Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 60 - NATURAL GAS TRANSPORTATION SERVICE › Section 60.2 - Natural gas transportation service terms and objectives

Current through Register Vol. 54, No. 28, July 13, 2024
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).
This section cited in 52 Pa. Code §
												60.9 (relating to effective
						date).