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Natural Gas Outlook 2017 Docket No. UM 1286 Overview.

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Presentation on theme: "Natural Gas Outlook 2017 Docket No. UM 1286 Overview."— Presentation transcript:

1 Natural Gas Outlook 2017 Docket No. UM 1286 Overview

2 Purchased Gas Adjustment (PGA)
The PGA is a line item addition to all core customer bills covering the cost of purchased gas only (gas costs are passed through to customers without profit)~ Each core customer pays the same annual rate for purchased gas on a per therm basis~ The annual rate for purchased gas is the result of LDC filings that include: The development of the commodity and demand capacity cost projections for the period (Nov. 1 – Oct. 31), and The development of the true-up of the commodity and non-commodity purchased gas costs for the previous period~ An incentive is provided to LDCs to minimize both gas cost and gas cost variability, under which gas costs above or below the projected monthly cost per therm, approved by the Commission in October each year, are shared between the company and its core customers~

3 Docket No. UM 1286 Investigation Into Purchased Gas Adjustment Mechanism
The Public Utility Commission of Oregon opened this investigation on November 21, 2006~ To review and modify, as appropriate, the Purchased Gas Adjustment (PGA) mechanism used by Oregon’s three Local Distribution Companies (LDCs) – Avista, Cascade, and NWN~

4 Docket No. UM 1286 Guidelines
In Order No , the Commission acknowledged Natural Gas Portfolio Development Guidelines and the PGA Filing Guidelines~ The Guidelines are used in the review of the reasonableness of LDC gas costs and the pass through of these costs to customers~ The Guidelines are intended to be flexible and subject to modifications to reflect changes in gas supply markets, LDC conditions, demand, etc.~

5 Docket No. UM 1286 Portfolio Guidelines
The Portfolio Guidelines include sections on: A. Portfolio Planning and the IRP B. Quarterly Portfolio Planning Meetings C. Portfolio Planning Process: General D. Portfolio Planning: Physical Natural Gas E. Portfolio Planning: Financial Natural Gas F. Portfolio Planning: Contractual Arrangements Docket No. UM 1286 Portfolio Guidelines can be in Attachment 2 of Order No :

6 Docket No. UM 1286 PGA Filing Guidelines
The PGA Filing Guidelines include sections on: Quarterly Meetings Advance Notice of Non-Gas Amortizations Discovery Filing Requirements General Rate Development Separate Filings Deferral Accounts Calculation of 3 Percent Test PGA Filing Work Paper Requirements Review and Dispute Resolution Public Meeting and Rate Effective Date Docket No. UM 1286 PGA Filing Guidelines can be in Appendix A, Attachment 1 of Order No :

7 Docket No. UM 1286 Guidelines Revisions
The Guidelines have been amended three times since first acknowledged in 2009~ These modifications were acknowledged in Order No in 2010, in Order No in 2011, and in Order No in 2014~ Docket No. UM 1286 Link to Full Case Record:


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