The Natural Gas Workshop was organized by the Energy Regulators Regional Association (ERRA) on October 24, 2004, preceding the two-day Tariff/Pricing Committee Meeting in Zagreb, Croatia. The meeting was co-hosted by the Croatian Energy Regulatory Council (CERC), the Energy Regulators Regional Association (ERRA) and the U.S. National Association of Regulatory Utility Commissioners (NARUC), with funding provided by the U.S. Agency for International Development (USAID).
In his Welcoming remarks, Chairman Miko Klepo, CERC emphasized the importance of the exchange of experience and information at the international level with the goal to improve regulatory practices and foster clear regulatory mechanism and relationship between the regulatory bodies in the region.
The natural gas sector in ERRA countries was highlighted via a set of case studies; Commissioner Ivona Stritof, CERC/Croatia, updated on the South-East-European Regional Gas Networks, the Croatian gas market structure and tariff/pricing issues related to it. Mr. Armen Arshakyan, Head of Tariff Department, National Public Services Regulatory Commission of Armenia, briefed about the principles of determination of effective and used assets applied during major modification of the gas consumption, touching upon the depreciation norms used to calculate the residual value, pros and contras in using this principle. This issue generated a lot of discussion.
Ms. Laimute Necejauskiene, Head Specialist, National Control Commission for Prices and Energy, explained the pricing principles and price setting practiced in Lithuania. Further on participants listened to two additional ERRA members’ presentations: Mr. Slavko Bundaleski, Advisor, Energy Regulatory Commission of Macedonia, briefed about the development plans and future extension of the pipelines and new trends (a new law will be passed). The Romanian Gas market was presented by Mr. Gabriel Sirbu, Director, National Regulatory Authority in Natural Gas Sector, who outlined the main principles of the Romanian methodology for setting prices and tariffs, approaches to technical and commercial losses. After presentations from the ERRA countries, participants listened to two presentations on the U.S. gas market by Mr. Thomas Pearce, Chair, NARUC Staff Subcommittee on Gas Natural Gas, and Specialist, Public Utilities Commission of Ohio, and Ms. Denise Parrish, Deputy Administrator, Office of Consumer Advocate, Wyoming Public Service Commission. Mr. Pearce’s presentation touched upon the current US gas market issues, state issues and technological, economic, environmental and political interconnected topics. He also presented the gas tariff issues (commodity, pipeline capacity and storage capacity), as well natural gas rates. Ms. Parrish lead on with presenting the issue rate setting considerations and rate design as well as methods of computing an authorized return on equity.
All participants appreciated the roundtable discussions moderated by Ms. Parrish and Mr. Pearce and expressed wishes to continue with talks on the natural gas issues in the year 2005. The meeting ended with outstanding talks and friendly atmosphere.
By Viola Dozsa, ERRA Program Manager
Agenda
Sunday, October 24, 2004
Sheraton Hotel, Opatija-Pula Conference Room
09:00 Welcoming Comments
- Chairman Mico Klepo, Croatian Energy Regulatory Council (CERC)
· Commissioner Svetla Todorova, SERC, Bulgaria
09:15 Natural Gas Sector in the ERRA Countries
-Croatian Case Study: Gas Market in Croatia – Tariff issues
-Armenian Case Study: Principles of Determination of Effective and Used Assets Applied During Major Modification of the Gas Consumption in Armenia
10:30 Coffee break
10:45 Natural Gas Sector in the ERRA Countries cont’d
11:45 Case Study: U.S. Natural Gas Market Current State of the US Natural Gas Markets and Related Issues
· Mr. Thomas Pearce, Chair, NARUC Staff Subcommittee on Gas Natural Gas Specialist, Public Utilities Commission of Ohio, Columbus, OH
12:30 Lunch
14:00 U.S. Case Study: U.S. Natural Gas Market cont’d
Natural Gas Tariff Issues in the U.S.
· Mr. Thomas Pearce, Chair, NARUC Staff Subcommittee on Gas Natural Gas Specialist, Public Utilities Commission of Ohio, Columbus, OH Natural Gas Rate Settings in the U.S.
Natural Gas Rate Settings in the U.S.
· Ms. Denise Parrish, Wyoming Public Service Commission, USA
Methods of Computing an Authorized Return on Equity
15:45 Coffee break
16:00 Roundtable Discussions on the Natural Gas Tariffs and Rates
· Moderated by Ms. Denise Parrish and Mr. Thomas Pearce
17:00 Meeting concludes
Participant List
ERRA Full Members
Armenia
Natural Monopoly Regulatory Commission of the Republic of Armenia (NMRC)
Mr. Armen Arshakyan, Head of Tariff Methodology Division
Tel: (374 1) 586419; Fax: (374 1) 525 563
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Armenia
Bulgaria
State Energy Regulatory Commission (SERC)
Commissioner Svetla Todorova, Deputy Chair of the Tariff/Pricing Committee
Tel: (359 2) 9888-728; Fax: (359 2) 988 8782
Internet: http://www.dker.bg or http://www.erranet.org/AboutUs/Members/Profiles/Bulgaria
Croatia
Croatian Energy Regulatory Council (CERC)
Commissioner Ivona Štritof
Tel: (385 1) 6326 230, Fax: (385 1) 6326 261
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Croatia or www.vre.hr
Mr. Mico Klepo, Chairman
Tel: (385 1) 6326 260, Fax: (385 1) 6326 261
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Croatia or www.vre.hr
Ms. Lahorka Vlajcevic
Czech Republic
Energy Regulatory Office (ERO)
Mr. Tomas Sochor, Specialist - Gas Department
Tel: (420) 567 580 681, 724 060 244, Fax: (420) 564 578 641
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Czech or www eru.cz
Georgia
Georgian National Energy Regulatory Commission (GNERC)
Ms. Gulnara Bedoshvili, Head of Natural Gas Devision
Tel: (995 32) 253 395, or 253 396 Fax: (995 32) 253 690
Internet: http://www.gnerc.org or http://www.erranet.org/AboutUs/Members/Profiles/Georgia
Hungary
Hungarian Energy Office (HEO)
Mr. Ede Tresó, Senior Advisor, Pricing Department
Tel: (361) 459 7701; Fax: (361) 459 7701
Internet:http://www.eh.gov.hu or http://www.erranet.org/AboutUs/Members/Profiles/Hungary
Latvia
Public Utilities Commission (PUC)
Mr. Janis Eisaks, Head of Gas Division
Tel: +371-7097230; Fax: +371-7097273
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Latvia , http://www.sprk.gov.lv/
Lithuania
National Control Commission for Prices and Energy in Lithuania (NCC)
Ms. Necejauskiene Laimute, Head Specialist
Tel: (370 5) 213 9226; Fax: (370 5) 213 5270
Internet: http://www.regula.is.lt or http://www.erranet.org/AboutUs/Members/Profiles/Lithuania
Republic of Macedonia
Energy Regulatory Commission of the Republic of Macedonia (ERC)
Mr. Slavko Bundaleski, Energy Advisor
Tel: (389 2) 3233 580, Fax: (389 2) 3233 586
Internet: www.erc.org.mk
Slovakia
Regulatory Office for Network Industries
Commissioner Karol Dvorak
Tel: (421 2) 581 00417, Fax: (421 2) 581 00474
Internet: http://www.urso.gov.sk/ or http://www.erranet.org/AboutUs/Members/Profiles/Slovakia
Turkey
Energy Market Regulatory Authority (EMRA)
Mr. Çetin Kayabaş, Group Head from the Electricity Department
Tel: (90 312) 287 2560/289, Fax: (90 312) 287 8416
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Turkey or www.epdk.org.tr
Ms. Nalan Pervan, Expert
Tel: (90 312) 287 2560/308, Fax: (90 312) 287 8814
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Turkey or www.epdk.org.tr
Ukraine
National Electricity Regulatory Commission (NERC)
Commissioner Yuriy Kyyashko
Tel: (380 44) 241 9003; Fax: (380 44) 241 9005
Internet: http://www.erranet.org/AboutUs/Members/Profiles/Ukraine or www.nerc.gov.ua
ERRA Associate Members
Romania
National Natural Gas Regulatory Authority (ANRGN)
Mr. Gabriel Sirbu, Director
Tel: (40 21) 303 38 00; Fax: (40 21) 303 38 08;
Internet: http://www.erranet.org/AboutUs/Members/Profiles/AssociateMembers or http://www.anrgn.ro/eng/index.htm
Romania
National Regulatory Authority for Municipal Services(ANRSC)
Ms. Claudia Mihaela Vasiliu, Expert- Department for Prices, Tariffs
Tel: (40 21) 326 1781; Fax: (40 21) 326 1782
Internet: http://www.erranet.org/AboutUs/Members/Profiles/AssociateMembers or http://www.anrgn.ro/eng/index.htm
Ms. Georgeta Gabriela Zorlentan, Expert- Department for Prices, Tariffs
Tel: (40 21) 326 1781; Fax: (40 21) 326 1782
United States
National Association of Regulatory Utility Commissioners (NARUC)
Internet: http://www.naruc.org
Wyoming Public Service Commission
Ms. Denise Parrish, Supervisor of Rates and Pricing
Tel.: (1 307) 777 5743; Fax: (1 307) 777 5700
Public Utilities Commission of Ohio
Mr. Thomas Pearce, Chair, NARUC Staff Subcommittee on Gas, Natural Gas Specialist
Tel.: (1 614) 466 1846; Fax: (1 614) 752 8352
OTHER Participants
U.S. Agency for International Development (USAID), Bureau for Europe and Eurasia
Dr. Jamshid Heidarian, Senior Energy Advisor, Energy and Infrastructure Division
Теl:(202) 712-4402; Fax: (202) 216-3389
Energy Regulators Regional Association (ERRA)
Ms. Viola Dozsa, Program Manager
Ms. Anikó Kiss, Program Assistant
Tel: (36 1) 477 0456; Fax: (36 1) 477 0455
Gas_Workshop_Parrish_US_Gas_Rate_Setting_Zagreb_Eng.pdf
