Purchased Gas Adjustment and Gas True-up Correction

The purchased gas adjustment (PGA) is used to adjust the retail price of natural gas to cover wholesale gas price fluctuations.  In November 2022, the PGA was divided into two components: the purchased gas adjustment (PGA) and the Gas True-up Correction (GTC). 

The PGA is a forward looking projection based on forecasted gas costs and usage in the current month.  It is calculated on a per CCF basis using the difference between the forecasted cost of gas for the current month and the cost that was assumed when the base rate was determined.   The PGA rate is applied to all current month gas usage and can be either positive or negative.  It appears as a separate line item on the customer’s bill.  Since PGA is forward looking, and based on forecasts and estimates, there will inevitably be some error in the PGA projection. 

The GTC is a backward looking correction for any error in PGA two months earlier.  After actual gas costs are available, the GTC calculates what PGA should have been 2 months earlier and determines the correction needed.  The GTC correction is multiplied by the gas usage on the customer’s bill two months earlier.  Like PGA, it can be either positive or negative and it appears as a separate line item on the customer’s current bill. 

Separating the GTC correction out onto its own line item allows it to be billed based on the gas used two months ago when the error in PGA happened.  This is fairer to all customers because the gas cost and corrections are being applied more accurately to the customers who actually used the gas.

Year Month PGA  GTC
2023 Jan $0.0294 ($0.0592)
2022 Dec $0.2319 ($0.2198)
2022 Nov $0.2473 ($0.1624)
2022 Oct $0.3177  
2022 Sep ($0.2290)  
2022 Aug $0.2990  
2022 Jul $0.2108  
2022 Jun $0.5425  
2022 May $0.0604  
2022 Apr $0.0292  
2022 Mar $0.1080  
2022 Feb $0.1205  
2022 Jan $0.1850  

 

Energy Acqusition Adjustment

The energy acquisition adjustment (EAA) is used to adjust the retail price of electricity to cover wholesale electricity fluctuations.  It is calculated on a per kWh basis using the difference between the actual price of electricity and the price that was assumed when the base rate was determined.  It can be either a positive or negative value, and appears as a separate line item on the customer’s bill.

Year Month EAA
2023 Jan ($0.00068)
2022 Dec $0.00878
2022 Nov $0.01152
2022 Oct $0.00567
2022 Sep $0.00328
2022 Aug $0.00666
2022 Jul $0.00169
2022 Jun ($0.00041)
2022 May ($0.00195)
2022 Apr $0.00085
2022 Mar ($0.00266)
2022 Feb ($0.00132)
2022 Jan ($0.00030)