker, R-68 Wellsboro, has successfully made it through the Senate and is now under consideration in the House, which will do just that. The passing of this new legislation will allow PUC to take control over the inspection and enforcement of federal standards in regards to intrastate pipelines. To accomplish this, PUC plans to hire 15 to 20 new inspectors if the legislation passes. This article discusses the failed attempt to place regulatory authority in the hands of the Commonwealth and discuss why Representative Baker’s new bill is the protection the public needs when it comes to the construction and maintenance of pipelines. FERC has the authority to regulate pipelines and the conveyance of natural gas through the Federal Power Act. FERC grants certificates of public convenience to companies to construct gas pipelines. The company then has to acquire an easement or right-of-way through contract with a private party if it plans to construct a pipeline through private property. FERC also authorizes a company to bring an eminent domain suit in a United States District Court for any claimed property that exceeds $3,000. Further, FERC approves the siting and abandonment of pipelines. The federal oversight has been adequate in the past but there is now a clear need to have State and local officials more involved with the increasing mileage of pipeline being proposed throughout the Commonwealth.