Current through Register Vol. 54, No. 38, September 21, 2024
(a) The PTC rate
must be expressed on a per MCF or dekatherms (Dth) basis and consist of the
following elements:
(1) The natural gas
supply charge determined in the NGDC'S Section 1307(f) proceeding, including
the reconciliation for over and under collections.
(2) The GPC.
(3) The MFC.
(b) An NGDC shall file a tariff change under
66 Pa.C.S. §
1308(a) (relating to
voluntary changes in rates) to identify the natural gas procurement costs
included in its base rate and propose tariff revisions designed to remove those
costs from its base rate and to recover those annual costs as part of the PTC
(the GPC portion) on a revenue neutral basis.
(1) Natural gas procurement costs must
include the following elements:
(i) Natural
gas supply service, acquisition and management costs, including natural gas
supply bidding, contracting, hedging, credit, risk management costs and working
capital.
(ii) Administrative,
legal, regulatory and general expenses related to those natural gas procurement
activities, excluding those related to the administration of firm storage and
transportation capacity.
(2) An NGDC's natural gas procurement costs
shall be updated in its next base rate case.
(c) An NGDC shall file an MFC rider. The MFC
rider must remove the cost of uncollectibles applicable to natural gas costs
from its distribution rates and recover those annual costs as part of the PTC
on a revenue neutral basis.
(1) A write-off
factor for each customer class is determined by dividing the uncollectible
expense by revenues. This factor applied to the natural gas supply charge
determined in the NGDC's Section 1307(f) proceeding is the implementation MFC
amount that must be removed from distribution rates on a revenue neutral
basis.
(2) After implementation,
unbundled distribution charges may not be adjusted for the write-off factor
outside of a base rate case.
(3)
The MFC for each customer class must be equal to the write-off factor times the
natural gas supply charge determined in the NGDC's Section 1307(f) proceeding
and shall be updated quarterly to reflect new natural gas supply charges
effective with each 1307(f) filing.
(4) The write-off factor shall be updated in
an NGDC's next base rate case.
(d) The GPC and MFC tariff riders must
identify:
(1) How the surcharges are
calculated.
(2) Which costs shall
be recovered through the surcharge by:
(i)
Customer class.
(ii) Federal Energy
Regulatory Commission account number, including the specific subaccounts used
to recover eligible procurement costs.
(e) The GPC and MFC are not subject to
reconciliation for a prior period over or under collections.
