Distribution

Sen. Mary Landrieu (D-LA) introduced legislation Thursday that would automatically reserve a “significant portion” of Outer Continental Shelf (OCS) revenues for distribution to the five energy-producing coastal states that aren’t restricted by moratoria off their shores.

The New York State Public Service Commission (PSC) is taking comments on a settlement in National Fuel Gas Distribution Corp.’s (NFG) pending rate case that will reduce natural gas customer bills over the next two years and fix rates thereafter. Although base rates actually will increase under the plan, a rate reduction will be achieved by passing through the benefits of a tax change and previous tax overcollections, the PSC said in a statement.

This third winter of high natural gas prices could strain the finances of local distribution companies, especially if regulators fail to allow the timely pass-through of gas costs, according to a Standard and Poor’s report.

This third winter of high natural gas prices could strain the finances of local distribution companies, especially if regulators fail to allow the timely pass-through of gas costs, according to a Standard and Poor’s report.

Equitable Resources top executive last Wednesday called on local distribution companies (LDC) to think about “rational consolidation” as a response to increasing compliance costs, growing deliverability constraints and high natural gas commodity prices.

Equitable Resources top executive on Wednesday called on local distribution companies (LDC) to think about “rational consolidation” as a response to increasing compliance costs, growing deliverability constraints and high natural gas commodity prices.

The overriding issue for consumers and local distribution companies (LDCs) who bought natural gas during the 2002-2003 heating season was availability, but the paramount concern this past heating season was cost, according to an American Gas Association (AGA) survey of LDCs’ purchasing and pricing strategies during the most recent winter.

The overriding issue for consumers and local distribution companies (LDCs) purchasing natural gas was availability during the 2002-2003 heating season, but the paramount concern this past heating season was cost, according to an American Gas Association (AGA) survey of LDCs’ purchasing practices during the most recent winter.

Toronto-based Enbridge Gas Distribution has received approval from the Ontario Energy Board to adjust the gas supply cost portion of its rates effective Thursday (July 1). The regulated gas utility said the impact of the charges would vary based on the amount of gas used and whether customers buy their natural gas from the utility or a gas marketer. Enbridge delivers gas to about 1.7 million customers in its franchise area. Of those customers, about 60% buy their gas supply from the utility, and the other 40% buy their gas supply directly from marketers. The utility’s gas supply charge, the actual cost of the gas without mark-up, will increase 16%. The new residential gas supply price will be C28.6 cents per cubic meter, up from C24.07 cents. For a typical residential customer who buys gas from the utility, this represents an annual increase of C$122, Enbridge said. Customers who buy their gas from a marketer will continue to pay the price specified in their contract with that marketer. Enbridge said its delivery charge for all customers — whether they buy from the utility or a marketer — also will increase “slightly,” attributable to higher costs for natural gas storage, which are included in the delivery charge. For a typical residential customer, the annual increase to the delivery charge will be approximately C$4.