In our proposed regulation regarding POR programs, we essentially adopted the interim guidelines with a few modifications. In the proposed regulation, and in a departure from the interim guidelines, we stated that we will not require NGSs participating in POR programs to use only NGDC consolidated billing services. We determined that forcing NGSs to use the utility’s billing system could have the unintended effect of stifling innovative products such as demand response, efficiency or green products. Nevertheless, several commenters opposed this change from the interim guidelines. In regards to the comments on this upon further consideration, we agree with the commenters that requiring NGSs participating in POR programs to use consolidated billing from the NGDC is a prudent and necessary step. We believe that consolidated billing eases an NGDC’s costs and operations. We note that POR programs are normally provided in conjunction with consolidated billing in which the utility issues a single bill to the end user that contains the utility’s delivery charges and the NGS’ supply charges. Thus, we will amend Section 62.224(a)(2) of the regulation so as to now require that an NGS use consolidated billing in order to qualify for participation in a POR program. Nevertheless, to the extent an NGS is providing a service or product to customers that an NGDC’s consolidating billing system cannot accommodate or the NGS wants to offer products that are bundled with non-basic services, the NGS may be permitted to issue a separate bill for such service or product for that customer. See generally Petition of PECO Energy Company for approval of its Revised Electric Purchase of Receivables Docket No.P-2009-2143607 (Order entered June 16, 2010). Also, in lieu of Program, simply providing for a waiver opportunity and its attendance cost, delay and uncertainty, we have revised the final form regulation to specify the two (2) circumstances in which consolidated billing is not required to qualify for the POR program: (1) the NGDC’s billing system cannot accommodate the NGS bill for basic supply service; and (2) the NGS is providing a service or product that does not meet the definition of basic natural gas supply.
In our proposed regulation regarding POR programs, we essentially adopted the interim guidelines with a few modifications. In the proposed regulation, and in a departure from the interim guidelines, we stated that we will not require NGSs participating in POR programs to use only NGDC consolidated billing services. We determined that forcing NGSs to use the utility’s billing system could have the unintended effect of stifling innovative products such as demand response, efficiency or green products. Nevertheless, several commenters opposed this change from the interim guidelines. In regards to the comments on this upon further consideration, we agree with the commenters that requiring NGSs participating in POR programs to use consolidated billing from the NGDC is a prudent and necessary step. We believe that consolidated billing eases an NGDC’s costs and operations. We note that POR programs are normally provided in conjunction with consolidated billing in which the utility issues a single bill to the end user that contains the utility’s delivery charges and the NGS’ supply charges. Thus, we will amend Section 62.224(a)(2) of the regulation so as to now require that an NGS use consolidated billing in order to qualify for participation in a POR program. Nevertheless, to the extent an NGS is providing a service or product to customers that an NGDC’s consolidating billing system cannot accommodate or the NGS wants to offer products that are bundled with non-basic services, the NGS may be permitted to issue a separate bill for such service or product for that customer. See generally Petition of PECO Energy Company for approval of its Revised Electric Purchase of Receivables Program, Docket No.P-2009-2143607 (Order entered June 16, 2010). Also, in lieu of simply providing for a waiver opportunity and its attendance cost, delay and uncertainty, we have revised the final form regulation to specify the two (2) circumstances in which consolidated billing is not required to qualify for the POR program: (1) the NGDC’s billing system cannot accommodate the NGS bill for basic supply service; and (2) the NGS is providing a service or product that does not meet the definition of basic natural gas supply.
1090043.docx