Rochester Gas and Electric (RG&E), has reached an agreementwith the New York Public Service Commission (PSC) staff and othercompanies and groups to actively promote the customers’ right tochoose among competing natural gas suppliers.

Each competing supplier of natural gas will receive $45 a yearfor each customer who switches from RG&E to a qualified gasmarketer. In exchange, RG&E would be able to collect thedifference between the $45 it pays annually per migrating customerand its actual savings by placing a tariff on the customer. The $45number was arrived at by a “balancing of interests,” thespokesperson for RG&E, Dick Marion, commented.

The agreement allows for a much simpler billing system in whichdelivery and commodity charges will appear on the same bill. IfRG&E delivers the gas on its distribution system, and anothermarketer sells the actual product, then the customer will onlyreceive a bill from the marketer with both delivery charges andcommodity charges on it.

The PSC hopes this agreement will help natural gas marketers tocompete for residential and commercial customers, as well aspromote gas-choice awareness amongst the public. Its vision is thateventually all natural gas customers will be served by non-utilitysuppliers. The PSC wants the utilities to still maintain the localdistribution lines and respond to gas emergencies.

There are 22 companies that are currently approved to offer gaswithin RG&E’s service region. Of the gas that runs throughRG&E’s pipelines, 40% is supplied by non-utility marketers.Since residential customers were given choice in 1996, andcommercial customers in 1986, 17,000 people have chosen alternativegas suppliers.

The settlement still has to be approved by the entire PSC. If itdoes receive the go-ahead, then it would go into effect on July 1of this year, and last until June 30, 2002.

Alexander Steis

©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.