What is the Cost Adjustment Factor (PNGCAF)?
Mesa employs a purchased natural gas cost adjustment factor (PNGCAF) that permits Mesa to recover the costs associated with the planning, acquisition and administration of required natural gas supplies and transportation services from its customers on a timely basis. Such costs are recovered in the “Gas Cost Adjustment” (GAF). The PNGCAF is determined on a forward fiscal year basis for each month therein and is reviewed each month and adjusted as necessary to reflect known and measurable changes to costs and customer consumption. This allows Mesa to better match its costs with its revenues and also provides its customers with natural gas energy price signals to allow them to better manage their consumption patterns and associated costs.
