N.Y. Public Service Law § 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.