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Retail Supplier Seeks To Condition Utilities' Merger On Expansion of Pipeline Capacity Made Available To Retail Suppliers
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Interstate Gas Supply, LLC said in comments to the PUC of Ohio that PUCO should, as a condition of PUCO approval of the acquisition of Vectren Energy Delivery of Ohio, LLC by National Fuel Gas Company (NFGC), require NFGC to expand the amount of pipeline capacity made available to competitive retail natural gas suppliers operating in the Vectren Ohio service territory
As previously reported, National Fuel Gas Company has entered into a transaction to acquire Vectren Energy Delivery of Ohio, LLC from CenterPoint Energy, Inc.
IGS said, "IGS recognizes that NFGC brings substantial pipeline and storage infrastructure to the table as a result of its integrated business model. NFGC operates an integrated collection of natural gas assets that includes not only its Utility segment, but also a distinct Pipeline and Storage segment. This integrated structure positions NFGC uniquely among natural gas distribution utility owners in Ohio and presents an opportunity for the Commission to condition its acceptance of the Transaction on commitments that will benefit competitive markets and ultimately consumers."
IGS said, "NFGC has acknowledged that the acquisition will add significant regulated scale, doubling the size of its gas utility rate base. NFGC has further represented that it has the financial wherewithal to fund the necessary investments in system modernization and expansion for the CEOH [Vectren] footprint, as it is a publicly traded, investment-grade company with regular access to the capital markets and a supportive and diverse bank group. Given these financial resources, and given NFGC's existing Pipeline and Storage business segment, NFGC is well-positioned to make additional pipeline capacity available to competitive retail natural gas suppliers ('CRNGS') without adversely affecting system reliability or the interests of CEOH’s [Vectren] existing customers."
IGS said, "By conditioning its acceptance of the Transaction on expanded pipeline capacity for CRNGS providers, the Commission can ensure that the Transaction delivers tangible benefits to the competitive market and the customers it serves, rather than merely maintaining the status quo."
IGS said, "Expanding pipeline capacity for competitive suppliers ... will promote greater competition, lower prices, and more choices for the approximately 335,000 customers in the VEDO service territory. Moreover, while the Notice represents that the Transaction will have 'no immediate effect' on rates, terms, or conditions of service, it is precisely this type of transaction -- in which a new owner with significant pipeline and storage assets acquires a distribution utility -- that presents a unique and time-sensitive opportunity to negotiate conditions that will strengthen the competitive market for years to come."
Case 26-0033-GA-UNC
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May 28, 2026
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Reporting by Paul Ring • ring@energychoicematters.com
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