Andrew Soto, vice president of regulatory affairs for the American Gas Association, wants "voluntary, incremental change if supported by the markets."
explained further the difference between the electricity markets and the natural gas markets are that natural gas reliability in electric markets is a function of generation and transmission facilities.
And in natural gas, "Reliability is a function of having enough storage to meet demand.
These are two very different markets, two very different commodities so why should they be traded the same way?
saying Sipe's proposal assumes "the gas market is fungible, easily standardized; … he
doesn't understand how highly customized and individualized these trades are."
would like to see a voluntary action rather than the sweeping change of a FERC-mandated electronic trading platform.
also notes there would be all kinds of transaction costs to standardize natural gas trading and goes further.
"I would say the natural gas markets are trading very well right now.
From our perspective those solutions should only be supported by the market not dictated by regulation.
The idea is getting lost; the market will determine what it wants," referring to an Intercontinental Exchange proposed change to weekend trading blocks offering parties a chance to record weekends differently or a full-blown electronic trading platform, which he
claims, "introduces a level of complexity that is potentially harmful."