Burnertip and Beyond

Fortnightly Magazine - September 15 1995
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

Erroll B. Davis, Jr.

President & CEO

Wisconsin Power & Light Co.

WP&L advocates that the following steps be taken to create a level playing field for merchants entering the retail market:

s Distribution rates should be fully unbundled from retail sales tariff rates. WP&L took this step years ago.

s Gas procurement, salaries, overhead, and gas storage working capital should be removed from distribution rates.

s Meter charges for transporters should be lowered to the true incremental cost to the LDC of providing transportation service versus "core" service, if any.

s LDCs should provide variable levels of firm backup to customers willing to pay for this service, anywhere from zero to 100 percent of full requirements.

Burnertip access will favor those entities most able to meet customer needs, regardless of where they currently operate in the gas business. LDCs that want to assume a retail merchant role, but are unwilling or unable to do so for risk and profit will be at a

severe disadvantage. Serious issues, such as whether utilities will be forced to provide gas as supplier of last resort, must be resolved for LDCs.

James A. Carrigg

Chairman, President, & CEO

New York State Electric & Gas Corp.

The retail gas distribution market is the most competitive aspect of the gas business. There is currently open access on most distribution systems. Several LDCs individually have more transportation customers than the entire pipeline industry. There is more customer choice beyond the city gate than anywhere else in the gas delivery chain. In addition to open access, gas LDCs compete against pipelines, local production, and alternative fuels.

Patrick J. Maher

Chairman & CEO

Washington Gas Light Co.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.