16 Tex. Admin. Code § 7.5525 - Lost and Unaccounted for Gas
(a) All
lost and unaccounted for gas shall be presumed to be lost gas unless the
portion represented by unaccounted for gas, including but not limited to losses
to company used gas, liquids extraction, and meter errors due to inaccurate
calibration or temperature and pressure fluctuations, is proven by a
preponderance of the evidence in a given ratemaking proceeding.
(b) All expenses for lost gas in excess of
the maximum allowable shall be disallowed for ratemaking purposes.
(1) The maximum allowable for a distribution
system is 5.0% of the amount metered in, and the maximum allowable for a
transmission system is 3.0% of the amount metered in, except as provided in
subsection (c) of this section.
(2)
The calculation of the percentage of lost and unaccounted for gas shall be
based on an annual period. Notwithstanding the choice of test year for other
aspects of ratemaking, and unless a more appropriate period can be demonstrated
by a preponderance of the evidence in a given ratemaking proceeding, the annual
period ends June 30, and is the most recent such period for which data are
available.
(c) The
Commission may allow a greater percentage of lost gas than that specified in
subsection (b) of this section based on special facts and circumstances
including, where appropriate, the cost of effecting a reduction of the actual
amount of lost gas, as may be demonstrated in a given ratemaking
proceeding.
(d) Nothing in this
section shall be construed to limit the Commission's authority to evaluate the
reasonableness of gas expense figures, including those for unaccounted for gas,
and incorporating that evaluation into its rate setting orders.
Notes
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