Petition of UGI Penn Natural Gas, Inc. for Approval of a Distribution System Improvement Charge; Docket No. P ;

Transcription

1 UGI Utilitie, Inc. 2525Nnrlli IZ(h Street PCNN NATURAL GAS. INC. SltitB 360 December 19, 2014 VIA FEDERAL EXPRESS D d/^it T\ /ir-r-v KtL-tlVED D E C 1 9 PoKt 0f,ice Box Re;Kli" G ' fla,96,z ' 2577 (610) Telephone M. Roemary Chiavetta, Secretary Pennylvania Public Utility Commiion Commonwealth Keytone Building 400 North Street, 2nd Floor North Harriburg, PA P A Re: Petition of UGI Penn Natural Ga, Inc. for Approval of a Ditribution Sytem Improvement Charge; Docket No. P ; January 1, 2015 Quarterly DSIC Compliance Filing Dear Secretary Chiavetta: Encloed for filing on behalf of UGI Penn Natural Ga, Inc. (the "Company") i it January 1, 2015, quarterly Ditribution Sytem Improvement Charge ("DSIC") rate compliance filing. In accordance with the Pennylvania Public Utility Commiion' Order entered September 11, 2014, in the above-caplioned proceeding, the Company i not propoing to change it currently effective DSIC rate of 0.00% for bill rendered on and after January 1, Therefore, no tariff upplement i included with thi filing. Supporting chedule are encloed. Copie of thi filing have been provided per the attached Certificate of Service. Should you have any quetion related to thi filing, pleae contact Melanie J. El Atieh, Manager, Rale and Regulatory Planning, via at melatiehf@uei.com or via phone at (610) Repectfully your, Paul J. Szykman Vice Preident - Rale and Government Relation Encloure: Supporting Schedule cc: Certificate of Service

2 January 1, 2015 Quarterly DSIC Page 1 of 4 UGI Penn Natural Ga, Inc. DSIC Computation DSIC Quarterly Update Effective January 1, 2015 DSIC = (DSI x PTRR) + Pep + e PQR Line Annual Quarterly Source 1 2 Ditribution Sytem Improvement Cot Le Accumulated Depreciation 11,686,530 (99,873) Page 2 Page 2 DSI Net Ditribution Sytem Improvement Cot 11,586,657 Ln 1 + Ln 2 PTRR Annual Pretax Rate of Return Quarterly Pretax Rate of Return 11.89% 2.97% Page 3 Ln4/4 DSI x PTRR Quarterly Capital Cot Recovery- 344,524 Ln 3 * Ln 5 Dep Annual Depreciation Expene Quarterly Depreciation Expene S 266,969 66,742 Page 2 Ln7/4 {DSI x PTRR) + Dep Current Period Recoverable Cot Amount 411,267 Ln 6 + Ln Over/{Under) Collection Audit Adjutment Interet Refundable Prior Period "E" Factor Reidual Mic. Adjument Refund/{Recoup) Net "E" Factor Amount 16 e Quarterly "E" Factor Amount Sum Line (DSI x PTRR)+Dep+e Total DSIC Revenue Requirement 411,267 Ln 9 + In PQR Projected Quarterly Revenue 32,028, DSIC Ditribution Sytem Improvement Charge (DSIC) 1.28% Ln 17 / Ln DSIC Effective January 1, / 0.00% 1/ PNG' DSIC effective for bill rendered on and after January 1, 2015, will be et to 0.00% in accordance with the Settlement Agreement at Docket C Q8997 and the Commiion' September 11, 2014 Order at Docket No. P

3 UGI Penn Natural Ga, Inc. Depreciation on DSIC Eligible Property DSIC Quarterly Update Effective January 1,2015 January 1, 2015 Quarterly DSIC Page 2 of d Annual Depreciation Addition Depreciation Balance Actual Actual Actual Annual Decription Rate 1/ Augut Sep-14 Oct-14 Nov-14 Total Depreciation Main - Platic 2.4% S 1,738,217 S 1,905,507 S 148, ,630 S 3,955,252 S 92,948 Main - Other 1.7% S 3,715,982 S 925, ,655 $ 44,268 $ 4,824,667 S 81,537 Meauring & Regulating Equipment - General 3.0% 122,499 S 427,799 25,986 21, ,878 17,817 Meauring & Regulating Equipment - City Gate 3.4% (4,362) ,711 21, Service - Platic 3.1% 1,088, , , ,627 1,940,469 60,349 Service - Other 1.9% ,152 10,059 $ 5, ,425 2,320 Meter 3.1% [5001 (761) $ (1,087) (34) Houe Regulator 2.3% Houe Regulator Intallation 1.8% 4,872 1,477 6, Indutrial Meauring S Regulating Equipment 2.0% - 69, ,425 Tool, Shop & Garage Equipment 7.6% - S Sytem Development Cot 6.7% 146, , Storage S Gathering Line Other ,743, $ 364,971 11, ,969 Accumulated Depreciation 2/ Addition Depreciation Balance Actual Actual Actual Decription Rate 1/ Augut Sep-14 Oct-14 Nov-14 Total Main - Platic 2,4% S 10,212 S 11,195 S 583 S 318 S 22,309 Main - Other 1.7% 15,700 3,911 S 391 S 62 S 20,064 Meauring & Regulating Equipment General 3.0% 913 3, $ 54 S 4,282 Meauring S Regulating Equipment - City Gate 3.4% (38) 184 S 2 11 $ 159 Service - Platic 3.1% 8,461 4,551 S ,065 Service - Other 1.9% Meter 3.1% (4) (6) ) Houe Regulator 2.3% Houe Regulator Intallation 1.8% Indutrial Meauring & Regulating Equipment 2,0% $ Tool, Shop & Garage Equipment 7.6% $ - - Sytem Development Cot 6.7% ,442 Storage & Gathering Line Other Accumulated Depreciation 35, ,246 October 1, 2014 Initial DSIC Filing Accumulated Depreciation $ 35,627 Total Accumulated Depreciation S 99,873 1/ See Docket No. R-200S / The current quarter' calculated accumulated depreciation i equal to 3 month of depreciation of the beginning balance property, 3 month of depreciation of property placed into ervice in September, 2 month of depreciation of property placed into ervice in October and 1 month of depreciation of property placed into ervice in November. Conitent with the Commiion' Order at Docket No. P , the current quarter' calculated accumulated depreciation i added to the prior quarter' calculated accumulated depreciation to determine the total accumulated depreciation amount.

4 UGI Penn Natural Ga, Inc. Weighted Cot of Capital DSIC Quarterly Update Effective January 1, 2015 January 1, 2015 Quarterly DSIC Page 3 of 4 Capital Cot Weighted Average Tax P re-tax Structure Rate Cot Rate Multiplier Rate of Return Long Term Debt 1/ 44.69% 5.46% 2.44% 2.44% Common Equity 55.31% 10.00% 5.53% % % 11.89% Note: In compliance with the Commiion' September 11, 2014 Order, at Docket No. P , the cot rate of debt i the Company' actual cot rate a of Dec. 1, The equity cot rate i from the Bureau of Technical Utility Service' Report on the Quarterly Earning of Juridictional Utilitie for the period ended June 30, 2014 (2nd Quarter Report), at Docket No. M The tax multiplier i calculated a follow: 1/((1-PA Tax Rate) X (1 - Fed. Tax Rate)) where the PA Tax Rate i 9.99% and the Fed. Tax Rate i 35.00%. 1/ Refer to page 4 of 4 for detail.

5 January 1, 2015 Quarterly DSIC Page 4 of 4 UGI Penn Natural Ga, Inc. Capital Structure and Debt Component DSIC Quarterly Update Effective January 1, 2015 Balance a of 12/1/14 % of Total Capitalization Cot Rate Debt 681,478, % 5.46% Common Equity 843,311, % 10.00% Total Capitalization $ 1,524,789, % Weighted Average Tax Pre-tax Cot Rate Multiplier Return 2.44% 2.44% 5.53% % 7.97% 11.89% Effective Cot Rate Balance a of 12/1/14 Annualized Interet Long Term Note, Tranche % 20,000,000 1,032,000 Long Term Note, Tranche % 22,000,000 1,621,400 Long Term Note, Tranche % 50,000,000 2,820,000 Long Term Note, Tranche % 20,000,000 1,233,800 Long Term Note, Tranche % 20,000,000 1,450,000 Long Term Note, Tranche % 20,000,000 1,134,000 Long Term Note, Tranche % 20,000,000 1,300,000 Long Term Note, Tranche % 20,000,000 1,226,600 Long Term Note, Tranche % 175,000,000 10,067,750 Long Term Note, Tranche % 100,000,000 6,206,000 Long Term Note, Tranche % 175,000,000 8,715,000 Revolver Facility 1.04% 39,478, ,571 S 681,478,000 $ 37,217,121 Weighted Cot of L/T Debt 5.46%

6 Petition of UGI Penn Natural Ga, Inc. for Approval of a Ditribution Sytem Improvement Charge Docket No. P VERIFICATION I, Han G. Bell, Vice Preident - Engineering & Operation Support of UGI Penn Natural Ga, Inc. ("Company"), hereby tate that for all work to repair, improve, or replace DSICeligible property, the cot of which i reflected in the DSIC charge, the Company utilized qualified employee and/or independent contractor, and the work performed by independent contractor were inpected by utility employee, in compliance with Section 1359 of the Public Utility Code. I expect to be able to prove the ame at a hearing held in thi matter. I undertand that the tatement herein are made ubject to the penaltie of 18 Pa.C.S (relating to unworn falification to authoritie). Date: December 18, VH-c-c*? Han G. Bell

7 CERTIFICATE OF SERVICE UGI Penn Natural Ga, Inc. (Docket No. P ) I hereby certify that a true and correct copy of the foregoing ha been erved upon the following peron, in the manner indicated, in accordance with the requirement of 52 Pa. Code 1.54 (relating to ervice by a participant). VIA FIRST-CLASS MAIL Erin L. Gannon Brandon J. Pierce Office of Conumer Advocate Forum Place, 5th Floor 555 Walnut Street Harriburg, PA Steven C. Gray Office of Small Buine Advocate Commerce Building 300 North Second Street, Suite 202 Harriburg, PA Bureau of Invetigation & Enforcement Johnnie E. Simm, Director Pennylvania Public Utility Commiion Commonwealth Keytone Building 400 North Street, 2nd Floor Wet PO Box 3265 Harriburg, PA Bureau of Audit Denni P. Hoier, Director Commonwealth Keytone Building 400 North Street, 3rd Floor, F Eat PO Box 3265 Harriburg, PA Mark C. Morrow, Equire UGI Corporation 460 North Gulph Road King of Pruia, PA Counel for Company Joeph L. Vullo Burke Vullo Reilly Robert 1460 Wyoming Avenue Forty Fort, PA Commiion on Economic Opportunity Suan E. Bruce Vailiki Karandrika McNee Wallace & Nurick 100 Pine Street PO Box 1166 Harriburg, PA PNG Indutrial Intervenor Paul L. Zeigler 300 Bridge Street, 2nd Floor PO Box B New Cumberland, PA Procter & Gamble Paper Product Co. John F. Povilaiti Buchanan Ingeroll & Rooney PC 409 N. Second Street, Suite 500 Harriburg, PA Retail Energy Supply Aociation Thoma S. Catlin Exeter Aociate Inc Little Patuxent Parkway Suite 300 Columbia, MD 21044

8 David MacGregor, Equire Pot & Schell 1600 John F. Kennedy Boulevard Four Penn Center Philadelphia, PA Counel for Company Jeica R. Roger, Equire Pot & Schell th Street NW Suite 600 Wahington, D.C Counel for Company Date: December 19,2014 RECEIVED DEC 1 9 Z014 PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU I]585833vl

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