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margin and actual nongas costs exists, petitioner is not entitled
to use the PGA mechanism, as described above, to adjust its
anticipated nongas margin revenues.
Energy Adjustment Clause
Petitioner adjusts approved tariff rates for electricity
using the energy adjustment clause (EAC), a mechanism similar to
the PGA mechanism. Approved tariff rates for electricity are set
at the beginning of each year, and the EAC mechanism allows
petitioner to adjust periodically the approved tariff rates for
electricity to recover increases in the costs of supplying
energy, including fluctuations in gas costs that are used to
generate electricity. The cost adjustments are determined on a
monthly basis and are applied to meter readings made during the
month. Yearly and monthly filings are required as part of the
EAC mechanism, but reconciliations are incorporated on a monthly
basis, alleviating the need for a yearly reconciliation.
Petitioner’s Accounting Method
In order to balance its workload each month, petitioner
reads meters and bills customers for gas and electricity based on
21 billing cycles. Accordingly, petitioner reads its customers’
meters every month on 21 different schedules and, on that basis,
submits bills for the price of gas actually consumed by each
customer from the last meter reading to the current meter
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Last modified: May 25, 2011