|Orders on DEO and Columbia Gas Exit of Merchant Function for Non-Residential Consumers|
The Commission issued another Order in DEO's transitional plan to exit the merchant function. The settlement just approved by the Commission allows DEO to eliminate its standard choice offer (SCO) for choice-eligible nonresidential customers beginning on April 1, 2013. As of that date, a choice-eligible nonresidential customer who has not selected a natural gas supplier will be served by the next available supplier on a rotating list of providers on that supplier’s monthly variable rate (MVR). DEO may not file a request to exit the merchant function for residential customers before April 1, 2015. The full text of the DEO Order is available on the NEM Website.
The Commisison also adopted a settlement for Columbia Gas to eliminate the SCO for nonresidential customers upon achieving certain switching thresholds. The settlement runs from April 1, 2013, through March 31, 2018. By the terms of the settlement, Columbia’s exit from the merchant function for nonresidential customers is contingent upon achieving seventy percent or more nonresidential consumers shopping for three consecutive months. After which, these consumers would have a choice between commodity service by a Competitive Retail Natural Gas Service (CRNGS) provider through the company’s choice program or MVR program. The settlement also provides that Columbia may not file an application to exit the merchant function for residential customers until at least 22 months after its potential exit for nonresidential customers. The full text of the Columbia Gas Order is available on the NEM Website.