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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 />i <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transportation capacity charges, storage capacity charges, the cost of gas withdrawn from storage 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) t 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 />