]
BENCHMARK SAMPLE OF U.S. GAS AND ELECTRIC UTILITIES
Company
States Served
Deferral Mechanisms and Other Risk Mitigating Mechanisms
Sales and Weather Normalization Features
Straight fixed variable rate design, customer pays 1/12 of annual fixed charges and a predetermined percent of demand day annual capacity charges each month
Georgia
(Atlanta Gas Light)
Weather Normalization Adjustment with Regulatory assets/liabilities recoverable through New Jersey
rate adjustements made at end of heating rate riders or base rates for unrecovered (Pivotal Utilities Holdings
season; revenue decoupling mechanism formerly Elizabethtown Gas)
regulatory infrastructure program costs, unrecovered environmental remediation costs, unrecovered postretirment benefit costs. In NJ recover unrealized losses or gain on financial instrument derivatives as well as lost and unaccounted for gas (LUAF); in other regions LUAF in base rates
AGL Resources
Consolidated Edison
New Jersey Resources
NICOR
Northwest Nat. Gas
Original: 2010-05-27
proposed Commodity Cost Recovery Assurance
Does not sell gas in Georgia
Shares equally with ratepayers difference between monthly market benchmark and actual cost of gas
Tennessee
(Chattanooga Gas)
Performance based rate plan (PBR) provides for company to be exempt from audits of its Weather Normalization Adjustment Rider gas procurement activities if costs are with adjustments made each meter‐reading within 1% of benchmark level; Incentive cycle
mechanisms related to gas procurement, capacity release and off‐system sales.
Virginia
(Virginia Natural Gas)
Purchase Gas Adjustment (PGA) clause Weather Normalization Adjustment rider ‐ separate factors for each customer class; provides quarterly rate changes to reflect fluctuations in gas costs; annual decoupling mechanism designed to mitigate reconciliation with total billed vs actual gas the impact on revenues of residential costs ‐ difference is deferred and customer participation in energy conservation programs.
recovered/refunded in following year
New York
New Jersey
Deferral of certain expenses (stray voltage costs, property taxes, interest on variable rate debt, asbestos litigation costs) so long as deferrals don't cause earnings to fall below a particular ROE level;
Financial statements includes a complete listing of the companies regulatory assets and liabilities including unrecognized pension and OPEB, environmental remediation expenses, deferred derivative losses (long‐term) gas rate plan deferral, World Trade restoration costs ‐ collected through rates/riders; Lost and unaccounted for gas mechanism as not in base rates
Electric: Revenue Decoupling
Gas: Weather Normalization
Electric: market power adjustment clause (MAC) or commodity adjustment clause (CAC) ‐ changes in clause are recognized in each customer bill (monthly, bi‐monthly etc)
Gas: Fuel adjustment clause for annual reconcilation of recoverabe gas costs; excess/deficiency is deferred and recovered or refunded annually in following year
2006 ‐ decoupling; Conservation Incentive Regulatory riders for recovery of state‐mandated Program allows for recovery of margin Gas cost recoveries subject to an annual programs, remediation adjustment and energy deficiency associated with non‐weather true‐up; large commercial and industrial efficiency costs calculated on a per‐therm basis; related changes in customer usage limited customer on basic gas supply suervice are Lost and unaccounted for mechanism as not in subject to monthly price changes
to the level of Basic Gas Supply Service base rates
Charge savings achieved
Illinois
Purchased Gas Adjustment (PGA) ‐ Energy Efficiency Plan rider allows for recovery, SFV rate design that recovers 80% of Rate 1 automatically adjusted monthly on fully‐
outside of a rate case, of expenses associated customers' fixed delivery service costs forecasts gas costs for prospective base with energy efficiency programs; can recover through monthly customer charge (Mar period. Unamortized amounts earn interest costs associated with advanced metering based on the Commission‐established 2009)
programs; rider for bad debt expense; customer deposit rate, reviewed annually
Oregon
Automatic adjustment clause to flow back taxes reflected in rates that differ by at least $0.1 million from amount actually paid (fed'l, state & local); System Integrity Program to recover Decoupling for conservation plus weather‐ Purchased Gas Adjustment clause contain through PGA costs related to base steel, pipeline adjusted rate mechanism (WARM) in place sharing provisions with respect to changes integrity and other pipeline safety programs for residential and commercial customers in gas commodity costs either 80/20 or subject to soft cap of $12 million annually with (customers can opt out of WARM)
90/10 (selected by the utility annually)
expenses above that subject to commission approval; lost and unaccounted for gas mechanism as not in base rates
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Requête 3724‐2010
]
Company
NSTAR
States Served
Massachusetts
North Carolina
Piedmont Natural Gas
South Jersey
South Carolina
Commodity Cost Recovery Assurance
Pension and post‐retirement benefits, Electric: Transmission cost recovery mechanisms, recovery of low‐income discounts rates, Electric utilities not at risk for fluctuation in employee costs, bad debt. During transition to market prices; full decoupling (2009‐2012), recover lost base Cost of gas adjustments are determined All companies to have operational revenues decoupling plans in place by year‐end 2012. semi‐annually, amounts put in deferred gas Gas: during transition to full decoupling (2009‐
cost account recovered through CGA factor 2012), recovery of energy‐efficiency‐related lost including carrying costs
base revenue through adjustment clause; lost and
unaccounted for gas mechanism as not in base rates
LDC may recover expenses for additional Purchased gas adjustment ‐ annual Customer Utililization Tracker which interstate pipeline capacity and storage added prudence review; commodity and prior to a general rate case subject to annual true‐ decouples the recovery of authorized up; demand and storage costs are allocated to all margins from sales for all reasons including transportation rates adjusted through the PGA
conservation and weather customer classes incl. transportation on volumetric basis
Weather normalization clauses apply to Non‐automatic purchased gas adjustment residential and small commercial customers clause reviewed annually
during winter months
Tennessee
(Piedmont Gas)
Incentive mechanisms related to gas procurement. Also capacity release and off‐
system sales where net benefits/costs are allocated to ratepayers and shareholders on 75%/25% basis. Plan reviewed every 3 years
Weather normalization clause;
Jan 2010 regulator rejected request to Automatic gas commodity recovery clause
implement revenue decoupling mechanism and energy efficiency programs.
New Jersey
(South Jersey Gas)
Trackers for capital investment recovery and energy efficency (ended 2009)
2006 ‐ decoupling; Conservation Incentive Program allows for recovery of margin deficiency associated with non‐weather related changes in customer usage limited to the level of Basic Gas Supply Service Charge savings achieved
Maryland
Trackers for pension and OPEB expenses; D.C.
Increases in pension and OPEB expenses are recovered through a surcharge; effect on net income of any changes in delivered volumes and prices to interruptible customers limited by margin‐sharing arrangements in rates; Lost and unaccounted for gas tracker as not in base rates
WGL Holdings Inc.
Virginia
Original: 2010-05-27
Deferral Mechanisms and Other Risk Mitigating Mechanisms
Sales and Weather Normalization Features
Gas cost recoveries subject to an annual true‐up; large commercial and industrial customer on basic gas supply service are subject to monthly price changes
Purchased gas charge includes the cost of the natural gas commodity and cost of Revenue Normalization Adjustment (RNA) transporting gas; recover of carrying costs on storage gas balances and hexane stabilizes level of net revenues collected from customers by eliminating the effect of infection costs through surcharge; Retains a portion of margins associated with off‐
deviations in customer usage caused by system sales, interruptible sales, and variations in weather from normal levels interruptible transportation activities. and other factors e.g., conservation
Margins beyond this level are allocated 85% to ratepayers and 15% to the company.
Gas hedging program for gas storage (benefits flowed through PGC); an application for a revenue normalization adjustment designed to decouple non‐gas revenue from actual volumes delivered and mitigate weather and conservation impacts was filed by WGL with PUC on December 21, 2009
Purchased Gas Charge reconciled annually; carrying costs on storage balances and over/undercollected gas costs recovered through surchage; hexane injection costs also to be recovered through PGA starting 2011
Purchase Gas Adjustment (PGA) clause Weather Normalization Adjustment rider ‐ Permitted to recover carrying charges on storage separate factors for each customer class; provides quarterly rate changes to reflect fluctuations in gas costs; annual gas balances, over/under‐collected gas costs, decoupling mechanism designed to mitigate the impact on revenues of residential reconciliation with total billed vs actual gas hexane costs and commodity‐related customer participation in energy costs, difference is deferred and uncollectibles expense
conservation programs.
recovered/refunded in following year
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Requête 3724‐2010
Company
Commission
Gazifere
Régie
AltaGas
EUB
AltaLink
EUB
ATCO Electric
EUB
DEFERRAL ACCOUNTS FOR CANADIAN UTILITIES
Source for Account info
Deferral Accounts
Compte de stabilisation de la température Compte de gaz perdu
Compte d'auto‐assurance
Compte ajustement du coût du gaz Novoclimat
Document from Gazifere
Charges réglementaires
PGEÉ
Écarts volumétriques du PGEÉ (CÉV PGEÉ) :
Quote‐part versée à l’AEÉ
Fonds vert
Deferred Cost of Gas
2008 report on operating stats. Deferred CEO/CFO Certification Costs
Schedule 9
Deferred Regulatory Costs (Hearing)
Deferred Regulatory Costs (Non‐Hearing)
Direct Assigned Capital Deferral
Canada Revenue Agency Deferral
Long Term Debt Deferral
Property Tax Deferral
Annual Tower Payment Deferral
2008 report on operating stats. No Cost Capital:
Schedule 9
Hearing Cost Reserve
Reserve for Injuries and Damages (SIR)
Future Income Tax
Pension Liability
Rainbow‐type Expense Reserve
2008 report on operating stats. Schedule 9
ATCO Gas
EUB
2008 report on operating stats. Schedule 9
Enbridge Gas Distribution
OEB
Response in 2005 TGI Case
EPCOR
EUB
Foothills Pipe Lines (Yukon)
NEB
FortisAlberta
EUB
FortisBC
BCUC
Original: 2010-05-27
2008 report on operating stats. Schedule 9
In Rate Base
x
x
x
x
Out of Rate Base
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Deferred Pension and Supplemental Pension
Reserve for Injuries and Damages
Future Income Tax
Deferred Supplemental Pension
Deferred Post Employment Benefits
Deferred Hearing Costs
Deferred Bad Debt Expense (net of penalty revenue)
Deferred Consumer Advocate Costs
Adoption of Financial Instruments Production Abandonment Costs
Variable Pay Program Transmission Charges
Weather deferral Account
Load Balancing Deferral Account
Reserve for Injuries and Damages
Commodity Cost Reconciliation Account
Midstream Cost Reconciliation Account
Long Term Debt Issue and Expense
Deferred Interest on Commodity Cost and/or Midstream Cost
Commercial Commodity Unbundling Program
DSM
Gas Cost Variance Account
Transmission Charge Deferral Account (DX only)
Hearing Costs
Uniform Set of Accounts
Tariff Bill Code
AESO Charges Deferral Account
Contributed Asset
Self Insurance Reserve
Accumulated Depreciation Refund
Property, Business & Linear Tax Deferral Account
Contribution Reserve for Projects
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Foothills Pipe Lines Ltd. is regulated on a cost of service basis and over or under‐collections are adjusted in tolls annually.
Reserve for Self Insurance
x
Hearing Cost Reserve
x
Schedule of Pension Liability
x
2008 report on operating stats. Deferred Financing Cost
x
Schedule 9
Future Income Tax
x
Deferred Revenues
x
Reserve for Injuries and Damages
x
Other Deferred Credits
x
Demand Side Management
x
Deferred Regulatory Expense
x
Prelim. 2009 Revenue Preliminary and Investigative Charges
x
Requirements and Appendix A of G
Advanced Metering Infrastructure
x 193‐08
Negotiation Cost of PPA
x
(Negotiated Settlement BC Hydro Rate Increase
x
Agreement)
Other Deferred Charge and Credits x
Deferred Debt Issue Costs
x
Surveillance Report
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Requête 3724‐2010
Company
Gaz Metro
Commission
Regie
DEFERRAL ACCOUNTS FOR CANADIAN UTILITIES
Source for Account info
Gaz Metro‐6, Document 1 R‐3580‐
2008
Hydro One Transmission
OEB
2009 MD&A
Maritime Electric
IRAC
2010/11 Rates Application
Nova Scotia Power
NSUARB
2009 GRA Applicaton
Ontario Electricity Distributors
OEB
Hydro One Networks 2009
Application see electronic page
211
Ontario Power Generation
Pacific Northern Gas
Terasen Gas
Original: 2010-05-27
OEB
BCUC
BCUC
2009 Audited Financial Statements and Dec 2009 Accounting Order
Tab‐2 PNG‐West 2009 Rate Application page 10 2010‐2011 Revenue Requirements App. Table C‐8‐4 and Negotiated Settlement 11/09
Deferral Accounts
In Rate Base
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Frais reliés a la dette
Frais reliés a l'expansion
Prog. Comm. Axé sur financement (PCAF)
Programmes commerciaux
Développement des systèmes informatiques
Frais reliés au coût du gaz
Cotisation d'impôts
Indémnites de départ
Frais des intervenants
Brevets
Redevances à la Régie
PGEÉ ‐ Dépenses et subvention 2006
PGEÉ ‐ Pertes de revenue 2006
Frais reportés ‐ Provision auto‐assurance
Trop‐perçu 2006
x
Créances majeures 2006
x
Récupération nivellement gaz perdu
Récupération des cptes de stabilisation tarifaire
x
Out of Rate Base
x
Rural and Remote Rate Protection Variance Acct.
Smart Meters Deferred Pension
External Revenue Variance Account
Regulatory Asset Recovery Account I ‐ Rider 1
Regulatory Asset Recovery Account II ‐ Rider 2
Regulatory Liability Refund Account ‐ Rider 3
Revenue Recovery Account (RRA) ‐ Rider 4
Export & Wheeling Fee (factored into rates for 4 years ‐ ending 2010)
Energy Cost Adjustment Mechanism
Defeasance & Finance Charges
Section 21 and 2005 Q1 Taxes
Prepaid Pension Asset
Fuel and DSM Deferred Asset
Asset Retirement Obligations
RSVA
RARA and other Revenues Deferred
Smart Meter Costs Deferred
Revenue Accrued not Received
Regulatory Asset ‐ OEB Costs deferred
Future Income Tax
Ancillary Services Net Revenue Variance Account ‐ Nuclear
Bruce Lease Net Revenues Variance Account
Pickering A Return to Service Deferral Account
Tax Loss Variance Account
Nuclear Liability Deferral Account
Nuclear Gx Development Costs ‐ Capacity Refurb.
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Nuclear Gx Dev. Costs ‐ New Nuclear Development
Hydro electric Water Conditions Variance
Nuclear Deferral and Variance Over/Under Recovery Variance Account (effec. 1/1/2010)
RSAM
Line Break Costs
Extraordinary Plant loss
Stress Corrosion Cracking
Lost Margin from certain industrial customers
In line inspection
GCVA
Deactivated Facilities
Other interest Bearing Deferrals
Methanex Termination Payment Deferral
Commodity Cost Reconciliation Account (CCRA)
Midstream Cost Reconcilation Account (MCRA)
RSAM
Interest on CCRA/MCRA/RSAM
Revelstoke Propane Cost Deferral Account
SCP Mitigation Revenues Variance Account
Energy Efficiency & Conservation (EEC)
NGV Conversion Grants
Property Tax Deferral
Insurance Variance
Pension & OPEB Variance
BCUC Levies Variance
Interest Variance
Olympics Security Costs Deferral
IFRS Conversion Costs
2009 ROE & COC Application
Pension & OPEB Funding
SCP Tax Reassessment
Deferred Service Line Installation Fee
Earnings Sharing Mechanism
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Interest Variance calculation on gas in storage inventory
Costs of Application (CCE, ROE & RRA)
IFRS Transitional Deferral Account
Gains & Losses on Asset Dispostion
CCE CPCN Costs
LILO Reassessment New Energy Solutions Deferral Account
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
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Requête 3724‐2010
x
Company
Commission
DEFERRAL ACCOUNTS FOR CANADIAN UTILITIES
Source for Account info
Terasen Gas Vancouver Island
BCUC
2010-2011 RR Application C-8-4
Terasen Gas (Whistler)
BCUC
2010-2011 RR Application
Table 7-3
TransCanada PipeLines
NEB
TCPL Canadian Mainline ‐ NEB 2009Q4 Surveillance Report
Trans Quebec & Maritimes Pipeline
Union Gas
Westcoast Energy
Original: 2010-05-27
NEB
OEB
NEB
NEB 2009 Q4 Surveillance Report
EB‐2007‐0606 Settlement Agreement Appendix B Deferral Accounts continuing during IR term
NEB 2009 Q4 Surveillance Report
Deferral Accounts
Rate Stabilization Deferral Account
RDDA
2009 Revenue Surplus Account
Gas Cost Variance Account (GCVA)
Energy Efficiency & Conservation (EEC)
NGV Conversion Grants
Olympics Security Costs Deferral
IFRS Conversion Costs
Costs of Application (CCE, ROE & RRA)
CCE CPCN Costs
2009 Rate Design Application
PCEC Start Up Costs
IFRS Transitional Deferral Account
PENSION & OPEB Funding
Compressor Fired Hours
Financing Costs
LNG Storage Facility Development Costs
VIGP
Preliminary Survey & Investigation Costs
BC Capital Tax Assessment & Appeal Cost
Gas Cost Reconciliation Account (GCRA)
Sales Margin Differential (SMDA)
Natural Gas Pipeline Development Costs
Decommissioning of Propane Assets
Capital Gain on Sale of Propane Land
Property Tax ‐ Propane Plant
Capital Contribution to TGVI
Appliance Conversion Planning Costs
Direct Appliance Conversion Costs
Conversion Income Tax Deferral Account
Interest Rate Differential
Property Tax Differential IFRS Implementation Costs
2010 Olympic Games Security Costs
IFRS Transitional Adjustments
Costs of Applcation (ROE, COC & RR)
CCE CPCN Applicatons
Deferred ROE Variance (2005‐2009)
Transmission By Others (TBO) Costs
Storage Operating Costs
Pipeline Integrity and Insurance Deductible
NEB Cost Recovery
Return on Rate Base
Income Taxes
Depreciation Expense
Gas Related and Electric Costs
Municipal and Other Tax
Performance Incentive Envelope
Compressor Repair & Overhaul
FX (Gain)/Loss on Redemption
Gain on Sale of Linepack
Firm Service (revenue)
Discretionary (revenue)
Non‐Discretionary (revenue)
Interest Rate Management Program
2008 Revenue Deficiency Variance
Insurance Variance
SCC Costs
Compressor Fuel
Storage Revenue
Municipal and other taxes
Regulatory costs
2008 Transition Revenue
NEB Cost Recovery
Income Tax
TCPL Tolls and Fuel
North Purchase Gas Variance Account
South Purchase Gas Variance Account
Spot Gas Variance Account
Unabsorbed Demand Cost Variance Account
Investory Revaluation Account
Short Term Storage & Exchange Balancing
Long Term Peak Storage
Deferred Customer Rebates/Chartes
Lost Revenue Adjustment Mechanism
Intra Period WACOG Changes
Unbundled Servies Unauthorized Storage Overrun
DSM Variance Account
Gas Distribution Access Rule (GDAR) Costs
Late Payment Penalty Litigation
Shared Savings Mechanism Variance
Carbon Dioxide Offset Credits Deferral Account
New Account ‐ Customer Usage Variance Account Deferred Income Taxes (only one for Field Services) Discretionary Revenues
Contract Demand Volumes
Pipeline Integrity Costs ‐ O&M
Pipeline Integrity Costs ‐ Capital
Property Taxes
NEB Cost Recovery Expense
Debt
SRED Charges
T South Cost Recovery
IFRS Cost Recovery
Enpower
LMCI Costs
Customer Service Incentive
T North Expansion
In Rate Base
Out of Rate Base
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
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Requête 3724‐2010