Gas – Rates
ATCO Gas and Pipelines Ltd. (“ATCO Gas”) filed an application with the AUC requesting approval of its 2022-2023 unaccounted-for gas (“UFG”) Rider D and Rider P, effective November 1, 2022. ATCO Gas calculated Rider D to increase from the currently approved value of 1.176 percent to 1.271 percent, and Rider P to increase from 1.162 percent to 1.270 percent.
The AUC approved UFG rate Rider D of 1.271 percent and Rider P of 1.270 percent, effective November 1, 2022.
AUC Rule 028: Natural Gas Settlement System Code Rules
For various reasons, in the process of delivering natural gas to customers through the distribution system, some gas goes unaccounted for and a variance results between the amount of natural gas that goes into the distribution system and the deliveries actually received by customers. The difference is referred to as UFG. In accordance with the current regulatory framework, the cost of UFG is ultimately passed on to the customers. Rider D recovers UFG in-kind from all retailers and default supply providers that use the ATCO Gas distribution system. Rider P recovers UFG associated with producer accounts, specifically producers’ volumes transacted off the ATCO Gas distribution system. Rider P ensures that exporting producers account for their share of UFG, in-kind.
Both riders are similarly designed and follow the same AUC-approved methodology to calculate the amounts. Specifically, Rider D is calculated annually using the most recent three-year average of ATCO Gas’s annual UFG percentages, which are derived by dividing UFG (system receipts minus deliveries) by system deliveries. Rider P is similarly calculated using the most recent three-year average of annual UFG percentages but uses system receipts as the denominator to calculate the annual UFG recovery requirement.
The AUC recognized that, due to the many factors that impact UFG, the UFG amount fluctuates over time. The AUC, therefore, accepted the percentage increase from the 2021-2022 period. The AUC stated that it is cognizant of the unpredictable nature of UFG and the need to have a sound monitoring and mitigation program to control it. The AUC directed ATCO Gas to continue to provide relevant information in the next UFG application.