Press Release

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

Published on 1/13/2011

Filed under: Gas

HARRISBURG – As part of its ongoing efforts to remove barriers to retail natural gas competition so consumers can benefit from competitive options for natural gas supply, the Pennsylvania Public Utility Commission (PUC) today issued final regulations to promote competition for natural gas suppliers.

The Commission voted 3-2 to approve a motion by Chairman James H. Cawley to ensure that the price to compare, and the allocation of costs related to the Supplier of Last Resort (SOLR) service, reflects the full cost of providing this service to SOLR customers.  Vice Chairman Tyrone J. Christy issued a dissenting statement. Commissioner Wayne E. Gardner also issued a dissenting in part statement.

The Commission voted 4-1 issue a final rulemaking 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), removed certain cost barriers to NGSs, and enhanced NGDC service provisions to NGSs. 

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 NGS is better than the one being offered by the incumbent 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.

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 proposed rulemaking order was entered on March 27, 2009.  Interested parties had an opportunity to file comments on the proposed rulemaking order, which was published on July 11, 2009, in the Pennsylvania Bulletin.

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

Contact:

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