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Pa. Utility Files To Change Language Regarding Assignment Of Gas Supplies To Retail Suppliers, Following Capacity Assignment, From "Shall" To "May"
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In an annual 1307(f) application, Peoples Natural Gas Company LLC (the "Company") has filed at the Pennsylvania PUC to change tariff language concerning the utility's obligation to provide retail suppliers, who are assigned certain capacity, with the option to purchase gas supplies associated with such assigned capacity.
Currently, the Rate P-1 Priority One Pooling Service tariff, in a section on capacity assignment, provides that:
"The Company reserves the right to assign or sell other gas supplies that are under contract with the Company and used to satisfy its Supplier of last resort obligation to Priority-One Customers. To the extent that a Priority-One Supplier receives an assignment of the Company’s capacity it holds on the Equitrans System, the Company shall provide Priority-One suppliers with an option to purchase
from the Company a pro-rata share of the firm gas supplies available to the Company under its gas supply agreement with EQT Energy, LLC. Such purchase shall also occur if the Company determines that, as a result of the Priority One Customer’s migration from supply service provided by the Company to supply service provided by P-1 NGSs, the amount of gas supplies under long term firm purchase contracts are in excess of the usage requirements of Supplier of last resort Customers currently served by the Company." [emphasis added]
The proposed tariff modifies this provision to provide that Peoples "may" (rather than "shall") provide the relevant Priority-One retail supplier with an option to purchase
from the Company a pro-rata share of the firm gas supplies available to Peoples under its gas supply agreement with EQT Energy, LLC
The proposed tariff states:
"The Company reserves the right to assign or sell other gas supplies that are under contract with the Company and used to satisfy its Supplier of last resort obligation to Priority-One Customers. To the extent that a Priority-One Supplier receives an assignment of the Company’s capacity it holds on the Equitrans System, the Company may provide Priority-One suppliers with an option to purchase
from the Company a pro-rata share of the firm gas supplies available to the Company under its gas supply agreement with EQT Energy, LLC. Such purchase shall also occur if the Company determines that, as a result of the Priority One Customer’s migration from supply service provided by the Company to supply service provided by P-1 NGSs, the amount of gas supplies under long term firm purchase contracts are in excess of the usage requirements of Supplier of last resort Customers currently served by the Company." [emphasis added]
As part of the 1307(f) application, Peoples Natural Gas Company LLC has filed to include AVC capacity costs with other purchased gas capacity costs, and to recover all of these costs in a single capacity charge. Currently, a separate AVC Capacity Charge applies
Peoples' proposal would eliminate the separate AVC Capacity Charge and recover AVC capacity costs from all sales and Priority-One transportation customers through the (existing) Capacity Charge along with all other interstate capacity charges
For sales service and Priority One transportation customers (residential and certain commercial customers), this change does not affect the Price to Compare, because, for sales and Priority One customers, the PTC does not include capacity costs
Non-Priority One transportation customers would not pay for AVC capacity, but would still pay for a portion of the AVC storage capacity and related storage transportation charges, through the Balancing Charge. These AVC storage costs are currently recovered from Non-Priority One transportation customers through the AVC capacity charge (which is being eliminated), so this change represents a movement of the related costs (the costs for AVC storage used only for balancing), and not a new cost imposed on Non-Priority One transportation customers
Docket R-2025-3053184
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April 1, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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