natural gas refueling fee;
repeal
HB 2261 repeals the prohibition on service fees for natural gas provided as fuel for alternative fuel vehicles.
Currently, public power entities cannot assess a monthly service fee for natural gas provided for the purpose of refueling alternative fuel vehicles. The city of Mesa is the only public power provider at this time that offers natural gas, in addition to, electricity. Laws 2000, Chapter 405, placed a prohibition on such service fees as part of the alternative fuel program. Homeowners or commercial enterprises that own natural gas refueling devices operate on a dual meter system. One meter measures natural gas consumption for the home or business and the other, consumption for the purpose of refueling alternative fuel vehicles. The dual meter system is necessary due to the fact that natural gas used to propel an internal combustion engine is taxed as a motor fuel and consumers need an accurate means to calculate consumption in order to pay the correct tax.
Dual meters are also used by utility companies to bifurcate pricing according to the way the fuel is used. Natural gas sold for refueling an alternative fuel vehicle is priced at a different rate than gas used to power home appliances such as heaters or hot water tanks, this is due to the fact that vehicles consume fuel at a higher volume than appliances. Traditionally, those consumers purchasing natural gas for their alternative fuel vehicles have also been assessed a service fee to cover the cost of the second metering system.