The utility is obligated under a franchise agreement to pay the city a fee based on its income from gas sales to customers. However, since deregulation those fees have fallen as large customers have migrated to alternative suppliers. The city charged that the utility purposely violated its franchise agreement by allowing large customers to buy gas from other companies (see Daily GPI, July 6, 1998).
Obligated
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FERC: Cross Sound Cable Not Obligated to Expand Facilities
FERC last Thursday took up the issue of whether merchant transmission operators have an obligation to expand their facilities under Order 888 and found that in the case of participants in an underwater transmission cable stretching from Long Island to Connecticut such an obligation does not apply.
September 9, 2002
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