After reviewing an application by National Fuel Gas Distribution Corp., a local distribution company (LDC), to increase its purchased-gas cost rate, the Pennsylvania Public Utility Commission (PUC) has ordered the LDC to credit its sales customers with revenues collected from the transportation class as penalties for exceeding the current 10-percent limit on delivery imbalances. The PUC explained that costs for storage capacity due to overdeliveries by transportation users should be paid for by the class of customers responsible for such costs.
As for the LDC's proposal to eliminate its current charge of $25/Mcf for unauthorized overruns by transportation users, the PUC authorized removing the charge for daily metered customers, but not for monthly metered customers. The PUC explained that the penalty was unnecessary since the LDC can control daily metered customer use and may curtail when necessary. The penalty was required, however, as an incentive for monthly metered customers to maintain a balance between their supply and consumption. Pennsylvania Public Utility Commission v. National Fuel Gas Distribution Corp., R-00953487, July 18, 1996 (Pa.P.U.C.). t
Phillip S. Cross is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.
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