(a) The charges which KNE makes for gas delivered to its customers shall be subject to adjustment to recover certain costs associated with KNE's gas supply contract P-0802 (hereinafter the "P-0802 Charge") and its Gas Supply Transition Agreement (hereinafter the "GSTA Charge"). The P-0802 Charge and the GSTA Charge shall be calculated in total for Nebraska and applied uniformly to all of KNE's Nebraska rate areas. Nothing herein precludes the Municipality from exercising its statutory authority to approve an ordinance adopting revisions to KNE's unbundling program or this chapter and the charges provided for herein.
(b) Upon the first effective day of this chapter, and each year thereafter, the P-0802 Charge shall be computed on a unit-of-delivery methodology, based on the Nebraska portion of the projected difference between the purchase costs associated with contract P-0802 purchase obligations and the revenues recovered by KNE, or a subsidiary of KNE, through resale of such volumes at market prices, divided by projected Nebraska customer delivered volumes for the upcoming twelve-month period. P-0802 purchase costs shall include costs associated with contract P-0802 which are transferred out of Account 165 due to physical deliveries associated with such costs. In the alternative, the P-0802 Charge shall be computed on a unit-of-delivery methodology based on the Nebraska portion of a negotiated P-0802 contract buyout amount divided by projected total Nebraska customer delivered volumes for a period to be determined by KNE.
In addition, an amount shall be added to or subtracted from the P-0802 Charge to represent a reconciliation from the prior twelve-month period between revenues KNE collected under the P-0802 Charge and actual net costs incurred by KNE for Contract P-0802.
(c) Upon the first effective date of this chapter, and continuing for a three-year period, the GSTA Charge shall be computed on a unit-of-delivery methodology, based on the Nebraska portion of the projected difference between the purchase costs associated with the GSTA contract and the revenues recovered by KNE, or a subsidiary of KNE, through resale of such volumes at market prices, and projected total Nebraska customer delivered volumes for the upcoming twelve-month period. In the alternative, the GSTA Charge shall be computed on a unit-of-delivery methodology based on the Nebraska portion of a negotiated GSTA contract buyout divided by projected total Nebraska customer delivered volumes for a period to be determined by KNE.
In addition, an amount shall be added to or subtracted from the GSTA Charge to represent a reconciliation from the prior twelve-month period between revenues KNE collected under the GSTA Charge and actual net costs incurred by KNE for the GSTA contract. This adjustment for reconciliation shall also apply one year following the completion of the GSTA Charge application.
(d) The portion of Contract P-0802 and the GSTA Contract which is applicable to Nebraska will be calculated as an allocated share of such contracts based upon annual projected volumes delivered to Nebraska divided by projected applicable systemwide delivered volumes.
(e) The P-0802 and GSTA Charges shall be reflected in rates only when they represent a dollar amount equal to at least $.001 per delivered therm. Between annual filing periods, if KNE experiences a change or changes in the projected costs or revenues, and the cumulative effect of these changes is to produce a projected increase or decrease in the effective rate of at least $.001 per therm for the remaining portion of the projected period, then an adjusted P-0802 or GSTA Charge may be determined and charged.
(f) The annual P-0802 and GSTA Charges shall become effective thirty days subsequent to the mailing of written notice. Such written notice shall include supporting work-papers which state the projected P-0802 and GSTA purchase costs and sale revenues or buyout costs, and which support the calculation of the applicable P-0802 and GSTA Charges.
(Ord. 1379. Passed 3-10-98.)