The New York Public Service Commission (PSC) will permit Long Island Lighting Co. (LILCO), a natural gas local distribution company (LDC), to institute temporarily a series of tariff revisions designed to enhance customers' ability to choose competing suppliers of natural gas.
According to PSC staff, the LDC's plan to offer a new array of firm transportation choices constitutes a "reasonable alternative" to full disaggregation of existing sales rates. The new choices (em including access to upstream capacity, storage options, and recognition of customer load factors (em will provide smaller customers (including the residential market) with a previously unavailable gateway to alternative suppliers, the staff said. Staff also noted that, unlike restructuring proposals submitted by other LDCs, the utility does not plan to limit the size or scope of its transportation offerings. The LDC also agreed to offer a special discount to residential and other low-load customers to encourage broad participation.
The revisions were proposed by the LDC pursuant to earlier PSC directives concerning its policy framework to guide the development of the state's natural gas industry following Federal Energy Regulatory Commission Order 636. According to LILCO, the revisions make interstate gas pipeline capacity available for release to customers that choose another source of gas supply, yet avoid creating stranded costs on its own system. The new rate offering will provide customers with discounts on the LDC's current transportation rates by introducing a load-factor adjustment credit. The LDC will also offer access to its storage capacity through a new optional seasonal delivery service. Re Restructuring of the Emerging Competitive Natural Gas Market, et al., Case Nos. 93-G-0932 et al., Mar. 28, 1996 (N.Y.P.S.C.).
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