Pa. PUC Adopts Order Changing Capacity Release Prices At PECO; Balancing Charge; Retainage Rate
October 2, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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The Pennsylvania PUC approved without modification a settlement among PECO, the Bureau of Investigation and Enforcement, the Office of Consumer Advocate, and the Office of Small Business Advocate to resolve PECO's Section 1307(f) purchased gas cost (PGC) rate investigation
According to an ALJ, under PECO's current rates, the low volume transportation (LVT) program firm service capacity is priced at less than the weighted average demand cost that PECO pays for long-haul firm service capacity to serve PGC (default service) customers. "Thus, the LVT program customers effectively pay less for long-haul firm service capacity than PGC customers," an ALJ noted
The adopted settlement provides that, effective December 1, 2019, PECO will revise the capacity releases associated with the Low Volume Transportation (LVT) program as follows:
(a) The capacity releases associated with the LVT program will be priced at a weighted average maximum demand cost commensurate with the Company’s STX, ETX, ELA, WLA and M1-M3 demand quantities for contracts TETCO FT-1 800231, 910510 and the CDS contract, all as found on page 3 of Section 7 of the Advance Information; and
(b) The LVT program capacity will be released on FT contract 910510 with an ELA to M3 path. Should the LVT program continue to grow, such that the capacity required for the LVT program exceeds the capacity available on contract 910510, the Company will then release similar capacity on contract 800231 with the an ELA to M3 path, which capacity releases will be priced at a weighted average demand cost as described in Paragraph 26(a) above.
The adopted settlement also provides that a Balancing Charge of $0.0076 per Mcf will become effective on December 1, 2019, which is $0.0002 per Mcf more than the currently effective Balancing Charge.
Under the adopted settlement, the retainage volume adjustment will be 1.8% for the 12 months beginning December 1, 2019 and ending November 30, 2020, which was calculated based on the weighted three-year average of LUFG plus the portion of Company-use gas attributable to preheater gate station usage for the period ending June 30, 2019.
Under the adopted settlement, the total PGC Rate, effective December 1, 2019, will be $4.9290 per Mcf Rates GR and CAP; $4.8970 per Mcf for Rate GC and the Excess Off-Peak Use Rider; and $4.8845 per Mcf for Rates OL, L and MV-F