Cawley Cites Areas to Address to Improve Choice at T.W. Phillips

May 20, 2011
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The Pennsylvania PUC adopted, without modification, an initial decision approving the sale of T.W. Phillips Gas and Oil Co. to a subsidiary of Steel River Infrastructure Fund North America.

As part of a stipulation approved by the PUC, T.W. Phillips Gas, PUC Staff, consumer advocates, and natural gas suppliers will convene a collaborative to address the promotion of retail competition, including creation of a specific small volume transportation "choice" program at T.W. Phillips. T.W. Phillips Gas also committed to develop retail supplier rules and procedures similar to those of its new affiliate, Peoples Natural Gas, to the extent practicable.

Commissioner James Cawley encouraged the collaborative, and, in a statement, highlighted specific areas which could be improved. These include:

- T.W. Phillips' imbalance penalties, and whether they exceed the cost of replacement gas even during non-emergencies

- Daily balancing provisions for large customers, and whether such provisions exceed the reasonable ability of suppliers to predict load within a 4% daily tolerance

- The lack of imbalance trading

- Whether T.W. Phillips should be permitted to recover all billing costs in distribution charges

- Whether T.W. Phillips should be permitted to charge for internally generated reports on storage and transportation balances, which are available to T.W. Phillips' supply services unit without cost

- Whether, for T.W. Phillips' pending POR program, T.W. Phillips should retain the unilateral right to discontinue the program

- The lack of an electronic bulletin board for the exchange of operational information with suppliers

- Whether security requirements exceed monthly exposure for weather sensitive customers, since security amounts are based on the Maximum Daily Required Volumes times 30, as opposed to reasonable monthly usage amounts for a cold month

The docket is A-2010-2210326.

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