Public Utilities Reports

PUR Guide 2012 Fully Updated Version

Available NOW!
PUR Guide

This comprehensive self-study certification course is designed to teach the novice or pro everything they need to understand and succeed in every phase of the public utilities business.

Order Now

Penn. Upholds Gas-cost Incentive Program

Fortnightly Magazine - August 1996

The Pennsylvania Commonwealth Court has upheld a ruling by the state Public Utility Commission (PUC) implementing a three-year, performance-based, gas-cost incentive program for Columbia Gas of Pennsylvania, Inc., a local distribution company (LDC). The program compares LDC spot-market purchases to the New York Mercantile Exchange (NYMEX) average, sharing any savings between the company and ratepayers. The court rejected allegations that state law forbids recovery in excess of prudently incurred actual costs. It affirmed the PUC's discretion to review LDC procurement activities in light of changes in the gas industry. The court noted that its rulings in the past had affirmed the PUC's right to adjust "actual costs" to correct forecasts or set rates based upon gas purchases that were not made, but should have been. Irwin A. Popowsky v. Pennsylvania Pub. Utility Commission, No. 942 C.D. 1995, May 13, 1996 (Pa.Commw. Ct.).


Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.