Maryland PSC Orders Gas Purchases

Posted on March 27, 2009 by Vorys

The Maryland Public Service Commission has directed several of the state's local natural gas distribution companies to purchase a significant share of their summer injection needs immediately to take advantage of low natural gas prices and protect against future price volatility.  A copy of the order to Columbia Gas of Maryland, Inc., and others, for example, can be found here.

[Update:  The Maryland PSC has rescinded its earlier orders following an emergency hearing at which LDCs explained that due to a run up in natural gas prices they would not be able to meet the prices set by the PSC.  Still, the PSC found that its prior reasoning for directing summer gas injection purchases remained valid, and issued redacted orders appearing to direct the LDCs to procure unstated volumes at unstated prices.  (Moved up.)]

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Decoupling Not Required by "Stimulus" Bill

Posted on February 25, 2009 by Vorys

From the NYT:  "Despite appearances to the contrary, the economic stimulus bill does not require states to 'decouple' utility revenues from energy consumption, a key House Democrat said today."  The article goes on to explain that decoupling is a utility rate-making mechanism that separates revenues from consumption to give utilities an incentive to support energy efficiency programs.  It also describes legislation recently introduced into Congress that would create an energy efficiency standard for electricity and natural gas savings to be achieved through utility efficiency programs, building codes, and other measures.

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Utility Return on Equity

Posted on December 10, 2008 by Vorys

The American Gas Foundation:  "The continued success of the utility sector to deliver natural gas safely and reliably depends on a strong and viable infrastructure that will meet growing local distribution company (LDC) customer demands.  The infrastructure development needed to address new and aging infrastructure relies heavily upon the ability of the industry to attract strong capital investment."  A report commissioned by the Foundation concludes, in part, that financial markets view allowed returns on equity below 10-percent as a "red flag" that could turn away investment.  A copy of the full report can be found here.

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