Pennsylvania to Standardize Definition of Unaccounted-for-Gas, Adopt Metrics

The Pennsylvania Public Utility Commission (PUC) today voted to issue for comment proposed regulations that would create a uniform definition of unaccounted-for-gas (UFG) and level metrics for natural gas distribution system losses for the state's natural gas distribution companies (NGDCs).

A written proposed order was not immediately available.

According to a news release, the Commission voted 5-0 to seek comment on the proposed rulemaking, which would help eliminate any reporting inconsistencies of UFG that may currently exist.

"Creating a uniform definition for UFG will provide the Commission with a consistent, fair, clear and concise method to assess UFG within gas cost proceedings and filings, annual reports and other investigations. The proposed definition and metrics for UFG also aligns and enhances the Commission's efforts to monitor and regulate natural gas pipelines," the PUC said.

"These proposed regulations would benefit consumers, who would no longer be responsible for the costs associated with excess levels of UFG above the metrics allowance," the PUC said.

The PUC said that the metric system proposed in the rulemaking establishes a five-year schedule that would permit companies to report a maximum of 5 percent UFG in year one; 4.5 percent in year two; 4 percent in year three; 3.5 percent in year four and 3 percent in year five.

A February Staff report (click here) noted that LDCs often report UFG based upon their own definition, which varies from company to company resulting in inconsistent reporting. "The lack of a standard definition of UFG may tempt NGDCs to trivialize the importance of minimizing the volume of UFG," Staff said.

The docket is L-2012-2294746.