The Iowa Utilities Board has moved toward certifying natural gasmarketers in the state after issuing a proposed rulemaking thatsets different standards for small- and large- volume customers,specifically focusing on smaller customers who may not have theresources to evaluate a potential marketer.

Gas marketers have been serving large volume customers forseveral years in Iowa, and the amended rules would require thosemarketers that want to serve smaller customers to provide”significantly more information” than those only servinglarge-volume customers.

“Because small volume customers do not have the resources toresearch and evaluate a marketer’s operational ability and businesspractices, or the bargaining position or sophistication to demandcertain rights, the Board believes it is appropriate to includemore protections for small volume customers,” according to theproposal.

A large-volume user is defined in the proposal as one thatconsumes more than 25,000 therms in any month, or 100,000 therms inany consecutive 12-month period. A small-volume user is defined asone that uses less than those figures.

Any competitive gas provider (CNGP) offering service to an Iowaretail end-user would have to have a certificate in order toprovide service, and pay a $125 filing fee. Under the rules, a CNGPis a person who “takes title to natural gas and sells it forconsumption by a retail end-user in the state of Iowa.” CNGPincludes an affiliate of an Iowa public utility and an aggregator.It does not include a public utility subject to rate regulationunder the Iowa Code, or a municipally-owned utility that providesgas service within its incorporated area or within the municipalgas competitive service area.

To ensure competitive service, marketers would be required todeliver at least 90% of the gas required for their end users withina 24-hour period or the public utility would be allowed to buy gason the open market, billing the marketer three times the actualreplacement cost.

A public hearing will be held to discuss comments on Aug. 23.Call the Board at (515) 281-5563 for more information, and refer toDocket RMU-00-7.

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.