The PGCA is a reconciliation amount that ensures Customers pay exactly the cost of gas incurred by the utility during the previous period. The actual costs of gas and the revenue received from Customers are recorded in a Gas Cost Balancing Account. The balancing account is a record of the variances between the amount Bangor Gas Company spends to purchase gas for its customers and the amount it collects from customers for the gas resulting in an over- or under- collected balance. Any differences will be flowed back to or collected from customers in the following period. The recovery of prior periods under-collection is subject to a cap to protect Customers from severe fluctuations in their rates.
Currently the PGCA also includes $0.39/therm for the recovery of the Winter Period 2002-2003 gas cost under-collection. It reflects the difference between what Bangor Gas paid for the natural gas delivered to its customers and the amount received from its customers during November 2002 through May 2003. This recovery will be in effect for 24 consecutive months beginning with November 1, 2003 and ending October 31, 2005.
