Retainage Rates at Peoples Natural Gas Would Rise Under Settlement

July 7, 2011
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A proposed settlement in Peoples Natural Gas' annual 1307f proceeding would increase the retainage rates for transportation customers (R-2011-2228694).

The increase would be required even though experienced Lost and Unaccounted for Gas (LUFG) percentages showed a slight reduction in the past year, due to a three-year averaging methodology which would be used to set the rates.

Effective October 1, 2011, the tariffed retainage rate under Rate GS-T would increase from 7.8% to 8.6%, and the retainage rate under Rate T would increase from 5.6% to 7.2%.

While Dominion Retail continues to have concerns with Peoples' Lost and Unaccounted for Gas percentages, which are well above average for other distribution companies in the state, Dominion Retail said that the settlement will require Peoples to implement its Unaccounted For Gas Plan Report for 2011, which will require Peoples to meet or exceed certain specified target ranges of LUFG over the next several years, or bear the burden of showing why it could not do so.

"If reductions of the magnitude required by the Plan are actually achieved on a sustained basis, the LUFG issue will resolve over time. It should not be forgotten, however, that in the meantime, Natural Gas Suppliers and customers continue to bear the burden of Peoples' high LUFG levels. Accordingly, Dominion Retail urges the Commission to scrutinize carefully the implementation of the Plan and to actively monitor its progress," Dominion Retail said.

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