Columbia Gas Proposes Date for End of Choice Program

Columbia Gas has filed a transition plan with the Maryland PSC to end its choice program, and move customers back to sales service.

Columbia requested that all choice customers be either returned to Columbia for supply, or (for non-residential customers only) be moved to transportation service at the customer's election, for the April 2012 billing cycle. The April 2012 billing cycle begins March 29, 2012.

Columbia said that it requires a Commission decision on its transition plan no later than March 22, 2012 to accomplish an April billing cycle transition.

See 1/9 story for background on the end of the choice program

Under the transition plan, all residential choice customers will be moved to Columbia sales service.

All non-residential choice customers may elect to take transportation service to continue receiving supply from their marketer. Columbia said that the Gas Transportation Service program is available to all commercial and industrial customers on Columbia's system.

If the non-residential customer does not elect transportation service, they will be transitioned back to Columbia sales service.

Columbia recommended the April 2012 billing cycle as the first month without choice for the following reasons:

1. Columbia's next quarterly Purchased Gas Adjustment will become effective with the April billing cycle. The PGA calculation is impacted by the Choice program because pipeline and storage costs assigned to the Choice suppliers are part of the quarterly PGA calculation. Removing customers from Choice effective with the April billing cycle will enable Columbia to revise the quarterly PGA calculation so that it no longer reflects the assignment of pipeline and storage costs to suppliers.

2. Columbia, "believes it is in the best interest of all its customers to terminate the Choice program as quickly as possible in order to minimize the time that administration and maintenance costs remain in place."

3. Waiting until the April 2012 billing cycle gives Columbia and suppliers an opportunity to notify the customers of the pending changes to their service