TEXAS GAS PROPOSES THREE-YEAR CAPITAL INVESTMENT INCENTIVE PLAN USING A FUEL SAVINGS/SHARING MECHANISM;CAPTIVE CUSTOMERS,PRODUCERS AND END-USERS OPPOSE IT ON GENERIC AND SPECIFIC GROUNDS

摘要

A fuel savings/sharing program proposed by Texas Gas Transmission,LLC(RP09-7)faces opposition,questions and scrutiny from the Indicated Shippers;the American Forest&Paper Association(AF&PA),the Independent Petroleum Association of America(IPAA),the American Iron and Steel Institute(AISI)and the Process Gas Consumers Group(PGC)(collectively,the Associations);a Constellation Energy marketer;Louisville Gas and Electric Co.,and cities in Tennessee and Kentucky.The tariff sheets implementing a fuel savings/sharing mechanism on an experimental basis for a set period from 11/1/08 through 9/30/11 were filed by Texas Gas on 10/1/08.Texas Gas proposes to undertake capital projects with an aggregate cost between 2.5 and 6 million.These costs are to be limited to Texas Gas'out-of-pocket expenditures,without any allowances for return or taxes.Texas Gas would retain 80% of the fuel"savings,"until its capital costs are recovered,and 50% of the"savings"thereafter for the balance of the fixed three-year term."Savings,"for purposes of Texas Gas'proposal,are defined as over-recoveries that occur under its fuel tracker.