- 6 -
factor). The PGA factor is calculated based upon the weighted
average per unit price of gas for the upcoming month, using sales
volume that was established in the annual PGA filing. Each
month, the PGA factor, together with the approved tariff rate, is
applied to the gas usage to determine how much is billed to each
customer.
The final filing requirement of the PGA mechanism is the PGA
reconciliation filing. This filing is made by October 1 and
compares estimated gas costs with actual gas revenues that are
billed through the PGA mechanism during the year, net of the
prior year’s PGA reconciliation. Negative differences in the
reconciliation are underbillings, and positive differences are
overbillings. Petitioner internally tracks over and/or
underbillings for each month of the PGA year. The cumulative
annual over or undercollection is recorded in the annual PGA
reconciliation. Underbillings are recouped through 10-month
adjustments to the PGA factor from which the underbilling was
generated. Overbillings are returned to the customer class from
which they were generated either by bill credit, check, or 10-
month adjustments to the PGA factor from which the overbillings
were generated. If, however, the overcollection exceeds
5 percent of the annual cost of gas subject to recovery for a
specific PGA grouping, the amount overbilled is refunded by bill
credit or check. If a discrepancy between estimated nongas
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011