Energy Choice
                            

Matters

PSC Opens "In-Depth" Review of Default Service

May 15, 2015

Email This Story
Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The District of Columbia PSC has commenced an "in-depth" review of Washington Gas Light's default service procurement and design of the Purchased Gas Charge, and has sought comment on its proposed review plan

"[T]he Commission believes that it is time to take a more in-depth review of the PGC to ensure that the rates being charged for natural gas supply service to default customers are just and reasonable," the PSC said.

"[T]he Commission has recently received several complaints that have raised questions about various aspects of costs related to the PGC," the PSC noted

The Commission tentatively concludes that Task 1 in the review will be a management audit. Its purpose will be to review WGL's purchasing process and policies for the acquisition of the default natural gas supply to determine:

a. Whether the Company's purchasing policies and processes are sufficient to meet the objectives of the Company's natural gas supply requirements for the default supply program;

b. Whether the procurement planning is sufficient to ensure reliable supply for the default supply program at optimal prices that are fair, just and reasonable;

c. Whether the Company reviews its existing and potential supply plan for improvements and for consistency with its long-term strategic supply plan, and how effective is that review process;

d. How the Company's natural gas purchasing process compares to the best practices of other natural gas distribution companies in this region; and

e. Whether WGL's asset management is reasonable and whether changes are required.

The Commission tentatively concludes that Task 2 will be an attestation engagement (such as an Agreed-Upon Procedures engagement). Its purpose is to determine:

a. Whether all aspects of the PGC are being calculated accurately and applied to the bills of default supply customers correctly;

b. Whether the items that are included in the PGC tariff are consistent with Commission Orders and if not, identifying those items that are not consistent with Commission Orders; and

c. Whether the asset management costs and revenues have been accurately calculated and recorded in the PGC.

The PSC sought comment on its proposed review plan

FC 1129

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Business Development Coordinator -- Retail Supplier
• NEW! -- Senior Analyst, Power Supply -- Retail Supplier
• NEW! -- Retail Energy Analyst -- Retail Supplier -- Houston
• NEW! -- Pricing Analyst -- Retail Supplier
• NEW! -- Senior Energy Supply Analyst -- Retail Supplier -- Houston
• NEW! -- Vice President, Commercial Sales -- Retail Provider -- Houston
• NEW! -- Regional Sales Manager-Mass Markets -- Retail Supplier -- Houston
• NEW! -- Special Billing Analyst -- Retail Provider -- Houston
• NEW! -- Market Relations Analyst -- Retail Supplier -- Houston
• NEW! -- Billing Analyst -- Retail Supplier -- Houston
• NEW! -- Account Manager -- Houston
• NEW! -- Director of Operations -- Retail Supplier -- Houston
• Operations Analyst -- Retail Supplier
• Analyst, Residential Pricing and Analysis -- Retail Supplier -- Houston
• Regional Sales Manager --Retail Provider -- Dallas, TX