Section 6.08 - Reconciliation Adjustments - Account 175(1) The following definitions pertain to reconciliation adjustment calculations. (a) Gas Costs Allowable Per Base Formula shall be: 1. Total commodity cost of the base gas sendout.2. Total demand charges associated with the base gas supply less the demand charge reallocation (Dao - as defined in 220 CMR 6.06) , less demand charges associated with storage injections and liquefactions.3. Supplemental gas costs (S - as defined in 220 CMR 6.06) less the supplemental margin (SM - as defined in 220 CMR 6.06) .4. Base Account 175.1, interest charges.5. A credit in the amount of actual nonfirm margins realized.(b) Gas Costs Allowable Per Supplemental Formula shall be: 1. The demand charge reallocation (Dao).2. The supplemental margin (SM).(c) BACOG (Base Average Cost of Gas) equals the base GAF as computed in 220 CMR 6.06 plus the original embedded gas cost for each company, plus supplier refunds returned to customers. This figure is used as the convention for recognizing revenues toward base gas costs.(d) SACOG (Supplemental Average Cost of Gas) equals the supplemental GAF as computed in 220 CMR 6.06. It is used as the convention for recognizing revenues towards supplemental gas costs.(2) Calculation of the Reconciliation Adjustments. Account 175 contains the accumulated difference between gas cost revenues and the actual monthly gas costs incurred by each company. Each company shall henceforth separate Account 175 into abase (Account 175.1) and supplemental (Account 175.2) portion. Account 175.1 shall contain the accumulated difference between revenues toward gas costs as calculated by multiplying the BACOG times monthly firm sales volumes and gas costs allowable per base formula. Account 175.2 shall contain the accumulated difference between revenues toward gas costs as calculated by multiplying the SACOG times monthly firm sales volumes and gas costs allowed per supplemental formula.
Interest shall be calculated on the average monthly balance of both the base and supplemental accounts using the Bank of America's prime lending rate, then added to each end-of-month balance. A base reconciliation adjustment (Rb - as defined in 220 CMR 6.06) shall be determined for use in the base GAF calculations incorporating the base account (175.1) balance as of the annual reconciliation date as designed by each company. The supplemental reconciliation adjustment figure (Rs - as defined in 220 CMR 6.06) shall be taken as the supplemental account (175.2) balance as of the same annual reconciliation date.
Any existing reconciliation adjustments, as computed under the clause in effect on January 1, 1987, shall be included in the base GAF calculation for the first season.