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Refund Of Supply Overcharges To Default Service Customers To Be Excluded From Price To Compare, Under Settlement
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A settlement in the 1307(f) rate proceeding of Peoples Natural Gas Company LLC (Peoples or the Company) in Pennsylvania would accelerate the refund of over-collections under the Peoples gas supply rate to default service customers, and would exclude such refunds from the price to compare
The settlement was signed by Peoples Natural Gas Company LLC, the Office
of Consumer Advocate, and the Pennsylvania Independent Oil & Gas Association. The PUC's Bureau of Investigation &
Enforcement does not oppose the settlement. An ALJ has recommended that the settlement be approved without modification
Under the settlement, Peoples will accelerate the refund of the over-collections of gas cost
commodity costs experienced during the 2022/2023 winter by decreasing the Gas Cost Adjustment
(GCA) charge to customers for the period of October 1, 2023 through December 31, 2023.
"The accelerated refund for the period of October 1, 2023, through December 31,
2023, will be excluded from the Price to Compare," the settlement provides
Peoples said in a filing that the accelerated refund will provide rate
relief for sales customers at the beginning of the heating season, rather than delaying part of the
refund to include the spring and summer seasons when usage is lower
Peoples stated that due to the accelerated nature of the over-collection refund, the Price to Compare (PTC) would be
skewed by including the refund amount in the PTC and that such PTC would not be indicative as a point of comparison for use by
customers during this period
Under the settlement, Peoples will monitor natural gas commodity prices to consider making
interim supply rate adjustment filings in the future. "The purpose of this monitoring is to avoid significant over or under
collections of gas cost commodity costs in the future," the settlement states
The settlement would also require Peoples to propose a supply hedging program if a certain price threshold is met
Specifically, "If the Company’s rate in effect for commodity reaches $5.00 or more for at least
two consecutive quarters, Peoples Natural Gas will propose a hedging program in its then-next
annual PGC filing," the settlement provides
"This provision will be in effect beginning with the October 1, 2023, quarterly
rate change and end after eight quarters," the settlement provides
Other provisions of the settlement include:
• The Peoples Natural Gas stand-alone tariffed retainage rate for all classes for both
divisions effective October 1, 2023 shall be 5.9%. This represents an average of the Company’s
proposal and OCA’s proposal. This shall not serve as the methodology for future filings but rather
a settlement methodology.
• With respect to the balancing charge, the Parties agreed to the inclusion of
overrun/operational flow order (OFO) charges. This results in a balancing charge of $0.4468 for
SGS/MGS and $0.1165 for LGS.
Docket R-2023-3037928
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Utility Agrees To Propose Supply Hedging Program If Price Trigger Met
July 25, 2023
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Reporting by Paul Ring • ring@energychoicematters.com
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