GCVA Example
How the Gas Cost Variance Account Works * Month Commodity Revenues Cost of Gas Sold Difference GCVA Balance 1 50 52 (2) (2) 2 68 72 (4) (6) 3 74 75 (1) (7) 4 60 53 7 0 *Millions For the following example assume the commodity rate paid by customers remains the same for four months. The opening GCVA balance is zero. Month 1: The cost of gas sold exceeded the commodity revenues. $2 million owed by customers is added to the GCVA. Month 2: The cost of gas sold exceeded the commodity revenues. $4 million is added to the previous $2 million deficit, bringing the total amount owing by customers to $6...