Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 505 - UNIFORM SYSTEM OF ACCOUNTS FOR GAS UTILITIES › Subpart B - ADDITIONS TO AND DELETIONS FROM CFR PROVISIONS › Section 505.1170 - Account 117

Current through Register Vol. 48, No. 28, July 12, 2024
In Account 117, Gas stored underground - Noncurrent, the following
				  language replaces the instructions provided in Accounts
				  117.1, Gas
				  stored - base gas, 117.2, System balancing gas, 117.3, Gas stored in reservoirs and
				  pipelines - noncurrent, 117.4, Gas owed to system gas, and the special instructions
				  to these accounts.
"A. This Account shall
				include the cost of recoverable gas purchased or produced by the utility which is
				stored in depleted or partially depleted gas or oil fields, or other underground
				reservoirs, and held for use in meeting service requirements of the utility's
				customers.
B. Gas stored during the year
				shall be priced at cost according to generally accepted methods of cost
				determination consistently applied from year to year. Transmission expenses for
				facilities of the utility used in moving the gas to the storage area and expenses of
				storage facilities shall not be included in the inventory of gas except as may be
				authorized or directed by the Commission.
NOTE B-1: In general, gas stored from the supply in an integrated
				  system shall be priced at the average cost of the gas constituting the common supply
				  of the system, although this general rule may be departed from where conditions of
				  system operation of gas supply and utilization permit a valid presumption that the
				  gas stored may be considered to be from specified sources, as indicated
				  below.
NOTE B-2: When in harmony with the over-all system operation of
				  gas supply and utilization, and the presumption is consistently observed from year
				  to year, gas stored during the year may be presumed to be from total gas purchases,
				  or from purchases from specified sources. When either of these presumptions is
				  proper, the cost of gas stored shall be the weighted average cost of all gas
				  purchased, or the weighted average cost of purchases from the specified sources, as
				  appropriate. The weighted average cost may be the average for the preceding twelve
				  months, except, where a significant change occurs in the cost of gas, the full
				  effect of such change shall be reflected for the period after the change is
				  effective.
NOTE B-3: When in harmony with the over-all system operation of
				  gas supply and utilization, and the presumptions are consistently observed from year
				  to year, gas stored during the year may be presumed to be from identified sources of
				  the utility's own production. Such stored gas shall be priced at the weighted
				  average cost of gas produced from the specified production areas. Where this
				  presumption is made, or where the stored gas is identified as a matter of fact under
				  circumstances which do not permit a proper application of the theory of
				  displacement, the utility shall maintain separate records of the cost of gas
				  produced from such areas and the derivation of the cost used for stored gas from
				  such sources.
NOTE B-4: Where gas is purchased specifically for storage, or a
				  price concession is received because of the storing of purchased gas, such gas shall
				  be priced at the net contract price of the gas so purchased and stored.
NOTE B-5: The provisions of this instruction and the related
				  footnotes shall not be construed as permitting or authorizing a restatement of the
				  amounts at which stored gas inventories are stated on the utility's books at the
				  effective date of this instruction, except as may be authorized by the
				  Commission.
C. Withdrawals of
				gas may be priced according to the first-in-first-out, last-in-first-out, or
				weighted average cost method, in connection with which a "base stock" may be
				employed provided the method adopted by the utility is used consistently from year
				to year and the inventory records are maintained in accordance therewith. Approval
				of the Commission must be obtained for any other pricing method, or change in the
				pricing method adopted by the utility.
D. If the gas of any storage project is withdrawn
				below the amount established as "base stock" or encroaches upon native gas of a
				storage reservoir, and such gas is to be replaced within 12 months, it shall be
				permissible to price such gas at the estimated cost of replacement with purchased
				gas and to record a deferred credit therefor. For the purpose of this instruction,
				Account 808, Gas withdrawn from storage - Debit, shall be charged with the estimated
				cost of such replacement gas and Account 253, Other deferred credits, credited. When
				replacement of the gas is made, the amount in Account 253 shall be cleared and this
				account credited. This accounting will not affect normal accounting for inputs and
				withdrawals from storage.
E. Separate
				records shall be maintained for each storage project of the Mcf of gas delivered to
				storage, withdrawn from storage, and remaining in storage. The projects shall be
				grouped, however, for the purpose of maintaining inventory cost records of the cost
				of gas in storage. Exceptions to this general rule are permitted in any of the
				following circumstances:
(a) Projects at the supply
				end of long transmission lines,
(b)
				Projects located on separate noninterconnected pipeline systems, and
(c) Projects which by contractual arrangements
				approved by the Commission are devoted exclusively to the service of specified
				customers, and no portion of the gas withdrawals from any such project becomes part
				of the common system gas supply by displacement or otherwise.
Where the utility establishes specified volumes of gas as "base
				  stock," separate inventory cost records by projects shall be maintained
				  therefor.