This regulation addresses unaccounted for gas from the distribution pipeline system. The purpose of the rule is twofold. First, it creates a consistent definition for “unaccounted for gas” across all utilities and reporting requirements in Pennsylvania. This helps determine the extent to which gas leaks from the distribution system.
Second, the rule sets performance metrics for unaccounted for gas. Targets begin at 5% of throughput for year one and decline 0.5% each year to reach 3% by year five. A company that exceeds these targets faces a rebuttable presumption that they will not have their costs recovered within current or future Purchased Gas Cost or Gas Cost Recovery filing.