Erroll B. Davis, Jr.
President & CEO
Wisconsin Power & Light Co.
WP&L advocates that the following steps be taken to create a level playing field for merchants entering the retail market:
s Distribution rates should be fully unbundled from retail sales tariff rates. WP&L took this step years ago.
s Gas procurement, salaries, overhead, and gas storage working capital should be removed from distribution rates.
s Meter charges for transporters should be lowered to the true incremental cost to the LDC of providing transportation service versus "core" service, if any.
s LDCs should provide variable levels of firm backup to customers willing to pay for this service, anywhere from zero to 100 percent of full requirements.
Burnertip access will favor those entities most able to meet customer needs, regardless of where they currently operate in the gas business. LDCs that want to assume a retail merchant role, but are unwilling or unable to do so for risk and profit will be at a
severe disadvantage. Serious issues, such as whether utilities will be forced to provide gas as supplier of last resort, must be resolved for LDCs.
James A. Carrigg
Chairman, President, & CEO
New York State Electric & Gas Corp.
The retail gas distribution market is the most competitive aspect of the gas business. There is currently open access on most distribution systems. Several LDCs individually have more transportation customers than the entire pipeline industry. There is more customer choice beyond the city gate than anywhere else in the gas delivery chain. In addition to open access, gas LDCs compete against pipelines, local production, and alternative fuels.
Patrick J. Maher
Chairman & CEO
Washington Gas Light Co.