Iowa Administrative Code › Agency 199 - Utilities Division › Utilities and Transportation Divisions › Chapter 19 - Service Supplied by Gas Utilities › Rule 199-19.10 - Purchased Gas Adjustment (PGA)

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Purchased gas adjustment clause.
Pursuant to
				Iowa Code section 476.6(11), purchased gas adjustments shall be computed
				separately for each customer classification or grouping previously approved by
				the commission. Purchased gas adjustments shall use the same unit of measure as
				the utility's tariffed rates. Purchased gas adjustments shall be calculated
				using factors filed in annual or periodic filings according to the following
				formula:
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PGA is the purchased gas adjustment per unit.
S is the anticipated yearly gas commodity sales volume for
				  each customer classification or grouping.
C is the volume of applicable commodity purchased for each
				  customer classification or grouping required to meet sales, S, plus the
				  expected lost and unaccounted for volumes.
Rc is the weighted average of applicable commodity prices or
				  rates, including appropriate hedging tools costs, to be in effect September 1
				  corresponding to purchases C.
D is the total volume of applicable entitlement reservation
				  purchases required to meet sales, S, for each customer classification or
				  grouping.
Rd is the weighted average of applicable entitlement
				  reservation charges to be in effect September 1 corresponding to purchases
				  D.
Z is the total quantity of applicable storage service
				  purchases required to meet sales, S, for each customer classification or
				  grouping.
Rz is the weighted average of applicable storage service
				  rates to be in effect September 1 corresponding to purchases Z.
Rb is the adjusted amount necessary to obtain the anticipated
				  balance for the remaining PGA year calculated by taking the anticipated PGA
				  balance divided by the forecasted volumes, including storage, for one or more
				  months of the remaining PGA year.
E is the per unit overcollection or undercollection
				  adjustment as calculated under subrule 19.10(7).
The components of the formula shall be determined as follows
				  for each customer classification or grouping:
a. The actual sales volumes S for the prior
				12-month period ending May 31, with the necessary degree-day adjustments, and
				further adjustments approved by the commission.
Unless a utility receives prior commission approval to use
				  another methodology, a utility shall use the same weather normalization
				  methodology used in prior approved PGA and rate case.
b. The annual expected lost and unaccounted
				for factors shall be calculated by determining the actual difference between
				sales and purchase volumes for the 12 months ending May 31 or from the current
				annual IG-1 filing, but in no case will this factor be less than 0.
c. The purchases C, D, and Z which will be
				necessary to meet requirements as determined in 19.10(1).
d. The purchased gas adjustments shall be
				adjusted prospectively to reflect the final decision issued by the commission
				in a periodic review proceeding.