New York Public Service Commission issued a notice last weekseeking comments on how “strandable” gas capacity costs createdwhen existing sales customers migrate to transportation serviceshould be recovered from customers. Interested parties should filetheir comments by Dec. 14.

In a recent order approving a pilot program in which capacitywas not assigned to migrating customers, the commission held thatunrecovered utility capacity costs should be recovered from bothsales and transportation customers. Intervenors, however,petitioned for rehearing of that order, asserting thattransportation customers should not bear a pro rata share of thosecosts. The state Consumer Protection Board replied to theintervenors, arguing that they should bear a pro rata share. Thesame issue has also arisen in the context of an interim ratesettlement involving Rochester Gas and Electric Corp.

In its recent unbundling policy statement, the commissiondetermined that local distribution companies should not be allowedto assign capacity to migrating customers after April 1, 1999.”Responsibility for potentially stranded capacity costs is asignificant issue, and its resolution should have the benefit ofcomments by parties to our proceedings,” the commission said.

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