PSC-22-13-00009-P On Remand from New York State Court Litigation, Determine the Recovery of Certain Deferred Amounts Owed NFG by Ratepayers

5/29/13 N.Y. St. Reg. PSC-22-13-00009-P

NEW YORK STATE REGISTER

VOLUME XXXV, ISSUE 22

May 29, 2013

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-22-13-00009-P

On Remand from New York State Court Litigation, Determine the Recovery of Certain Deferred Amounts Owed NFG by Ratepayers

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

Proposed Action:

To initiate a remand phase of this proceeding resulting from NYS court litigation to determine the recovery of certain Site Investigation Remediation (SIR) deferral amounts owed by ratepayers to National Fuel Gas Distribution Corporation.

Statutory authority:

Public Service Law, sections 66, 66(1), (4), (5), (9) and 72

Subject:

On remand from New York State court litigation, determine the recovery of certain deferred amounts owed NFG by ratepayers.

Purpose:

On remand, to determine the recovery of certain deferral amounts owed NFG from ratepayers.

Substance of proposed rule:

The Public Service Commission (Commission) is initiating a remand phase of Case 07-G-0141 to address the recovery of certain deferred amounts owed National Fuel Gas Distribution Corporation (NFG) by ratepayers as a result of New York State court litigation. By an Order Establishing Rates for Gas Service, issued December 21, 2007 (2007 Rate Order), the Commission established rates for NFG. In that Order, the Commission imputed some $3.7 million (net of tax) in insurance proceeds and used this imputed amount to reduce deferred Site Investigation Remediation (SIR) costs in rate base. That imputation was subsequently reversed by the New York State courts.¹ In response to staff interrogatories in Case 13-G-0136,² NFG has quantified the additional annual revenue requirement due it from the reversal of the Commission’s rate base adjustment at approximately $401,175. This amount provides the required return on the increase to rate base at the authorized overall rate of return established in the 2007 Order.

It is anticipated that this remand phase will identify what additional amounts should be booked in the deferred SIR regulatory asset as a result of the New York State Court decisions, and determine the additional carrying charges that will accrue currently and until the Commission recognizes these deferred amounts in NFG’s rate base. The Commission may grant, deny or modify, in whole or in part, the quantification and supporting information for the amounts to be recovered and associated carrying charges provided by NFG, and may also consider related matters.

¹ Matter of National Fuel Gas Distribution Corp. v. Public Service Commission of the State of New York, 71 A.D.3d 62, 67 (3d Dept 2009), affirmed, 16 N.Y.2d 360, 371 (2011).

² Case 13-G-0136, National Fuel – Rates, Order Instituting Proceeding and to Show Cause (issued April 19, 2013).

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.ny.gov/f96dir.htm. For questions, contact:

Deborah Swatling, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Jeffrey C. Cohen, Acting Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223, [phone], email: [e-mail]

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.

(07-G-0141SP5)