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Retail Supplier Says Proposal In Pennsylvania Utility's Rate Case Would Give Competitive Advantage To Utility Affiliate

March 1, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Direct Energy in a petition to intervene, outlined concerns with certain proposed changes to the natural gas transportation program at UGI Utilities (the "Company"), as contained in a newly filed rate case

In its motion, Direct Energy cited the following issues:

• The Company has proposed to reduce the number of regions having differing delivery requirements from twelve to five, with associated delivery requirements commencing November 1, 2020.

• The Company's proposal requires transportation customers to make deliveries on the major interstate pipelines that deliver into its service territory. The Company also proposes that additional supply sources from local production wells, gathering systems, and other pipelines may be used to fulfill a required interstate pipeline delivery. In its motion, Direct Energy said, "Direct Energy has substantial concerns that all of the alternate delivery options are owned and operated by UGI Energy Services, an affiliate of UGI Utilities, which gives this UGI affiliate a competitive advantage over all other suppliers, including Direct Energy."

• The UGI filing contains a proposed 4.5% daily balancing tolerance. The Company does not propose any changes to the monthly balancing tolerances, which are currently set at 10%.

• The Company has proposed to post a list of customer account numbers and corresponding customer regions on its GIS website that would be available to NGSs after submitting their login information.

• The Company is not proposing to provide a Columbia-related cash-in or cash-out index.

• Related to capacity release to non-choice transportation customers, the proposed uniform rules essentially adopt rules prevailing in the current North Rate District and extend them to areas encompassed in the current South and Central Rate Districts as well. The Company proposes for capacity release rules to become effective upon the conclusion of the proceeding, which is expected to occur in October of 2019.

Docket No. R-2018-3006814

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