FERC Order 636

FERC Order 636, issued by the Federal Energy Regulatory Commission in 1992, restructured how natural gas was transported and sold in the U.S. It aimed to improve market efficiency by separating the roles of production, transportation, and distribution. This order allowed buyers and sellers to contract for transportation separately from the gas itself, promoting competition and giving consumers more choices. It encouraged pipeline companies to offer open-access services, meaning any user could access the pipelines, ultimately leading to lower prices and better service in the natural gas market.