Okla. Admin. Code § 165:45-17-7

Current through Vol. 42, No. 7, December 16, 2024

Section 165:45-17-7 - Unbundling of natural gas services of gas supply, gathering, transmission and storage of all natural gas utilities upstream of citygates and proposed aggregation points

(a) To establish a fair and reasonable process, wherein, the natural gas service industry can be restructured in such a manner that will be in the best public interest of all natural gas consumers, and that would complement and improve the state's economic growth by increasing its market base for natural gas and to effectuate the policy of the Commission that a competitive bidding process is among the most effective means to achieve these objectives, the natural gas services of gas supply, gathering, transmission and storage of all natural gas utilities shall be unbundled upstream of the citygate or proposed aggregation points. Any entity, including an intrastate pipeline, an interstate pipeline, a utility owned transmission pipeline and, where applicable, any marketer, gas producer or natural gas aggregator, may seek to competitively bid to provide these natural gas services. Gas supply, gathering, transmission and storage of all natural gas utilities upstream of the citygate shall be provided and priced on a separate and individual basis. All customers of a gas utility located upstream of a citygate and/or proposed aggregation point shall have the opportunity to purchase these services on an unbundled basis. Any customer which is subject to an existing pipeline tariff agreement or other tariff agreement shall not have the opportunity to purchase these services on an unbundled basis until the expiration or termination of such tariff agreement except upon order of the Commission. The Commission shall consider an application to modify any tariff agreement upon good cause shown as a result of the change in circumstances due to the restructuring of the natural gas service industry as reflected in this Subchapter, or for such other reason as the Commission may determine.

(b) Customers shall have the choice of what services to purchase and can pay for only the services which they need or desire:

(1) Each natural gas service offered on an unbundled basis by a gas utility shall be identified and provided under a separate tariff and available on a separate basis from other natural gas services offered by such utility.

(2) The rates to be charged by a gas utility for any unbundled natural gas service shall be based upon the cost of providing that service. In determining the costs of providing a specific unbundled service, no costs of providing any other natural gas service shall be charged or allocated to such specific unbundled service. These rates shall be system-wide rates by customer class or a sub-group of a customer class applicable to the particular unbundled service subject to subsection (a).

Okla. Admin. Code § 165:45-17-7

Added at 15 Ok Reg 2177, eff 7-1-98