RCA Requests Comments on Scope of

Regulations Addressing Pricing Provisions in Natural Gas Supply Contracts

This letter requests comments on the proper scope of a possible regulations docket addressing pricing and other essential terms of public utility gas supply contracts.  The Regulatory Commission of Alaska (Commission) discussed this issue at its March 24, 2009 public meeting, reviewing a scoping document prepared by Commissioners Jan Wilson and Kate Giard ("scoping document"). At that public meeting, the Commission voted to issue the scoping document for review and request comments on the proper scope of a possible regulations docket addressing pricing and other essential terms of public utility gas supply contracts. The scoping document is available at:
https://rca.alaska.gov/RCAWeb/Filings/FilingDetails.aspx?id=481c7907-c6b8-4926-9798-16bbc8fa1911 .  Transcripts of the Commission's discussion on the proper scope of a docket opened to address natural gas supply contracts may be reviewed at:

https://rca.alaska.gov/RCAWeb/Dockets/DocketDetails.aspx?id=611c6eab-cbc6-4784-b8d2-f35ba8480218

The scoping document explained the regulatory tension that exists regarding Commission review of natural gas supply contracts, noting the uncertainty public utilities and gas suppliers face in trying to agree on price and terms of gas supply contracts.  The scoping document recommended addressing natural gas pricing issues in a regulations docket, allowing the participation of all interested parties and various procedural mechanisms for receiving input on the issue (written comments, public hearings, or technical workshops). The scoping document further recommended that the scope of the regulations docket be limited to pricing and other essential terms of public utility gas supply contracts, including the consideration of standard contract language or a standard contract form.

The RCA requests comments on the scoping document and the Commission's tentative decision to open a regulations docket to address provisions in natural gas supply contracts.  Commentors should discuss:
  • whether the Commission should open a regulations docket addressing natural gas pricing issues,
  • what is the proper scope of a regulations docket addressing natural gas pricing issues, and
  • should the Commission consider developing standard contract language or a standard contract forms for use with natural gas supply contracts.

lnterested persons may comment on the proper scope and docket type for an investigation into natural gas supply contracts by submitting written comments to the attention of the Robert M. Pickett, Chairman, Regulatory Commission of Alaska, 701 West Eighth Avenue, Suite 300, Anchorage, Alaska 99501. Comments must be received no later than 4 p.m., on May 1, 2009 and should reference Internal Docket I-09-007.

Dated: April 2, 2009   _________________________________
                                                                                                Robert M. Pickett, Chairman
                                                                                                Regulatory Commission of Alaska




Date Issued: 4/3/2009