Gas Restructuring Leaves Doubts About IRP

Fortnightly Magazine - April 15 1996
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In a case reviewing standards for integrated resource planning (IRP) set out in the Energy Policy Act of 1992 (EPAct), the Pennsylvania Public Utility Commission (PUC) has recognized that changes in the natural gas industry, combined with an evolution toward competition (both upstream and inside the city gate), "will make gas IRP a less-necessary commission function in order to insure least-cost gas service."

The PUC said most of its existing regulations were consistent with the federal standards; however, it rejected the EPAct standards regarding guaranteed profitability and lost revenues associated with demand-side management efforts by gas utilities. The federal standards lacked the flexibility required to properly resolve such issues, according to the PUC. Re Integrated Resource Planning for Gas Utils., Dkt. No. L-00920066, Dec. 28, 1995 (Pa.P.U.C.).

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