PECO Energy Company (Gas Division)

PECO Energy Company (Gas Division)

PUC 1307 (f) Filing

Section 14

Gas costs are assigned to Rates Interruptible Service (“IS”), Temperature Controlled Service (“TCS”), Motor Vehicle Service Interruptible (“MV-I”) and City Gate Sales Service (“CGS”) customers on a per Mcf basis using the monthly weighted average commodity cost of gas or spot gas. Rate TCS includes a fixed cost component based on the TCS portion of the Company’s storage contracts, firm supply contracts and firm supply transportation services. Rate CGS (interruptible supply) also includes a reservation charge based upon the greater of ten percent of the average costs paid by the Company to reserve pipeline capacity, or the average revenue received per Mcf, per month, for the actual market value of released capacity. Rate CGS (firm supply) also includes a reservation charge based upon the average costs paid by the Company.

Effective October 2, 2001, PECO initiated Rate NGS (“Negotiated Gas Service”) for large customers with a competitive alternative to service. The services provided by the Company under this rate may involve: supply; transportation; storage; upgrade or installation of mains, services and appurtenant facilities; and other natural gas management services that the customer may require.

For Rate NGS, purchased gas commodity costs, interstate pipeline demand costs, and associated quantities of natural gas purchased, shall be excluded from the Company’s Purchased Gas Cost (“PGC”)filing in accordance with Exhibit RAF-1 submitted by the Company in Docket No. R-00016366.

On March 1, 2013, PECO and its stakeholders filed a Joint Petition for Complete Settlement (“Joint Petition”) to resolve issues raised with PECO’s Petition entitled, PECO Energy Company - Gas Division - Natural Gas Distribution Companies and Promotion of Competitive Retail Markets - 1308(a) Voluntary Changes in Rates– Petition, at Docket No. P-2012-2328614. According to the Joint Petition, a Gas Procurement Charge (“GPC”) recovers natural gas procurement costs (unbundled from base rates) from PGC customers who procure gas supply from PECO. The GPC is included in the Commodity Charge portion of the PGC Rate. The GPC is not subject to reconciliation. The Joint Petition was approved by the Pennsylvania Public Utility Commission (the “Commission”) in its entirety and without modification on April 18, 2013.The GPC was effective June 1, 2013 and remains effective until reevaluation during the Company’s next base rate case.

On March 12, 2015, PECO made a compliance filing related to the Joint Petition to include a Merchant Function Charge (“MFC”) to recover uncollectible charge-offs related to gas supply (unbundled from base rates) from PGC customers who procure gas supply from PECO. Separate MFC charges apply to Rates GR (General Service – Residential), Rates GC (General Service – Commercial and Industrial), the CAP (Customer Assistance Program) and the Excess Off-Peak Use Rider. The MFC is included in the Commodity Charge portion of the PGC rate and is not subject to reconciliation.On March 26, 2015, the Commission approved the Company’s March 12, 2015 compliance filing and directed the Company to file tariff supplements implementing the proposed revisions. The MFC became effective June 1, 2015, and is updated quarterly in conjunction with the PGC rate changes.