Arkansas PublicPM: Service Commission APSC FILED Time: 7/28/2014 2:31:01 Recvd 7/28/2014 2:24:59 PM: Docket 14-063-tf-Doc. 1 Tariff ("TF") Docket Summary Cover Sheet Must be filed with each new TF docket filed at the Commission STYLE OF DOCKET: (Style may be changed by Secretary of Commission) In the Matter of the Application of Arkansas Oklahoma Gas Corporation for Approval of a Change in its Cost of Gas Adjustment Clause DOCKET DESIGNATOR: TF LAST RATE CASE DOCKET: Docket Number: 14-______-TF 13-078-U Does this change company name: Yes No RELATED DOCKETS: PETITIONER: Arkansas Oklahoma Gas Corporation ATTORNEY(S;)NAME, ADDRESS,PHONE,FAX AND E-MAIL Shannon Mirus P.O. Box 2414 Fort Smith, AR 72902-2414 Phone: (479) 783-3181, ext. 2212 Fax: (479) 784-2095 Email: smirus@aogc.com Write a brief statement, limited to the space provided herein describing the case that you are filing. Please provide enough information to assure that the nature of your docket is clear. Arkansas Oklahoma Gas Corporation is seeking approval of a change to its Cost of Gas Adjustment Clause as it relates to natural gas purchased for Company-owned NGV facilities. Pursuant to Rule 2.03(b), of the Commission's Rules of Practice and Procedure, please provide name, address, phone, fax, e-mail of at least one person, but not more than two, to appear on the Service List for this docket Shannon Mirus, smirus@aogc.com Kim R. Linam, klinam@aogc.com P.O. Box 2414, Fort Smith, AR 72902-2414 P.O. Box 2414, Fort Smith, AR 72902-2414 Phone: (479) 783-3181, ext. 2212 Phone: (479) 783-3181, ext. 2293 Fax: (479) 784-2095 Fax: (479) 784-2095 1. Number of customers by class affected by this tariff change: 2 Company-owned NGV facilities 2. Company's current authorized retail revenue requirement: $25,869,733 3. Estimated annual retail revenue impact if proposal is approved, both in dollars and as a percentage of current retail revenue requirement: None 4. Estimated monthly impact on an average residential customer in both dollars and percentage increase: None. 5. Proposed effective date: August 1, 2014 Form completed by: Shannon Mirus Date: July 28, 2014 Representing: Arkansas Oklahoma Gas Corporation APSC FILED Time: 7/28/2014 2:31:01 PM: Recvd 7/28/2014 2:24:59 PM: Docket 14-063-tf-Doc. 1 BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION OF ARKANSAS OKLAHOMA GAS CORPORATION FOR APPROVAL OF A CHANGE IN ITS COST OF GAS ADJUSTMENT CLAUSE ) ) ) ) Docket No. 14- -TF APPLICATION OF ARKANSAS OKLAHOMA GAS CORPORATION FOR APPROVAL OF A CHANGE IN ITS COST OF GAS ADJUSTMENT CLAUSE COMES NOW Arkansas Oklahoma Gas Corporation (“AOG” or “Company”) and requests the Arkansas Public Service Commission (“Commission”) approve AOG’s proposed change to its Cost of Gas Adjustment Clause (“COG”). In support of its Application, the Company states as follows: 1. AOG operates two Company-owned natural gas vehicle (“NGV”) facilities which sell compressed natural gas (“CNG”) to the public. The rate charged to customers at the NGV facilities is calculated based on the provisions of the Company’s NGV Tariff and COG as approved in Docket No. 13-078-U. 2. AOG seeks to modify its COG by adding a definition for “Cost of Gas Provided to Companyowned NGV Facilities” and by clarifying the definition of “System Supply Customers” to exclude deliveries of natural gas to Company-owned NGV facilities. This modification will not impact the methodology for determining System Supply Customers’ cost of gas as approved in Docket No. 13-078-U, nor will the proposed modification impact non-gas revenues for the Company. The modifications, however, will allow for the cost of gas for Company-owned NGV facilities to reflect the unique characteristics of those facilities’ supply needs. 1 APSC FILED Time: 7/28/2014 2:31:01 PM: Recvd 7/28/2014 2:24:59 PM: Docket 14-063-tf-Doc. 1 3. The CNG market in Arkansas is in its infancy, but has seen significant growth in the Fort Smith region. With the objective to facilitate further development of the CNG market, local natural gas suppliers have indicated an interest in offering a dedicated supply for CNG fueling stations. Taking advantage of these supplies will reduce unnecessary financial burdens on the delivered price of CNG by obtaining supplies specifically dedicated to the Company-owned NGV facilities. 4. AOG is seeking an expedited order from the Commission to allow immediate implementation of the proposed COG changes to facilitate appropriate commodity pricing in the local CNG market. AOG acknowledges that the General Staff of the Commission may continue its investigation of the proposed changes and that the rate will be implemented subject to refund. Arkansas Code Annotated § 23-4-403 provides the authority for the Commission to allow changes in rates without requiring thirty (30) days’ notice for good cause shown. 5. As detailed in the testimony and exhibits of Ms. Kim R. Linam, AOG’s proposed changes to its COG will benefit the growing NGV and CNG market and will have no impact on the cost of gas for AOG’s System Supply Customers. Therefore, AOG believes it is in all its customers’ best interests to amend the COG to allow for a dedicated natural gas supply for Companyowned NGV facilities. WHEREFORE, for the reasons stated herein, AOG hereby requests that the Commission issue an expedited order, as allowed by Arkansas Code Annotated § 23-4-403, approving the Company’s Application for approval of a change in its Cost of Gas Adjustment Clause, and for all other appropriate relief. 2 APSC FILED Time: 7/28/2014 2:31:01 PM: Recvd 7/28/2014 2:24:59 PM: Docket 14-063-tf-Doc. 1 Respectfully submitted, ARKANSAS OKLAHOMA GAS CORPORATION By: /s/ Shannon Mirus Shannon Mirus, ABA No. 2007265 Senior Vice President – General Counsel Arkansas Oklahoma Gas Corporation P.O. Box 2414 Fort Smith, AR 72902-2414 Phone: (479) 783-3181, ext. 2212 Fax: (479) 784-2095 Email: smirus@aogc.com 3 APSC FILED Time: 7/28/2014 2:31:01 PM: Recvd 7/28/2014 2:24:59 PM: Docket 14-063-tf-Doc. 1 CERTIFICATE OF SERVICE I, Shannon Mirus, do hereby certify that a copy of the foregoing Direct Testimony and Direct Exhibits of Kim R. Linam have been served on the following persons, via electronic mail, on this 28th day of July, 2014. Mr. John P. Bethel Executive Director Arkansas Public Service Commission john_bethel@psc.state.ar.us. Mr. Robert Booth Manager – Gas & Water Section Arkansas Public Service Commission robert_booth@psc.state.ar.us. By: /s/ Shannon Mirus Shannon Mirus, ABA No. 2007265 Arkansas Oklahoma Gas Corporation Senior Vice President-General Counsel P. O. Box 2414 Fort Smith, AR 72902-2414 T: 479/783-3181, Extension 2212 F: 479/784-2095 E: smirus@aogc.com 4