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Pa. PUC Removes Rule Limiting POR to Small Volume Customers in Clarified Gas Market Regulations
June 10, 2011
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The Pennsylvania PUC has made what it termed to be "clarifications" to its previously adopted final rulemaking regarding retail natural gas market issues (L-2008-2069114), and issued a revised set of regulations for comment with the intention of later adopting the revised rules as final.
The rulemaking chiefly addressed the further unbundling of supply costs from distribution rates, and requirements for voluntary Purchase of Receivables programs offered by the utilities (see 2/24).
The clarifications result from the Independent Regulatory Review Commission's review of the rules as originally adopted in January, which prompted the PUC to voluntarily withdraw the rulemaking to consider input from the Independent Regulatory Review Commission.
Among other things, the revised regulations issued for comment remove language that Purchase of Receivables programs may "only" include residential and small commercial customers.
The revised regulations now explicitly exclude administrative, legal, and similar costs related to the administration of firm storage and transportation capacity from being unbundled from base rates and included in the price to compare.
Additionally, the revised rule no longer explicitly lists the following as examples of supply-related administrative costs that shall be unbundled from base rates: costs related to education, tariff filings, and information systems.
The revisions also make explicit that the Gas Procurement Charge and Merchant Function Charge may not be subject to reconciliation, "for any prior period over or undercollections."
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