How does UPL get around the problem of line extension limitations?
Natural gas cooperatives are exempt from regulation by the state’s public utility commission (“PUC”). Since the co-op’s rates are not subject to PUC jurisdiction and rate base policies, the co-op has the flexibility to install distribution lines that exceed the line extension policies of most gas utilities. Because of the increased flexibility in establishing fees and rates, the co-op can bring cost effective natural gas service to communities that might otherwise not be able to obtain service from a regulated gas utility.
