Gas cost variance

Posted

PUBLIC NOTICE
The Wyoming Public Service Commission (Commission) has approved Montana-Dakota Utilities Co. (MDU) application for a variance from its Purchased Gas Cost Adjustment, Rate 88 tariff to address extraordinarily high wholesale natural gas costs related to a mid-February 2021 cold weather event. The Commission’s approval is subject to notice, protest, intervention, refund, change, further investigation, opportunity for hearing and further order of the Commission.
MDU seeks to recover approximately $1.6 million in extraordinary wholesale natural gas costs related to the mid-February 2021 cold weather event, and to mitigate the customer impact while maintaining the financial integrity of the utility. To recover the under-collected Commodity Balancing Account balance related to the mid-February 2021 cold weather event, MDU proposed a staggered rate recovery with summer rates higher than winter rates. MDU asserts this approach to recovering the under-recovery of wholesale gas costs will not be overly burdensome to customers. MDU requests an effective date of May 1, 2021, for the first adjustment to the commodity balancing account surcharge rate. The Company will file applications for the subsequent surcharge rate adjustments.
The proposed rates would increase the average residential customer’s bills by a total of approximately $24.10 in 2021 and $36.65 in 2022, with the actual increase dependent on actual usage.
Commission Rule Chapter 3, Section 26 allows a utility to pass on to its customers known or projected commodity cost increases or decreases on a dollar-for-dollar basis, subject to public notice, opportunity for hearing and refund.
MDU’s Application is on file at the Commission’s office in Cheyenne, Wyoming, and in the Company’s business offices in its Wyoming gas service territory, and is available for inspection by any interested person during business hours or online at http://psc.state.wy.us.
Anyone desiring to file a statement, intervention petition, protest or request for a public hearing in this matter must file in writing with the Commission on or before July 16 2021. Please refer to Docket No. 30013-375-GM-21.
If you wish to participate and require reasonable accommodation for a disability, call the Commission at (307) 777-7427, or write to the Commission at 2515 Warren Avenue, Suite 300, Cheyenne, Wyoming 82002. Communications impaired persons may contact the Commission through Wyoming Relay by dialing 711. Please contact us as soon as possible to help us serve you better.
Dated: June 17, 2021.

First Publ., Tues., June 22, 2021
Final Publ., Tues., June 29, 2021

Comments