Gas customers pay the price
Who will pay the costs incurred by regulated utility companies as they shift to competitive markets under plans engineered at the federal and state levels? This question is part of the debate over electric industry restructuring, but any payments lie in the future. For ratepayers in the gas market, however, the time has come. So far, state regulators have interpreted the law as prohibiting any sharing of gas market {open_quotes}transition{close_quotes} costs between shareholders and ratepayers. In recent cases, state commissions (PUCs) have decided that the {open_quotes}filed rate{close_quotes} doctrine requires a passthrough to consumers once the Federal Energy Regulatory Commission (FERC) approves the changes in pipeline rates. The question now concerns how to allocate costs between customers who rely on the local utility for service and those who do not. Whether the same lines will be drawn for electric customers remains to be seen, but the battle is worth watching.
- OSTI ID:
- 96025
- Journal Information:
- Fortnightly, Vol. 133, Issue 7; Other Information: PBD: 1 Apr 1995
- Country of Publication:
- United States
- Language:
- English
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