Gas Utilities; Tariffs; Reasonableness Factors

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Sec. 87.7. (a) The commission may, on its own motion or upon petition of any customer, and after appropriate notice and hearing, order any gas utility subject to its jurisdiction to file or change one (1) or more gas transportation tariffs to better meet the needs of the utility's customers.

(b) The commission shall determine and set reasonable rates, terms, and conditions in the tariffs. In determining what is reasonable, the commission may consider the following:

(1) The cost of providing the transportation service according to generally accepted cost of service principles.

(2) The effects of the service on the consumers to whom it would be available.

(3) The effects of the service on the industrial development of the state.

(4) The effects of the transportation rate upon current customers of the utility.

(5) The extent to which a transportation rate will aid the utility in retaining its existing load or create opportunities to lower the cost of gas supplies purchased on behalf of all ratepayers.

(6) Whether or not the proposed tariff is a negotiated tariff between the utility and its customers.

(7) The extent to which the availability of transportation services under the proposed tariff is restricted.

(8) Any other factors bearing upon the tariff resulting from decisions of the Federal Energy Regulatory Commission, other rulings of the commission, or applicable case law.

(9) The effect of contract obligations on the utility relating to unavoidable gas costs for which the utility will be responsible.

(10) Whether or not the amount of transportation offered under the proposed tariff is limited other than for reasons necessitated by operational constraints.

(11) Any other factors the commission considers appropriate.

As added by P.L.117-1987, SEC.1.


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