Curtailment Program


Curtailment of Service Under NCUC Rule R-619.2 and Emergency Services - Rider A


Compressed Natural Gas - Rider B - Special Fuels Tax Act

Purchased Gas Adjustment Procedures - Rider D

Weather Normalization Adjustment - Rider E

Transportation Pooling Agreement (PDF, 137KB)

Rules and Regulations (PDF, 215KB)


Curtailment of Service under NCUC Rule R-619.2 and Emergency Services - Rider A

  1. PSNC Energy shall curtail service to its customers in accordance with Rule R6-19.2, as promulgated, and amended from time to time, by the Commission.
  2. PSNC Energy does not maintain metering by priority but shall do so if required by Rule R6-19.2.
  3. Nothing shall be construed to require PSNC Energy to curtail any customer if such curtailment will not make additional gas available for service to higher margin customers. Developmental rate schedules shall be assumed to have a margin equivalent to Rate Schedule No. 125 for curtailment purposes.
  4. The definition of alternate fuel in Rule R6-19.2 applies only to the priority system. For purposes of PSNC Energy's rate schedules, alternate fuel capability is defined as the actual installed capability to burn any fuel other than gas. An alternate fuel is that fuel that is predominately burned when service is curtailed and includes the type, grade and sulfur content of the fuel.
  5. Limited emergency service may be made available to any customer, other than those served on Rate Schedule No. 160, that would otherwise be curtailed under this Rider A if such customer is unable to continue operations on its standby or alternate energy source because of some bona fide existing or threatened emergency when and if PSNC Energy has gas available from its regular allocated storage volumes or some outside source other than its regular services. PSNC Energy, in its sole discretion, may furnish such limited emergency service for such specific times and for such specific controlled quantities at a rate set forth in that portion of the currently effective Sheet No. 100-2 that relates to this service, and such rate is incorporated herein by reference.
  6. On-peak emergency service may be made available to any customer, who would otherwise be curtailed, while PSNC Energy is utilizing a peak shaving capability (e.g., liquefied natural gas). PSNC Energy shall determine the extent and timing of such service, and service may be discontinued at the sole discretion of PSNC Energy. If, at any time or during any twenty-four (24) hour period commencing at 8:00 a.m. PSNC Energy, in its sole opinion, determines to operate a peak-shaving facility to inject liquefied natural gas into the system, then all emergency gas purchased by the customer during such day or days shall be considered to be on-peak emergency service for billing and operating purposes and shall be provided at a rate set forth in the currently effective Sheet No. 100-2, which is incorporated herein by reference.
  7. All emergency gas service is of a discretionary nature and implies no present nor future obligation of PSNC Energy to any customer to provide any such service on either a temporary or continuing basis. Deliveries of gas hereunder shall be made pursuant only to advance operating arrangements agreed to in writing by PSNC Energy's gas dispatching department and the customer and shall be subject to curtailment and interruption at any time that PSNC Energy in its sole discretion deems such curtailment or interruption necessary.
  8. PSNC Energy shall not be liable for any damages that may result to customer or any other person, firm or corporation, by reason of PSNC Energy's curtailing regular or emergency Service in accordance with any order of priorities, which may be necessary under existing conditions.
  9. All programs, agreements, contracts, rate schedules and rules and regulations for service by PSNC Energy are subject to change and modification from time to time by PSNC Energy, as such are approved by the North Carolina Utilities Commission or otherwise imposed by lawful authority.

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Compressed Natural Gas - Rider B - Special Fuels Tax

The purpose of this Rider is to recover the special fuels tax which is levied when natural gas is used as a vehicular motor fuel for highway use.

This rider is applicable to Service Rate Schedules No. 125 and 195 and shall be in addition to the published rates.

This rider shall apply to all natural gas supplied by PSNC Energy under the above rate schedules when such natural gas is used by the customer in an internal combustion engine or motor to propel motor vehicles on the public highways pursuant to General Statute 105-449.16.

Rate Per Month
PSNC Energy shall recover from the customer the special fuels tax required to be paid to the North Carolina Department of Revenue. The tax is currently computed by the North Carolina Department of Revenue, Gasoline Tax Division by equating one Ccf of natural gas to one gallon of liquid gasoline fuel and then applying the statutory tax rate per gallon of fuel. PSNC Energy will change its rate to match the amount and effective date of any change in the tax as required by the North Carolina Department of Revenue.
Special Conditions

All natural gas used under this rider shall be separately metered from any other use by PSNC Energy.

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Purchased Gas Adjustment Procedures - Rider D

I. Definitions

"Gas Costs" shall mean the total delivered cost of gas paid or to be paid to suppliers, including but not limited to all commodity/ gas charges, demand charges, peaking charges, surcharges, emergency gas purchases, overrun charges, capacity charges, standby charges, reservation fees, gas inventory charges, minimum bill charges, minimum take charges, take-or-pay charges, take-and-pay charges, storage charges, service fees and transportation charges, and any other similar charges associated with the purchase, storage or transportation of gas for PSNC Energy's system supply. This definition is applicable only to Sales Rate Schedule Nos. 105, 110, 125 and 126 and Transportation Rate Schedule Nos. 175 and 180, and it is not applicable to Rate Schedule Nos. 145 and 150.

"Suppliers" shall mean any person or entity, including an affiliate of PSNC Energy, who locates, produces, purchases, sells, stores and/or transports gas or its equivalent for or on behalf of PSNC Energy. Suppliers may include, but are not limited to, interstate pipeline transmission companies, producers, brokers, marketers, associations, intrastate pipeline transmission companies, joint ventures, providers of liquefied natural gas, liquefied petroleum gas, synthetic natural gas and other hydrocarbons used as feed stock, other local distribution companies, and end-users.

"Benchmark Commodity Gas Costs" shall mean PSNC Energy's estimate of the City Gate Delivered Gas Costs for long-term gas supplies, excluding demand charges and storage charges as approved in PSNC Energy's last general rate case or Gas cost adjustment proceeding. This definition is applicable only to Sales Rate Schedule Nos. 105, 110, 125 and 126, and is not applicable to Rate Schedule Nos. 145 and 150.

"City Gate Delivered Gas Costs" shall mean the total delivered gas costs to PSNC Energy at its City Gate. This definition is applicable only to Sales Rate Schedule Nos. 105, 110, 125 and 126, and is not applicable to Rate Schedule Nos. 145 and 150.

"Commodity and Other Charges" shall mean all gas costs other than demand charges and storage charges and any other gas costs determined by the Commission to be properly recoverable from sales customers. This definition is applicable only to Sales Rate Schedule Nos. 105, 110, 125 and 126, and is not applicable to Rate Schedule Nos. 145 and 150.
 
"Demand Charges and Storage Charges" shall mean all gas costs which are not based on the quantity of gas actually purchased or transported by PSNC Energy and any other gas costs determined by the Commission to be properly recoverable from customers, including company use and unaccounted for costs. This definition is applicable only to Sales Rate Schedule Nos. 105, 110, 125 and 126, and Transportation Rate Schedule Nos. 175 and 180, and is not applicable to Rate Schedule Nos. 145 and 150.

"Monthly Commodity Gas Cost" shall mean the monthly price per dekatherm applicable to sales under PSNC Energy's Rate Schedule Nos. 145 and 150 and shall be the sum of the Monthly Index Price, the 100% load factor equivalent of Transcontinental Pipe Line Corporation's Zone 3 to Zone 5 Maximum FT Rate, fuel, and Other Gas Supply Charges. The Monthly Commodity Gas Cost shall be determined monthly to reflect changes in the values used in the computation. This definition shall apply solely to Rate Schedule Nos. 145 and 150, and shall not apply to Sales Rate Schedule Nos. 105, 110, 125, and 126.

"Monthly Index Price" for a particular month shall mean the sum of $.003 per Therm plus the NYMEX price for Henry Hub Natural Gas contracts for that month established at the close of the third business day before the beginning of that month. This definition shall apply solely to Rate Schedule Nos. 145 and 150, and shall not apply to Sales Rate Schedule Nos. 105, 110, 125, and 126.

"Other Gas Supply Charges" shall mean the per therm supply reservation fees. These charges shall be determined on an annual basis by dividing the total estimated reservation fees to be paid under the firm supply contracts by the total estimated quantities to be purchased under these contracts.

"Sales Rate Schedules" shall mean PSNC Energy's Rate Schedule Nos. 105, 110, 125, and 126.

"Large-Quantity Rate Schedules" shall mean PSNC Energy's Rate Schedule No. 145 and Rate Schedule No. 150.

"Transportation Rate Schedules" shall mean PSNC Energy's Rate Schedule Nos. 175 and 180.

II. Rate Adjustments Under These Procedures

1.  Sales Rate Schedules. If PSNC Energy anticipates a change in its City Gate Delivered Gas Costs, it may apply and file revised tariffs in order to increase or decrease its rates to its customers as hereinafter provided. The Commission may issue an order allowing the Rate change to become effective simultaneously with the effective date of the change or at any time ordered by the Commission. If the Commission has not issued an order within 120 days after the application, PSNC Energy may place the requested rate adjustment into effect. 

2.  Demand Charges and Storage Charges. Whenever PSNC Energy anticipates a change in the demand charges and storage charges, it may (as hereinabove provided) change its rates to customers under each applicable rate schedule by an amount computed as follows:

(Total Anticipated Demand Charges and Storage Charges - Prior Demand Charges and Storage Charges) x Rate Schedule Percentage*

Sales & Transportation Quantities*
(by Rate Schedule)
 = Increase (Decrease) Per Unit

* Established by the Commission in the last general Rate case.

3.  Commodity and Other Charges. Whenever PSNC Energy's estimate of its benchmark commodity gas costs changes, it may (as hereinabove provided) change the rates to its customers purchasing gas under Sales Rate Schedule Nos. 105, 110, 125 and 126 by an amount computed as follows:


Quantities of Gas purchased for Sales Rate Schedule Nos. 105, 110, 125 and 126* (excluding Company Use and Unaccounted For) x (New Benchmark Commodity Gas Costs - Old Benchmark Commodity Gas Costs)

Quantities of Gas purchased for Sales Rate Schedule Nos. 105, 110, 125 and 126* (excluding Company Use and Unaccounted For)
 = Increase (Decrease) Per Unit

* Established by the Commission in the last general Rate case.

4. Company Use and Unaccounted For. Whenever PSNC Energy's estimate of its benchmark commodity gas costs changes, it may (as hereinabove provided) change the rates to its customers purchasing gas under Sales Rate Schedule Nos. 105, 110, 125 and 126 and its Customers transporting Gas under Rate Schedule Nos. 175 and 180, by an amount computed as follows:


Quantities of Company Use and Unaccounted For Gas* x (New Benchmark Commodity Gas Costs - Old Benchmark Commodity Gas Costs)

Sales & Transportation Quantities*
 = Increase (Decrease) Per Unit

* Established by the Commission in the last general Rate case.

5. Other Changes in Purchased Gas Costs. The intent of these procedures is to permit PSNC Energy to recover its actual prudently incurred Gas Costs. If any other Gas Costs are incurred, they will be handled as in Section 1 if they are similar to Demand Charges and Storage Charges, or as in Section 2 if they are similar to Commodity and Other Charges.
6. Large Quantity Rate Schedules. The Rates for firm and/or Interruptible Service under Rate Schedule No. 145 or 150 shall be computed on a per-unit basis by adding the Monthly Commodity Gas Cost to the applicable transportation Rate.

III. True-up of Gas Costs

Demand Charges and Storage Charges
On a monthly basis, PSNC Energy shall determine the difference between (a) Demand Charges and Storage Charges billed to its Customers in accordance with the Commission-approved allocation of such costs to PSNC Energy's various Rate Schedules and (b) PSNC Energy's actual Demand Charges and Storage Charges. This difference shall be recorded in PSNC Energy's deferred Account for Demand and Storage Charges. Increments and decrements for Demand Charges and Storage Charges flow to Sales Rate Schedule Nos. 105, 110, 125 and 126 and to Transportation Rate Schedule Nos. 175 and 180. For purposes of this true-up, company uses and unaccounted for costs will be excluded since they are subject to a separate true-up.

Commodity and Other Charges
On a monthly basis, PSNC Energy shall determine with respect to gas sold (including company use and unaccounted for) during the month under Rate Schedule Nos. 105, 110, 125, and 126, the per unit difference between (a) the benchmark commodity gas costs most recently approved and (b) the actual commodity and other charges. The product of the actual quantities multiplied by the per unit difference shall be recorded in PSNC Energy's deferred account for commodity and other charges. Increments and decrements for commodity and other charges flow to Sales Rate Schedule Nos. 105, 110, 125, and 126. On a monthly basis, PSNC shall determine with respect to gas sold during the month under Rate Schedule Nos. 145 and 150, the per unit difference between (a) the amount that PSNC Energy collects in the commodity portion of its rates for sales under Rate Schedules 145 and 150 and (b) the cost of acquiring gas for those sales. The product of the actual quantities multiplied by the per unit difference shall be recorded in PSNC Energy's deferred account for demand and storage charges.

Company Use and Unaccounted For
PSNC Energy will true-up gas costs associated with company use and unaccounted for quantities annually. This shall be done by comparing the actual company use and unaccounted for quantities during the true-up period with the rate case approved company use and unaccounted quantities used to establish rates during the twelve month true-up period. Where there is more than one approved company use and unaccounted for quantities during the true-up period, the average monthly level will be used. The resulting quantities will be multiplied by the average of the benchmark commodity gas costs at the end of each month of the true-up period, and the resulting amount will be recorded in the deferred account for demand and storage charges. Increments and decrements for company use and Unaccounted For flow to Sales Rate Schedule Nos. 105, 110, 125, and 126 and to Transportation Rate Schedule Nos. 175 and 180.

Supplier Refunds and Direct Bills
If PSNC Energy receives supplier refunds or direct bills with respect to gas previously purchased, the amount of such supplier refunds or direct bills will be recorded in the appropriate deferred account, unless directed otherwise by the Commission.

IV. Other

Gas cost changes not tracked concurrently shall be recorded in the appropriate deferred Account.

The commodity and other charges portion of gas inventories shall be recorded at actual cost and the difference in that cost and the benchmark commodity gas costs most recently approved shall be recorded in the deferred account when the gas is withdrawn from inventory.

PSNC Energy shall file with the Commission (with a copy to the Public Staff) a complete monthly accounting of the computations under these procedures, including all supporting work papers, journal entries, etc., within 45 days after the end of each monthly reporting period. All such computations shall be deemed to be in compliance with these procedures unless within 60 days of such filing the Commission or the public staff notifies PSNC Energy that the computations may not be in compliance; provided, however, that if the Commission or the public staff requests additional information reasonably required to evaluate such filing, the running of the 60-day period will be suspended for the number of days taken by PSNC Energy to provide the additional information.

Periodically, PSNC Energy may file to adjust its rates to refund or collect balances in these deferred accounts through decrements or increments to current rates. In filing for an increment or decrement, PSNC Energy shall state the amount in the deferred account, the time period during which the increment or decrement is expected to be in effect, the rate classes to which the increment or decrement is to apply, and the level of quantities estimated to be delivered to those classes. Any such increments or decrements shall be made on a percentage basis for all affected rate classes as determined in PSNC Energy's most recent general rate case, unless otherwise ordered by the Commission.

PSNC Energy may negotiate with commercial and industrial customers on its sales and transportation Rates to avoid the loss of deliveries to these customers. All margin loss from those customers served under Rate Schedule No. 160 which would otherwise have purchased gas under Rate Schedule No. 150 shall be recorded in the deferred account for commodity and other charges. All margin loss from those Customers served under Rate Schedule 160 which would otherwise have transported gas under Rate Schedule Nos. 175 or 180 shall be recorded in the deferred account for demand and storage charges. Such margin loss shall be based on the currently effective Rates. PSNC Energy may offset negotiated losses in any manner authorized by the Commission. 


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Weather Normalization Adjustment - Rider E

Applicability
This factor shall be applicable to Rate Schedule Numbers 105, 110, and 125. The base rate for each of these schedules shall be adjusted by an amount calculated as described below which shall be known as the weather normalization adjustment. This adjustment shall be applied to all bills rendered during the months of November through April. Any small industrial customer served under Rate Schedule No. 125 may obtain an exemption from this rate adjustment by filing a request with PSNC Energy that establishes the absence of a statistically significant correlation between its natural gas use and the weather.

Computation of the Weather Normalization Adjustment

The weather normalization adjustment shall be computed to the nearest one-ten thousandth of a cent per therm through the use of the following formula:

(HSFi (NDD-ADD))
WNAi  =   Ri   x  
(BLi + (HSFi x ADD))

Where:
i = any particular rate schedule that this factor is applied to
WNAi = Weather normalization factor for the ith rate schedule expressed in cents per therm
Ri = base rate (approved rate less cost of gas) for the ith schedule
HSFi = heat sensitive factor for the ith rate schedule approved by the Commission in the last general rate case for the purpose of determining normalized test year revenues
NDD = normal billing cycle heating degree days approved by the Commission in the last general rate case for the purpose of determining normalized test year revenues
ADD = actual billing cycle heating degree days
BLi = base load sales for the ith rate schedule approved by the Commission in the last general rate case for the purpose of determining normalized test year revenues

Filing with the Commission
PSNC Energy will file, as directed by the Commission, (a) a copy of the computations of the weather normalization adjustment, (b) the effective dates for each adjustment and (c) the factors approved by the Commission used to calculate the weather normalization adjustments.


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