§ 69.343. Capacity release on interstate gas pipelines.
(a) The Commission encourages its jurisdictional local distribution companies (LDCs) to efficiently utilize interstate pipeline capacity as a valuable resource for those retail and transportation customers desirous of the capacity. The Pennsylvania LDCs should strive to utilize interstate pipeline capacity as efficiently as possible and to assist in the development of a competitive natural gas market including efficient capacity release programs. With the advent of Federal Energy Regulatory Commission (FERC) Order No. 636, the Commission encourages the LDCs to do the following:
(1) Engage in integrated resource planning to acquire and maintain adequate levels of interstate pipeline capacity to serve the anticipated firm requirements desired by its retail and transportation customers.
(2) To the fullest extent legally permissible under FERC Rules and Regulations, maintain the LDC’s contractual rights to necessary interstate pipeline capacity while mitigating the costs associated with the capacity through marketable assignments, brokering arrangements, capacity sharing arrangements, prearranged deals and buy/sell transactions.
(3) Seek to improve capacity utilization on a year-round basis through higher load factor consumption consistent with integrated resource planning.
(4) Work with customers, including other energy suppliers such as electric utilities and independent power producers, through prearranged deals and capacity release to share interstate pipeline capacity consistent with integrated resource planning nondiscriminatory open access requirements and where these arrangements provide mutual benefits to Pennsylvania’s electric and gas retail and transportation customers.
(5) Provide nonrecallable interstate pipeline capacity releases for the periods of time—monthly or greater—when there is capacity in excess of the anticipated firm requirements desired by the LDC’s retail and transportation customers and available back to the LDC only under a State-approved curtailment program.
(6) Provide recallable interstate pipeline capacity releases when capacity may be available that exceeds the LDC’s short-term capacity necessary to meet the LDC’s anticipated firm requirements of its retail and transportation customers.
(b) To the extent practical after consideration of the items in subsection (a)(1)—(6), interested parties should assist the Commission in the development and operation of a fully functioning capacity release market for potential shippers.
(c) The Commission will recognize, in the context of capacity release programs, or other programs enumerated in subsection (a)(2), and developed under the guidelines in subsection (a), the principle of cost causation and ultimately assign the costs of capacity to those customers on whose behalf adequate levels of interstate pipeline capacity are either retained or obtained. The Commission will address the treatment of revenues received by the LDC from capacity release or other programs enumerated in subsection (a)(2) on a case-by-case basis.
Source The provisions of this § 69.343 adopted September 23, 1994, effective October 24, 1994, 24 Pa.B. 4784.
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