(a) The charges made by KNE for gas delivered to its customers shall be subject to adjustment to recover or refund the over- or under-collected deferred gas costs in Federal Energy Regulatory Commission (FERC) Account 191. Upon the effective date of Sections 1046.01 to 1046.06, and each year thereafter, KNE will establish an Account 191 Charge to be effective the following year. The applicable Account 191 Charge shall be computed using the following formula:
JA191 / (PJAD x TY) = Account 191 Charge
Where:
JA191 = Projected Nebraska total system FERC Account 191 Balance
PJAD = Projected Nebraska total system annual deliveries stated in therms
(1) Under-or over-collections of the cost of gas purchases made by KNE for the purpose of providing gas supply to customers prior to the implementation of the unbundling of residential sales service.
(2) Incurrence of gas supply costs after the implementation of the unbundling of residential sales service due to: A. Participating suppliers not performing per the Nebraska Choice Gas Transportation Terms and Conditions; B. Participating suppliers terminating their participation during the Nebraska Choice Gas Transportation program year; or C. Lack of full assignment of interstate pipeline transportation and storage capacity by KNE to suppliers. Such capacity shall have been acquired and retained in a prudent manner for the purposes of reliably serving customers' daily and annual load requirements, and new capacity acquired or capacity retained shall be solely for the purpose of serving those customers for which firm upstream capacity is required under the residential and commercial unbundling program.
Such costs under paragraphs (b) (2)A. and B. hereof shall be collected through this mechanism only after recovery directly from the associated supplier has been reasonably pursued.
(c) The Projected Nebraska total system FERC Account 191 Balance shall also include interest, computed in accordance with subsection (e) hereof.
(d) As used in this chapter, the terms "gas purchases" and "gas supply costs" include the total dollar demand and commodity cost of gas purchases made by KNE and all associated gathering, transporting, storing, treating, processing or any other services, fees and taxes related to such gas purchases. Such costs are typically recorded in FERC Accounts 800, 801, 802, 803, 804, 806, and 808 or other similar accounts.
(e) Interest will be calculated on any over- or under-recovered amounts at a rate equal to the then-current rate of interest on pipeline refunds, as published by the Federal Energy Regulatory Commission. Interest will be calculated monthly by applying the interest rate to the beginning of the month balance of over- or under-recovered gas costs as recorded in FERC Account 191, less accumulated deferred income taxes. Any accumulated interest amounts will be added to or subtracted from the Jurisdictional FERC Account 191 Balance and become a part of that balance to be collected through the Account 191 Charge.
(f) The Account 191 Charge shall be reflected in rates only when it represents a dollar amount equal to at least $.001 per delivered therm. Between annual filing periods, if KNE experiences a change or changes in projected delivered therms or Nebraska total system FERC Account 191 Balance, and the cumulative effect of those changes is to produce a projected increase or decrease in the effective Account 191 Charge of at least $.001 per delivered therm for the remaining portion of the rate effective period, then an adjusted Account 191 Charge may be determined and charged.
(g) The annual Account 191 Charge shall become effective thirty days subsequent to the mailing of written notice. Such written notice shall include supporting work-papers which state the Nebraska total system FERC Account 191 Balance and which support the calculation of the applicable Account 191 Charge.
(Ord. 1379. Passed 3-10-98.)