Section 407-430-6 - TRANSITION ADJUSTMENTUnrecovered reasonable gas costs outstanding on the effective date of a gas utility's first cost of gas adjustment shall be recovered as follows:
A. The Commission shall determine the total amount of uncollected reasonable gas costs as of the date of the new cost of gas adjustment. The Commission shall also determine a reasonable interest expense, in a manner consistent with Section 5(C), reflecting the cost, as of the date of the implementation of the first cost of gas adjustment filed pursuant to this Chapter, of deferring the recovery of these gas costs. The Commission shall also estimate the projected interest costs, associated with the amortization of the balance over the period selected in subsection C of this Section, in a manner consistent with Section (4)(A)(6)(b).B. These amounts, shall be amortized over a period, to be determined by the Commission, of not more than twenty-four months, and shall be recovered by means of the cost of gas adjustments in effect during the amortization period.C. The adjustment for this recovery shall be derived by dividing the total unrecovered gas costs together with associated interest, as determined by the Commission, by the projected total number of therm sales during the amortization period.D. In each filing made pursuant to this chapter during the amortization period, the gas company shall indicate the gas costs recovered to date pursuant to this subsection. The gas company may then propose, and the Commission may order or authorize, a change in the amortization rate to minimize the possibility either of an over-recovery or an under-recovery of the amount to be amortized.E. Any over-recovery or under-recovery outstanding at the close of amortization period shall be treated in accordance with the method set forth in Section 4(A)(6)(c) of this chapter.65- 407 C.M.R. ch. 430, § 6