PSC Order Accepts Complaint Against Gas Utility Discontinuing Service

On April 23, 2018, EQT Production Company notified Peoples Gas KY, LLC that it intended to abandon a gas pipeline on September 1, 2018, and that gas purchased by Peoples Gas KY for resale to residential customers would no longer be available.  Peoples Gas KY in turn notified Georgia Johnson of Garner, Kentucky on May 16, 2018 that it would cease providing her gas service to her home after that time.

 

On August 7, 2018, on behalf of Georgia Johnson, KRC filed a formal complaint with the Public Service Commission, arguing that Peoples Gas is a "utility" regulated under the Public Service Commission rules, and that ceasing to provide gas service simply because a particular gas supplier ceased to offer the gas to Peoples, violated the obligation of Peoples to provide "adequate service."  The complaint seeks an Order from the Commission confirming that Peoples is a utility subject to PSC regulation, and directing Peoples to continue natural gas service to Ms. Johnson.

 

On September 7, 2018, the Commission entered an Order finding that the complaint established a prima facie case and directing Peoples Gas KY LLC to either "satisfy the matters complained of" (i.e. to continue to provide service) or to answer the complaint.  A copy of the Order, and of the Formal Complaint, can be read here.  The Case No. is 2018-00263.

 

KRC thanks Diversified Oil and Gas, the current owner of the pipeline, for agreeing to postpone until October 1, the abandonment of the gas pipeline that EQT had indicated would occur on September 1.  The extra month of "breathing room" may be enough to prevent interruption of Ms. Johnson's gas service if Peoples Gas does the right thing and identifies other sources of gas supply that could serve Ms Johnson and other customers currently served with gas from that pipeline.