Section 407-430-4 - RECONCILIATION ADJUSTMENTA. The Commission shall make a reconciliation adjustment for inclusion in the cost of gas adjustment of a gas utility to account for the following: 1 A Transition Adjustment, if any as defined in Section 6, below.2 Any amounts over-collected or remaining to be collected from prior periods. Any over-collection or under-collection occurring during a winter period shall be recovered by means of the cost of gas adjustment effective during the next winter period. Any over-collection or under-collection occurring during a summer period shall be recovered by means of the cost of gas adjustment effective during the next summer period. In the case of periods during which the cost of gas adjustment is changed pursuant to an application filed under Section 2(D) of this chapter, all or part of the unrecovered or over-collected gas costs that accumulate during the first months of the period may, in the discretion of the Commission, be recovered during the remaining months of the period.3 Errors or erroneous reporting.4 Imprudent or unreasonable gas procurement policies and practices.5 Such other practices, policies, and factors as the Commission considers appropriate, including the justness and reasonableness of the cost of gas acquired by the gas utility.6 Refunds received from suppliers, to be treated as follows:(a) Refunds, whenever received, shall be retained by the gas utility for inclusion in the next reasonably available cost of gas adjustment following receipt of the refund, and then shall be distributed over the next 12 months.(b) The gas utility shall accrue interest on the balance refunded in a manner consistent with Section 5(C) beginning with the second month of retention and continuing through the refund period. In making a refund adjustment, the gas utility shall also include a projection of accrued interest associated with the amortization of the refunded balance over the twelve-month amortization period. This shall be computed by applying the gas utility's latest known twelve-month actual average short-term interest rate, to the projected average refund balances for each month during which the amortization is to be accomplished.(c) At the end of the twelve-month distribution period, any refunds not fully distributed, or any amounts distributed in excess of the refund, together with interest accrued during the intervening period, calculated in a manner consistent with Section 5(C), shall be included in the next available cost of gas adjustment.B. The reconciliation adjustment may be either positive or negative.C. If for any reason a cost of gas adjustment authorized pursuant to this chapter is in effect for a period different than the summer and winter periods set forth in this chapter, the Commission shall allow any over- or under-recoveries of reasonable gas costs incurred during said period to be recovered in a manner consistent with the purposes of this chapter, preserving so far as is possible, the principle of recovering summer gas costs during subsequent summer periods, and winter gas costs during subsequent winter periods.65- 407 C.M.R. ch. 430, § 4