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CENTERPOINT ENERGY RESOURCES CORP. <br /> DB/A/CENTERPOINT ENERGY ENTEX <br /> AND CENTERPOINT ENERGY TEXAS GAS <br /> HOUSTON DIVISION AND TEXAS COAST DIVISION <br /> RATE SHEET <br /> PURCHASED GAS ADJUSTMENT <br /> RATE SCHEDULE NO.PGA-15T <br /> This Cost of Gas Clause shall apply to all general service rate schedules of CenterPoint Energy Entex in the Texas <br /> Coast Division and Houston Division("the Company"). <br /> A. DEFINITIONS <br /> 1. Cost of Purchased Gas(G):The Company's best estimate of the cost of natural gas(per Mcf)to <br /> be purchased for resale hereunder during the period that the PGA Rate is to be effective. The cost <br /> of natural gas shall include the cost of gas supplies purchased for resale hereunder, upstream <br /> transportation capacity charges,storage capacity charges,the cost of gas withdrawn from storage <br /> less the cost of gas injected into storage,and any transaction-related fees,gains or losses and other <br /> transaction costs associated with the use of various financial instruments used by the Company to <br /> stabilize prices.Any costs associated with the use of financial instruments entered into after June 1, <br /> 2017, shall be approved in advance and in writing by the Director of the Oversight and Safety <br /> Division of the Commission. <br /> 2. Purchase/Sales Ratio (R): A ratio determined by dividing the total volumes purchased by the <br /> Company for general service customers for the twelve (12) month period ending the preceding <br /> August 31 Production Month by the sum of the volumes sold to general service customers during <br /> the same period.For the purpose of this computation,all volumes shall be stated at 14.65 p.s.i.a. <br /> Such ratio as determined shall in no event seek to recover more than 5%lost and unaccounted for <br /> gas loss unless expressly authorized by the applicable regulatory authority. <br /> 3. Production Month:The month that gas cost related activities are completed. <br /> 4. Accounting Month: The month gas related activities are posted on the books and records of the <br /> Company. <br /> 5. Commodity Cost:The Cost of Purchased Gas multiplied by the Purchase Sales Ratio. <br /> 6. Purchased Gas Adjustment(PGA):The rate per billing unit or the total calculation under this Cost <br /> of Gas Clause,consisting of the commodity cost,a reconciliation component(RC)and related fees <br /> and taxes. <br /> PGA Rate(per Mcf sold)=[(G*R)±RC]rounded to the nearest$0.0001 <br /> PGA Rate(per Ccf sold)=PGA Rate(per Mcf sold)=10 <br /> 7. General Service Customer:residential,small commercial and large volume customers. <br /> 8. Reconciliation Audit: An annual review of the Company's books and records for each twelve <br /> month period ending with the May Production Month to determine the amount of over or under <br /> collection occurring during such twelve month period.The audit shall determine: <br /> a. the total amount paid for gas purchased by the Company to provide service to its general <br /> service customers during the period; <br /> b. the revenues received from operation of the provisions of this Cost of Gas Clause <br /> c. the total amount of refunds made to customers during the period and any other revenues <br /> or credits received by the Company as a result of gas purchases or operation of this Cost <br /> of Gas Clause; <br /> d. an adjustment,if necessary,for lost and unaccounted for gas during the period identified <br /> in A2 in excess of five(5)percent of purchases; <br /> e. The Company shall seek review and approval from the Commission for any Federal <br /> Energy Regulatory Commission(FERC)Intervention costs incurred for the benefit of <br /> customers prior to their inclusion in the cost of gas calculation. Those costs are limited <br /> to reasonable non-employee experts,non-employee attorney fees and prudently incurred <br /> travel expenses; <br />