The release reads: "During the months of June or July 2007, MLGW customers will receive a one-time credit adjustment on their bills. The average credit adjustment will be about $50 per residential customer and will be reflected in customers' gas charges."This adjustment is the result of non-cost charges that were added to the Purchased Gas Adjustment (PGA) component of customers' bills from September 2006 to April 2007. The charge proceeds were used to pay for initial inventories at a gas storage site.
"The PGA is a cost recovery mechanism. Monthly gas bills reflect the cost of the natural gas MLGW purchases, as well as the cost of gas storage, transportation, delivery. These costs fluctuate due to the deregulated, competitive marketplace. Like virtually all natural gas utilities, MLGW uses a PGA to pass along these increases and decreases in gas costs to its customers. The maintenance of a gas inventory is in line with the strategic mission of the utility to 'provide cost effective utility services to the Greater Memphis community'."