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LDC Must Shoulder Coal Tar Clean-up Costs

Fortnightly Magazine - September 1 1995

The Indiana Utility Regulatory Commission (URC) has denied an Indiana Gas Co., Inc. request for rate recovery of environmental costs associated with three of its instate manufactured gas plant (MGP) sites. The URC found that the local distribution company (LDC) had assumed the associated environmental liability in purchasing the properties, and that the costs were not related to providing gas service to current ratepayers. In addition, the URC said that the environmental regulations giving rise to the clean-up costs were not "utility-specific," but pertained to the owners of the land. Finally, the URC concluded that the LDC had already been compensated for the risk of the environmental liability through the return component of its rates. Re Indiana Gas Co., Inc., Cause No. 39353, May 3, 1995 (Ind.U.R.C.).

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