Press Release

PUC Proposes Regulatory Changes to Create Common Set of Natural Gas Utility Business Standards, Practices, Model Agreements

Published on 4/30/2009

Filed under: Gas

HARRISBURG – Taking another step toward creating a better environment for natural gas competition, the Pennsylvania Public Utility Commission (PUC) today began the process of making regulatory changes to create a common set of natural gas distribution company (NGDC) business standards, practices and model agreements.

The Commission voted 5-0 to issue the proposed rulemaking for comment that is designed to establish a common set of standards that will result in increased competition in the retail natural gas market. Vice Chairman Tyrone J. Christy concurred in result only and issued a statement.

The proposed rulemaking:

• Directs NGDCs to submit standard supplier tariffs;
• Implements more standardized business practices with regard to imbalance trading, tolerance bands, cash out and penalties, nominations and capacity;
• Establish a working group to develop and implement communication standards and formats; and
• Provides for NGDC recovery of reasonable costs directly attributable to implementation of cost effective competitive market reforms.

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. Reply comments are due 15 days after the end of the comment period. 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

Additional instructions for filing comments can be found in the Order.

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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L-2009-2069117

Contact:

• Press Secretary
  717-787-5722