New California rules allow direct purchase from Canada, make other changes
✍ Scribed by Pedersen, Norman A.
- Publisher
- John Wiley and Sons
- Year
- 2008
- Weight
- 505 KB
- Volume
- 7
- Category
- Article
- ISSN
- 0743-5665
No coin nor oath required. For personal study only.
✦ Synopsis
the California Public Utilities Commission (CPUC) issued an order prohibiting California natural gas utilities from selling gas to large end users. Also, the commission established a complex set of transportation service options for noncore customers and took steps to permit access to firm transportation service on natural gas pipelines sewing California, particularly, Pacific Gas Transmission Company.
Restricting All Gas Utilities' Sales Function
In California, the three major gas utilities--Southern CalifomiaGas Company, Pacific Gas andElectric Company and San Diego Gas and Electric Company-serve two basic customer groups: (I) core customers such as residential and small commercial customers and (2) mncore customers who are generally large and have alternative fuel capability. For three years there has been a dispute about whether the gas utilities' control of the transmission and distribution systems within their service temtories gives them acompetitive advantage overproducers and marketers in selling gas to the large noncore customers.
In its September decision, the CPUC responded to the producer and marketer complaints about the gas utilities' competitive edge by ordering that effective August 1,1990, the gas utilities shall cease selling gas to noncore customers. The only sales that would be allowed to continue would be core-subscription sales.
Core-Subscription Service
Core-subscription service will be a bundled "hasslefree" gas procurement and transportation service option for noncore customers. Core-subscription gas and transportation service will receive the highest curtailment priority available to noncore customers. In return, the customers will be required to pay a price for transportation service that Norman A. Pedersen ir apartner in the Washington, Dc office of the lawfum Jones, Day, Reavis & Pogue.