# Gas Cost Adjustments

- **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:** Not available
- **effective on:** Not available
- **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
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- **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
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 gas costs have changed from those used to
calculate the currently effective gas cost or if a utility’s deferred gas cost balance
increases or decreases sufficiently, the utility may submit a GCA filing to revise
its currently effective GCA to reflect such changes, provided that the resulting
change to the GCA equates to at least one cent ($0.01) per Mcf or Dth.
(c) Applicability of the GCA. The GCA shall be applied to all utility sales gas rate
schedules. A utility engaged in the provision of gas transportation service may
calculate a GCA that may be applied to transportation gas rate schedules in
order to reflect appropriate costs. Absent a Commission decision, a utility
engaged in the provision of gas transportation service shall not be required to
calculate a transportation GCA factor.
(d) Interest on under- or over-recovery. The amount of net interest accrued on the
average monthly balance in Account No. 191 (whether positive or negative), is
determined by multiplying the monthly balance by an interest rate equal to the
Commission-authorized customer deposit rate for gas utilities. If net interest is
positive, it will be excluded from the calculation of the deferred gas cost.
(e) Financial gas commodity hedging. Costs related to gas price volatility risk
management through financial hedging for jurisdictional gas supply may be
included for recovery through the GCA, if allowed by tariffs or by Commission
decision. Such costs are subject to the prudence review and standard provided in
rule 4608.
(f) Calculation of the GCA. The GCA shall be calculated to at least the accuracy of
one mil per Mcf or Dth pursuant to the following formula, subject to individual
GCA rule variances granted by the Commission:

GCA = (current gas cost + deferred gas cost) - (base gas cost).
(g) Gas price risk management plan. The calculation of the GCA shall be subject to
a maximum cap based on a set percentage of an average of the utility’s historical
GCAs and to a minimum threshold based on a set percentage of an average of
the utility’s historical GCAs in accordance with the utility’s gas price risk
management plan as approved by the Commission. Prudently incurred costs
above the maximum cap shall be recorded in a deferred balance that is
recoverable and amortized over an appropriate timeline of no more than five
years with financing costs, as determined by the Commission. Collections at the
minimum threshold shall be recorded in a reserve fund, not to exceed an amount
established by the Commission, and shall be used to offset any deferred balance
of prudently incurred costs above the maximum cap.
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