Press Release

PUC Issues Interim Guidelines for Purchase of Receivable Programs for Natural Gas Industry

Published on 12/18/2008

Filed under: Gas

HARRISBURG – In order to provide the natural gas industry with clear guidance, the Pennsylvania Public Utility Commission (PUC) today issued interim guidelines for the design and operation of purchase of receivable programs (POR).

The Commission voted 5-0 to create POR guidelines to assist natural gas distribution companies (NGDCs) in the voluntary creation of POR programs. The Commission has said that POR programs are perhaps the best chance to increase effective competition in Pennsylvania’s retail natural gas supply services market.

The interim guidelines provide general direction  to utilities for the design of purchase of receivables programs, but grants flexibility to each of the state’s NGDCs on other design elements because of the NGDC's different demographics, billing and collection operations and system operating requirements. The interim guidelines provide a framework which balances the interests of the NGDCs, the natural gas suppliers and the customers. The NGDCs have until March 31, 2009, to file a POR if they so choose.

Today’s action is part of the Commission’s action plan to increase effective competition in the retail market for natural gas supply. The action plan was approved on Sept. 11, 2008. This followed a Commission finding that “effective competition” did not exist in the retail natural gas supply market statewide. The PUC then convened natural gas industry stakeholders to examine avenues to increase competition. The name SEARCH (Stakeholders Exploring Avenues for Removing Competition Hurdles) was adopted for these group meetings.

 The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. M-2008-2068982; I00040103F0002

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