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PCG » Topics » Biennial Cost Allocation Proceeding

This excerpt taken from the PCG 10-K filed Feb 18, 2005.

Biennial Cost Allocation Proceeding

        The Utility's natural gas distribution costs and balancing account balances are allocated to customers in the Biennial Cost Allocation Proceeding. This proceeding normally occurs every two years and is updated in the interim year for purposes of adjusting natural gas rates to recover from customers any under-collection, or refund to customers any overcollection, in the balancing accounts. Balancing accounts for gas distribution and other authorized expenses accumulate differences between authorized amounts and actual revenues.

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