New York Laws
Article 4 - Provisions Relating to Gas and Electric Corporations; Regulation of Price of Gas and Electricity
66-E - Monitoring of Natural Gas Procurement.

§ 66-e. Monitoring of natural gas procurement. 1. The commission shall
continue to monitor natural gas procurement contracts and practices of
gas corporations and determine whether any of such practices or
provisions of any such contracts are anti-competitive in force or effect
or otherwise contrary to the public interest. Such monitoring shall
include an examination of the prevailing market prices in the state for
gas supplies including domestic producer prices for natural gas.

2. In any application for a rate increase, a gas corporation shall
show all sources of its gas supply and anticipated changes thereof and
demonstrate that other dependable and adequate lower priced supplies are
not available. Where any of such sources is an affiliated company, the
applicant shall have the burden to prove all related natural gas
purchase or transportation prices and conditions are fair and
reasonable.

3. The commission shall, upon complaint or upon its own motion,
investigate the circumstances under which existing gas procurement
contracts were made. Where the commission concludes that a gas
corporation was imprudent in the making or administration of such
contract, the commission shall exercise its authority to limit the rates
charged by such gas corporation to amounts no higher than those which
would have been justified had such corporation acted in a prudent
manner.

Structure New York Laws