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schedules and procedures are approved by the regulatory agencies,
the PGA mechanism allows petitioner to recognize fluctuations in
gas costs quickly and to incorporate those changes in its
customers’ bills without formal rate-setting procedures.
Accordingly, petitioner can recover its gas costs on a timely
basis throughout the year.
The period that the PGA mechanism covers runs from
September 1 of the first year to August 31 of the following year
(the PGA year). As part of the PGA mechanism, certain
disclosures are required throughout the year, including an annual
PGA filing, monthly PGA filings, and an annual PGA reconciliation
filing. The annual PGA filing is made prior to August 1 of each
year and estimates anticipated sales and expenses for the
upcoming PGA year. In the annual PGA filing, projected gas costs
are established and incorporated into the approved tariff rates.
This projection is based on gas actually used and actually billed
during the previous year with adjustments for weather
normalization.
Periodic PGA filings are made throughout the calendar year
at the end of each calendar month to adjust the billing rate to
reflect near-concurrent gas costs, as the price of gas
fluctuates. Accordingly, each month, rates that are set forth in
the annual PGA filing are increased or decreased without normal
rate-setting procedures by a pricing adjustment factor (PGA
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Last modified: May 25, 2011