UGI Utilities‘ annual transmission revenue requirement will increase to $5.6m from $4.6m for the June 1, 2012 to May 31, 2013 period, according to the company’s annual transmission revenue requirement update with FERC filed on May 15.
The change in UGI’s annual transmission revenue requirement will cause the company’s contribution to the annual network service charge in the PPL Group Zone to change to $857/MW per year from $695/MW per year.
The annual update comprises detailed calculations conducted through UGI’s cost-of-service formula rate as populated with data from the company’s 2011 annual report on FERC Form 1.
UGI’s formula rate implementation protocols under PJM OATT provide that the company annually recalculate its annual transmission revenue requirement for the rate year commencing June 1 by inputting cost data from its Form 1-F annual report filed with FERC to derive its updated “annual transmission revenue requirement”, from which UGI’s components of the total transmission service charges in the PPL Group Zone of PJM are determined.
UGI recovers its annual transmission revenue requirement through a cost-of-service formula rate under the open access transmission tariff (OATT) of PJM Interconnection LLC.
Also, the change in revenue requirement causes the company’s contribution to the annual point-to point transmission service charge in the PPL Group Zone to change to $1.011/MW per year from $0.821/MW per year, the company stated.
UGI Utilities is a subsidiary of UGI (NYSE:UGI).