§ 48-200. Weather normalization adjustment.

(a)

Effective with bills rendered during the October 1993 through April 1994 billing months and annually for the October through April billing months, the above residential and commercial consumption rates for gas service shall be subject to a weather normalization adjustment to reflect the impact of monthly variations in the actual number of heating degree days from the normal level of heating degree days during the preceding billing months of October through April. The weather normalization adjustment will be implemented on a per Mcf basis. The adjustment will be determined separately for residential and commercial customers based on heating degree data recorded by the county weather station.

(b)

The dollars of margin over-collected or under-collected due to temperature variations will be calculated each month during the October through April billing months according to the following formula:

M =AHL/(ADD) (NDD-ADD) (TM) (AC)

Where:

M = Margin dollars over-collected or under-collected due to weather.

AHL = Actual heating load per customer.

ADD = Actual heating degree days.

NDD = Normal heating degree days included in the determination of the above rates.

TM = Tailblock margin per Mcf in the above rates.

AC = Actual number of customers billed.

(c)

The monthly over-recoveries and under-recoveries will be accumulated during the October through April billing months to determine the net margin dollars subject to the weather normalization adjustment. The weather normalization adjustment, to be implemented on a per Mcf basis over the succeeding October through April billing months, is calculated according to the following formula:

WNA =NM+PM/PV

Where:

WNA = Weather normalization adjustment.

NM = Net margin dollars during the preceding October through April billing months over-recovered or under-recovered due to temperature variations from normal.

PM = Amount over-recovered or under-recovered through the operations of the WNA during the preceding October through April billing months.

PV = Projected level of sales volume during the October through April billing months to which the WNA is to be applied. The projected level of sales volume will be the actual level during the preceding October through April billing months.

(d)

The weather normalization adjustment will be calculated according to the formula listed on the fee schedule on file in the office of the city secretary and will be applied through the gas cost adjustment. The weather normalization adjustment will be removed if the pass through or recovery of the targeted level of margin dollars is achieved prior to the passage of the full October through April billing period.

(Code 1994, § 11.804; Ord. No. 201, Item C, 9-14-1992)