Press Release

PUC Considers Changes to Regulatory Guidelines to Promote Competition for the Retail Natural Gas Market

Published on 6/9/2011

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to propose changes to the final rulemaking to promote competition for natural gas suppliers.

The Commission voted 5-0 to approve the proposed changes to the final rulemaking adopted Jan. 13, 2011.  Based upon input from the Independent Regulatory Review Commission (IRRC) and the comments submitted to the IRRC, the Commission voluntarily withdrew the rulemaking in order to give consideration to the various clarification issues raised by IRRC and related comments.

Commissioner Tyrone J. Christy issued a statement.

The goal of the rulemaking is to foster a competitive retail marketplace for natural gas service. The final rulemaking will:

• Reformulate the “price to compare” used by consumers to judge whether the price offered by a competitive natural gas supplier (NGS) is better than the one being offered by the incumbent natural gas distribution company (NGDC);
• Make permanent rules for establishing voluntary purchase of receivables programs; and
• Provide guidance to ensure that the release, assignment or transfer of capacity by an NGDC to a NGS is nondiscriminatory and is at the applicable contract rate.

Parties are invited to file comments to these proposed changes by June 16, 2011 by submitting them to PUC Secretary, P.O. Box 3265, Harrisburg, PA 17105-3265. 

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.

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 website at www.puc.state.pa.us.

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Docket No. L-2008-2069114

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov