Title
Purchased Gas Adjustment (B)
Explanation
During the July 10, 2008 and July 21, 2008 GRU Budget presentations, staff mentioned amendment of the PGA Calculation to be discussed at the next City Commission meeting. Currently, the calculation does not allow for Levelization and it has a seasonal component that allows for over- or under-collections to remain outstanding for several months. Staff is proposing a methodology with a monthly true-up factor to return over collections or recover under collections more timely than the delayed seasonal true-ups. Additionally, staff is proposing the addition of a Levelization component to the calculation to smooth the variability of gas prices to aid customers.
Recommendations
The City Commission receive a presentation from staff regarding the Purchased Gas Adjustment. Upon City Commission approval, authorize the City Attorney to draft and the Clerk to advertise the staff proposed ordinance change.
Drafter
Prepared by Diane Wilson, Utility Analyst Senior
Submitted by Robert E. Hunzinger, General Manager