N.M. Admin. Code § 17.10.640.12

Current through Register Vol. 35, No. 20, October 22, 2024

Section 17.10.640.12 - PGAC TARIFF AND GAS COST FACTOR STATEMENT

A. Tariff filing. The information required by Paragraphs 3 through 6 of Subsection A of this section may be included in a utility-specific rule or rate. Each utility shall file a tariff, subject to commission approval, that includes at a minimum the following:

(1) a general description of the PGAC and its applicability to customers;

(2) a provision that rate changes shall be effectuated through the filing of a gas cost factor statement as provided for in Subsection B of this section;

(3) the detailed methodology for the calculation of the gas cost factor, including the accounting methodology used to ensure that the effects that transportation imbalances may have on PGAC gas costs are substantially neutralized;

(4) specific identification and definition of all terms applicable to sales customers utilized in the calculation of the gas cost factor, including but not limited to the recovery of unaccounted for gas and any fuel and power used in connection with the transportation and processing of gas;

(5) identification of the annual date for the filing of the gas supply plan as provided for in Subsections B and D of 17.10.640.9 NMAC and of the beginning and ending months of the planning period as defined in Subsection S of 17.10.640.7 NMAC; and

(6) identification of the annual reconciliation period as provided for in Subsection C of 17.10.640.13 NMAC and the annual reconciliation factor implementation period as provided in Subsection E of 17.10.640.13 NMAC.

B. Gas cost factor statement. The format for a utility's gas cost factor statement, including definitions, shall be submitted with its application for approval of a PGAC as provided in Section 9 of 17.10.640 NMAC. The GCFS shall include all data necessary for the commission to review and verify the calculation of the resulting commodity billing factor. Each factor or term used, not previously described in this rule, shall be specifically defined in each utility's PGAC. The time period over which gas usage shall be billed using the requested rate shall be specified in the GCFS. Each GCFS filed shall be certified by an officer of the utility. The GCFS shall include, if applicable, calculations of the following:

(1) an actual or estimated basic gas cost factor;

(2) a producer/supplier surcharge or refund factor;

(3) a balancing account adjustment factor;

(4) an annual reconciliation factor;

(5) any other surcharge or refund factor authorized by the commission;

(6) a factor for inspection and supervision fees and taxes to be applied to revenues generated by the resulting billing factor;

(7) a general service gas cost factor resulting from the summation of the above components; and

(8) the amount and the duration of such refund or surcharge, if an optional methodology for passing refunds or surcharges through the PGAC as authorized by Subsection C of this section is implemented by the utility.

C. Tariff revisions. At any time that the commission orders changes in the utility's PGAC or the utility proposes changes in its PGAC, the utility shall file a revised tariff as provided for in Subsection A of this section, to the extent that the utility's approved tariff provisions require revisions. The utility's revised tariff shall be deemed approved thirty (30) days after the filing of the revised tariff unless the commission orders otherwise.

D. Filing verification and factor effective date. The utility shall file a gas cost factor statement as provided for herein to begin a verification period which shall be no less than fifteen (15) calendar days unless otherwise directed by the commission. The effective date for the new general service gas cost factor shall be deemed to be the first day of the first billing cycle containing the first day of the month in the subsequent calendar month. Unless otherwise directed by the commission, no change in the utility's general service gas cost factor shall be made except at the beginning of a billing cycle. General service gas cost factors will be applied to calendar month consumption. Calendar month consumption may be determined and applied on a pro rata basis if a utility employs a billing cycle application whereby a billing cycle covers portions of two (2) or more months. The commission shall act upon a utility's gas cost factor statement filing within the fifteen (15) day verification period, otherwise the filing is deemed approved.

E. Gas cost factor hearings. Staff or any interested party may file a complaint or challenge to the propriety of any costs and revenues included in the utility's PGAC within sixty (60) days of any filing by the utility made pursuant to NMSA 1978 Section 62-10-1. Upon receipt of a complaint or challenge, or upon its own motion pursuant to NMSA 1978 Section 62-10-1, the commission may direct the utility to respond within thirty (30) days. Upon receipt of the utility's response, the commission may require a formal hearing. Pending a hearing, the commission may allow the costs to be placed into the PGAC subject to refund, suspend the inclusion of costs in the PGAC, or take any other reasonable action designed to protect the interests identified in NMSA 1978 Section 62-3-1. To the extent allowed by law, the commission in its discretion may order refunds of amounts collected or surcharges for amounts not collected under the provisions of this rule to the customers of a gas utility when the commission determines, after notice and hearing, that the utility over-collected or under-collected such amounts. Unless otherwise ordered by the commission, formal hearings will not be held prior to the effective date of any adjustment determined in accordance with the provisions of an approved PGAC.

F. Circumstances materially impacting the cost of gas. The utility shall describe and explain any circumstances that materially impact its cost of gas in its gas cost factor statement. Unless specifically approved by the commission, the utility shall justify the reasonableness of any costs incurred due to these circumstances prior to the inclusion of any gas costs in their PGAC. If the commission determines to hold a hearing, it shall provide five (5) days' prior notice to the utility, public, attorney general, and intervenors of record in the utility's most recently filed general rate case.

N.M. Admin. Code § 17.10.640.12

17.10.640.12 NMAC - N, 3-15-04