Weighted Average Cost of Gas and Gas Cost Adjustment Provisions
Effective January 2, 2021
(Supersedes Schedule PGA-1 effective December 2, 2019)
This rate schedule applies to customers purchasing gas under any of District’s firm service or interruptible service gas rate schedules.
Customer gas bills shall be adjusted as necessary from the Base Commodity Charge (as set out in the applicable firm service or interruptible service gas rate schedule under which customer is purchasing gas) to address changes in the weighted average cost of gas as well as the recovery of costs associated with peak shaving and pipeline transportation.
Three different adjustments are made pursuant to Schedule GCA, which is subject to adjustment on a monthly basis, as follows:
WACOG Adjustment (Firm and Interruptible Service Gas Rate Schedules)
1) Weighted Average Cost of Gas (WACOG). Weighted Average Cost of Gas (WACOG) shall be determined by the average cost of gas including purchased gas and gas retrieved from storage including but not limited to storage on Northern Natural Gas’ system (deferred delivery) and Liquefied Natural Gas (LNG). Other gas costs shall be included as appropriate including but not limited to propane injections, variable transportation costs, fuel charges, and lost and unaccounted for pipeline gas.
GCA-Gas Cost Adjustment (Firm Gas Rate Schedules only)
2) The pipeline transportation and storage demand charge. The unit charge is calculated by dividing total annual pipeline transportation and storage demand charges by total annual normalized firm gas sales.
3) Peak shaving costs address the costs related to operating our peak shave facilities (LNG plant and Propane Air plants), which can include expansions and upgrades. The unit charge is calculated by dividing total annual peak shaving costs by the total annual normalized firm gas sales.
The GCA factor shall be redetermined each time there is a change in prices in cost of purchased gas or pipeline transportation and storage demand costs to the District. Effective date of change in GCA factor shall so far as practical coincide with date of change in price to District except that not more than one rate change shall be made in any one complete monthly billing cycle.