Regulators

In an interim decision on retail gas competition last week,Connecticut regulators bowed to pressure from marketers by loweringbalancing penalties, allowing imbalance trading and ordering thestate’s three LDCs to provide a monthly economic comparison ofvarious cash-out methodologies.

Indiana regulators and FERC are weighing a potentiallygroundbreaking case that, in the end after court review, couldaward “complementary jurisdiction” to both states and the federalgovernment in instances where interstate pipelines are seeking tobypass local distribution companies (LDCs) in order to directlyserve end-use customers.

Southern California Gas Co. has filed its latest two-yearcost-allocation rate proposal with California state regulators,proposing a massive $204 million rate cut, including transportationrate decreases for all customers with the largest targeted forlarge industrial and wholesale customers.

With all the talk of competition coming to the electricindustry, the gas industry could be feeling like a stepchild.According to speakers last week at the fourth annual meeting of theGas Industry Standards Board (GISB) in San Antonio, gas unbundlingis anything but a done deal, and many questions remain.

In an effort to strengthen its ties with regulators, nationalpolicy makers and member companies, the American Gas Association(AGA) announced plans last week to move its headquarters next Marchfrom Arlington, VA, to downtown Washington, D.C. The associationwill take up residence on the fourth floor of the Hall of the Statebuilding’s south tower at 400 N. Capitol Street, which is twoblocks away from the Capitol building and four blocks from FERC.

Atlanta Gas Light Services, the retail marketing subsidiary ofGeorgia LDC Atlanta Gas Light, reached a compromise with retailmarketers and state regulators Wednesday, and agreed to change itsname to Georgia Natural Gas Services. The company will retain theuse of its flame logo, however.

FERC has announced plans to meet on Friday with Midwest stateutility commissioners and officials with the National Associationof Regulatory Utility Commissioners (NARUC) to discuss the pricingturmoil that hit the Midwest electricity markets in the last weekof June.

California regulators last week liberalized the use of utilityemployees in non-utility energy affiliate companies as part oftheir action finalizing a set of rules on the interaction betweenthe state’s three major electricity utilities and their affiliatedcompanies. With the advent of retail electric competition each ofthe utilities have several unregulated affiliates offering energysupplies and related services.

In an 11th-hour move yesterday, California regulators delayeduntil August a proposed interim action that would expand naturalgas unbundling and set an aggressive schedule for a final gasrestructuring decision by year end. The proposal, which includesunbundling billing and eliminating any restrictions on current gasaggregation among residential and small business customers, will beconsidered when the California PUC meets again Aug. 6.