States Differ on Residential Gas "Subsidy"
In two recent natural gas rate cases, regulators have split over the question of alleged rate subsidies in favor of residential customers.
In the first, the Rhode Island Public Utilities Commission (PUC) approved a proposal by Providence Gas Corp., a natural gas local distribution company (LDC), to redesign its rates to remedy "the ongoing subsidization of the residential class by commercial and industrial customers."
In Minnesota, however, the state PUC rejected a similar plan by Minnegasco to use an embedded-cost allocation method to shift the revenue bu