Baltimore Gas and Electric (BGE) submits an annual purchased gas adjustment (PGA) filing in the first quarter each year to reconcile its prior year purchased gas commodity and demand expenses. BGE's PGA is different from other Maryland gas distribution companies in that the commodity cost of gas in the reconcilation is determined using a weighted average index price and not the actual price paid by the company. The difference between the actual cost of gas and the index price is split 50/50 between the Company and its customers. Maryland's Office of People's Counsel (OPC) has asked DHInfrastructure to review these annual filings for accuracy and compliance with best practice procurement procedures.
In 2020, DHInfrastructure reviewed BGE's 2019 PGA filing by inspecting the workbooks it submitted to support its application of the Market-Based Rates (MBR) mechanism for commodity costs and the calculation of the PGA. As part of this inspection we also drafted discovery questions on issues we identified and reviewed these responses.