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Regulatory Update
Questar Gas Company
Annual Account Management
Customer Meeting
Barrie L McKaySeptember 16, 2014
General Rate Case Outcome Summary
• Changes to interruptible requirements
• Changes to commodity price for Interruptible Sales customers
• Transportation rates move towards full cost-of-service
Changes to Interruptible Requirements• Rate case proposal
– Annual testing– Failure to interrupt charge
• Rate case resolution– No testing– $40 penalty for each Dth that isn’t interrupted– If customer fails to interrupt then customer will be moved
from interruptible rate schedule to a firm schedule for three years for those interruptible volumes it failed to interrupt
– Each year interruptible customer will warrant that it has backup equipment and that they understand financial penalties.
Changes to Commodity Rate for Interruptible Sales Customers
• Currently first of month market price is used
• Effective November 1st Questar’s weighted average cost of gas will be used
• Studying this rate class in future proceedings
Transportation Rates Move Towards Full Cost of Service• Cost to serve TS class in last rate case was $14.7 million
annually• Rates designed to collect $12.8 million annually• Fall of 2015 rates will be adjusted to collect $13.3 million
annually• Fall 2015 Increases
Increase
0 – 200 DTH $0.02955
201 – 2,000 DTH $0.01932
2,001 – 100,000 DTH $0.00790
OVER 100,000 DTH $0.00292
Annual Demand Charge $1.04
In the next general rate case, rates will be designed to collect the full cost of service.
Nominations
Storage
Agent Factory
Nomination UsageOver 5% Variance
87% of time
No Notice Service
Questions?
7
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