New York’s Leaked Gas Cost Recovery Methodology
Gas rate recovery is not linked to actual leakage each year, but rather fixed every three years to reflect historical averages.
LPDD Recommendation: “PHMSA or state pipeline safety authorities could update their existing regulations to require the prompt detection and repair of all leaks.”
LPDD Recommendation: “State PUCs could change existing cost recovery frameworks where they discourage repair by, for example, imposing the risk of increased leakage entirely on customers.”