Rider D
ATCO Gas and Pipelines Ltd. (“ATCO Gas”) applied for approval of its unaccounted-for gas (“UFG”) rate rider (“Rider D”) for 2015 and 2016. ATCO Gas requested approval to increase Rider D to 1.220 percent from 1.125 percent, effective November 1, 2015.
ATGO Gas submitted that UFG charges are recovered in-kind from all shippers on its distribution system using a three-year calendar average of physical measurement data to determine UFG. ATCO Gas noted the 2012, 2013, and 2014 UFG figures were 0.895 percent, 1.488 percent and 1.276 percent respectively.
In ATCO Gas’ last UFG proceeding, the AUC directed ATCO Gas, in Decision 2014-290, to provide clear explanations of seasonal UFG differences, measurement corrections and reasons for UFG increases or decreases. The AUC also directed ATCO Gas to provide information on practices and procedures used to reduce UFG.
ATCO Gas submitted that the major cause of variable UFG from month to month is the limited estimating ability of its daily forecasting and settlement system (“DFSS”) to allocate cycle billing reads, making UFG appear higher or lower from month to month. ATCO Gas submitted that the annual measurement period helps to reduce any month-to-month variability in readings.
ATCO Gas noted that the Rider D rate would increase by 8.4 percent from its last UFG application. ATCO Gas explained that a potential cause of the increase was likely due to temporary mixing of gas from two or more gas sources with differing heat values caused by the relocation and transition of gate stations as part of its urban pipeline replacement program.
The AUC accepted ATCO Gas’ explanations of seasonal differences in UFG and measurement corrections, as well as the reasons for the increase in UFG. The AUC directed ATCO Gas to continue providing this information with its next UFG application for Rider D. The AUC therefore approved ATCO Gas’ requested Rider D at 1.220 percent, effective November 1, 2015.
