Settlement Would Modify POR Discount at Pennsylvania Utility, Adopt Bypassable Procurement Charge

A settlement among Equitable Gas Company, the Office of Consumer Advocate, and the Office of Small Business Advocate would adopt a new, bypassable gas procurement charge at Equitable, and also modify the Merchant Function Charges and therefore purchase of receivables discount rates.

The settlement would adopt a bypassable Gas Procurement Charge of $0.015/Mcf, representing certain procurement-related costs required to be unbundled by the PUC.

The settlement would also adopt Merchant Function Charges of 1.5120% for residential rate schedule RS, and 0.4990% for commercial and industrial rate schedules GSS and GSL. Under the current purchased gas costs, the Merchant Function Charge would be $0.086/Mcf for residential rate schedule RS, and $0.028/Mcf for commercial and industrial rate schedules GSS and GSL.

The new MFCs would be reflected in the POR discount rates as well.

As a result, the residential POR discount would be modified to be 1.5492%, and the commercial and industrial POR discount would be modified to be 0.5304%

Docket R-2012-2333983