Weather Normalization Adjustment (WNA)
How does WNA work?
In billing cycles rendered between October 1 and May 31, the WNA may adjust the natural gas delivery charge to reflect “normal” expected temperatures rather than actual conditions. The WNA only goes into effect if actual weather (temperatures) are more than 3 percent colder or warmer than normal.
If the weather is more than 3% colder than normal, the WNA will appear on your bill as a credit that reduces the amount of the delivery charge. If it’s more than 3% warmer than normal, the WNA will increase the amount of delivery charge.
The WNA only applies to the distribution (delivery) charge of a customer’s bill. You can find the full mechanism for calculating the WNA on page 79 of our tariff. The Company’s tariff is located at www.peoples-gas.com/rates.
What is “normal” weather?
Normal weather is based upon historical temperature data reported by National Oceanic and Atmospheric Administration (NOAA). The historical temperatures are used to predict expected future temperatures. The expected future temperatures (“normal”) were presented in the Company’s most recent base rate case and were approved by the Pennsylvania Public Utility Commission.
The Company’s tariff is located at www.peoples-gas.com/rates.
Why is Peoples now applying a WNA?
Though this is new for Peoples, WNAs are commonly used across Pennsylvania and the US to reduce the impact of changing temperatures on utility bills, making them more predictable for customers.
Additionally, the WNA provides more revenue stability to Peoples, allowing us to better plan and schedule maintenance and improvements that support safe, reliable and sustainable distribution service.
Which customers will receive a WNA?
All Residential, CAP, Commercial SGS, and Commercial MGS customers receiving retail or transport service for bills rendered during the heating season of October 1 through May 31. Bills rendered means bills that are issued during these months.
When will a WNA apply?
Effective with bills rendered October 1, 2024, bills rendered annually from October through May, could reflect a WNA. A WNA will be applied to your bill under the following circumstances:
- During bills rendered October through May, customers will see an adjustment on their bills if temperatures are more than three percent (3%) colder or warmer than normal
- In months where weather is within three percent (3%) of normal, bills will not receive a WNA credit or charge.
- For bills rendered in May, the WNA adjustment will not exceed 100% of the billed distribution amount for that same period.
- Bills rendered June through September are not eligible for a WNA credit or charge.
How is the WNA calculated?
PDF of the following information is available here.
PEOPLES NATURAL GAS COMPANY LLC SUPPLEMENT NO. 2 TO GAS—PA PUC NO. 48
FIRST REVISED PAGE NO. 79 | CANCELLING ORIGINAL PAGE NO. 79
APPLICATION AND PURPOSE
A Weather Normalization Adjustment (“WNA”) shall be applied to Residential, Commercial SGS, and Commercial MGS customers receiving service under Rate Schedules RS, CAP, SGS, and MGS for bills rendered during the heating season of October 1st through May 31st.
WNA is a distribution charge adjustment and is considered a basic service charge.
Calculated WNA amounts shall be subject to Rider DSIC, Rider STAS, Rider Tax Repairs Surcredit, and Rider TCJA. No additional riders or surcharges will be applied to the calculated WNA.
CALCULATION
The WNA will be applied to bills rendered October 1st through May 31st and shall be calculated on a customer account specific basis in accordance with the formula below:
WNBM = BLMM+ [(NHDD +/- (NHDD x 3%)) /AHDD) x (AMUM-BLMM)]
WNAM = WNBM – AMUM
WNAM = WNAC x Distribution Charge
a) Weather Normalized Billing Mcfs (“WNBM”) will be calculated as the Base Load Monthly Mcfs (“BLMM”) added to the product of the [Normal Heating Degree Days (“NHDD”), adjusted for a 3% deadband, divided by the Actual Heating Degree Days (“AHDD”)] and the [Actual Monthly Usage Mcfs (“AMUM”) less the BLMM]. Weather Normalized Billing Mcfs (WNBM) will only be calculated if the AMUM exceeds the BLMM. WNA will not be applicable for the billing period if AMUM is less than the BLMM.
b) BLMM shall be established for each customer by averaging the actual daily consumption from the billing system, measured in Mcf, for service rendered July 1st thru August 31st of the most recent period.
c) AMUM shall be measured for each customer and billing cycle.
d) NHDD shall be based upon the heating degree days utilized to develop the revenue requirement in the Company’s general rate case proceeding at Docket No. R-2023-3044549. NHDD shall be updated in future general rate case proceedings.
e) AHDD shall be the actual experienced heating degree days during the billing cycle days for the customer based upon experienced actual temperatures as reported by the National Oceanic and Atmospheric Administration (NOAA) for weather stations utilized by the Company for the area.
f) AMUM will be subtracted from the WNBM to compute the Weather Normalized Adjustment Mcfs (“WNAM”).
g) A deadband of 3% shall apply. The WNA for a billing cycle will apply only if the AHDD for the billing cycle are lower than 97% or higher than 103% of the NHDD for the billing cycle.
h) The WNAM shall then be multiplied by the applicable Rate Schedule Distribution Charge based on service rendered to compute the WNA amount that will be charged or credited to each Residential, SGS, and MGS customer receiving service under Rate Schedules RS, CAP, SGS, and MGS.
i) In the event a customer’s bill needs to be canceled and rebilled at any time, the WNA will be recalculated using the most recently available data for the billing period. In some cases, updates in data used in the calculation, may result in a different WNA for the billing period.
j) WNA amounts will be displayed as a separate line item on the customer’s bill.
k) The WNA adjustment for bills rendered in May will not exceed 100% percent of the billed distribution amount (delivery charge amount plus customer charge amount) for that same period.
l) The Company will file a report annually with the Commission on or before September 1st for the 12-month period ending June of the same year. The filing will contain WNA details as defined in the Company’s most recent general rate case proceeding.
ISSUED: September 26, 2024 | EFFECTIVE: September 27, 2024
Does WNA impact the commodity, or natural gas supply costs, a customer pays?
The WNA only adjusts distribution charges and does not impact gas commodity charges (the amount a customer pays for the supply of natural gas used).
Can a customer choose to opt out of WNA?
No. All residential and small and medium-size commercial customers served by Peoples will receive the WNA. WNA is a distribution charge adjustment and is considered a basic service credit or charge. The WNA will only apply to bills rendered from October 1 – May 31 when weather conditions are more than 3% warmer or colder than normal.
I have concerns with paying my bill – who can I contact?
We have many programs available to help. Please visit https://www.peoples-gas.com/assistance/ for more information.
I have more questions about my bill – do you have more information on how I can better understand my bill?
Yes. We have a very helpful page on our website that explains more about your bill and how we operate as a utility. Visit https://www.peoples-gas.com/my-account/understand/ for this information.