{"operation":"document","citation":"4 CCR 723-4 Rule 4603","title":"Gas Cost Adjustments","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"(a) Scheduled filings. A utility shall submit a GCA filing to adjust its GCA. The GCA filing shall be filed pursuant to the schedule provided in rule 4602. The GCA filing shall be submitted not less than two weeks in advance of the proposed effective date. (b) Additional filings. If the projected ga","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4603.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4603.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4603","source_url":"https://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=2260&deptID=18&agencyID=96&deptName=Department%20of%20Regulatory%20Agencies&agencyName=Public%20Utilities%20Commission&seriesNum=4%20CCR%20723-4","body":"(a) Scheduled filings. A utility shall submit a GCA filing to adjust its GCA. The GCA\nfiling shall be filed pursuant to the schedule provided in rule 4602. The GCA filing\nshall be submitted not less than two weeks in advance of the proposed effective\ndate.\n(b) Additional filings. If the projected gas costs have changed from those used to\ncalculate the currently effective gas cost or if a utility’s deferred gas cost balance\nincreases or decreases sufficiently, the utility may submit a GCA filing to revise\nits currently effective GCA to reflect such changes, provided that the resulting\nchange to the GCA equates to at least one cent ($0.01) per Mcf or Dth.\n(c) Applicability of the GCA. The GCA shall be applied to all utility sales gas rate\nschedules. A utility engaged in the provision of gas transportation service may\ncalculate a GCA that may be applied to transportation gas rate schedules in\norder to reflect appropriate costs. Absent a Commission decision, a utility\nengaged in the provision of gas transportation service shall not be required to\ncalculate a transportation GCA factor.\n(d) Interest on under- or over-recovery. The amount of net interest accrued on the\naverage monthly balance in Account No. 191 (whether positive or negative), is\ndetermined by multiplying the monthly balance by an interest rate equal to the\nCommission-authorized customer deposit rate for gas utilities. If net interest is\npositive, it will be excluded from the calculation of the deferred gas cost.\n(e) Financial gas commodity hedging. Costs related to gas price volatility risk\nmanagement through financial hedging for jurisdictional gas supply may be\nincluded for recovery through the GCA, if allowed by tariffs or by Commission\ndecision. Such costs are subject to the prudence review and standard provided in\nrule 4608.\n(f) Calculation of the GCA. The GCA shall be calculated to at least the accuracy of\none mil per Mcf or Dth pursuant to the following formula, subject to individual\nGCA rule variances granted by the Commission:\n\nGCA = (current gas cost + deferred gas cost) - (base gas cost).\n(g) Gas price risk management plan. The calculation of the GCA shall be subject to\na maximum cap based on a set percentage of an average of the utility’s historical\nGCAs and to a minimum threshold based on a set percentage of an average of\nthe utility’s historical GCAs in accordance with the utility’s gas price risk\nmanagement plan as approved by the Commission. Prudently incurred costs\nabove the maximum cap shall be recorded in a deferred balance that is\nrecoverable and amortized over an appropriate timeline of no more than five\nyears with financing costs, as determined by the Commission. Collections at the\nminimum threshold shall be recorded in a reserve fund, not to exceed an amount\nestablished by the Commission, and shall be used to offset any deferred balance\nof prudently incurred costs above the maximum cap.","truncated":false,"body_characters":2921}