Weather Normalization Adjustment for Commercial CustomersVirginia Natural Gas (VNG) residential customers have experienced the weather normalization adjustment program (WNA) for five years. In September 2007, the Virginia State Corporate Commission (VSCC) agreed to allow VNG to roll out a similar program on an experimental basis to commercial customers beginning in November 2007.
The WNA adjusts a portion of the bill to reflect normal winter weather conditions, adding a bill credit in colder-than-normal weather and a bill surcharge in warmer-than-normal weather. No adjustment occurs in normal weather.
Normal weather conditions measured in heating degree days (HDD) are based on a rolling 30-year period. For the 2007-2008 heating season normal degree-days will be based on the period from October 1977 through May 2007.
The WNA applies to six bills during the winter heating season typically November through April. Each bill period during that time will have a different WNA factor.
WNA provides customers relief during extremely cold winter weather and the company revenue stability to help plan and schedule system maintenance and improvements that contribute to operational quality and pipeline safety.
Questions?
Call our Customer Care Center at 866-229-3578 or send an email to VNGCustomerCare@aglresources.com.
Answers to Frequently Asked QuestionsWhat is a Weather Normalization Adjustment (WNA)?
A WNA is a factor that helps level out high gas bills due to colder-than-normal weather and low gas bills due to warmer-than-normal weather.
How does the WNA work?
For the 2007-2008 winter heating season normal degree-days will be based on the period from October 1977 through May 2007. No WNA adjustment occurs if these normal weather conditions occur. Weather conditions colder than normal will result in a credit. Weather conditions warmer than normal will result in a surcharge. The WNA factor, based on customer usage and weather conditions during each billing period, will be used to calculate the amount of the WNA credit or surcharge.
Why have a WNA? What are the benefits for customers?
WNA benefits customers in the following ways:
1. Customers will receive a credit on their bills during colder-than-normal weather.
2. WNA provides Virginia Natural Gas revenue stability, enabling us to better plan and schedule system maintenance and improvements contributing to operational quality and pipeline safety.
Is WNA used in other states?
WNA has a proven track record in working well for both customers and gas companies in many states throughout the country. Some states in our region in which WNA has been approved include Georgia, Tennessee, New Jersey, New York and North Carolina. The use of weather adjustments has grown substantially during the past 10-15 years. AGL Resources companies have had plans in place for many years. Atlanta Gas Light’s plan was approved in 1989 and the Chattanooga Gas plan was approved in 1991. VNG first implemented its WNA for residential customers in 2002.
Is the WNA a rate increase?
No. In the past, VNG has filed requests with the VSCC to increase rates to cover the rising costs of providing service to an ever-increasing customer base. VNG’s last rate increase was filed in 1996. The WNA is designed to be revenue neutral because it reduces bills when the weather is colder-than-normal and surcharges bills when the weather is warmer-than-normal. The calculations used to determine these amounts are based on the method and data approved by the VSCC.
What customers will see a WNA on their bill?
All commercial customers served under Rate Schedule 2 will see a WNA on their bills during the WNA billing period, typically November through April.
When will a customer see a WNA on the bill?
WNA is effective for six billing periods during the heating season beginning with cycle 10 in November. Billing cycles 10–21 will have a WNA on their bills November through April and cycles 1-9 will have a WNA on their bills December through May.
How is the Weather Normalization Adjustment (WNA) on my bill calculated?
A WNA factor adjusts your delivery charge during the winter months for fluctuations in normal weather. The factor is based on customer's weather sensitive portion of their bill, defined as all usage in excess of each customer’s non-weather sensitive usage or base use. Base Use is defined as the average daily consumption during designated summer months. CCF (hundred cubic feet) of natural gas used and weather conditions (heating degree-days) during each bill period, is used to calculate the amount of your WNA bill credit or surcharge. The actual heating degree-days in the each bill period are compared to the normal heating degree-days for the period to determine if the weather is colder or warmer than normal. Normal weather for the 2007-08 heating season is an average of temperatures in our service area over a 30-year period from October 1977 through May 2007. Heating degree-days are calculated by subtracting the average temperature for the day from 65 degrees F. Sixty-five degrees is considered the base temperature at which most homes and buildings would be comfortable. Heating degree-days statistics provided by the National Oceanic and Atmospheric Administration (NOAA), a government agency that tracks weather conditions, are used to calculate the WNA factor. View the heating degree-day information for your bill period. (Your WNA factor is not shown, as each customer’s WNA factor is based on individual account gas usage.)