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Regulatory Matters (Disclosure)
6 Months Ended
Apr. 30, 2014
Regulatory Matters Disclosure [Abstract]  
Public Utilities Disclosure Text Block

2.       Regulatory Matters

 

In August 2013, we filed a petition with the Tennessee Regulatory Authority (TRA) seeking authority to implement an integrity management rider (IMR) to recover the costs of our capital investments that are made in compliance with federal and state safety and integrity management laws or regulations. We proposed that the rider be effective October 1, 2013 with an initial adjustment on January 1, 2014 of $13.1 million in annual margin revenue from tariff customers based on capital expenditures incurred through October 2013 and for rates to be updated annually outside of general rate cases for the return of and on these capital investments. In September 2013, the TRA issued an order suspending this proposed tariff through December 30, 2013. On November 27, 2013, we and the Tennessee Attorney General's Consumer Advocate Division filed an IMR settlement with the TRA. A hearing on this matter was held December 18, 2013, and the TRA approved the IMR settlement as filed. A written order was issued May 13, 2014.

 

In August 2013, we filed an annual report with the TRA reflecting the shared gas cost savings from gains and losses derived from gas purchase benchmarking and secondary market transactions for the twelve months ended June 30, 2013 under the Tennessee Incentive Plan (TIP). On February 20, 2014, the TRA Utilities Division Audit Staff (Audit Staff) submitted their report with which we concurred. On March 7, 2014, the TRA approved and adopted the Audit Staff's report. The TRA's written order was issued on April 1, 2014.

 

In August 2013, we filed an Actual Cost Adjustment (ACA) petition with the TRA to authorize us to make an adjustment to the deferred gas cost account for prior periods in the amount of a $3.7 million under collection. We are waiting on a ruling from the TRA at this time. We intend to file our ACA annual report for the twelve months ended June 30, 2013 upon resolution of this petition.

 

In January 2014, we filed a petition with the North Carolina Utilities Commission (NCUC) seeking authority to adjust rates effective February 1, 2014 under the IMR mechanism approved in the general rate case settlement agreement in December 2013. The IMR provides for annual adjustments to our rates every February 1 for capital investments in integrity and safety projects as of October 31 of the preceding year. On February 5, 2014, the NCUC approved as filed an IMR adjustment totaling $.8 million in annual margin revenues to be reflected in our rates to customers.

 

In February 2014, we filed a petition with the TRA to authorize us to amortize and refund $4.7 million to customers for recorded excess deferred taxes. We proposed to refund this amount to customers over three years. We are waiting on a ruling from the TRA at this time.