LDC Acts to Retain Large Customers

The Maine Public Utilities Commission (PUC) has authorized Northern Utilities Co., a natural gas local distribution company (LDC), to offer a special rate to extra-large firm sales customers. The new offering is designed to enable large customers with flat loads to obtain gas service at a rate that better reflects the lower nongas cost of service for such customers. Unusually large customers

wishing to take service under the new rate must demonstrate that their load is largely flat and, thus, maximizes the nongas costs of serving their needs. The PUC determined that the rate would produce revenues that exceed the long-run marginal costs required to serve eligible customers. Re Northern Utilities, Inc., Docket No. 95-337, Dec. 12, 1995 (Me.P.U.C.).

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