HARRISBURG – The Pennsylvania Public Utility Commission (Commission) today created a uniform definition of unaccounted-for-gas (UFG) and loss level metrics for natural gas distribution system losses for the state’s natural gas distribution companies (NGDCs).
The Commission voted 5-0 to finalize a rulemaking that helps to eliminate any reporting inconsistencies of UFG that may currently exist.
Creating a uniform definition for UFG provides the Commission with a consistent, fair, clear and concise method to assess UFG within gas cost proceedings and filings, annual reports and other investigations. The definition and metrics for UFG also enhances the Commission’s efforts to monitor and regulate natural gas pipelines.
These regulations benefit consumers, who would no longer be responsible for the costs associated with unjustified levels of UFG above the allowed metrics.
The rulemaking establishes a 5-year compliance metric schedule to permit companies to recover a maximum of 5 percent UFG in year one; 4.5 percent in year two; 4 percent in year three; 3.5 percent in year four; and 3 percent in year five and subsequent years. The metrics should be applied on an annual basis for the twelve months ending Aug. 31 and will take effect beginning with each NGDC’s first subsequent gas cost proceeding one year after the effective date of the rulemaking.
Unaccounted for natural gas is defined as the difference between total amount of gas supplies delivered to the NGDC and the amount of gas that the NGDC subsequently delivers to its retail, commercial and industrial customers, adjusted for company use, temperature, pressure variations, or other allowed variables. It is the gas that is lost during transportation from supplier to customer.
The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner. For recent news releases, video and audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov.
Docket No. L-2012-2294746