With Several Recommendations, State Regulators Offer Support and in Some Cases Caution for FERC’s Proposal Regarding Gas Pipeline Recovery of Modernization Costs; PHMSA Recommends Broad Use of Pipeline Modernization Programs

摘要

Offering specific recommendations based on their state’s experience regulating local gas distribution companies (LDCs), a few state utility commissions recently offered cautious approval of FERC’s pending Policy Statement, Cost Recovery Mechanisms for Modernization of Natural Gas Facilities (PL15-1), in filings at the Commission. 6 The state regulators -- including the Michigan Public Service Commission (PSC); the North Carolina Utilities Commission (NCUC); Kansas Corporation Commission (KCC); and New York Public Service Commission (NYPSC) - some of which had implemented the kind of mechanisms FERC is considering, suggested strengthening some of the measures to make sure pipelines do not over-recover costs.