FRANKFORT, Kentucky, March 31 -- The Kentucky Public Service Commission issued the following order (Case No. 2023-00054) on March 30, 2023:
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In the Matter of: Electronic Purchased Gas Adjustment Filing Of Millennium Energy, Inc.
On February 20, 2023, Millennium Energy, Inc. (Millennium) filed its proposed Gas Cost Recovery (GCR) rate report to be effective April 1, 2023. Millennium's previous GCR rate was approved in Case No. 2022-00384./1
The Commission's standard of review for GCR rates is well settled as stated in KRS 278.274(1):
In determining whether proposed natural gas utility rates are just and reasonable, the commission shall review the utility's gas purchasing practices. The commission may disallow any costs or rates which are deemed to result from imprudent purchasing practices on the part of the utility.
Further, the utility has the burden to prove the rates are just and reasonable and the Commission may reduce the purchased gas component of the utility's rates or the rates charged by an affiliated company to the extent the amount is deemed to be unjust or unreasonable./2
After reviewing the record in this case and being otherwise sufficiently advised, the Commission finds that Millennium's report includes revised rates designed to pass on to its customers its expected change in gas costs. Millennium's report sets out an Expected Gas Cost (EGC) of $3.2598 per Mcf, which is a decrease of $3.7019 per Mcf from its previous EGC of $6.9617 per Mcf. Millennium's report sets out no supplier Refund Adjustment. Millennium's report sets out a current quarter Actual Adjustment (AA) of ($1.2164) per Mcf. Millennium's total AA is ($0.5760) per Mcf, which is a decrease of $1.5893 per Mcf from its previous total AA of $1.0133 per Mcf. Millennium's report sets out a current quarter Balance Adjustment (BA) of ($0.0029) per Mcf. Millennium's total BA is $0.0141 per Mcf, which is a decrease of $0.0054 per Mcf from its previous total BA of $0.0195 per Mcf.
Based on the calculations above, the Commission finds that Millennium 's GCR is $2.6979 per Mcf, which is a decrease of $5.2966 per Mcf from the previous GCR rate of $7.9945 per Mcf. The Commission further finds that the rates set forth in the Appendix to this Order are fair, just and reasonable and are approved for service rendered by Millennium on and after April 1, 2023.
For the purpose of transparency and to maintain a record of information for future use, the Commission finds that Millennium shall submit all invoices it receives along with its monthly usage reports for each month of the reporting period when it files its future GCR rate reports. Should Millennium purchase sustainable natural gas from a renewable source during the reporting period of any future GCR reports then the supplier, cost, and amount must be documented in its cover letter to the Commission.
IT IS THEREFORE ORDERED that:
1. The rates proposed by Millennium and set forth in the Appendix to this Order are approved for service rendered on and after April 1, 2023.
2. Millennium shall submit all invoices it receives along with its monthly usage reports for each month of the reporting period when it files its future GCR rate reports.
3. Within 20 days of the date of service of this Order, Millennium shall file with this Commission, using the Commission's electronic Tariff Filing System, revised tariff sheets setting out the rates approved herein and reflecting that they were approved pursuant to this Order.
4. This case is closed and removed from the Commission's docket.
PUBLIC SERVICE COMMISSION
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1/ Case No. 2022-00384, Electronic Purchased Gas Adjustment Filing of Millennium Energy, Inc. (Ky. PSC Dec. 22, 2022).
2/ KRS 278.274(2); KRS 278.274(3)(c); and KRS 278.274(3)(d).
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Original text here: https://psc.ky.gov/order_vault/Orders_2023/202300054_03302023.pdf