Settlement Would Increase Retainage Rate at PECO

A settlement in PECO's Section 1307(f) Purchased Gas Cost rate investigation would increase the retainage volume adjustment for transportation service customers to 3.0% for the 12 months beginning December 1, 2011 and ending November 30, 2012 (R-2011-2239263).

Currently, the retainage figure in PECO's transportation tariff is 2.8%.

The settlement was signed by PECO, the Office of Trial Staff, Office of Consumer Advocate, Office of Small Business Advocate, and the Philadelphia Area Industrial Energy Users Group.

Additionally, settling parties agreed that, for the twelve-month periods ending November 30, 2013 and November 30, 2014, the retainage volume adjustment will be calculated based on weighted three-year averages of Lost and Unaccounted for Gas (LUFG) less Company-use gas for the periods ending June 30, 2012 and June 30, 2013, respectively.

PECO will also submit with its testimony in its next annual Section 1307(f) proceeding a formal plan to reduce its LUFG. As part of the plan PECO will identify the principal sources of LUFG; develop an action plan for addressing each such potential source; and describe how it will track and measure its progress in reducing the identified sources of LUFG.

PECO's plan will be in addition to its current, on-going accelerated program to repair and replace its gas infrastructure.