§ 62-133.4. Gas cost adjustment for natural gas local distribution companies. - North Carolina Statutes

§ 62‑133.4.  Gascost adjustment for natural gas local distribution companies.

(a)        Rate changes for natural gas local distribution companiesoccasioned by changes in the cost of natural gas supply and transportation maybe determined under this section rather than under G.S. 62‑133(b), (c),or (d).

(b)        From time to time, as changes in the cost of natural gasrequire, each natural gas local distribution company may apply to theCommission for permission to change its rates to track changes in the cost ofnatural gas supply and transportation.  The Commission may, without a hearing,issue an order allowing such rate changes to become effective simultaneouslywith the effective date of the change in the cost of natural gas or at anyother time ordered by the Commission.  If the Commission has not issued anorder under this subsection within 120 days after the application, the utilitymay place the requested rate adjustment into effect.  If the rate adjustment isfinally determined to be excessive or is denied, the utility shall make refundof any excess, plus interest as provided in G.S. 62‑130(e), to itscustomers in a manner ordered by the Commission.  Any rate adjustment underthis subsection is subject to review under subsection (c) of this section.

(c)        Each natural gas local distribution company shall submit tothe Commission information and data for an historical 12‑month testperiod concerning the utility's actual cost of gas, volumes of purchased gas,sales volumes, negotiated sales volumes, and transportation volumes.  Thisinformation and data shall be filed on an annual basis in the form and detailand at the time required by the Commission.  The Commission, upon notice andhearing, shall compare the utility's prudently incurred costs with costs recoveredfrom all the utility's customers that it served during the test period.  Ifthose prudently incurred costs are greater or less than the recovered costs,the Commission shall, subject to G.S. 62‑158, require the utility torefund any overrecovery by credit to bill or through a decrement in its ratesand shall permit the utility to recover any deficiency through an increment inits rates.

(d)        Nothing in this section prohibits the Commission frominvestigating and changing unreasonable rates as authorized by this Chapter,nor does it prohibit the Commission from disallowing the recovery of any gascosts not prudently incurred by a utility.

(e)        As used in this section, the word "cost" or"costs" shall be defined by Commission rule or order and may includeall costs related to the purchase and transportation of natural gas to thenatural gas local distribution company's system. (1991, c. 598, s. 8.)