§ 69.15. Ensuring sufficient firm capacity availability.
(a) NGSs using firm gas supply contracts with Pennsylvania producers or storage or transportation capacity contracts acquired through assignment or release by NGDCs or acquired as the result of the nonrenewal of a storage or transportation capacity contract previously held by the NGDC should offer the SOLR, or the successor NGS, a right of first refusal to utilize the contracts at the NGS’s contract cost as long as needed to serve retail gas customers being relinquished by the NGS.
(b) NGSs using storage or transportation capacity contracts acquired in a manner other than through assignment, release or nonrenewal by the NGDC should provide the SOLR a right of first refusal to use the capacity at contract cost if the NGS failed to give the SOLR and the NGDC sufficient notice or if there is insufficient alternative capacity available to serve the market being relinquished by the NGS.
(1) The SOLR may retain the right to use the capacity at cost until the SOLR, through reasonable and diligent efforts, is able to acquire replacement capacity sufficient to serve the customers being relinquished by the NGS.
(2) The NGDC or the SOLR should acquire the replacement capacity in a manner consistent with the Commission’s least cost fuel procurement policy.
Cross References This section cited in 52 Pa. Code § 69.11 (relating to definitions); and 52 Pa. Code § 69.19 (relating to operational and capacity councils).
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