The IEPNJ improved the regulatory process for generators to obtain rate discounts for natural gas.
IEPNJ successfully facilitated the ability of generators to achieve rate discounts on natural gas through its participation in a generic proceeding at the New Jersey Board of Public Utilities (BPU) related to gas transportation discounts. The proceeding focused on natural gas pricing to generators and customers who threaten bypass of the natural gas utility system.
In August 2011, the BPU released an order that accepted most of the positions that were advanced by IEPNJ, which offered expert testimony in support of its positions. Through this order, the BPU established a flexible regulatory approach to allow generators (and others) to negotiate rate discounts on natural gas transportation charges. Specifically, the BPU agreed that transportation discounts should be available on a case-by-case basis, not only in situations where there is a threat of bypass, but for other sound policy reasons as well (such as economic development).
The Board also agreed that the process for approving discounted rates could proceed, one contract at a time, without the need for a formal rule-making proceeding to establish rigid criteria for such discounts.