(A) Authorization. The Commission is hereby authorized to pass gas cost adjustments on to customers, whether increases or decreases, from the supplier of the Commission gas system to maintain the balanced efficiency of the gas division. The Commission shall be apprised of such increases or decreases as the case may be, whenever they occur.
(B) Pass Through Adjustments (PTA). The PTA adjustment is intended to assure that the gas division adjusts for volatile changes in the commodity cost of gas. The "Commodity Cost of Gas" is the Commission's monthly gate cost of gas. This includes the actual gas cost plus the interstate pipeline volumetric and storage costs involved in transporting the gas from the source of supply to the Commissioner's gate regulator station. The PTA will be calculated as needed to be applied to the first billing that follows. Any balance over or under recovery of gas cost at the end of each month may be passed through to the subsequent month PTA accordingly. The “monthly” cost of gas is the Commission’s system’s actual gate cost of gas compared to the base cost of gas. If the monthly cost of gas exceeds the base cost of gas, the amount will be an increase. If the monthly cost of gas is less than the base cost of gas, the amount will be a decrease. The cost of gas at the wellhead, or source of supply, has been unregulated for years and is affected by free market factors such as supply, demand, and competition. The Commission system does not profit from the PTA adjustment. It adjusts for the gas system’s monthly city gate gas costs only. It does not affect operation and maintenance, fixed demand costs, or other costs incurred by the utility. The PTA will be calculated monthly on the last business day of each month to be applied to the first billing that follows. Any balance over or under recovery of gas cost at the end of each month may be passed through the subsequent month PTA accordingly.
(Ord. 19-2011, passed 10-18-2011; Ord. 27- 2019, passed 12-17-2019)