52 Pa. Code § 62.223 - PTC

(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.

Notes

52 Pa. Code § 62.223