|
Consulting |
Search |
Settlement Reached to Align UGI Central Penn Gas Rate Classes, Retail Operations with Affiliates
June 28, 2011
Email This Story
Parties have reached a settlement in UGI Central Penn Gas' rate case which would implement, without substantive modification, Central Penn Gas' proposed changes in its rate classifications to align the classes with those used at affiliates UGI Utilities and UGI Penn Natural Gas (R-2010-2214415).
Additionally, the settlement would accept Central Penn Gas' application to adopt the supplier choice tariff and related procedures in use at its two affiliates.
As only reported in Matters (1/24), Central Penn Gas, "believes that the standardization of the three tariffs should make it easier for suppliers to provide service and should foster greater competitive choices for customers."
At a high level, the proposed Central Penn Gas rate design would include general bundled service rates for both residential and non-residential customers (Rates R and N, respectively), as well as Choice rates for these customers (Rate RT and NT). The new structure would also include three levels of firm commercial and industrial transportation rates -- Rate DS (Delivery Service), Rate LFD (Large Firm Delivery Service) and Rate XD (Extended Volume Large Delivery Service) -- as well as a rate for interruptible transportation service (Rate IS - Interruptible Transportation Service).
More specifically, Rate DS is the basic transportation service rate schedule for non-residential customers and requires a minimum one year contract term. Rate LFD is a transportation service available to non-residential customers who enter into a contract for not less than three years and elect a Daily Firm Requirement (DFR) of not less than 50 Mcf.
One of the few changes related to transportation under the settlement is a change in the originally proposed Rate XD. Rate XD is a negotiated transportation service available to non-residential customers with annual requirements over 200,000 Mcf who execute a service agreement for a minimum of three years.
The settlement modifies a requirement for Rate XD customers such that the minimum duration of their required capacity contracts must be the lesser of one year, or the remainder of their three-year term. Originally, the customer would have been required to contract for capacity for a length of time equal to the remainder of their three-year term.
Rate IS is a negotiated interruptible transportation service rate with a minimum term of one year.
Rate Schedule G is Central Penn Gas' current general non-residential sales service rate. As part of migrating customers to new rate schedules, Central Penn Gas will perform rate evaluations for all Rate Schedule G customers. While Central Penn Gas expects the vast majority of Rate G customers will be most economically served under Rate N (and will automatically move these customers to Rate N), Central Penn Gas expects that certain Rate G customers could be more economically served under a new choice or transportation rate (NT, DS, LFD or XD).
In such cases, Central Penn Gas will send the customer a letter explaining the rate choices and what is required in order to select the more economic rate. Central Penn Gas will not automatically enroll Rate G customers on a transportation rate schedule since these rate schedules require the election of an alternate supplier and require a written contract signed by the customer.
Customers on current non-residential Choice Rate Schedules SGMD and GMD will automatically be moved to new Choice Rate NT. If choice customers on Rate Schedules SGMD and GMD would be more economically served under a new transportation rate, Central Penn Gas would notify customers of their options, but would not automatically change the customer from choice service to transportation service, because the non-choice transportation rate schedules require a written contract signed by the customer, have higher customer charges, and require longer-term commitments.
Customers on existing transportation schedules GD and L for whom transportation (rather than choice) service remains the most economic option will be moved to Rate DS, absent an alternative election by the customer (such as LFD or XD).
Similar to balancing procedures at the other UGI companies, Central Penn Gas will offer optional balancing service elections under Rate NNS (No Notice Service) and Rate MBS (Monthly Balancing Service). Central Penn Gas said that the changes, "expand the current limited daily and monthly balancing tolerances to tolerances that customers and Natural Gas Suppliers ('NGSs') should find more flexible, fair and attractive."
Central Penn Gas will also implement a system management concept which employs Critical versus Non-Critical Day designations, providing for commensurate changes in overrun charges.
Central Penn Gas will establish a Cash-Out mechanism which is based on a published local market index to provide for, "greater transparency and equity compared to the current Cash-Out pricing structure."
Central Penn Gas applied to update the percentages of the Merchant Function Charges to reflect the actual uncollectible expense experienced by the company during the most recent five years. Based on this updated data, the MFC for the residential class will decrease from 2.6% to 2.26%. The MFC for the commercial class will be unchanged at 0.14%.
Central Penn Gas would also change the unit of measurement shown on customers' bills from dekatherms to a volumetric measurement using cubic feet. The change will not impact the amount on bills, and Central Penn Gas will continue to apply a BTU factor, adjusted monthly, to calculate the number of dekatherms consumed by the customer.
Email This Story
Copyright 2010-
Be Seen By Energy Professionals in Retail and Wholesale Marketing
Run Ads with Energy Choice Matters
Call Paul Ring
954-
|
Consulting |
Search |