PSC Adjusts Credit Required from Retail Suppliers to Exclude Impact from Excessive Market Prices

The Maryland PSC has approved changes to Washington Gas Light's tariffed collateral requirements to exclude from the calculation excessive natural gas prices seen last winter

Under the prior tariff, WGL's Credit Collateral Amount related to Replacement Gas Exposure was the product of (a) daily volumes at risk, (b) the price at risk, and (c) the number of days at risk. The price risk was based on a specific formula that takes into account a number of factors, including the highest monthly average Transco Zone 6 (Non-New York) (Z6 NNY) Gas Daily Midpoint price during the preceding three winter periods.

The prior formula was said to have placed an "unreasonable burden" on retail suppliers.

Under the revised tariff, WGL will calculate the required collateral amount by excluding Gas Daily settlement prices at Transco Z6 NNY above $20.00/dth for the upcoming winter period.