Okla. Admin. Code § 165:50-3-2

Current through Vol. 42, No. 7, December 16, 2024

Section 165:50-3-2 - Standard fuel and purchased gas adjustment clause provisions

(a) Standard fuel and purchased gas adjustment provisions set forth in (1) and (2) of this subsection are hereby adopted for use, insofar as feasible, by the public utilities subject to the jurisdiction of the Commission.

(1)Electric. The method for use in compensating for charges in cost of fuel is as follows:

(A) Each utility generating electricity and having an approved cost of fuel adjustment clause in its tariff, subject to the Commission's jurisdiction, shall compensate for any variations in the average cost of fuel burned at the utility's thermal generating plant(s) above or below the cost of fuel used in each tariff on which the rate was based, by adjusting the charges, either upward or downward per kWh, billed under its tariffs, approved agreements and special contracts by employing a method approved by the Commission in a public hearing process.

(B) The monthly average actual heat content of each fuel burned and thermal efficiency of each generating plant shall be reported in British Thermal Units (BTU) on a monthly basis to PUD. The actual fuel burned and generation for each generating plant shall be reported by fuel type in BTU content, tons, or gallons, as appropriate.

(C) Line losses shall be considered only if reliable evidence clearly points to the conclusion that failure to do so will substantially threaten the ability of the utility to earn a reasonable rate of return. If line losses are allowed by the Commission, the utility will submit a copy of the most recent applicable line loss study. Line losses will be evaluated for reasonableness on a case-by-case basis.

(2)Gas.

(A)Pressure base. For the purposes of calculations made in this paragraph, all volumes of gas will be adjusted to a pressure base of the pounds per square inch absolute on which the utility's rates are established and in accordance with gas measurement procedures standard in the industry. All reports to the Commission will be at 14.73 p.s.i.a. pressure base, detailing the conversion multipliers used.

(B)Determination of Mcf and price paid therefore upon initial receipt of gas. The total Mcf and the dollar amounts paid therefore shall be calculated for each accounting month on the basis of:

(i) The volumes of gas purchased by the utility or an affiliate from nonaffiliated producers, gatherers, processors, pipelines, and transporters, and the price paid for such gas, and

(ii) The volumes valued at the fair field price represented by gas received from wells owned by the utility or an affiliate and residue gas owned by the utility or an affiliate from gas processing plants, which gas is delivered into the utility's pipeline system, into the pipeline system of an affiliate of the utility, or directly to the utility's customers.

(C)Adjustments to calculations. Adjustments to the total Mcf and dollar amounts as determined pursuant to (B) of this paragraph shall be made for volumes of gas removed by treating or processing facilities and compression facilities located on the downstream side of any initial volume or value determination point. The total Mcf and associated value removed from the gas stream due to such treating, processing, and compression shall be subtracted from the total Mcf and dollar amounts as determined pursuant to (B) of this paragraph.

(D)Gas storage injections and withdrawals. Accurate records shall be kept to determine the total Mcf and associated value of gas injected into or withdrawn from storages. Each utility having gas in underground storage shall report to the Commission on or before the sixtieth (60th) calendar day following the last day of each month the amount and purchased cost of gas in storage as of the last day of the preceding month. This report shall be made on a form as approved by the Commission. Total Mcf and associated value shall be subtracted from the total amounts determined pursuant to (B) of this paragraph for any gas injected into storage during the accounting month for which the average cost of gas is being determined. Total Mcf and associated value for any gas withdrawn from storage during the accounting month for which the cost of gas is being determined shall be determined using the last-in, first-out method of inventory accounting and shall be added to the total amounts determined pursuant to (B) of this paragraph.

(E)Other provisions. Special provisions which are approved by the utility tariffs.

(F)Determination of the weighted average cost per Mcf. The weighted average cost per Mcf for each accounting month shall be calculated by totaling the Mcf and dollar amounts as determined pursuant to the preceding subparagraphs and divided the total dollar amount by the total Mcf.

(G)Application of the average cost of purchased gas. Whenever the average cost of purchased gas, determined as provided in the preceding subsections, is less than the base cost per Mcf as specified in the utility's approved tariff, the applicable rate per Mcf of gas delivered will be reduced by an amount equal to the amount that the utility's average cost of purchased gas is less than the base cost per Mcf as specified in the utility's approved tariff. When the average cost of purchased gas is more than the base cost per Mcf as specified in the utility's approved tariff, the applicable rate per Mcf of gas delivered will be increased by an amount equal to the amount that the utility's average cost of purchased gas is more than the base cost per Mcf as specified in the utility's approved tariff. The purchased gas adjustment to be applied to any bill will be based on the average cost of purchased gas for the latest gas purchase accounting month for which said cost has been determined.

(H)Credits. Any credits, refunds, or allowances on previously purchased gas received by the utility from any supplier shall be deducted from the cost of gas before computations are made each month.

(I)Average actual heat content. Where available, monthly average actual heat content of gas delivered to end users shall be provided in BTUs to PUD during its annual fuel audit of the utility. The information shall be supplied by utility-defined regions, if available.

(b) Variations from the standard provisions set forth in this Section must be sought pursuant to applications for permission to use such clauses to be filed pursuant to 165:50-5-1.

Okla. Admin. Code § 165:50-3-2

Amended at 12 Ok Reg 2139, eff 7-1-95

Amended by Oklahoma Register, Volume 36, Issue 21, July 15, 2019, eff. 7/25/2019