Marketer Certification Proposed for Iowa
The Iowa Utilities Board has moved toward certifying natural gas
marketers in the state after issuing a proposed rulemaking that
sets different standards for small- and large- volume customers,
specifically focusing on smaller customers who may not have the
resources to evaluate a potential marketer.
Gas marketers have been serving large volume customers for
several years in Iowa, and the amended rules would require those
marketers that want to serve smaller customers to provide
"significantly more information" than those only serving
"Because small volume customers do not have the resources to
research and evaluate a marketer's operational ability and business
practices, or the bargaining position or sophistication to demand
certain rights, the Board believes it is appropriate to include
more protections for small volume customers," according to the
A large-volume user is defined in the proposal as one that
consumes more than 25,000 therms in any month, or 100,000 therms in
any consecutive 12-month period. A small-volume user is defined as
one that uses less than those figures.
Any competitive gas provider (CNGP) offering service to an Iowa
retail end-user would have to have a certificate in order to
provide service, and pay a $125 filing fee. Under the rules, a CNGP
is a person who "takes title to natural gas and sells it for
consumption by a retail end-user in the state of Iowa." CNGP
includes an affiliate of an Iowa public utility and an aggregator.
It does not include a public utility subject to rate regulation
under the Iowa Code, or a municipally-owned utility that provides
gas service within its incorporated area or within the municipal
gas competitive service area.
To ensure competitive service, marketers would be required to
deliver at least 90% of the gas required for their end users within
a 24-hour period or the public utility would be allowed to buy gas
on the open market, billing the marketer three times the actual
A public hearing will be held to discuss comments on Aug. 23.
Call the Board at (515) 281-5563 for more information, and refer to
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