Business Commodity Price Definitions

Commodity Component

The component of the billing rate that a sales service customer pays for the physical natural gas supply procured by the Company under any of the Rate Schedules that provide for sales service. The commodity component is either Annual Sales Weighted Average Cost of Gas (WACOG) or Winter Sales WACOG, adjusted for revenue-sensitive effects, (see Schedule P, and Schedule 164 in Oregon or Schedule 203 in Washington) or, where applicable, monthly incremental cost of gas.

Annual Sales WACOG

The Company's Annual Sales WACOG, as determined in the Company's most recent Purchased Gas Adjustment (PGA) filing, and set forth in Schedule P, and Schedule 164 in Oregon or Schedule 203 in Washington.

Winter Sales WACOG

The Company’s WACOG for the winter period (November through March), as determined in the Company’s most recent Purchased Gas Cost Adjustment (PGA) filing, and set forth in Schedule P, and Schedule 164 in Oregon or Schedule 203 in Washington.

Monthly Incremental Cost of Gas

The commodity component that shall be paid by a customer that makes a service type selection change from firm transportation service or interruptible transportation service to firm sales service or interruptible sales service at times where the Company’s Annual Sales WACOG or Winter Sales WACOG choices are not available.

Purchased Gas Adjustment (PGA) Filing

The regulatory documentation filed with the Commission that supports the Company’s request for rate changes under Schedule P, and for other changes to rates as the Commission may allow.