Pennsylvania Establishes Limits for Unaccounted-for-Gas at Utilities

The Pennsylvania Public Utility Commission issued a final order to create a uniform definition of unaccounted-for-gas (UFG) and loss level metrics for natural gas distribution system losses for the state's natural gas distribution companies (NGDCs).

The rulemaking establishes a 5-year compliance metric schedule to permit companies to recover 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 and subsequent years. The metrics should be applied on an annual basis for the twelve months ending Aug. 31 and will take effect beginning with each NGDC's first subsequent gas cost proceeding one year after the effective date of the rulemaking, the PUC said.

Unaccounted for natural gas is defined as the difference between total amount of gas supplies delivered to the NGDC and the amount of gas that the NGDC subsequently delivers to its retail, commercial and industrial customers, adjusted for company use, temperature, pressure variations, or other allowed variables. It is the gas that is lost during transportation from supplier to customer, the PUC said.

Docket No. L-2012-2294746