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Public Hearing in Docket No. G-41 Sub 50
Annual Review of Gas Costs for Toccoa Natural Gas
Wednesday, November 1, 2017, 10:00 a.m.
Commission Hearing Room 2115, Dobbs Building, 430 North Salisbury, Raleigh


Toccoa Natural Gas (Toccoa) is a municipal gas system with about 90 miles of pipeline extending from the Williams Pipeline tap in Elbert County, Georgia, to Franklin, North Carolina. Toccoa has 418 miles of distribution main with 71 miles in NC. Toccoa serves about 6,567 retail customers with 726 of those customers located in Otto and Franklin, North Carolina.

Under State law [G.S. 62-133], natural gas local distribution companies earn a return on the investments they have made in their distribution networks in order to serve customers. They are also allowed to charge customers (without adding a margin or earning a return) for their prudently incurred expenses, including the wholesale cost of natural gas and pipeline transportation charges.

State Law G.S. 62-133.4(c) requires each gas distribution company to file annually with the Commission information that lets the Commission compare its wholesale gas and gas transportation costs with the gas revenues that it has collected from its customers during the 12-month period. The Commission decides whether the gas distributor was prudent as it incurred its gas costs. If prudently incurred gas costs are greater or less than the collected gas revenues, the Commission can order changes to customer rates.

Commission Rule R1-17(k)(6)(a) requires Toccoa to file by September 1 each year information showing the Company’s actual gas costs for the year ending June 30, the amount of gas it purchased, the amount of gas it sold, and other information, along with expert witness testimony.  Toccoa filed the required information on September 1, 2017.

The Public Staff of the North Carolina Utilities Commission is investigating this matter on behalf of the using and consuming public. The Commission is holding a hearing on November 1, 2017, to receive testimony on this matter. At the beginning of the hearing Toccoa customers will have an opportunity to provide testimony.



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