| (a) Service to a local distribution company or city
gate customer. A gas utility shall obtain written Commission approval
prior to the abandonment or permanent discontinuance of service to
any local distribution company or city gate customer that involves
the removal or abandonment of facilities other than a meter.
(1) Except in pipeline safety emergencies, the gas
utility shall file an application to abandon or permanently discontinue
service to a local distribution company or city gate customer with
the Director at least 60 days prior to the proposed effective date
of the proposed abandonment or permanent discontinuance of service.
In addition to the information required in §1.32 of this title
(relating to Form and Content of Pleadings), the application shall
state the following:
(A) the number of affected customers in each class;
(B) the names and addresses of the local distribution
company or city gate customer affected;
(C) the specific reasons for the proposed abandonment
or permanent discontinuance of service;
(D) a description, age, and condition of the pipeline
or plant that the gas utility proposes to abandon or through which
it proposes to permanently discontinue service;
(E) the revenue from and cost to continue the existing
service to the affected local distribution company or city gate customers;
(F) all reasonable alternative energy sources available
to the affected local distribution company or city gate customers,
and the cost of such energy sources on an MMBtu equivalent basis;
(G) the cost per customer of each conversion to available
alternative energy sources;
(H) any previous notice provided by the utility to
the affected local distribution company or city gate customer;
(I) a statement that the application is subject to
Commission approval; and
(J) a statement of the affected local distribution
company or city gate customer's right to intervene in the application.
(2) The gas utility shall send a copy of the application
to the affected local distribution company or the affected city gate
customer on the same day that the gas utility files the application
to abandon or discontinue service with the Director.
(A) If a person files a statement of intent to participate
or motion to intervene with the Commission within 30 days from the
date of the filing of the application, and the Commission grants party
status, the Commission shall hold a formal hearing within 60 days
following the date on which the application is filed.
(B) If the Commission does not receive and grant a
timely-filed statement of intent to participate or intervention pleading,
then the Director shall act administratively on the application to
abandon or permanently discontinue service within 45 days following
the date on which the gas utility filed the application and shall
notify all affected customers in writing of the decision. If the Director
denies the application administratively, the gas utility, within 30
days of the date the Director administratively denies an application
to abandon or permanently discontinue service, may request that a
formal hearing be held within 60 days following the date on which
the Director denies the application.
(3) If upon the granting of the application to abandon
or permanently discontinue service the local distribution company
would no longer provide service to any residential or commercial customer
because of such abandonment, then the local distribution company shall
file an application to abandon or permanently discontinue service
under subsection (b) of this section.
(4) The Director shall have the authority to act administratively
on abandonment or permanent discontinuance applications that satisfy
the conditions of this subsection.
(5) Temporary termination of service due to a pipeline
safety emergency shall not be considered to be abandonment or permanent
discontinuance of service under the terms of this section. If the
gas utility determines not to resume service as a result of a pipeline
safety emergency, then the gas utility shall file an application under
this section within 30 days of the temporary termination of service.
(6) The gas utility shall have the burden of proof
to show that the proposed abandonment or permanent discontinuance
of service is reasonable and necessary and is not contrary to the
public interest. The Commission shall consider the following conditions
when making a determination regarding an application for abandonment
or permanent discontinuance of service:
(A) whether continued service is no longer economically
viable for the gas utility;
(B) whether the potentially abandoned customers have
any alternatives, how many, and at what cost;
(C) whether any customer has made investments or capital
expenditures in reliance on continued availability of natural gas,
where use of an alternative energy source is not viable;
(D) whether the utility has failed to properly maintain
the facilities proposed for abandonment, rendering them unsalvageable
due to neglect; and
(E) any other considerations affecting the potentially
abandoned customers.
(b) Service to residential and commercial customers.
A gas utility shall obtain written Commission approval prior to the
abandonment or permanent discontinuance of service to any residential
or commercial customer that involves the removal or abandonment of
facilities other than a meter. This subsection shall not apply to
discontinuance of service to residential or commercial customers for
any of the reasons set forth in Subchapter D of this chapter (relating
to Customer Service and Protection).
(1) Except in pipeline safety emergencies, the gas
utility shall file an application to abandon or permanently discontinue
service with the Director at least 60 days prior to the proposed effective
date of the proposed abandonment or permanent discontinuance of service
to any residential or commercial customer involving the removal or
abandonment of facilities other than a meter. In addition to the information
required in §1.32 of this title, the application shall state
the following:
(A) the number of directly affected customers in each
class of service;
(B) the names and addresses of all directly affected
customers;
(C) the specific reasons for the proposed abandonment
or permanent discontinuance of service;
(D) a description, age, and condition of the pipeline
or plant that the gas utility proposes to abandon or through which
it proposes to permanently discontinue service;
(E) the revenue from and cost to continue the existing
service to the directly affected customers;
(F) all reasonable alternative energy sources available
to the directly affected customers, and the cost of such energy sources
on an MMBtu equivalent basis;
(G) the cost per customer of each conversion to available
alternative energy sources;
(H) the terms of any agreements with, or offers, including
qualifying offers, to, directly affected customers by the gas utility
for the conversion of customers' appliances to enable the use of alternative
energy sources;
(I) copies of any consents to abandonment or permanent
discontinuance obtained by the utility from directly affected customers;
(J) any previous notice provided by the utility to
the directly affected customer;
(K) a statement that the application is subject to
Commission approval; and
(L) a statement of the directly affected customer's
right to protest the application and the procedure for filing such
a protest.
(2) The gas utility shall send a copy of the application
to all directly affected customers on the same day that the gas utility
files the application to abandon or permanently discontinue service
with the Director.
(A) If any of the directly affected customers files
a protest within 30 days following the date on which the application
is filed, the Commission shall hold a formal hearing within 60 days
following the date on which the application is filed.
(B) If all of the directly affected customers have
not consented to the abandonment or permanent discontinuance of service
and if the gas utility has not given all of the directly affected
customers a qualifying offer, as defined in §7.115 of this title
(relating to Definitions), but none of the directly affected customers
files a protest within 30 days following the date on which the application
is filed, the Director shall act administratively on the application
within 45 days following the date on which the application is filed
and shall notify all directly affected customers in writing of the
decision. The Director may seek additional information from the directly
affected customers to determine whether they have received adequate
information regarding the consequences of the proposed abandonment.
If the Director denies the Cont'd... |
