New Mexico Administrative Code
Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Chapter 10 - GAS SERVICES
Part 640 - PURCHASED GAS ADJUSTMENT CLAUSES FOR GAS UTILITIES
Section 17.10.640.13 - ANNUAL PGAC RECONCILIATION

Universal Citation: 17 NM Admin Code 17.10.640.13

Current through Register Vol. 35, No. 18, September 24, 2024

A. Annual reconciliation. Each utility filing an application for a PGAC or operating with a PGAC under the terms of this rule shall provide for an annual reconciliation of allowable gas costs incurred to billed gas costs as recorded on the books and records of the utility. A utility's proposal for the annual reconciliation shall be consistent with the general provisions described below.

B. Purpose. The purpose of the annual reconciliation report is to:

(1) substantiate the appropriateness of the amount of the over-collected or under-collected PGAC dollars remaining in the PGAC balancing account at the end of the annual reconciliation period; and

(2) to establish the annual reconciliation factor for refunding or surcharging customers for that period's PGAC balancing account amount, unless the utility utilizes another commission-approved method for refunding or surcharging customers.

C. Reconciliation methodology. In general, the PGAC balancing account amount shall consist of the difference between allowable gas costs incurred during the annual reconciliation period and gas costs billed during the same period. The PGAC balancing account amount shall also contain all applicable amounts included by order of the commission. The reconciliation process shall substantiate the PGAC balancing account amount and shall be performed utilizing the amounts recorded on the books and records of the utility applicable to the annual reconciliation period. The annual reconciliation shall cover a period of twelve (12) consecutive historical months. The specific period that comprises the annual reconciliation period shall be applied for in the utility's initial application filing for a PGAC. The specific period may be changed by commission order.

D. Annual reconciliation report. An annual reconciliation report shall be filed with the commission no later than four (4) months following the end of the annual reconciliation period. The annual reconciliation report shall be certified by an officer of the company to be true, correct, and in compliance with the reconciliation methodology determined herein. The annual reconciliation report shall generally consist of, but not be limited to, the following.

(1) Agreed-upon procedures. A report by an independent auditor, who shall perform agreed-upon procedures pursuant to Statement on Standards for Attestation Engagements (SSAE) No. 10 and No. 11 , or successor auditing standards, shall be submitted with the annual reconciliation report. The auditor's report shall set forth the procedures and findings of the review.

(2) Schedule of gas purchases by account number. A summary schedule shall be submitted detailing all applicable gas purchase dollars and volumes expensed for the annual reconciliation period by account number as prescribed in the applicable uniform system of accounts. The schedule shall also include, but not be limited to, expenses associated with gas storage-related transactions, exchange transactions, and transactions related to the transportation of PGAC-related gas purchases.

(3) Schedule of gas purchases by supplier. A summary schedule shall be submitted detailing all applicable gas purchase dollars and volumes expensed for the annual reconciliation period by supplier. Purchases from suppliers totaling less than 3% of total purchase costs for the period shall be summed in an "All Others" category.

(4) Schedules of PGAC revenues. Schedules shall be submitted summarizing gas sales dollars and volumes billed and other PGAC revenues collected and attributable to the annual reconciliation period.

(5) Schedule of costs and revenues billed. A schedule shall be submitted summarizing the above schedules of costs and billed revenues, gas related taxes, reconciling items, and other applicable amounts for the annual reconciliation period resulting in the total amount under-collected or over-collected from customers. This over-collected or under-collected amount shall include an interest charge or credit at the rate specified by NMSA 1978 Section 62-13-13, or at such other rate as may be approved by the commission.

(6) Calculation of the annual or other commission-approved reconciliation methodology. A schedule shall be submitted detailing the calculation of the factor to be utilized in refunding or surcharging the over-collected or under-collected amount.

E. Untimely filing of annual reconciliation report. If the utility fails to timely file its annual reconciliation report as required by Subsection D of this section, the commission may terminate the utility's PGAC and the utility automatically shall be subject to sanctions in accordance with NMSA 1978 Sections 62-12-4 through 62-12-6.

F. Annual reconciliation factor. The annual reconciliation factor shall be calculated by dividing the over-collection or under-collection amount by the estimated sales volumes in the annual reconciliation factor implementation period. The specific period of time that comprises the annual reconciliation factor implementation period shall be applied for in the utility's initial application filing for a PGAC, and the specific period may be changed by commission order.

Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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