Weather Normalization Adjustment (WNA)
On Thursday, September 15, 2022, the Pennsylvania Public Utility Commission (PUC) approved UGI Utilities’ use of a Weather Normalization Adjustment (WNA) as a five-year pilot program.
Effective with bills issued in November 2022, customer bills rendered annually from October through May during the pilot may reflect a WNA. The WNA makes your gas bill more predictable during periods of extreme temperatures.
A Weather Normalization Adjustment will be applied under these circumstances and as follows:
- If temperatures are more than three percent colder than normal in a given month, customers will receive a credit on their bill.
- If temperatures are more than three percent warmer than normal in a given month, customers will receive a surcharge on their bill.
- In months of normal weather, bills will not have a WNA adjustment.
Frequently Asked Questions
What is a Weather Normalization Adjustment (WNA)?
WNA is a billing method used to levelized differences between “normal” (or expected) weather and “abnormal” (or unexpected) weather in the distribution charge portion of the customer bill.The WNA was approved by the Pennsylvania Public Utility Commission, as part of a 5-year pilot beginning in November 2022, for bills rendered to UGI gas customers from October 1st through May 31st each year. The WNA only applies to the distribution charge portion of a customer bill; it does not adjust the gas commodity portion of the bill.
What is ‘normal’ weather?
UGI develops a 15-year average temperature from information provided by the National Oceanic and Atmospheric Administration (NOAA) from measuring stations located throughout the UGI service territory. Next, Heating Degree Day differences (as discussed below) are calculated from this average to predict and plan for normal customer heating requirements.
How do Heating Degree Days measure weather?
Heating Degree Days (HDD) are used to measure how cold it is on a given day. HDDs are calculated by subtracting the average temperature for the day from 65°F. Below 65°F is considered a threshold at which heat would typically be necessary for the average customer.
Which customers are subject to WNA?
WNA is applicable to all Pennsylvania Natural Gas Residential and Non-Residential customers served by UGI under Rate Schedules R (General Service Residential), RT (General Service Residential Transportation), N (General Service Non-Residential) and NT (General Service Non-Residential Transportation).
How does the WNA work?
The WNA adjusts customers’ distribution charges to reflect use during normal weather patterns. It will apply when temperatures are more than 3% colder or 3% warmer than normal based on the actual heating degree days experienced. When weather is more than 3% colder than normal for the billing period, a customer will receive a WNA credit on their bill. When weather is more than 3% warmer than normal, a customer will see a WNA charge on their bill.
Does WNA impact the commodity, or natural gas supply costs, a customer pays?
No. WNA adjusts distribution charges and does not impact gas commodity charges (the amount a customer pays for the supply of natural gas used). WNA only adjusts the non-gas portion of a customer’s bill to reflect normal weather conditions, subject to the 3% temperature limit mentioned above.
What are some of the benefit of WNA for customers?
WNA benefits customers in the following ways:
- Customers’ bills will not be impacted by WNA for variations within 3% of normal weather.
- Customers will receive a credit on their bills during colder-than-normal weather when bills are typically at their highest.
- WNA will provide customers more stable and predictable distribution charges during the heating season.
- WNA provides UGI with revenue stability, enabling the company to better plan and schedule system maintenance and other improvements contributing to the provision of safe and reliable distribution service.
What is the benefit of WNA for UGI?
WNA billing better reflects the way UGI incurs costs to provide distribution service. Nearly all UGI’s expenses do not vary based on the weather or on the amount of gas flowing through the distribution system. Regardless of weather conditions, UGI still has similar expenses associated with operating, maintaining, and financing the distribution system infrastructure. The WNA helps align revenues from customer bills with the costs to maintain a safe, reliable natural gas distribution system for UGI’s customers.
Is WNA unique to UGI?
No. There are other natural gas utilities both within and outside of Pennsylvania who have had WNA mechanisms in place for many years.
Is the WNA a rate increase?
No. The WNA is designed to be “revenue neutral” over time because it reduces bills when the weather is colder than normal and adds a surcharge to bills when the weather is warmer than normal. UGI’s rates are designed assuming normal weather conditions and the WNA works to more closely align actual rate revenues with those anticipated in rate proceedings. The calculations used to determine these amounts are based on the method and data approved by the Pennsylvania Public Utility Commission on September 15, 2022 at Docket No. R-2021-3030218.
When will a customer see a WNA on the bill?
Customers will see a “Weather Normalization Adjustment” line item on bills rendered from October 1st through May 31st when weather is more than 3% colder or more than 3% warmer than normal. If weather during the billing period is normal, or within 3% of normal, no WNA will be assessed and no WNA line item will show on the bill.
Where can I see what my WNA was for the billing period?
If a WNA was assessed during the billing period, there will be a line called “Weather Normalization Adjustment” with the associated amount of the credit or charge. This will appear in the “Current Bill Information” section located near the top of the bill.
Will every customer be assessed the same WNA amount each month?
No, WNA is calculated separately for each customer using data specific to each individual customer based on their billing period dates, actual usage, and weather for their local region.
Where can a customer go to learn more about WNA?
For more details on WNA, please see Rider C – Weather Normalization Adjustment within Tariff for UGI Utilities, Inc. – Gas Division – PA P.U.C. NOS. 7 &7S or call UGI at 800-276-2722.