The Ohio Public Utilities Commission (PUC) has modified its natural gas transportation guidelines for local distribution companies (LDCs) to reflect changes in the industry under FERC Order 636. The PUC said its revisions would give customers a clearer understanding of service rights and curtailment procedures under the restructuring, and reflected the fundamental principle that each gas service must be offered on a comparable basis (em whether provided under bundled or unbundled tariffs.
The new guidelines require LDCs to compensate transportation customers if they unable to deliver all or part of a contracted supply or capacity entitlement, except where the utility is forced to act to protect its ability to deliver to defined "human needs and public welfare customers." Compensation may be based on several factors, including costs incurred by the interrupted customers as well as any "premium required by the market" for the length of the interruption. In a separate opinion, Commissioner Richard Fanelly stated that interrupted customers are entitled to compensation based on the market value of the redirected gas, whether the LDCs were acting to protect special needs customers or not. Re Implementation of FERC Order 636 et al.,m Case Nos. 93-1636-GA-UNC and 85-800-GA-COI, Dec. 1, 1994 (Ohio P.U.C.).
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