NRRI 78-X Final Report On THE ALLOCATION OF INCREASING GAS SUPPLIES IN OHIO


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By

Daniel Z. Czamanski
Assistant Professor of City and Regional Planning

Jean-Michel Guldmann
Assistant Professor of City and Regional Planning

With

Gary L. Johnson
Emile Snijders

Submitted to the Public Utilities Commission of Ohio

November 1978

The study reported on in the enclosed three volumes was requested by the Public Util.ities Commission of Ohio (PUCO) to assist it in the formation of policies concerning the allocation of increasing gas supplies in Ohio.
There is a great number of potential .new service policies that could have been subjected to evaluation in thi.s study. Generally potential new service policies can be defined in terms of (a) the type of customer to receive new service, (b) the location of the customer in relation to the existing distribution system, and (c) the contractual arrangement under which the new service is to be provided. The potential of introducing combined policies in terms of the above categories and the differentiation of policies in terms of time of implementation increases vastly the number of policies that need to be analyzed.
Due to time and budget limitations only representative new service policies were studied under alternative assumptions concerning future conditions, especially those related to the availability of various types of energy and associated prices. In particular, four policies were analyzed under seven energy scenarios. The four policies are:
1. No New Service Policy - the present ban is continued;
2. Company Initiative Policy - this policy permits the company to provide new service within the supply limits and in a particular order of customer classes. Residential, commercial, and industrial customers within the currently served areas are hooked-up ;n sequence, followed by residential customers outside the currently served areas;
3. Selected Residential Service - only residential customers within the currently served areas are hooked-up;
4. Industrial Service - only industrial customers within the currently served areas are connected.
The mere existence of a multitude of possible new service policies suggests that the choice of the preferred policy be based on the capacity of the policy to satisfy regulatory objectives. Among the traditional objectives of regulatory policies are concerns for financial stability of the regulated utility and adequacy of the quantity and quality of the supplied services. More recently, due to the newly revealed energy scarcity and the associated growth in utility bills, regulatory policies have been increasingly subjected to evaluations in terms of changes in production and end-use efficiency and ;n terms of fairness and the redistribution of income that they induce.

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