Code of Massachusetts Regulations › 220 CMR - DEPARTMENT OF PUBLIC UTILITIES › Title 220 CMR 6.00 - Standard Cost of Gas Adjustment Clause › Section 6.06 - Gas Adjustment Factor Formulas

Current through Register 1525, July 5, 2024
The GAFs incorporate on a seasonal basis changes in costs,
		  refunds, etc., such that when a seasonal GAF ($/therm or $/CCF) is added to a
		  base rate, a proper seasonal charge results. The GAFs shall be computed on a
		  semi-annual basis using forecasts of seasonal gas costs, carrying charges, send
		  out volumes, and sales volumes. Forecasts may be based on either historical
		  data or company projections, but must be weather-normalized. Any projections
		  must be documented in full with each filing.
The base and supplemental GAF formulas below form the basis for
		  the calculation of the seasonal GAFs (peak and off-peak) to be used in billing.
		  The base GAF as calculated at the beginning of each summer season shall serve
		  as the off-peak GAF. The peak GAF shall be the base GAF, as calculated at the
		  beginning of the winter season, plus the supplemental GAF.
Base GAF Formula
: The base GAF shall
		  be calculated at the beginning of each season according to the following
		  formula:
Click
		  here to view image
Supplemental GAF Formula
: The
		  supplemental GAF shall be calculated for the peak season according to the
		  following formula:
Click
		  here to view image
Where:
BC
:
Base Commodity
		  Costs
- 12-month volumes at annual weighted average commodity cost
		  of base gas supplies (
e.g
., F-1, CD-6, GS-6, etc.).
D
:
Base Demand
		  Charges
- 12-month demand charges associated with base send out
		  volumes.
Dao
:
Demand Charge
		  Reallocation
- As derived using the proportional responsibility
		  allocator.
S
:
Supplemental Gas
		  Costs
- Total cost of supplemental sendout.
SM
:
Supplemental Margin
		  Reallocation
- Supplemental gas supply sendout volumes times the
		  per-unit supplemental margin.
FC
:
Total Inventory
		  Finance Charges
- As billed in each peak season in anticipation of
		  subsequent off-peak season charges. The total shall represent an accumulation
		  of the projected charges as calculated using the monthly average of financed
		  inventory at the existing (or anticipated) financing rate through a trust or
		  other financing vehicle.
Rb
:
Base Reconciliation
		  Adjustment
- Account 175.1 balance, inclusive of the associated
		  Account 175.1 interest, as outlined in
		  220 CMR
		  6.08. Over collections shall be treated as
		  positive in the above formula.
Rs
:
Supplemental
		  Reconciliation Adjustment
- Account 175.2 balance, inclusive of
		  the associated Account 175.2 interest, as outlined in
		  220 CMR
		  6.08. Over collections shall be treated as
		  positive in the above formula.
M
:
Nonfirm Revenue
		  Margin
- any profits on nonfirm sales as calculated by forecasting
		  nonfirm rates, costs, and associated nonfirm sales volumes for the 12-month
		  period beginning on the effective date of the base GAF. Also includes any other
		  nonfirm service revenues.
R1, R2
:
Per-unit Supplier
		  Refunds
- The per-unit supplier refunds associated with refund
		  program credits derived from Account 242.1, "Undistributed Gas Suppliers'
		  Refunds." See
		  220 CMR
		  6.07.
B
: Per-unit embedded gas costs.
P:Vol
: Forecasted peak season firm
		  sales volumes.
T:Vol
: Forecasted annual firm sales
		  volumes.