PUCO Rejects OCC Complaint Regarding Dominion East Ohio Storage Lease

The Public Utilities Commission of Ohio denied a complaint from the Office of Consumer Counsel regarding the application of Dominion East Ohio at FERC to lease approximately 3-5 Bcf of excess on-system storage to its affiliate Dominion Transmission (PUCO Docket 07-1224-GA-EXM).

PUCO noted that Dominion East Ohio has committed to making its entire storage capacity of 58,704 MMcf available to serve its core Ohio market, and thus found OCC's concerns regarding the impact on the Ohio choice market to be unwarranted (5/20/10). PUCO stressed that it intends to ensure that Dominion East Ohio adheres to this commitment through the review of the costs that flow through Dominion East Ohio's Transportation Migration Rider - Part B.

PUCO further noted that Dominion East Ohio has affirmed that it will provide storage service to marketers on a nondiscriminatory basis consistent with the terms specified in Phase I of the Lease Agreement. Specifically, Dominion has provided that the Phase I capacity will be offered as part of its annual open season process.

The Ohio Commission also called OCC's concerns about cost recovery of investments related to the storage lease premature, and appropriately addressed in a base rate proceeding.

PUCO reiterated that it does retain authority to require a management performance audit of Dominion East Ohio, but declined to institute one at this time.