Energy Charge

Energy Charge

The Energy Charge is a rate component designed to capture the expected cost of gas for the upcoming period. This charge shall be the Company’s best estimate for that period. The Energy Charge will be expressed in cents per therm, and computed to the nearest one-tenth cents.

This cost of gas estimate will include:

1. The cost of gas purchased at the city gate. This includes all firm, interruptible, intra-month, spot or other purchases made at the Bangor Gas City Gate from suppliers, marketers, pipelines, traders, or any other entity, including transportation Customers of Bangor Gas who must sell gas to remain in balance.
2. Any gas purchased at a hub or basin for transport to the Bangor Gas System.
3. Any transportation charges on interstate pipelines or collection systems for gas purchased not at the City Gate for transportation to the Bangor Gas System. This includes reservation charges, variable charges, in-kind fuel charges, for firm or interruptible transportation and any charges for purchases of capacity on a secondary market.
4. Any storage charges from third parties associated with storing gas for use of the Bangor Gas Customers. This will include any reservation charges for storage inventory capacity, injection capacity or withdrawal capacity, as well as any variable (including in-kind) charges associated with moving the gas into or out of storage.
5. A carrying charge for any gas held in storage. This will be calculated at the utility’s short run interest rate, and at the estimated average gas cost for the month.
6. Any balancing fees or charges on non-Bangor Gas transmission systems related to gas that is in the sales portfolio of Bangor Gas.
7. Any in-kind charges, which will be evaluated at the estimated average gas cost in the Bangor Gas Portfolio.
8. Any costs or benefits associated with options or futures transactions included in the Bangor Gas Portfolio.
9. Any taxes or levies on the gas purchased for the Bangor Gas Portfolio.
10. Any other charges for gas buying activities proposed by Bangor Gas and approved by the Maine PUC.