§ 53.66. Filing requirements for Group I gas utilities.

 (a)  A Group I Gas Utility seeking recovery of purchased gas costs under 66 Pa.C.S. §  1307(a) or (b) (relating to sliding scale of rates; adjustments) shall comply with the following procedures:

   (1)  Tariffs filed by Group I gas utilities for the purpose of recovery of gas costs under 66 Pa.C.S. §  1307 shall comply with the Gas Cost Rate (GCR) tariff requirements established by Commission orders entered on June 7, 1978 (52 Pa.P.U.C. 217 (1978)), and March 16, 1984 at P.U.C. Docket No. M-78050055, as amended by § §  53.61—53.65, this section and § §  53.67 and 53.68.

   (2)  A Group I Gas Utility seeking recovery of its gas costs under 66 Pa.C.S. §  1307(a) or (b) shall annually submit a preliminary and a final GCR filing to the Commission to be effective September 1, with notice to the public at the time of its initial filing as required by §  53.68 (relating to notice requirements). The preliminary filing is to be made by July 3, and shall contain as much actual data as is then available. The final filing shall be made on August 2 and shall contain actual data and any updates or corrections to the data contained in the initial filing. Both the preliminary and the final filings shall be based on forecasted costs for the subsequent 12-month period ending August 31. The GCR computation is to follow a formula designated by the Commission. Upon Commission approval, a tariff shall be filed reflecting rates as approved.

   (3)  The provision of information required by this section does not preclude use of discovery to obtain additional information.

   (4)  No GCR rates are to be implemented without express prior Commission approval. The approval shall constitute only tentative approval for collection of the GCR charges from ratepayers and not a final approval of the as yet unaudited projections of the utility, which have not yet been subjected to scrutiny concerning the reasonableness of underlying transactions.

   (5)  Utilities have the burden of pursuing a least cost purchasing policy consistent with 66 Pa.C.S. § §  1316 and 1317 (relating to recovery of advertising expenses; and regulation of natural gas costs) and shall be accountable for failure to comply with these standards and those of 66 Pa.C.S. §  1301 (relating to rates to be just and reasonable).

 (b)  In addition to the statements and supporting data filed as required by 66 Pa.C.S. §  1307(e), Group I gas utilities shall file the information and data as may be required by the Bureau of Audits or other bureau as the Commission may direct. Both the preliminary and the final filing shall be served upon the Office of Consumer Advocate, the Office of Trial Staff and the Office of Small Business Advocate and shall be provided to intervenors, upon request. This evidence will be considered by the Commission in formulating its audit review under 66 Pa.C.S. §  1307(d) or in other proceedings as described in subsection (c) and may be supplemented by submissions from interested persons. The audit under 66 Pa.C.S. §  1307(d) and the review of procurement policies will not be the subject of the Commission’s statutorily required reconciliation hearings under 66 Pa.C.S. §  1307(e), which are governed by strict time limits.

 (c)  Group I gas utilities shall file a reconciliation statement under 66 Pa.C.S. §  1307(e) for the 12-month period running from July 1 through June 30 by July 31. Questions on the underlying propriety of a utility’s procurement policies, and the like, can be raised in a separately docketed complaint proceeding filed by a party, by Commission investigation, or in a proceeding arising from audit findings under 66 Pa.C.S. §  1307(d).

 (d)  Overcollections are subject to refund with interest as calculated in the manner specified at 66 Pa.C.S. §  1308(d) (relating to voluntary changes in rates). Customers are not liable for interest on net undercollections caused by the setting of rates under 66 Pa.C.S. §  1307.

 (e)  Utilities recovering fuel costs under the GCR shall state the following information about fuel costs on customer’s bills:

   ‘‘This bill includes

   (1)  The cost of gas shall be calculated exclusive of taxes and current base costs-nonfuel costs. The gas cost rate encompasses fuel costs, regardless of whether shown on the bill as a base cost or separately shown as a purchased gas cost. For purposes of how costs are to be shown on the bill, at least 90% of the utility’s experienced gas rates will be rolled into base rates. Both rolled-in and rolled-out gas costs are gas cost rate related and are subject to refund and reconciliation under 66 Pa.C.S. §  1307(e). Base rate roll-ins shall be equally applied to rate classifications on a cents per Mcf basis for GCR related costs.

   (2)  Notwithstanding the language in this subsection, parties to base rate proceedings are not constrained to allocate the cost of purchased gas among customer rate classifications on a commodity basis in the preparation of class cost of service studies.

 (f)  Group I gas utilities shall pay interest on pipeline refunds from the time received until disbursed at a 6% annual interest rate. The refunds are to be refunded through recomputation of the E factor of the GCR formula.

   The provisions of this §  53.66 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 504, 1301, 1304, 1307, 1317 and 1318.

   The provisions of this §  53.66 adopted February 22, 1985, effective February 23, 1985, 15 Pa.B. 672; amended April 14, 1995, effective June 14, 1995, 25 Pa.B. 1411. Immediately preceding text appears at serial pages (122642) to (122644).

   This section cited in 52 Pa. Code §  53.61 (relating to purpose); 52 Pa. Code §  53.63 (relating to categories of gas utilities); 52 Pa. Code §  53.64 (relating to filing requirements for natural gas distributors with gross intrastate annual operating revenues in excess of $40 million); and 52 Pa. Code §  53.67 (relating to filing requirements for Group II gas utilities).