The Tennessee Public Utilities Commission (PUC) has opened a generic proceeding to establish a policy governing recovery of Order 636 pipeline transition costs by natural gas local distribution companies (LDCs). The PUC noted that one LDC, Nashville Gas Co., is currently recovering costs from all customer classes based on total system throughput, but has agreed to halve the charge for interruptible customers. Other LDCs use different methods to assess the costs to customers. Fearing that this variance in methods may not serve the public interest, the PUC will investigate how to allocate the costs among customer classes and whether certain methodological deviations among the state's LDCs were appropriate (Re Nashville Gas Co., Docket No. 94-04284, Jan. 5, 1995).
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