MidAmerican Energy Company - Page 6




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            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                                






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