future, unspecified later date. (OSBA Statement No. 1, p. 15) I&E recommended that the GET Gas-related investment be included in rate base along with a corresponding amount placed into CIAC, customer advances, so that there is no increase in rate base. (I&E Statement No. 1, p. 18) The Settlement reflects a compromise of the Signatory positions. Under Parties’ the Settlement, the Signatory Parties agree not to oppose the UGI full and timely Companies’ recovery of and a return on reasonably incurred capital investments in GET Gas facilities that are made consistent with the terms of the GET Gas Pilot Program approved in this proceeding or any future modifications to the program approved by the Commission. (Settlement at Paragraph 21) This Settlement provision will allow the UGI Companies to recover their reasonably prudent investments without setting a prescriptive formula for rate recovery in this proceeding. In addition, the OCA proposed that the GET Gas surcharges should be recalculated and updated at the time of a base rate proceeding if the recalculation results in a decrease in the GET Gas surcharge. (OCA Statement No. 1, p. 19) As part of the Settlement, the Signatory Parties have agreed that, in the event that any one of the UGI Companies files a general base rate case during the term of the Pilot Program, such Company will provide information, as part of its initial filing, showing how the GET Gas surcharge rates would be adjusted to reflect changes in the following items: revenue from a base rate increase, annual sales volumes, average usage per customer for GET Gas customers, depreciation rates, weighted cost of debt, return on equity, tax rates, CAP component and Uncollectible component. Such UGI Company shall propose to implement decreased surcharge rates prospectively for both new GET Gas customers and to any remaining term of the GET Gas surcharge payment for existing GET Gas customers if adjustments for these items would result in a decrease in GET Gas surcharge amounts. Further, in the event the adjustment would suggest an increase in GET Gas surcharges, the Signatory Parties agree not to propose any prospective increase in GET Gas surcharges. This provision of the Settlement addresses the concerns. The Settlement OCA’s provides for updates to the GET Gas surcharge in future base rate cases that will account for
future, unspecified later date. (OSBA Statement No. 1, p. 15) I&E recommended that the GET Gas-related investment be included in rate base along with a corresponding amount placed into CIAC, customer advances, so that there is no increase in rate base. (I&E Statement No. 1, p. 18) The Settlement reflects a compromise of the Signatory Parties’ positions. Under the Settlement, the Signatory Parties agree not to oppose the UGI Companies’ full and timely recovery of and a return on reasonably incurred capital investments in GET Gas facilities that are made consistent with the terms of the GET Gas Pilot Program approved in this proceeding or any future modifications to the program approved by the Commission. (Settlement at Paragraph 21) This Settlement provision will allow the UGI Companies to recover their reasonably prudent investments without setting a prescriptive formula for rate recovery in this proceeding. In addition, the OCA proposed that the GET Gas surcharges should be recalculated and updated at the time of a base rate proceeding if the recalculation results in a decrease in the GET Gas surcharge. (OCA Statement No. 1, p. 19) As part of the Settlement, the Signatory Parties have agreed that, in the event that any one of the UGI Companies files a general base rate case during the term of the Pilot Program, such Company will provide information, as part of its initial filing, showing how the GET Gas surcharge rates would be adjusted to reflect changes in the following items: revenue from a base rate increase, annual sales volumes, average usage per customer for GET Gas customers, depreciation rates, weighted cost of debt, return on equity, tax rates, CAP component and Uncollectible component. Such UGI Company shall propose to implement decreased surcharge rates prospectively for both new GET Gas customers and to any remaining term of the GET Gas surcharge payment for existing GET Gas customers if adjustments for these items would result in a decrease in GET Gas surcharge amounts. Further, in the event the adjustment would suggest an increase in GET Gas surcharges, the Signatory Parties agree not to propose any prospective increase in GET Gas surcharges. This provision of the Settlement addresses the OCA’s concerns. The Settlement provides for updates to the GET Gas surcharge in future base rate cases that will account for
1266215.docx