|
Consulting |
Abbreviations |
Search |
Advertise with Energy Choice Matters
This space is taken, but prime spots still available on each sidebar. Call Paul
Ring 954-
Gateway Energy Services Seeks Intervention to Oppose WACOC Approach for Releases
at UGI-
Email This Story
October 1, 2010
A recommended decision from a Pennsylvania
ALJ would approve a settlement at UGI Penn Natural Gas providing for a transition
to mandatory direct assignment of capacity to retail gas suppliers based on peak
day requirements, as Gateway Energy Services Corporation moved to intervene in the
proceeding, opposing the Weighted Average Cost Of Capacity pricing to be used in
such assignment (R-
As only reported in Matters (8/24/10), a settlement in UGI Penn Natural Gas' Section 1307(f) rate investigation would establish four direct assignment options for the period December 1, 2010 trough October 31, 2011, and the period November 1, 2011 through October 31, 2012.
Two of these options are the two methods originally proposed by PNG: (1) a monthly release of pipeline capacity in an amount equivalent to the average projected delivery obligation of the Choice Supplier during the month of January assuming normal weather (the January Normal Daily Delivery Requirement, NDDR); or (2) a release of pipeline capacity equal to 35% of the January NDDR, combined with bundled baseload city gate sales of gas equal to 65% of the January NDDR, sold ratable each day of the month, at prices reflecting average published INSIDE FERC First of Month gas prices for Transco Zone 6, plus variable transportation and storage charges associated with a specified delivery path.
The two additional direct assignment options for these periods would be similar in nature to the two methods described above, except that they would be based on peak day, rather than January NDDR, requirements.
For the twelve month period commencing November 1, 2012 and each twelve month period thereafter, suppliers would have the option of (1) a release of pipeline capacity based on the peak day requirements of a Choice Supplier's Choice customers, or (2) a release of capacity equal to 35% of such peak day requirements coupled with a bundled city gate sale equal to 65% of the peak day requirements of the Choice Customers served by the Choice Supplier during the months of November through March priced at the average of a published index price during the months of April through October plus variable transportation and storage costs associated with a specified delivery path.
Notably, all capacity releases would be at a price equal to the projected weighted
average demand cost of all transportation, storage and peaking assets held to serve
core market customers. The mandatory direct assignment would apply to Rate RT (General
Service -
In a recommended decision dated September 15 but not published until this week, an ALJ recommended approving the settlement without modification, including the capacity release provisions, by noting that the settlement had not been opposed at that time. The stipulation was signed by PNG, the Office of Trial Staff, the Office of Consumer Advocate, and the Office of Small Business Advocate.
On September 29, Gateway Energy Services moved to intervene, noting that, "PNG's proposed Weighted Average Cost Of Capacity approach would allow PNG to charge all suppliers for natural gas storage even though only suppliers covered under bulk sales programs would actually have access to that storage."
"Such a system would put the utility and some suppliers at a competitive advantage in the marketplace and therefore undermine energy choice in the Commonwealth," Gateway argued.
Copyright 2010 Energy Choice Matters. If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.
Be Seen By Energy Professionals in Retail and Wholesale Marketing
Run Ads with Energy Choice Matters
Call Paul Ring 954-
|
Consulting |
Abbreviations |
Search |