Capacity Release
Order 636 ordered pipelines to establish release programs (EBBs).
Shippers are now able to “release” or resell their firm capacity rights.
Referred to as the “secondary market” in pipeline capacity.
Holders of firm capacity initiate the release and specify terms.
Competes with interruptible transportation service offered by the pipeline.
The rate structure in Order 636 increased the cost of reserving capacity.