Stipulation at Equitable Gas Would Lower Retainage Rate

A stipulation in Equitable Gas Company, LLC's 1307(f) proceeding would lower the retainage allowance for residential transportation service to 6% (R-2011-2223563,).

Currently, the retainage rate for residential transportation service is 8%.

Equitable's normal Lost and Unaccounted for Gas values have consistently been at the 5.0% to 6.0% range for the last several years, and the current retention allowance for transportation service to commercial and industrial customers is 6.0%.

Accordingly, settling parties agreed to reduce the retainage factor for residential service to 6%, to reflect both historic conditions as well as to align the factor with that imposed on non-residential customers.

The reduction in the residential transportation retainage rate would be effective on October 1, 2011.

Reducing the retainage allowance for residential transportation service from 8% to 6% increases Equitable's proposed Purchased Gas Cost rate from $7.09 per Mcf to $7.10 per Mcf.

Settling parties included Equitable, the PUC Office of Trial Staff, and the Office of Consumer Advocate.