Section 60.2. Natural gas transportation service terms and objectives

A Class A and B natural gas utility shall maintain a gas transportation program that adheres to the following terms and promotes the following objectives when providing natural gas transportation service:

(1) The tariff shall separately state and price the components of transportation service to afford customers flexibility in choosing the degree of supply risk they are willing to assume.

(2) The tariff shall indicate a range of rates for transportation service.

(3) The maximum rate allowed for transportation service shall be the weighted average retail rate for the otherwise applicable retail service less costs relating to natural gas supply, including natural gas demand, commodity and storage costs.

(4) The maximum rate for transporting gas which is produced in this Commonwealth shall be based upon a cost of service study. Only costs identifiable as related to transportation service shall be recovered through this rate.

(5) The rates described in paragraphs (3) and (4) shall be maintained as tariffed rates on file with the Commission.

(6) Transportation service shall be provided under a contract between the jurisdictional natural gas utility and the customer. The contract terms shall be consistent with rates and rules found in the natural gas utility’s tariff. A contract shall be effective for no less than a 12-month period, except that a contract for a shorter period is permitted if the utility and the customer agree. The rates set shall recover, to the maximum extent possible, the fixed costs associated with the service.

(7) A natural gas utility shall provide transportation service in a manner and according to terms which maximize system throughput.

(8) The tariff may not unreasonably restrict Commonwealth natural gas producer access to gas utility facilities.

(9) The transportation service tariff shall specify that the distribution utility makes no guarantee against, and assumes no liability for, interruption caused by third parties.

(10) The location of entry points necessary for the introduction of customer owned gas into the natural gas utility’s facilities shall be determined by a natural gas utility. Construction necessary to accomplish a natural gas connection will be conducted by the natural gas utility or under its supervision at the customer’s expense. The natural gas utility shall own and maintain a natural gas connection.

(11) The transportation service customer shall agree to sell its natural gas supply to the natural gas distribution utility at the higher of the natural gas utility’s weighted average cost of gas or the customer’s own cost in the event of a distributor natural gas supply shortage. A natural gas shortage exists when the supply of gas is insufficient to meet the requirements of Priority 1 customers as specified in § 69.21 (Reserved) on a continuing basis or when continued delivery of gas to customers would prevent the injection of gas into underground storage pools for the protection of winter supply, so that service to Priority 1 customers is threatened. The customer shall demonstrate its costs of natural gas by making a copy of the contract with the natural gas supplier available to the gas utility upon request.

(12) The natural gas utility may retain a reasonable allowance of customer-owned natural gas for gas which is lost or unaccounted for in its operations.

(13) Representative levels of transportation service shall be set for each jurisdictional natural gas utility in every general rate proceeding under 66 Pa.C.S. § 1308 (relating to voluntary changes in rates).

Notation

Cross References

This section cited in 52 Pa. Code § 60.9 (relating to effective date).