After considering the matter in several proceedings since 1991, the Hawaii Public Utilities Commission (PUC) has decided to permit the state's utilities to include in rates the full cost of...
Gas Utility Gets Burned on the Spot Market
that should be renegotiated.
For the past several years, PSNM had been "playing Russian roulette with its portfolio strategy," pointing the gun at its customers rather than itself, the commission said. The commission rejected PSNM's argument that its reliance on the spot market had "saved consumers millions of dollars" in the past. It concluded, "Simple common sense and accepted business standards of business conduct" should have led the company to pursue methods such as price hedging to limit the risks to ratepayers. Re PNM Gas Services, a div. of Pub. Serv. Co. of New Mexico, Case No. 2752, Feb. 13, 1997 (N.M.P.S.C.). t
Phillip S. Cross is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.
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.