revenues come from the residential class of customers. Columbia St. in Support, p. Columbia’s 14. annual non-gas revenue from residential customers during the historic test year Columbia’s is approximately $152 million. Columbia St. in Support, p. 14. Columbia asserts under the current residential rate design, approximately 56% of revenue requirement from the Columbia’s residential class may be viewed as generated on a non-fixed basis. Columbia St. in Support, p. 14. Therefore, Columbia asserts, approximately $67 million of annual residential Columbia’s revenue requirement is not generated on a fixed basis, but instead dependent on factors that are not under control such as the weather and customer conservation measures. Columbia’s Columbia St. in Support, p. 14. According to Columbia, consistent with the encouragement to Commission’s propose alternative rate mechanisms and to address the concern regarding revenue Company’s stability, Columbia reviewed alternative rate design mechanisms currently employed by gas utilities in other states. Based upon its investigation, Columbia indicates it proposed three rate design options for the consideration in this proceeding, including a Revenue Commission’s Normalization Adjustment a levelized distribution charge and a Weather (“RNA”), Normalization Adjustment Columbia indicates the RNA was preferred (“WNA”). Columbia’s alternative in the case. Following a close of the three proposals offered by the Company in this proceeding, the Settlement implements proposed WNA residential Columbia’s rate design mechanism on a pilot basis, as modified by the Settlement. Settlement ¶ 35; Columbia St. in Support, p. 15. Columbia witness Paula A. Strauss explained the WNA is a temperature-based weather normalization mechanism that is applicable to residential accounts (rate schedules RSS, RDS, RDGSS, RDGDS and Rate CAP) from October through May of each year. Columbia St. in Support, p. 15. Columbia asserts the WNA methodology adjusts only the portion of bills to reflect normal weather levels that were the basis upon customers’ which non-gas rates were determined, designed and approved. Columbia St. in Support, p. 15. Columbia further explains that the WNA will only be used to calculate the non-gas distribution charges, including Rider USP, by adjusting usage for each residential customer individually to
Columbia’s revenues come from the residential class of customers. Columbia St. in Support, p. 14. Columbia’s annual non-gas revenue from residential customers during the historic test year is approximately $152 million. Columbia St. in Support, p. 14. Columbia asserts under the current residential rate design, approximately 56% of Columbia’s revenue requirement from the residential class may be viewed as generated on a non-fixed basis. Columbia St. in Support, p. 14. Therefore, Columbia asserts, approximately $67 million of Columbia’s annual residential revenue requirement is not generated on a fixed basis, but instead dependent on factors that are not under Columbia’s control such as the weather and customer conservation measures. Columbia St. in Support, p. 14. According to Columbia, consistent with the Commission’s encouragement to propose alternative rate mechanisms and to address the Company’s concern regarding revenue stability, Columbia reviewed alternative rate design mechanisms currently employed by gas utilities in other states. Based upon its investigation, Columbia indicates it proposed three rate design options for the Commission’s consideration in this proceeding, including a Revenue Normalization Adjustment (“RNA”), a levelized distribution charge and a Weather Normalization Adjustment (“WNA”). Columbia indicates the RNA was Columbia’s preferred alternative in the case. Following a close of the three proposals offered by the Company in this proceeding, the Settlement implements Columbia’s proposed WNA residential rate design mechanism on a pilot basis, as modified by the Settlement. Settlement ¶ 35; Columbia St. in Support, p. 15. Columbia witness Paula A. Strauss explained the WNA is a temperature-based weather normalization mechanism that is applicable to residential accounts (rate schedules RSS, RDS, RDGSS, RDGDS and Rate CAP) from October through May of each year. Columbia St. in Support, p. 15. Columbia asserts the WNA methodology adjusts only the portion of customers’ bills to reflect normal weather levels that were the basis upon which non-gas rates were determined, designed and approved. Columbia St. in Support, p. 15. Columbia further explains that the WNA will only be used to calculate the non-gas distribution charges, including Rider USP, by adjusting usage for each residential customer individually to