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Utility Seeks Additional Requirements For New Retail Suppliers
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As part of a newly filed rate case, Vectren Energy Delivery of Ohio, LLC (CenterPoint Energy Ohio) is seeking to include in its tariff revised or additional requirements that new retail natural gas suppliers would need to complete in order to serve as a choice or SCO supplier
Most notably, Vectren proposes to require that, within 60 days of a choice supplier's approval to participate in the choice program, the supplier must enroll, and maintain service to, at least 100 active customers, or a sales forecast of 10,000 Mcf in annual sales. Vectren "may" take action to remove from the choice program a supplier failing to meet this threshold
Currently, suppliers are afforded 90 days from their approval into the choice program to reach these thresholds.
Vectren's proposed tariff revisions also include new requirements as part of choice and SCO supplier qualification, though the inclusion in the tariff reflects the formalization of current practice in some instances
Under the proposed tariff revisions, Vectren's tariff would now provide that both choice suppliers and SCO suppliers would need to attend a training session on Vectren's gas transportation program as part of qualifying as a supplier. While it is understood Vectren may currently offer training to new suppliers, it is not currently a tariff requirement
Additionally, both choice suppliers and SCO suppliers would need to provide to Vectren the supplier's "public PGP encryption keys." Though the term PGP is not defined in the tariff, it is believed that this refers to the "Pretty Good Privacy" encryption program. Again, while this protocol may reflect current practice, it is not currently a tariff requirement
As part of the qualification requirements newly enumerated in the proposed tariff, both choice suppliers and SCO suppliers would need to become approved bidders on Vectren's pipelines, and provide a DUNS number, or, to Vectren's satisfaction, provide alternative information equivalent to a DUNS number
The proposed tariff changes also include a new stay-out period for any choice supplier which defaults or which otherwise has its program eligibility terminated for any other reason
Specifically, a choice supplier whose program participation was terminated by Vectren would not be eligible to participate in the choice program for 6 months.
The revised tariff would modify the Unauthorized Gas Usage Charge applicable to Pool Operators under Rate 380 Pooling Service - Large Transportation Customers
Currently, if a Pool Operator under Rate 380 delivers less gas to Vectren's system than the Pool
Customers' collective Plant Protection Level, the Unauthorized Gas Usage Charge is $35.00 per Dth, for the under delivered volumes, in addition to OFO non-compliance charges
The proposed tariff would include the potential for the Unauthorized Gas Usage Charge in this situation to be based on certain hub pricing, with the "higher of" the listed hub prices, or $35.00 per Dth, applicable
Specifically, under the proposed tariff revisions, if a Pool Operator under Rate 380 delivers less gas than the Pool Customers’
collective Plant Protection Level, the Unauthorized Gas Usage Charge for the under-delivered volumes would equal the greater of (a) $35.00 per Dth or (b) a rate
equal to three times the Daily Midpoint Price per Dth (as converted to Billing Ccf) reported in
Platts Daily in the table "Daily Price Survey" for delivery to (1) Columbia Gas, Appalachia; or (2)
Texas Gas, Zone 1; or (3) ANR, La; or (4) Texas Eastern, ELA; or (5) Panhandle, Tx-Okla; or (6)
REX Zone 3, delivered, whichever is highest, plus applicable variable costs, including fuel
retention, pipeline, and pipeline variable charges and applicable OFO non-compliance charges
Vectren's proposed tariff revisions would change the definition of Governmental Aggregator as used in the tariff and would apparently no longer exclude from the term, "a municipal corporation acting exclusively under Section 4 of Article XVIII, Ohio constitution."
The current tariff defines Governmental Aggregator as having the definition in Ohio Revised Code (ORC) 4929.01(K)(1). In addition to limiting the definition to subpart (K)(1), the current tariff also explicitly provides that the term Governmental Aggregator, "specifically excludes a municipal corporation acting exclusively under Section 4 of Article
XVIII, Ohio constitution, as an aggregator for the provision of competitive retail natural gas service." (in contrast, ORC 4929.01(K)(2) expressly defines such an entity as a Governmental Aggregator). Section 4 of Article
XVIII generally address municipalities' authority to operate a "public utility"
The proposed revised tariff would define Governmental Aggregator to have the meaning set forth in 4901:1-13-01 of the OAC. Under OAC 4901:1-13-01, Governmental Aggregator has the meaning set forth in ORC 4929.01. As noted above, the meaning of Governmental Aggregator under ORC 4929.01 includes, "A municipal corporation acting exclusively under Section 4 of Article XVIII, Ohio Constitution, as an aggregator for the provision of competitive retail natural gas service."
Vectren's proposed tariff also strikes the current explicit exclusion of, "A municipal corporation acting exclusively under Section 4 of Article XVIII, Ohio Constitution, as an aggregator for the provision of competitive retail natural gas service," from the definition of Governmental Aggregator
Case No. 24-0835-GA-ATA et al.
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September 27, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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