NAC704.135. Gas utilities: Calculation of certain base tariff energy rates and recommendation of preferred base tariff energy rate.

     1. A gas utility that does not make quarterly adjustments to its base tariff energy rate (BTER) shall, pursuant to subsections 2 and 3, calculate a forecasted and a historic base tariff energy rate for purchased gas and recommend its preferred base tariff energy rate to the Commission.

     2. The gas utility shall calculate a forecasted base tariff energy rate based on the following formula:

     Where:

     PG = Sales volumes of the gas utility, including an adjustment for projected shrinkage in the distribution system and the consumption of gas by an upstream pipeline company, used to calculate purchases necessary to support the given level of sales for the test period expressed in therms.

     UG = The projected weighted average unit price that will be paid for gas during the period in which the rate will be in effect.

     SG = Actual volumes of gas sold for the test period expressed in therms.

     FG = Fixed costs associated with the purchase of gas for the period in which the rate will be in effect as may be enumerated in the accounts specified in paragraph (g) of subsection 2 of NAC 704.120.

     VG = Variable transportation costs.

     TG = Distribution system shrinkage costs paid by transportation customers.

     Then:

                     (PG X UG) + FG + (VG – TG)

     BTER = ^{_________________________________________}

                                           SG

     3. Except as otherwise provided in subsection 4, the gas utility shall calculate a historic base tariff energy rate based on the following formula:

     Where:

     PG = Sales volumes of the gas utility, including an adjustment for projected shrinkage in the distribution system and the consumption of gas by an upstream pipeline company, used to calculate purchases necessary to support the given level of sales for the test period expressed in therms.

     UG = The weighted average of the latest experienced unit prices paid for gas during the test period.

     SG = Actual volumes of gas sold for the test period expressed in therms.

     FG = Annualized fixed costs associated with the purchase of gas for the test period as may be enumerated in the accounts specified in paragraph (g) of subsection 2 of NAC 704.120.

     VG = Variable transportation costs.

     TG = Distribution system shrinkage costs paid by transportation customers.

     Then:

                     (PG X UG) + FG + (VG – TG)

     BTER = ^{_________________________________________}

                                           SG

     4. A gas utility that makes quarterly adjustments to its base tariff energy rate shall calculate its base tariff energy rate using the methodology determined by the Commission pursuant to NAC 704.161.

     [Pub. Service Comm’n, Gen. Order 21 § 3.33, eff. 11-8-79; A 8-21-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R084-05, 10-31-2005; R202-05, 11-13-2006; R076-11, 5-30-2012)