PSC-49-07-00008-P Modification of Utility Tariffs and Interruptible Customer Fuel Inventory Requirements

12/5/07 N.Y. St. Reg. PSC-49-07-00008-P

NEW YORK STATE REGISTER

VOLUME XXIX, ISSUE 49

December 05, 2007

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-49-07-00008-P

Modification of Utility Tariffs and Interruptible Customer Fuel Inventory Requirements

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed action:

The Public Service Commission is considering whether and how to modify the tariffs of local distribution companies and/or change the alternate fuel inventory requirements for interruptible gas customers. This matter is being considered as a result of the analysis and conclusions of a petroleum infrastructure study (study) filed with the commission in September 2006 by the New York State Energy Research and Development Authority, and comments on the study submitted by interested parties in April 2007.

Statutory authority:

Public Service Law, sections 2, 5, 65 and 66

Subject:

Modification of utility tariffs and interruptible customer fuel inventory requirements.

Purpose:

To determine whether the results of a petroleum infrastructure study and subsequent comments submitted by interested parties indicate a need to modify utility tariffs and fuel inventory requirements for certain customer requirements.

Substance of proposed rule:

In 2003, the Public Service Commission (Commission) directed that a study be performed of the petroleum industry's infrastructure to determine whether and what changes, if any, should be made to the tariffs of local distribution companies and to the requirements imposed on interruptible gas customers for alternate fuel inventories. The New York State Energy Research and Development Authority commissioned the study, which was completed and filed with the Commission in September 2006. In response to a “Notice Soliciting Comments” issued by the Commission on March 13, 2007, interested parties filed comments on the study in April 2007.

The Commission is now considering whether the analysis and conclusions of that study, and the comments subsequently received, demonstrate a need for changes regarding the following issues:

1) Should the Commission's rules and regulations which are applicable to interruptible gas customers having distillate oil as their alternate fuel be expanded to include residual oil or all alternate fuel users?

2) Should on-site oil storage be preferred, or required, versus contract commitments/arrangements?

3) Should on-site oil storage requirements differ by geographical location?

4) Should interruptible gas customers be required to burn their alternate fuel during certain specified periods during the winter months?

5) For new applications for interruptible gas service, should on-site oil storage be required, and if so, how much?

6) Should the number of days of required on-site oil storage, or contracted amounts, for electric generators that burn gas on an interruptible basis be modified?

7) Should there be regular/periodic reporting by utilities and/or the Commission of the price and inventory levels of natural gas?

If it determines that changes are needed, the Commission will also consider what those changes should be and may direct the utilities to modify their tariffs accordingly.

Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.state.ny.us/f96dir.htm. For questions, contact:

Central Operations, Public Service Commission, Bldg. 3, Empire State Plaza, Albany, NY 12223-1350, [phone]

Data, views or arguments may be submitted to:

Jaclyn A. Brilling, Secretary, Public Service Commission, Bldg. 3, Empire State Plaza, Albany, NY 12223-1350, [phone]

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(00-G-0996SA12)