AN ACT PROVIDING THAT THE UTILITIES COMMISSION SHALL NOT AUTHORIZE COST RECOVERY FOR TRANSPORTING NATURAL GAS UNLESS THE NATURAL GAS LOCAL DISTRIBUTION COMPANY PROVES THAT THE TRANSPORTATION COST IS THE LOWEST COST AVAILABLE OPTION TO MEET THE NEEDS OF ITS RETAIL CUSTOMERS.
Amends GS 62-133.4 by adding that the Utilities Commission (Commission) must not authorize a rate change to allow for the recovery of the cost of transporting natural gas unless the natural gas local distribution company can prove by a preponderance of evidence that, at the time of execution of the contract giving rise to the transportation costs for which recovery is sought, the company had (1) identified and determined the date and amount of new fueling resource it needed; (2) studied all available alternative fueling resource options; and (3) concluded that the pipeline capacity contracts were the lowest-cost available option. Requires the Commission to consider the company's information and data for a historical 12-month period concerning the company's actual cost of transporting natural gas and transportation volumes.
© 2022 School of Government The University of North Carolina at Chapel Hill
This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.