Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 69 - GENERAL ORDERS, POLICY STATEMENTS AND GUIDELINES ON FIXED UTILITIES › POLICY STATEMENT ADDRESSING AFFILIATED INTEREST ISSUES OF NATURAL GAS MARKETERS › Section 69.191 - General

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Given the
					 unbundling of monopoly distribution services in the natural gas industry and
					 the development of customer access to commodity gas and transportation
					 services, the Commission has developed policies for local distribution
					 companies (LDCs), marketers and customers with regard to the affiliated and
					 nonaffiliated interests of LDCs. Unless otherwise stated, the phrase "marketer"
					 or "marketers or brokers" includes all LDC affiliates, subsidiaries, parents,
					 divisions, and the like providing gas supply to a respective LDC's customer.
					 This section and §
											69.192 (relating to affiliated
					 interest-statement of policy) are intended to clarify additional aspects of the
					 Commission's authority in this area. The Commission has a strong policy against
					 direct or indirect discrimination by LDCs in favor of their marketing
					 affiliates or marketing divisions and against independent gas marketers. The
					 discrimination impermissibly hinders the unbundling of services and the entry
					 of new competitors into the marketplace. This discrimination also violates
					 section 1502 of the code (relating to discrimination in service).
(b) Many Pennsylvania LDCs have affiliated
					 marketing divisions. Some Pennsylvania LDCs may have divisions or marketing
					 sections that are not separately organized as affiliates as defined in 66
					 Pa.C.S. (relating to Public Utility Code). This section and §
											69.192 provide guidance to an
					 LDC's affiliate, regardless of the format used to operate an LDC's affiliate,
					 in order to be effective, to prevent discriminatory behavior, and insure
					 compliance with section 1502 of the code (relating to discrimination in
					 service). This section and §
											69.192 will apply without regard
					 to the structural relationship of the LDC's marketer to the LDC.
(c) This section and §
											69.192 cover both the LDC's
					 affiliates and gas marketing divisions or marketing sections, even those
					 without any distinct organizational structure, that do not have affiliate
					 status. This section and §
											69.192 will not require any
					 generic structural separation of an LDC's affiliate, notwithstanding actions
					 taken to the contrary in other states, because the Commission does not believe
					 this is necessary as long as the LDC fairly allocates costs to an LDC's
					 affiliate and refrains from giving the LDC's affiliate any unfair advantage
					 vis-a-vis a marketer or broker not affiliated with an LDC. The Commission may
					 impose such a structural requirement if and when warranted by the facts and
					 circumstances.
(d) The Commission's
					 authority with respect to affiliates and marketing divisions derives from
					 different portions of the code. Chapter 21 of the code (relating to relations
					 with affiliated interests) directly governs affiliated interests. Section
					 1318(b) of the code (relating to just and reasonable natural gas rates),
					 addresses gas purchased from affiliates. Other provisions govern natural gas
					 costs such as sections 1307, 1308, 1317, and 1318. The code requires adherence
					 to tariffs under section 1303 (relating to adherence to tariffs) and thus
					 prohibits a lack of uniformity or discrimination in the application of tariff
					 provisions. Likewise under section 1304 (relating to discrimination in rates)
					 it prohibits rate discrimination. Other provisions reenforce these policies:
					 section 1501 (relating to character of service and facilities) requires
					 utilities to furnish "adequate, efficient, safe and reasonable service," while
					 section 1502 prohibits "any unreasonable preference or disadvantage" and
					 forbids "any unreasonable prejudice or disadvantage." These provisions require
					 equal treatment of similarly situated parties, in this case customers of an
					 LDC's transportation tariff services, regardless of whether that customer
					 chooses to use the gas supply services of an LDC or otherwise.
(e) Under sections 505 and 506 of the code
					 (relating to duty to furnish information to the Commission; cooperation in
					 valuing property; and inspection of facilities and records), the Commission has
					 authority to require utilities to keep and furnish information in accordance
					 with requirements set forth by the Commission. As part of this section and
					 §
											69.192 the Commission has set
					 forth certain recordkeeping requirements to help ensure that parties are fairly
					 treated. The Commission expects the LDC, in consultation with marketers or
					 brokers to propose a process for reporting and managing marketer or broker
					 complaints as part of any tariff proposed as a result of this section and
					 § 69.192. The Commission may expect additional recordkeeping or conflict
					 resolution processes if the parties are unable to resolve this or if warranted
					 by subsequent facts and circumstances.
This section cited in 52 Pa. Code §
													69.192 (relating to affiliated
						  interest-statement of policy).