Press Release

PUC Proposes Regulatory Changes to Create Promote Competition for the Retail Natural Gas Market for Consumers

Published on 3/26/2009

Filed under: Gas

HARRISBURG – As part of its ongoing efforts to create a more level playing field in the retail natural gas market, the Pennsylvania Public Utility Commission (PUC) today began the process of making regulatory changes to promote competition for natural gas suppliers.

The Commission voted 5-0 to issue a proposed rulemaking for comment that is designed to make it easier for consumers to compare natural gas prices offered by natural gas distribution companies (NGDCs) and natural gas suppliers (NGSs). The goal of the rulemaking is to foster a competitive retail marketplace for natural gas service.

Commission Chairman James H. Cawley issued a statement. Vice Chairman Tyrone J. Christy also issued a statement.

The proposed rulemaking will:

• Reformulate the “price to compare” used by consumers to judge whether the price offered by a competitive NGS is better than the one being offered by the incumbent NGDC;
• Make permanent rules for establishing voluntary purchase of receivables programs;
• Provide guidance to ensure that the release, assignment or transfer of capacity by an NGDC is nondiscriminatory and is at the applicable contract rate; and
• Change the handling of the recoverable costs related to competition activities and regulatory assessments. These costs are not to be considered in the calculation of the price to compare.

Today’s action is part of the Commission’s ongoing implementation of an action plan designed 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.

Comments are due 45 days after the publication of the Order in the Pennsylvania Bulletin. An original and 15 copies of comments should be marked with the appropriate docket number and submitted to:

Pennsylvania Public Utility Commission

Attention: Secretary

P.O. Box 3265

Harrisburg, PA  17105

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. L-2008-2069114

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• Press Secretary
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