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Indiana Gas Co. v. Indiana Finance Authority

ELR Citation: 42 ELR 20226
Nos. 93A02-1112-EX-1141, (Ind. Ct. App., 10/30/2012)

An Indiana appeals court reversed the Indiana Utility Regulatory Commission's approval of a purchase and sales agreement for "substitute natural gas" an energy company plans to produce at its new coal gasification plant. The contract meets the common law definition of an enforceable contract. It also guarantees savings to retail end users throughout the term of the contract as required by the state's Substitute Natural Gas (SNG) Act. But the contract's definition of retail end use customer inappropriately included industrial transportation customers. The state legislature did not intend industrial transportation customers, who utilize gas utilities only for their transportation services, to be subject to the SNG Act as retail end use customers.