Settlement at Columbia Gas Would Expand Choice Rate Eligibility, Reduce Cash-Out Penalties

A proposed settlement in several consolidated rate proceedings concerning Columbia Gas of Pennsylvania would expand the availability of choice service to small commercial customers, reduce cash-out penalties, and make other administrative changes aimed at enhancing the competitive retail market (R-2010-2215623 et. al.).

The stipulation would require Columbia to raise the volumetric limit under choice Rate SCD Small Commercial Distribution to 6,000 Mcf/year, from the current 4,000 Mcf/year. Expanding the availability of this choice rate will allow more small business customers to elect the choice rate versus the transportation rate, whose requirements can seem onerous to small customers, natural gas suppliers said.

Columbia also agreed to revise the cash in/cash out adjustment factors as follows:

Additionally, under the settlement, Columbia agrees to provide natural gas suppliers with a rescind file, which will notify suppliers if a newly enrolled distribution service customer has elected not to complete an enrollment within 10 days of signing up with a natural gas supplier.

Furthermore, Columbia will provide to suppliers, without charge, a monthly synchronization list (ACT file).

Columbia has agreed to discuss remaining administrative issues raised by suppliers in a separate collaborative, which will include issues related to: data retention, elimination of fees, discontinuance of "black-out dates", and dropping the practice of check digits.

Columbia has further agreed to limit the availability of Rate NSS (Negotiated Sales Service) to competitive situations, where a customer would not initiate service from Columbia or would no longer take service from Columbia, but for the availability of service under Rate NSS. Columbia agrees to transition existing NSS customers that are not in competitive situations to other services (Sales or Transportation) upon contract expiration but no later than July 1, 2012.

Commencing with the effective date of rates under the settlement, the unbundled gas cost portion of uncollectible accounts, which also serves as the uncollectible expense ratio for purposes of Columbia's Purchase of Receivables Program, shall be 1.52%. As a result, the discount rate for purchased Choice supplier receivables shall be 2.11% (1.52% + 0.59% administrative adder).

The stipulation also addresses Columbia's original petition to apply a BTU adjustment factor to Mcf billing. In lieu of its original proposal, Columbia has agreed with the Office of Consumer Advocate's proposal to bill base rates and commodity costs on a Dth basis.

Under the OCA method, the Dth per Mcf conversion will be determined for each Pipeline Scheduling Point (PSP) area on a monthly basis, and applied to the volumetric (Mcf) meter read for each customer in each PSP in each month.

To provide time for education of customers and conversion to Dth billing, Dth billing shall begin no later than with bills rendered June 2012. Prior to implementing the billing unit change, Columbia will work with the parties to reconcile the data Columbia uses to measure gas received and the throughput data Columbia uses for rate design and billing -- system-wide and by PSP area. Rates from the effective date of the Commission's final order until the commencement of Dth billing will be on an Mcf basis, without a BTU adjustment applied to customers' bills.

Period	Ratio of Under/Over- Deliveries to Consumption	Current Adjustment to Index Price	Proposed Adjustment to Index Price
Under- delivers during an Seasonal Flow Order (SFO) that restricts under- deliveries	0% - 10.00%	125%	120%
10.01% and over	150%	130%
Over- delivers during an SFO that restricts Over- deliveries	0% - 10.00%	75%	80%
10.01% and over	50%	70%
Non- SFO under- deliveries	0.00% - 5.00%	105%	105%
5.01% - 10.00%	115%	110%
10.01% - 15.00%	125%	120%
15.01% and over	150%	130%
Non- SFO over- deliveries	0.00% - 5.00%	90%	95%
5.01% - 10.00%	85%	90%
10.01% - 15.00%	75%	80%
15.01% and over	50%	70%