Re: Peoples Natural Gas Company LLC- Equitable Division Distribution System Improvement Charge (DSIC) Quarterly Filing Docket No.

Transcription

1 \...!.. PEOPLES 375 North Shore Drive Pittburgh, PA Andrew P. Wachter Director of Finance and Regulatory PNG Companie LLC Phone: June 21, 2018 Roemary Chiavetta, Secretary Pennylvania Public Utility Commiion Commonwealth Keytone Building 400 North Street, 2nd Floor North P.O. Box 3265 Harriburg, PA Re: People Natural Ga Company LLC- Equitable Diviion Ditribution Sytem Improvement Charge (DSIC) Quarterly Filing Docket No. P Dear Secretary Chiavetta: Encloed for filing on behalf of People Natural Ga Company LLC- Equitable Diviion ("People-Equitable") i Supplement No. 60 to Tariff Ga- Pa. P.U.C. No. 46. Supplement No. 60 update People-Equitable' DSIC rate to reflect the invetment cot related to DSIC eligible plant placed into ervice from March 2018 through May 2018 and provide for a quarterly DSIC rate of 5.00%. People-Equitable' calculation of it fixed cot eligible for recovery under the DSIC would reult in a DSIC urcharge of 12.02%. People-Equitable ha not propoed a waiver of the 5.00% rate cap et forth in 66 Pa. C.S.A. 1358(a)(l), o People-Equitable propoe in thi filing to change it current DSIC urcharge rate to 5.00% to be effective July 1, In addition, encloed i People-Equitable' invetment in DSIC eligible property for the period, December February 2018, which had been inadvertently omitted in lat quarter' filing. Repectfully ubmitted, Andrew P. Wachter Encloure cc: Certificate of Service SAFETY I CUSTOMER COMMITMENT TRUST I COMMUNITY

2 VERJFICATION I, Andrew P. Wachter, hereby tate that I am Director of Finance and Regulatory of PNG Companie LLC; that I am authorized to and make thi verification for it; that the fact above et forth are true and correct (or are true and correct to the bet of my knowledge, information and belief) and that I expect to be able to prove the ame at a hearing held in thi matter; that People - Equitable Diviion ha provided notice of thi DSIC update through bill meage; and that People -Equitable Diviion poted Supplement No. 60 to Tariff Ga-P A PUC No. 46 on it Web Page in accordance with the Commiion' Secretarial Letter of March 30, I undertand that the tatement herein are made ubject to the penaltie of 18 Pa.C.S (relating to unworn falification to authoritie). Date: ;:h:..._/::.. Z_t..:. (l ;_r (Signature)

3 SUPPLEMENT NO. 60 TO GAS - PA. P.U.C. NO. 46 People Natural Ga Company LLC EQUITABLE Diviion RATES and RULES FOR GAS SERVICE IN CITY OF PITTSBURGH AND TERRITORY ADJACENT THERETO (For Lit of Communitie Served, ee Page No. 4) July 1, 2018 Quarterly DSIC Filing ISSUED: June 21, 2018 By: Morgan K. O'Brien Preident People Natural Ga Company LLC 375 North Shore Drive Pittburgh, PA EFFECTIVE: July 1, 2018 NOTICE Thi tariff make change to exiting rate. (See page 2)

4 PEOPLES NATURAL GAS COMPANY LLC SUPPLEMENT NO. 60 TO GAS - PA. P.U.C. NO. 46 FIFTY-FOURTH REVISED PAGE NO. 2 CANCELING FIFTY-THIRD REVISED PAGE NO. 2 LIST OF CHANGES MADE BY THIS TARIFF SUPPLEMENT Rider E - Ditribution Sytem Improvement Charge, page 76. Current DSIC 0.36% Propoed 5.00% Increae/ (Decreae) 4.64% ISSUED: June 21, 2018 EFFECTIVE: July 1, 2018

5 PEOPLES NATURAL GAS COMPANY, LLC EQUITABLE DIVISION SUPPLEMENT NO. 60 TO GAS-PA PUC NO. 46 TWENTY-SIXTH REVISED PAGE NO. 2A CANCELING TWENTY-FIFTH REVISED PAGE NO. 2A Capacity (1) Rider A- Ga Cot Charge AVC Capacity GCA (2) (3) Bae Rate Charge (5) Commodity (4) Reidential Sale Cutomer Charge Capacity Price to Compare - PTC Delivery Charge State Tax Surcharge Total per MCF Rider F MFC (7) Rider STAS (6) -0.96% RiderD USR (8) RiderG GPC (9) RiderRider E Rider Supplier Choice DSIC Charge TCJA Total Rate (10) (11) (12) (13=SUM 1 to 12) 5.00% % (0.9508) (0.0304) (0.2274) {0.0304) (1.2199) (2.0092) (0.1859) (0.0249) General Service Small- Sale Cutomer Charge < 500MCF/Yr 500 to 1,000 MCF/Yr 1/ Capacity Price to Compare- PTC Delivery Charge State Tax Surcharge Total per MCF (0.0249) (10.763) (21.527) (0.0240) ( ) 1, {0.0240) General Service Large- Sale Cutomer Charge 1,001 to 4,999 MCF/Yr 5,000 to 25,000 MCF/Yr 1/ Capacity Price to Compare- PTC Delivery Charge State Tax Surcharge Total per MCF (0.1790) (0.0240) General Service Large- Sale > 25,000 MCF/Yr 1/ Capacity Price to Compare- PTC Delivery Charge State Tax Surcharge Total per MCF , (0.0240) (0.1790) 1/ The Price-to-Compare format a hown i applicable to a Non-Priority One cutomer; the Price-to-Compare Charge for a Priority One cutomer would not include the Capacity Charge. See the Reidential- Sale ection above a an example of Priority One. ISSUED: June 21, 2018 EFFECTIVE: July 1, 2018

6 PEOPLES NATURAL GAS COMPANY, LLC SUPPLEMENT NO. 60 TO GAS-P A PUC NO. 46 EQUITABLE DIVISION TWENTY-iXTH REVISED PAGE NO. 28 CANCELING TWENTY-FIFTH REVISED PAGE NO. 28 Bae Rate Capacity AVC Balancing Rider F Rider D Rider A Rider- Rider E Rider Charge Charge Charge Charge MFC USR Capacity RiderSTAS Supplier Choice DSIC Charge TCJA Total Rate (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12=SUM 1 to 11) Reidential Tranport -0.96% 5.00% % Cutomer Charge (0.9508) Capacity Delivery Charge (0.2274) State Tax Surcharge (0.0304) (0.0304) Total per MCF General Service Small Tranport Cutomer Charge < 500 MCF/Yr (1.2199) to 1,000 MCF/Yr (2.0092) / Capacity/BB&A Delivery Charge (0.1859) State Tax Surcharge (0.0249) (0.0249) Total per MCF General Service Large- Tranport Cutomer Charge 1,001 to 4,999 MCF/Yr ( ) ,000 to 25,000 MCF/Yr ( ) / Capacity/BB&A Delivery Charge (0.1790) State Tax Surcharge (0.0240) (0.0240) Total per MCF General Service Large Tranport Cutomer Charge > 25,000 MCF/Yr 1, ( ) 1, / Capacity/BB&A Delivery Charge (0.1790) State Tax Surcharge (0.0240) (0.0240) Total per MCF / The Capacity Charge applie to Priority 1 ratepayer when electing tranport ervice. All other Ratepayer are billed the BB&A charge. ISSUED: June 21, 2018 EFFECTIVE: July 1, 2018

7 PEOPLES NATURAL GAS COMPANY LLC SUPPLEMENT NO. 60 TO GAS - PA. P.U.C. NO. 46 THIRTEENTH REVISED PAGE NO. 3 CANCELING TWELFTH REVISED PAGE NO. 3 TABLE OF CONTENTS Title Page... 1 Lit of Modification... 2, 2.1 Sununary of Rate... 2A, 2B Table of Content... 3 Lit of Conununi tie Served... 4 Claification of Cutomer... 5 Rule and Regulation... 6 Rate Schedule a lited below: RateRS -Reidential Service Rate GSS - General Service Small Rate GSL- General Service Large Rate GL - Ga Light Rate FDS- Firm Delivery Service Rate GDS - General Delivery Service Rate DDS- Daily Delivery Service Rate FPS- Firm Pooling Service Rate GPS- General Pooling Service Rate LGA - Local Ga Aggregation... 67A Standby Service State Tax Adjutment Surcharge Rider A- (Purchaed Ga Cot) B Rider Supplier Choice Rider D- (Univeral Service and Energy Conervation) Rider E- Ditribution Sytem Improvement Charge Rider F- Merchant Function Charge Rider G- Ga Procurement Charge Rate AGS- Appalachian Gathering Service Pilot Rate MLX- Mainline Expanion Service Rider TCJA- TCJA Temporary Surcharge (C) (C) Indicate Change. ISSUED: June 21, 2018 EFFECTIVE: July 1, 2018

8 PEOPLES NATURAL GAS COMPANY LLC SUPPLEMENT NO. 60 TO GAS - PA. P.U.C. NO. 46 THIRTEENTH REVISED PAGE NO. 76 CANCELING TWELFTH REVISED PAGE NO. 76 RIDER E DISTRIBUTION SYSTEM IMPROVEMENT CHARGE (DSIC) In addition to the net charge provided for in thi Tariff, a charge of 5.00% will apply conitent with the Commiion Order dated July 16, 2013 at Docket No. P , approving the DSIC. (I) 1. General Decription A. Purpoe: To recover the reaonable and prudent cot incurred to repair, improve, or replace eligible property which i completed and placed in ervice and recorded in the individual account, a noted below, between bae rate cae and to provide the Company with the reource to accelerate the replacement of aging infratructure, to comply with evolving regulatory requirement and to develop and implement olution to regional upply problem. The cot of extending facilitie to erve new cutomer are not recoverable through the DSIC. B. Eligible Property: The DSIC-eligible property will conit of the following: Piping (account376); Coupling (account 376); Ga ervice line (account 380) and inulated and non-inulated fitting (account 378); Valve (account 376); Exce flow valve (account 376); Rier (account 376); Meter bar (account 382); Meter (account 334, 369, 381); Unreimbured cot related to highway relocation project where a natural ga ditribution company or city natural ga ditribution operation mut relocate it facilitie; Other related capitalized cot (account 303,387, and 392); Field Line (account 332); and Tranmiion Line (account 367). C. Effective Date: The DSIC will become effective for bill rendered on or after October 1, (I) Indicate Increae. (C) Indicate Change. ISSUED: June 21, 2018 EFFECTIVE: July 1, 2018

9 People Natural Ga Company LLC Equitable Diviion Summary of Plant Placed in Service (DSI x PTRR) + Dep + e Page 1 of 6 Quarterly Filing- July 2018 DSIC Eligible Addition Plant Account Beginning Balance Line No. Decription No. February 28, 2018 Mar-18 Apr-18 May-18 Total (1) (2) (3) (4) (5) (6) 1 Field line 332 2,116,560 2,116,560 2 Tranmiion line ,339 46, ,861 3 Piping, coupling, valve, rier ,000,511 2,744,617 4,491,599 7,395, ,632,273 4 Inulated/non-inulated fitting Ga ervice line ,093, ,687 1,173,320 1,779,807 33,781,786 6 Meter 381 3,489,428 66, ,454 61,417 3,767,978 7 Meter intallation ,815 44,589 61,304 26, ,492 8 Total plant placed in ervice 155,097,625 3,590,572 5,876,677 9,310, ,874,950

10 Page 2 of6 People Natural Ga Company LLC Equitable Diviion Summary of Depreciation Expene (DSI x PTRR) + Dep + e Quarterly Filing- July 2018 Line No. Decription Plant Account Annual No. Depr. Rate {1) {2) Eligible Property {3) Annual Depreciation (4) Field line Tranmiion Line % % Piping, coupling, valve, rier % Inulated/non-inulated fitting % Ga ervice line % Meter % Meter intallation % Total 2,116, , ,632,273 33,781,786 3,767, , ,874,950 23,282 7,596 2,069, , ,386 16,542 3,009, July 2018 Quarterly Filing Accumulated Depreciation Accumulated Depreciation October February 2018 Total Accumulated Depreciation I 752,490 5,613,808 6,366,2981

11 PEOPLES NATURAL GAS COMPANY- EQUITABLE DIVISION DSIC COMPUTATION Quarterly Filing -July 2018 Page 3 of6 DSIC= (OS I x PTRR) + Dep + e PQR Annual Quarterly Ditribution Sytem Improvement Cot 173,874,950 Le Accumulated Depreciation 6,366,298 DSI Net Ditribution Sytem Improvement Cot 167,508,652 PTRR Annual Pretax Rate of Return 9.29% Quarterly Pretax Rate of Return 2.32% DSI x PTRR Quarterly Capital Cot Recovery 3,886,201 Monthly Annual Depreciation Expene 3,009,960 Recoverable Dep Quarterly Depreciation Expene 752,490 Amount {OS/ x PTRR) + Dep Current Period Recoverable Cot Amount 4,638,691 1,546,230 (Over)/Under Collection Audit Adjutment Interet Refundable Prior Period 'E' Factor Reidual Mic. Adjutment (Refund)/Recoup Net 'E' Factor Amount e Quarterly 'E' Factor Amount (DSI x PTRR) Dep + e Total DSIC Revenue Requirement 4,638,691 1,546,230 PQR Projected Quarterly Revenue 38,594,000 DSIC DSIC Surcharge Rate 12.02%1

12 PEOPLES NATURAL GAS COMPANY- EQUITABLE DIVISION WEIGHTED COST OF CAPITAL Quarterly Filing- July 2018 Page 4 of 6 L/T Debt Common Equity Capital Structure Weighted Average a of 05/31/2018 Cot Rate Cot Rate Tax Multiplier 1/ 1/ 47.18% 4.18% 1.97% 52.82% 9.85% 5.20% % 7.18% Pre-Tax Rate of Return 1.97% 7.32% 9.29% Note: The cot rate of debt i the Company' actual cot rate. The equity cot rate i from the Pa PUC Staff' mot recent Quarterly Earning Report Summary. 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 21.00%. 1/ Refer to page 5 of 6 for detail.

13 People Natural Ga Company LLC- EQUITABLE DIVISION Capital Structure & Debt Component Page 5 of6 L/T Debt Common Equity Total Capitalization Balance a of %oftotal Weighted Average 05/31/ ,076, ,494,544 1,850,570,644 Capitalization Cot Rate Cot Rate 47.18% 4.18% 1.97% 52.82% 9.85% 5.20% % 7.18% Tax Pre-Tax Multiplier Rate of Return 1.97% % 9.29% Intercompany Promiory Note (2010- Tranche 3) Intercompany Promiory Note (2013- Tranche 2) Intercompany Promiory Note (2013- Tranche 3) Intercompany Promiory Note (2017- Tranche 1) Intercompany Promiory Note (2017- Tranche 2) Intercompany Promiory Note (2017- Tranche 3) Capital Expenditure Intercompany Demand Note Effective Cot Rate 5.76% 4.32% 4.44% 3.06% 3.47% 3.69% 3.52% Balance a of Annualized 05/31/2018 Interet 171,045,000 9,852, ,746,400 6,253, ,007,200 4,884,320 89,455,500 2,737, ,911,000 6,208, ,911,000 6,601, ,076,100 36,536,922 Weighted Cot of Debt 4.18%

14 PEOPLES NATURAL GAS COMPANY LLC- EQUITABLE DIVISION DSIC ELIGIBLE PROPERTY Page 6 of6 FERC Eligible Property Acct. December January February Total Production Line , , , Production M&R Station Equipment 3340 Storage Line 3530 Tranmiion Line 3670 Tranmiion M&R Station Equipment 3690 Ditribution Line ,604, ,532, ,184, ,321, Ditribution M&R Station Equipment 3780 Ditribution Service , , , , Ditribution Meter , , (6,408.10) 150, Ditribution Meter Intallation , , , , Total 1,871, ,858, ,817, ,547,817.21

15 CERTIFICATE OF SERVICE (Docket No. P ) I hereby certify that I have thi day erved a true copy of the foregoing document upon the participant lited below in accordance with the requirement of 1.54 (relating to ervice by a participant). VIA FIRST CLASS MAIL Erin L. Gannon, Equire Chrity M. Appleby, Equire Office of Conumer Advocate 555 Walnut Street Forum Place, 5th Floor Harriburg, P A Elizabeth Roe Tricari, Equire Office of Small Buine Advocate Commerce Building, Suite North Second Street Harriburg, P A Allion C. Kater, Equire Pennylvania Public Utility Commiion Bureau of Invetigation & Enforcement Commonwealth Keytone Building 400 North Street, 2nd Floor Wet P.O. Box 3265 Harriburg, PA Kevin J. Moody, Equire Vice Preident and General Counel Pennylvania Independent Oil & Ga Aociation 212 Locut Street, Suite 300 Harriburg, PA Dated: June 21,2018 7'Aildrew P. Wachter