The Indiana Utility Regulatory Commission (URC) has authorized Northern Indiana Public Service Co. to recover its Federal Energy Regulatory Commission Order 636 pipeline transition charges under a rate design proposal that divides the charges between sales and transportation customers. Under the approved recovery plan, the gas local distribution company (LDC) will pass to all ratepayers on a volumetric basis those transition charges related to gas supply realignment and stranded investment. Unrecovered costs or credits in pipeline purchased-gas adjustments will be recovered from sales customers only. According to the URC, transition costs billed to the utility by its six interstate pipeline suppliers could reach $105 million. Re Northern Indiana Public Service Co., Cause No. 39723, Nov. 2, 1994 (Ind.U.R.C.).
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