[Federal Register Volume 60, Number 196 (Wednesday, October 11, 1995)]
[Rules and Regulations]
[Pages 52960-53019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24723]
[[Page 52959]]
_______________________________________________________________________
Part II
Department of Energy
_______________________________________________________________________
Federal Energy Regulatory Commission
_______________________________________________________________________
18 CFR Part 154, et al.
Natural Gas Companies (Natural Gas Act): Rate Schedule and Tariff
Changes; Filing; Uniform Systems of Accounts, Forms, Statements, and
Reporting Requirements; Revisions; Final Rules
Federal Register / Vol. 60, No. 196 / Wednesday, October 11, 1995 /
Rules and Regulations
[[Page 52960]]
FEDERAL ENERGY REGULATORY COMMISSION
18 CFR Part 154
[Docket No. RM95-3-000; Order No. 582]
Filing and Reporting Requirements for Interstate Natural Gas
Company Rate Schedules and Tariffs
Issued: September 28, 1995
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Final rule.
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SUMMARY: The Federal Energy Regulatory Commission is amending part 154
of the Commission's regulations under the Natural Gas Act. The
Commission is reorganizing, rewriting and updating its regulations
governing the form, composition and filing of rates and charges for the
transportation of natural gas in interstate commerce. This rule is part
of the Commission's ongoing program to review its filing and reporting
requirements and reduce unnecessary burdens by eliminating the
collection of data that are not necessary to the performance of the
Commission's regulatory responsibilities. The rule also requires that
certain data, necessary to the analysis of a proposed rate, be filed at
an earlier stage of the process.
EFFECTIVE DATE: This final rule is effective November 13, 1995.
FOR FURTHER INFORMATION CONTACT: Richard A. White, Office of the
General Counsel, Federal Energy Regulatory Commission, 825 North
Capitol Street, NE., Washington, DC 20426, (202) 208-0491.
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document in the Federal Register, the Commission also provides all
interested persons an opportunity to inspect or copy the contents of
this document during normal business hours at 888 First Street NE.,
Washington, DC 20426.
The Commission Issuance Posting System (CIPS), an electronic
bulletin board service, provides access to the texts of formal
documents issued by the Commission. CIPS is available at no charge to
the user and may be accessed using a personal computer with a modem by
dialing (800) 856-3920. To access CIPS, set your communications
software to 19200, 14400, 12000, 9600, 7200, 4800, 2400, 1200, or 300
bps, full duplex, no parity, 8 data bits, and 1 stop bit. The full text
of this document will be available on CIPS in ASCII and WordPerfect 5.1
format. The complete text on diskette in Wordperfect format may also be
purchased from the Commission's copy contractor, La Dorn Systems
Corporation, also located in Room 3104, 941 North Capitol Street NE.,
Washington, DC 20426.
Table of Contents
I. Introduction
II. Public Reporting Burden
III. Background
IV. Discussion
A. Overview and Objectives of the Final Rule
1. Organization and editorial changes.
2. Substantive changes.
B. The Revised Regulations
1. Subpart A--General Provisions and Conditions
a. Section 154.1 Application; obligation to file
b. Section 154.2 Definitions
c. Section 154.3 Effective Tariff
d. Section 154.4 Electronic and Paper Media
e. Section 154.5 Rejection of Filings
f. Section 154.6 Acceptance for filing not approval
g. Section 154.7 General Requirements for the Submission of a
Tariff Filing or Executed Service Agreement
h. Section 154.8 Informal Submission for Staff Suggestions
2. Subpart B--Form and Composition of Tariff
a. Section 154.101 Form
b. Section 154.102 Title Page and Arrangement
c. Section 154.103 Composition of Tariff
d. Section 154.104 Table of Contents
e. Section 154.105 Preliminary Statement
f. Section 154.106 Map
g. Section 154.107 Currently Effective Rates
h. Section 154.108 Composition of Rate Schedules
i. Section 154.109 General Terms and Conditions
j. Section 154.110 Form of Service Agreement
k. Section 154.111 Index of Customers
l. Section 154.112 Exception to Form and Composition of Tariff
m. Miscellaneous Subpart B Comments
3. Subpart C--Procedures for Changing Tariffs
a. Section 154.201 Filing Requirements
b. Section 154.202 Filings to Initiate a New Rate Schedule
c. Section 154.203 Compliance Filings
d. Section 154.204--Changes in Rate Schedules, Forms of Service
Agreements, or the General Terms and Conditions
e. Section 154.205 Changes Related to Suspended Tariffs,
Executed Service Agreements or Parts Thereof
f. Section 154.206 Motion to Place Suspended Rates Into Effect
g. Section 154.207 Notice Requirements
h. Section 154.208 Service on Customers and Other Parties
i. Section 154.209 Form of Notice for Federal Register
j. Section 154.210 Protests, Interventions, and Comments
4. Subpart D--Material to be Filed With Changes
a. Section 154.301 Changes in Rates
b. Section 154.302 Previously Submitted Material
c. Section 154.303 Test Periods
d. Section 154.304 Format of Statements, Schedules, Workpapers,
and Supporting Data
e. Section 154.305 Tax Normalization
f. Section 154.306 Cash Working Capital
g. Section 154.307 Joint Facilities
h. Section 154.308 Representation of Chief Accounting Officer
i. Section 154.309 Incremental Expansions
j. Section 154.310 Zones
k. Section 154.311 Updating of Statements
l. Section 154.312 Composition of Statements
1. Schedule B
2. Schedule C
3. Schedule C-1, End of Base Period Plant Functionalized
4. Schedule C-2 (Proposed Schedule C-3)
5. Schedule C-3 (Proposed Schedule C-4)
6. Schedule C-4 (Proposed Schedule C-5)
7. Schedule C-5 (Proposed Schedule C-6)
8. Schedule D
9. Schedules D-1 and D-2
10. Schedule D-2 (Proposed Schedule D-3)
11. Statement E Schedule E-3
14. Schedule E-4
15. Proposed Schedule E-5
16. Statement F-2
17. Statement G, Revenues, Credits, and Billing Determinants
18. Schedule G-1, Base Period Revenues Schedule G-2, Adjustment
Period Revenues
20. Schedule G-3
21. Schedule G-4, At-risk Revenue
22. Schedule G-5, Other Revenues
23. Statement H-1
24. Schedule H-1(1)
25. Schedules H-1(1)(c), H-1(3)(a), and H-1(3)(b)
26. Schedules H-1(2)(a) and H-1(2)(b)
27. Schedule H-1(2) [Proposed Schedule H-1(3)]
28. Schedule H-1(2)(j) [Proposed Schedule H-1(3)(k)]
29. Schedule H-1(2)(k) [Proposed Schedule H-1(3)(l)]
30. Schedule H-2(1)
31. Statement H-3
32. Schedules H-3(1)-(3)
33. Schedule H-3(4)
34. Schedule H-4
35. Schedule I-1, Functionalization of Cost-of-service
36. Schedules I-2 (i) and (ii)
37. Schedule I-3, Allocation of Cost-of-Service
38. Schedule I-4, Transmission and Compression of Gas by Others
(Account 858)
39. Schedule I-5
40. Schedule I-5, Gas Balance
41. Statement J, Comparison and Reconciliation of Estimated
Revenues With Cost-of-service
42. Schedule J-1, Summary of Billing Determinants
43. Schedule J-2, Derivation of Rates
44. Schedule J-2(iii)
45. Statement P
m. Section 154.313 Schedules for Minor Rate Changes
[[Page 52961]]
n. Section 154.314 Other Support for a Filing
5. Subpart E--Limited Rate Changes
a. Section 154.401 RD&D Expenditures
b. Section 154.402 ACA Expenditures
c. Section 154.403 Periodic Rate Adjustments
6. Subpart F--Refunds and Reports
a. Section 154.501 Refunds
b. Section 154.502 Reports
7. Subpart G--Other Tariff Changes
a. Section 154.601 Change in Executed Service Agreement
b. Section 154.602 Cancellation or Termination of a Tariff,
Executed Service Agreement or Part Thereof
c. Section 154.603 Adopting of a Tariff by a Successor
C. Comments requesting further changes
D. Electronic Filing
1. Industry-wide conference
2. Delayed implementation of electronic filing requirements
3. Software
4. Using Rich Text Format for Text
5. Appropriate Format for Numeric Data
6. Security and Reliability of Data
7. Submission of Data to the Commission
8. Dissemination of Data by the Commission
9. Fees for costs of electronic filing
V. Regulatory Flexibility Act Certification
VI. Environmental Statement
VII. Information Collection Statement
VIII. Effective Date
Regulatory Text
Appendix A
Appendix B
Appendix C
I. Introduction
The Federal Energy Regulatory Commission (Commission) hereby adopts
procedural rules governing the form and composition of interstate
natural gas pipeline tariffs and the filing of rates and charges for
the transportation of natural gas in interstate commerce under sections
4 and 5 of the Natural Gas Act (NGA) and section 311 of the Natural Gas
Policy Act. This rule is a companion to the final rule, issued
concurrently, titled ``Revisions to the Uniform System of Accounts and
to Forms and Statements and Reporting Requirements for Natural Gas
Companies'' which amends, among other things, the Uniform System of
Accounts and FERC Form No. 2.
The Commission intends to make the filing and reporting
requirements reflect recent regulatory changes, in particular the
implementation of Order No. 636, and the realities of the process of a
modern rate case.1 The restructuring of the pipeline industry has
rendered many of the current rate and tariff regulations superfluous or
outdated. The Commission is adopting filing requirements that reflect
the current part 284 service regulations that mandate unbundled
pipeline sales and open-access transportation of natural gas. The
current part 154 rate regulations are not designed for the type of rate
changes that will occur in the restructured service environment. These
filing requirements were originally designed to focus on pipeline sales
activities. The revised regulations focus on transportation services.
\1\Pipeline Service Obligations and Revisions to Regulations
Governing Self-Implementing Transportation; and Regulation of
Natural Gas Pipelines After Partial Wellhead Decontrol, Order No.
636, 57 FR 13267 (April 16, 1992), FERC Statutes and Regulations
para.30,939 (April 8, 1992); order on reh'g, Order No. 636-A, 57 FR
36128 (August 12, 1992), FERC Statutes and Regulations para.30,950
(August 3, 1992); order on reh'g, Order No. 636-B, 57 FR 57911
(December 8, 1992), 61 FERC para.61,272 (1992), reh'g denied, 62
FERC para.61,007 (1993), appeal pending sub nom. United Distribution
Co., et al. v. FERC, No. 92-1485, et al. (D.C. Cir. Feb. 8, 1995).
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Before the recent industry restructuring, natural gas pipelines
primarily provided a merchant service. A typical pipeline company would
purchase gas from producers or other suppliers, transport the gas from
the supply area to storage fields or sales delivery points, and sell
the gas on a bundled basis. Now, pipeline companies are primarily
transporters of natural gas. This change in the primary role of the
pipeline from merchant to transporter requires that the filing
requirements be adapted to the change. Accordingly, the Commission is
deleting all of the current regulations in part 154 and replacing them
with new regulations that reflect the restructured industry.
Kern River requests clarification that the companion rules are
pursuant to section 5 of the NGA. The clarification is denied. Section
5 specifically gives the Commission the power to change any rule,
regulation, practice or contract that the Commission finds to be
unjust, unreasonable, unduly discriminatory or preferential. The
Commission's power to prescribe rules, regulations and statements of
policy of general applicability with respect to any function under its
jurisdiction is derived from section 402 of the Department of Energy
Organization Act and section 16 of the NGA. The instant rule is more
appropriately considered to be promulgated pursuant to the latter
authorities.
The changes to the Commission's regulations are effective November
13, 1995.
II. Public Reporting Burden
The subject final rule will effect seven of the Commission's
existing data collections. However, only one of these data collections
will have a net change (reduction) in reporting burden. The final rule
reflects many of the changes suggested in industry comments filed in
response to Commission's Notice of Proposed Rulemaking. In particular,
the joint comments of The Interstate Natural Gas Association of America
(INGAA) and the American Gas Distributors (AGD) were helpful.
The final rule is expected to reduce the existing reporting burden
associated with FERC-545, Gas Pipeline Rates: Rate Change (Non-Formal)
(OMB Control No. 1902-0154) (FERC-545) by an estimated 136,785 hours
annually--an average of 172.9 hours per response. As a result of the
final rule, the annual reporting requirement under FERC-545 is
estimated to total 36,068 hours based on an expected 650 filings per
year. A copy of this rule is being provided to Office of Management and
Budget (OMB).
The Commission estimates the public reporting burden for data
collected under FERC-545 will average approximately 55.5 hours per
response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information.
Six other existing data collections are affected by the changes in
regulations.2 However, no net change in the reporting burden of
those affected data collections is expected because of off-setting
increases and decreases within each respective data collection. FERC-
545 is the only data collection under which a net change (reduction) in
reporting burden is expected as a result of the changes in filing
requirements adopted by the Commission in the subject final rule.
\2\Five existing data collections affected by the subject final
rule but with no net change in industry reporting burden, are:
FERC-542, Rate Change and Tracking (1902-0070);
FERC-543, Rate Tracking (Formal) (1902-0152);
FERC-544, Gas Pipeline Rates: Rate Change (Formal) (1902-0153);
FERC-546, Certificated Rate Filings: Gas Pipeline Rates (1902-
0155); and
FERC-547, Refund Report Requirements (1902-0084).
Under the above data collections plus FERC-545, net reductions
in reporting burden have totaled more than 355,000 hours to date as
a result of Order No. 636. Such reductions have been reflected in
separate clearance packages previously reported to the Office of
Management and Budget (OMB).
A sixth existing data collection, FERC-542(A), Tracking and
Recovery of Alaska Natural Gas Transportation System (ANGTS) Charge
(1902-0129), which has conditional OMB approval on a ``standby''
basis, is terminated under the final rule.
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Interested persons may send comments regarding these burden
estimates or any other aspect of these
[[Page 52962]]
collections of information, including suggestions for further
reductions of burden, to the Federal Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426 (Attention: Michael Miller,
Information Services Division, (202) 208-1415, FAX: (202) 208-2425).
Comments on the requirements of this final rule may also be sent to the
Office of Information and Regulatory Affairs of OMB, Washington, DC
20503 (Attention: Desk Officer for Federal Energy Regulatory
Commission, (202) 395-6880, FAX: (202) 395-5167).
III. Background
On December 16, 1994, the Commission issued a Notice of Proposed
Rulemaking proposing a major overhaul of its regulations governing
natural gas company filing and reporting requirements.3 The
Commission is determined to issue sensible regulations that impose the
least burden without sacrificing rational and necessary
protections.4 The Commission is not changing its substantive rate
policies in this rulemaking, but rather bringing its filing
requirements and procedures up to date to match its current substantive
policies. In the interest of an expeditious process, the regulations
have been revised with a view toward removing any industry-wide filing
burdens that are not generally needed to analyze a proposal. The
revised regulations are designed to provide the Commission and
interested parties with the information generally required to access
and process a rate filing. Where more information is needed, it may be
collected on an individual case basis. This achieves a realistic
balance between the public interest and the needs of the industry.
\3\Filing and Reporting Requirements for Interstate Natural Gas
Company Rate Schedules and Tariffs, 60 FR 3111 (January 13, 1995),
IV FERC Stats. & Regs. para.32,511 (1995).
\4\This effort is consistent with the President's directives in
his memo dated 3/4/95 concerning the National Performance Review to,
among other things, eliminate or revise outdated regulations, and to
move from a process that creates volumes of regulations to issuing
``sensible regulations that impose the least burden without
sacrificing rational and necessary protections.''
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The Commission received many comments on the NOPR.5
Additionally, on August 17, 1995, AGD and INGAA filed joint comments to
both this and the companion rule (Agreement).6 The Commission
found the Agreement both informative and helpful as it clearly sets out
the positions and interests of a fairly large representative group of
pipelines and customers.
\5\See Appendix B for a list of commenters.
\6\Agreement Between Associated Gas Distributors (AGD) and The
Interstate Natural Gas Association of America (INGAA) on Issues
Related to Filing Requirements, filed August 17, 1995. The agreement
was in addition to the individual comments provided by AGD, INGAA,
and their members. It was an attempt to resolve various differences
and reflected compromises in the positions of AGD and INGAA.
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The Final Rule reflects many of the proposals in the Agreement. The
suggestions concerning the restructuring of Statement G, the concurrent
filing of Statement P, and the reduction in material required to
support a filing, are reflected in the Final Rule, as more fully
explained in the discussion of Statement G, supra. However, the Final
Rule does not, automatically, accord confidential treatment to
Statement G, as proposed in the Agreement, which is also discussed
supra.
The NOPR proposed to delete many filing requirements. After
analyzing the comments in light of its current goals, the Commission
has determined to delete even more of the current filing requirements,
not include many proposed filing requirements, and further modify many
other current and proposed regulations. Specific reductions in
reporting requirements follow:
All the filing requirements of current Secs. 154.201-213 have been
deleted. Those regulations apply to shippers seeking to recover charges
incurred for the conditioning and transportation of Alaska natural gas
through the Alaska Natural Gas Transportation System (ANGTS) for sale
in the contiguous 48 states of the United States.
Current Sec. 154.38(e), requiring that the minimum bill heading
appear on every schedule is deleted.
Current Sec. 154.67(b), requiring annual reports, is deleted.
Current Schedule E-5, showing the computations, cross-references
and sources from which the data used in computing claimed working
capital are derived, is deleted.
Current Schedule H(1)-2, cost of purchased gas, is deleted.
Current Schedule H(3)-1, reporting the reconciliation of book and
taxable net income for a pipeline, is deleted.
Current Schedule H(3)-2, reporting the differences between book and
tax depreciation on a straight-line basis and the excess of liberalized
depreciation for tax purposes, is deleted.
Current Schedule I-5, requiring information on metering points and
units, is deleted.
Current Schedule I-6, Three-day peak deliveries, is deleted.
Current Sec. 154.42, dealing with the price of gas, is deleted.
Proposed Sec. 154.309 has been modified by removing the requirement
to report ``every major expansion since the pipeline's last rate
case.''
Proposed Schedule C-2, Plant in Service as Adjusted, showing the
proposed test period Adjusted Plant by function, has not been included
in the final rule.
Proposed Schedule D-2, Projected End of Test Period Depreciation
Reserves Functionalized, showing the ending test period balance of
accumulated depreciation reserve, has not been included in the final
rule.
Proposed Schedule E-3, which was to be filed by companies with PGA
clauses, has not been included in the final rule.
Proposed Schedule H-1(1) has been modified by removing the
requirement to report the rate assigned for reflecting an expense for
gas used on the system. Only the volumes will be required.
Proposed Schedule H-1(2)(a), which was to be filed by companies
with PGA clauses, has not been included in the final rule.
Proposed Schedule H-1(2)(b), which was to be filed by companies
with PGA clauses, has not been included in the final rule.
Proposed Schedule H-1(3)(b), Account 813, Other Gas Supply
Expenses, has not been included in the final rule.
Proposed Schedule H(2)-1 requiring the reporting of the
reconciliation of depreciable plant to gas plant was incorporated into
Schedule H(2).
Proposed Sec. 154.314 provided that in addition to the workpapers
accompanying the filing, certain material, related to the test period,
must be provided to the Commission on request. This requirement has
been removed from the final rule. Parties to a hearing may seek this
information through the discovery process.
IV. Discussion
A. Overview and Objectives of the Final Rule
Section 4(a) of the Natural Gas Act (NGA) requires that any rate
charged by a natural gas company must be ``just and reasonable.''7
In order to aid the Commission in establishing whether a change in a
rate meets the statutory standard, section 4 of the NGA grants
authority to the Commission to establish procedures for the review of
proposed changes. Section 4(c) of the NGA requires that a natural gas
company file proposed changes in rates with the Commission thirty days
prior to the proposed effective date.8 The Commission may suspend
the effectiveness of the proposed changes to
[[Page 52963]]
that rate for up to five months, permit the changed rates to take
effect subject to refund, and may order a hearing to determine the
lawfulness of the proposed rates.9 At such hearing, the company
bears the burden of proof that the proposed changed rates are just and
reasonable. Part 154 imposes specific filing and reporting requirements
on jurisdictional natural gas companies in order for the Commission to
fulfill its statutory review functions.
\7\15 U.S.C. 717c(a).
\8\15 U.S.C. 717c(d).
\9\15 U.S.C. 717c(e).
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This proceeding represents a major overhaul of the regulations
governing natural gas company filing and reporting requirements. The
new part 154 incorporates both basic ``housekeeping'' changes to
eliminate obsolete language and sections, and substantive changes to
update the regulations to reflect the many developments that have taken
place in the natural gas industry since the regulations were first
promulgated.
The revised part 154 represents the reorganization, rewriting,
updating, modification, consolidation, and pruning of the current
regulations. The changes provide for more useful and less burdensome
data filed in electronic format; a schedule by schedule revision of the
current Sec. 154.63 filing requirements for an NGA section 4(e) general
rate case; and, new filing requirements for initial rates and various
limited section 4 filings, miscellaneous tariff change filings, and
cost tracking filings.
1. Organization and Editorial Changes
Part 154--Rate Schedules and Tariffs has been reorganized into
subparts: Subpart A--General Provisions and Conditions; Subpart B--Form
and Composition of Tariff; Subpart C--Procedures for Changing Tariffs;
Subpart D--Material to be Filed With Changes; Subpart E--Limited Rate
Changes; Subpart F--Refunds and Reports; Subpart G--Other Tariff
Changes.
The revised part 154 is organized in such a way that the filing
requirements are cumulative. That is, all filings must meet the
requirements of subpart A even if no other subpart applies. All tariff
sheets or executed service agreements must conform to the requirements
of subpart B. Changes to tariff sheets or executed service agreements,
whether additions or modifications, must conform to the requirements of
subpart B and comply with the filing requirements of subpart C.
Additional filing or reporting requirements applicable to specific
types of filings fall under subparts D through G.
The entire part 154 has been edited for clarity and to remove
outdated references. For example, all references to filing fees have
been removed because fees are no longer required for interstate
pipelines. Also, the current regulations contain some sections which
have never been updated and refer to the Commission as the ``FPC'' or
direct the applicant to comply with sections that have been removed.
The Commission has made appropriate editorial revisions to these
sections.
Some current sections contain provisions on several different
matters and, for the sake of clarity, have been broken out into several
smaller sections. For example, the provisions of current Sec. 154.63
are redistributed throughout the revised part 154. Current
Sec. 154.38(d) (5) and (6) deal with the substantive rules for
obtaining rate treatment for research, development, and demonstration
costs (RD&D) and annual charge adjustment (ACA) expenditures,
respectively. These sections are moved to a separate subpart and
revised.
Many provisions are redrafted to reflect the prevalent practice in
the industry. For example, revised Sec. 154.208 formally adds to the
regulations the requirement that the company must serve notice upon its
customers. Revised Sec. 154.209 sets out a new form of notice to
reflect current practice. Revised Sec. 154.107 formalizes the general
practice of providing a detailed statement of rates and charges in a
particular location in the tariff. Revised Sec. 154.2(d) allows mailing
to customers and state commissions to be accomplished either through
electronic media or traditional methods.
2. Substantive Changes
The changes create filing requirements that reflect the current
policies and regulations that mandate unbundled pipeline sales and
open-access transportation of natural gas. The primary objectives of
the substantive changes are to update the filing and reporting
requirements to reflect restructured services and operations,
streamline rate case processing by receiving important information
earlier in the process, and remove outdated requirements.
The revised filing requirements permit parties to address the
important issues more quickly. For example, pipelines currently file
their Statement P testimony 15 days after filing the rate proposal. The
Commission's experience is that Statement P provides the most
comprehensive description of the proposed change. The rule requires
Statement P to be filed concurrently with the rate case so as to make a
more complete explanation of the rate proposal available at the outset.
To achieve its intended purpose of expediting the hearing, Statement P
must serve as the applicant's complete case-in-chief, not a mere
description of proposed rates.
INGAA, Panhandle, ANR/CIG, KNI, MRT, and Great Lakes state that the
proposed regulations would increase the burden to the pipeline
industry. Panhandle attached a study showing that the number of hours
needed to prepare a section 4 filing would increase by 77% and the
paperwork would triple. Panhandle states that the study reflects
estimates of time required to prepare a rate filing, responses to staff
data requests and, the proposed quarterly updates. Panhandle states
that the quarterly updates account for a substantial portion of the
increased burden and that 88 percent of the increased burden could be
eliminated if pipelines were permitted to submit supplemental testimony
as the need arises (i.e., Statement P does not represent the ``sole''
case-in-chief).
As discussed supra, the proposed quarterly update provision has not
been included in the final rule. Proposed Sec. 154.311 has been
modified to only require one update; and so, that portion of the
increased burden has been substantially reduced. Statement G and
associated schedule requirements have not been expanded as proposed.
Revised Statement G does not require the customer specific information
as proposed in the NOPR; and so, that portion of the increased burden
has also been eliminated.
It was unclear from the material provided by Panhandle whether the
study considered that filing Statement P with the initial filing is an
increase to the filing burden. The Commission remains firm in the
belief that the requirement for a fuller, complete Statement P
presented at the beginning of a rate case reduces the overall burden to
the parties to the hearing. The Commission does not expect that this
requirement will entirely remove the need for data requests and
discovery in all instances. However, it is the pipelines' statutory
burden to demonstrate that proposed rates are just and reasonable. When
the rates cannot be determined to be just and reasonable by the filed
material alone, a hearing must be established. This rule represents a
concerted effort to avoid lengthy hearings. One way to expedite the
process is to get the information needed to make the determination
(Statement P) to the Commission and other parties sooner than under the
current regulations. This does not
[[Page 52964]]
increase the burden to the pipeline but changes only the timing of the
submission.
Certain regulations are, as a practical matter, no longer of
general interest. The Commission has removed them from the general
regulations. The regulations concerning Research, Development, and
Demonstration expenses (RD&D) for example, are currently a lengthy and
cumbersome part of Sec. 154.38. These regulations were originally
developed to apply to all pipelines and to any number of RD&D
organizations. However, in practice, there is one predominant and
principal research organization, Gas Research Institute (GRI). Thus,
the Commission has streamlined the regulations, recognizing that GRI is
the principal research organization funded by the natural gas industry.
The Commission has removed the regulations governing Purchase Gas
Adjustments (PGAs) from the general regulations. As a result of the
restructuring of the industry under Order No. 636, most pipelines have
shed their traditional merchant function. At the time this rule is
being written, only two natural-gas companies, Eastern Shore Natural
Gas Company and West Texas Gas, Inc., continue to pass through gas
purchase costs under the PGA regulations.10 The Commission will
now require these natural-gas companies to incorporate all of the
existing PGA regulatory requirements applicable to it into their
tariffs if they are not open-access by the effective date of this
rule.11 The PGA regulations are removed from part 154. The
Commission also requires the provisions governing PGAs in current
Sec. 154.111 to be incorporated into these companies' tariffs and that
section is also removed.
\10\These pipelines do not provide open access transportation
under part 284 of this chapter; and so, were not subject to
restructuring under Order No. 636.
\11\Eastern Shore is required by a settlement to apply to become
an open-access pipeline no later than January 1, 1996. 72 FERC
para.61,176 (1995).
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The Commission has deleted current Secs. 154.201-213. Those
regulations apply primarily to shippers seeking to recover charges
incurred for the conditioning and transportation of Alaska natural gas
through the Alaska Natural Gas System (ANGTS) for sale in the
contiguous 48 states of the United States. Those provisions establish
the terms and conditions for a permanent tariff provision that a
shipper may propose to adjust its rates semiannually to flow through to
its jurisdictional customers the jurisdictional portion of changes its
ANGTS charges. Alternatively, a shipper may recover the jurisdictional
portion of these charges through a cost-of-service tariff approved by
the Commission.
The Commission has deleted these regulations because the ANGTS
project has not been built as originally contemplated, and the
regulations are obsolete in light of the post-Order No. 636 unbundled
environment. Nonetheless, the Commission remains ready to facilitate
the construction of ANGTS, which Congress has found to be in the public
interest.12 Hence, if action is warranted in the future to
facilitate financing and progress on the ANGTS and the recovery of
ANGTS costs, the Commission will act expeditiously. What was stated in
Order No. 636-A applies here as well: ``nothing in the rule (Order No.
636) is intended to disturb the United States government's commitment
to the ANGTS prebuild.''13 Further, the Commission continues to
view the Northern Border Pipeline Company prebuild segment as remaining
subject to the various agreements between the United States and
Canadian governments and subsequent findings in Commission orders
certificating Northern Border's system.14 Removing these
regulations is not intended to have any effect on the ANGTS prebuild
revenue stream.
\12\Alaska Natural Gas Transportation System Act, 15 U.S.C.
Sec. 719-719.
\13\Order No. 636-A, III FERC Stats. & Regs. Preambles
para.30,950 at p. 30,674 (1992).
\14\Northern Border Pipeline Co., 63 FERC para.61,289 (1993).
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B. The Revised Regulations
The revised part 154 has a completely new organization from the
current regulations, and virtually every section has been changed in
some way. The text has been edited to remove outdated and incorrect
references, and rewritten in a more concise style. Although many filing
and reporting requirements have not been changed, they have been
relocated. The revised regulations may be best understood by a
comparison to the current regulations they replace.15 Details of
the revised regulations are provided below along with a discussion of
the comments.
\15\Appendix A is a finding guide between current and revised
regulations.
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1. Subpart A--General Provisions and Conditions
a. Section 154.1 Application; obligation to file. The Commission
has included as Sec. 154.1(b) the description of the purpose of part
154, which is currently set forth in Sec. 154.1(a). That purpose
reflects the requirement of Section 4(c) of the NGA that every natural
gas company must file with the Commission, and maintain open for public
inspection, its schedules and contracts.16
\16\15 U.S.C. 717c(c).
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The Commission has deleted outdated language (i.e., ``On or after
December 1, 1948''). The Commission is removing the electronic medium
requirements from current Secs. 154.1 (b) and(c) and placing them in
new Sec. 154.4.
Section 154.1(c) replaces without change current Sec. 154.22, which
states that no natural gas company may file a new or changed rate
schedule or contract for service for which a certificate of public
convenience and necessity or certificate amendment must be obtained
pursuant to section 7(c) of the Natural Gas Act, until such certificate
has been issued.
Williston states that Sec. 154.1(c) only prolongs the approval
process and delays implementation of services. Williston suggests
allowing a new or changed rate to be filed concurrently with the
certificate filing.
This section imposes no additional requirements from current
Sec. 154.22. However, the Commission clarifies that, although a
pipeline may not file to incorporate a rate schedule in its tariff for
which section 7(c) authorization is required but for which section 7(c)
authorization has not yet been granted, it does not prohibit a pipeline
from proposing an initial rate in its certificate application under
section 7(c). Since the Commission has adopted the practice of granting
blanket certificates for services, this provision will be applied most
often to new companies which have not previously been subject to the
Commission's jurisdiction and do not have a tariff on file.
New Sec. 154.1(d) requires that any executed service agreement
which deviates in a material aspect from the form of service agreement
in a pipeline's tariff must be filed with the Commission. This
requirement codifies current Commission policy.17
\17\See, Tennessee Gas Pipeline Company, et al., 65 FERC
para.61,356 (1993); reh'g denied, 67 FERC para.61,196 (1994). INGAA,
CNG, Midcon, NGSA, and Columbia believe that Sec. 154.1(d) requires
public disclosure of contract provisions and may negatively affect
private contracts.
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INGAA proposes various alternatives that limit the extent to which
information on contractual terms and conditions will be available to
the public.
Midcon urges the Commission to delete the requirements to file
commercially sensitive information. Midcon also suggests that the
proposal be deleted or clarified to state that
[[Page 52965]]
discount agreements do not ``deviate in any material aspect.'' Further,
Midcon suggests, any such contracts must be exempt from the
FOIA.18
\18\See the discussion on confidentiality, infra.
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Pacific Northwest Commenters urge the Commission to be more
specific as to what deviations or substantive additional provisions
will trigger this filing requirement. Columbia objects to Sec. 154.1(d)
as too broad and requests that the Commission clarify that specifically
drafted provisions addressing flow rates, pressure obligations, maximum
delivery obligations, term, and other ``tariff-contemplated'' items are
not ``material'' deviations.
IPAA and NI-Gas support the requirement. IPAA states that the legal
concept of materiality may depend upon ``where one resides in the food
chain'' and suggests that all deviating agreements be filed.
The use of forms of service agreements as the basis of contracts
between a pipeline and its customers ensures that there are no
unreasonable differences among the rates, charges, services,
facilities, or otherwise of the pipeline's customers. Having made the
determination that the form of service agreement in the tariff is just
and reasonable, the Commission does not necessarily have to review
every contract to determine if it complies with the requirements of the
NGA. Thus, a contract that conforms to a pro forma service agreement
need not be filed with the Commission because the Commission has
already considered and determined that the pro forma service agreement
is just and reasonable. Likewise, any contract that deviates in a
material way from a pro forma service agreement must be evaluated anew
to determine that it is not unjust, unreasonable, preferential, or
otherwise unacceptable. The Commission does allow parties to negotiate
additional mutually agreeable terms and conditions in their service
agreements, but where the terms differ materially from those in the
form of service agreement, the pipeline must seek authorization for
these modifications from the Commission under section 4 of the
NGA.19
\19\Id. See also, Mojave Pipeline Company, 57 FERC para.61,300
(1991).
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The Commission agrees that ``materiality'' is likely to vary with
the circumstances of the case. Therefore, it is better to allow the
term to remain less strictly defined in order that the particular facts
of a given contract will determine whether the deviation is material
and needs to be filed. The Commission also agrees that provisions such
as those addressing flow rates, pressure obligations, maximum delivery
obligations, receipt and delivery points, and term would not normally
be expected to be ``material'' deviations. Such provisions could easily
be drafted into the fixed language of the pro forma service agreements
or a blank space could be provided for insertion according to the
agreement of the parties. Likewise, rates that fall between the maximum
and minimum rates permitted for the rate schedule would not be
considered to be material. In either case, there would be no deviation
from the Commission approved pro forma service agreements contract.
b. Section 154.2 Definitions. The Commission defines terms of
general applicability in Sec. 154.2. The Commission is proposing
stylistic changes only to definitions for: ``Rate Schedule,'' currently
in Sec. 154.11, ``Contract,'' currently in Sec. 154.12, ``Service
Agreement,'' currently in Sec. 154.13, and ``Tariff or FERC Gas
Tariff,'' currently in Sec. 154.14. ``Posting,'' currently in
Sec. 154.16, has been defined to allow the parties to agree to
alternative methods of ``mailing'' such as electronic mail.
Williston states that the definition of ``rate schedule'' in
Sec. 154.2(e) is unclear as to whether a ``sale of natural gas''
pertains to the price charged for gas sold by a pipeline's sales
division. Williston states that such information is proprietary and
should not be included in the rate schedule.
The definition of ``rate schedule'' is substantially the same as in
the current regulation and tracks the language of the NGA.20
Williston has not persuaded us to change the definition.
\20\18 U.S.C. 717c(c).
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c. Section 154.3 Effective Tariff. The Commission describes the
term ``Effective tariff'' in Sec. 154.3, currently Sec. 154.21. The
description clarifies that a pipeline may not avoid filing for a rate
change by making the rate subject to an exception or condition, such as
a periodic rate change under a price index. At present this concept is
found in Sec. 154.38(d)(3).
AGD requests clarification that Sec. 154.3(b) is not intended to
cause incentive rates to be rejected. SoCal urges the Commission not to
prohibit index adjustments submitted as part of a settlement or where
supported by the facts.
The regulation does not prohibit index adjustments or incentive
rates when authorized by the Commission. The regulation only prevents a
change from occurring automatically, without Commission authorization.
The regulation is consistent with the statutory obligation of the
Commission to review all proposed rate changes for adherence to the
just and reasonable standard.
d. Section 154.4 Electronic and Paper Media. Current Sec. 154.26
generally calls for 6 paper copies and requires rate filings to be
submitted electronically. New Sec. 154.4 continues to require
electronic media filings in addition to paper copies. Generally, it
calls for an original and 5 paper copies but requires an original and
12 paper copies of filings made pursuant to subpart D.
The new section consolidates in one place the Commission's
requirements with respect to electronic submittal of filings required
by part 154. Currently, these requirements are strewn throughout part
154, often redundantly.
The appendix to the NOPR included updated electronic tariff filing
formats as well as tariff pagination guidelines.21 The revised
formats take into consideration improvements in the FASTR software
which reads the tariff ASCII files submitted by the companies to the
Commission.22 The NOPR proposed that all companies that had not
restated their tariffs, do so, electronically on or before June 1,
1995. That date has passed. Therefore, all companies that have not
restated their tariffs must do so, electronically on or before January
26, 1996.
\21\The formats for the electronic filing and paper copy can be
obtained at the Federal Energy Regulatory Commission, Public
Reference and Files Maintenance Branch, Washington, D.C. 20426.
\22\On February 28, 1990, the Commission issued the ``Notice of
Tariff Retrieval System Software Availability,'' otherwise referred
to as the FASTR software package.
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Columbia seeks clarification as to whether the requirement under
Sec. 154.4(a) that 6 (the NOPR had proposed 6 paper copies) paper
copies be filed, applies to the quarterly updates under proposed
Sec. 154.311. The quarterly update requirement has not been included in
the final rule as originally proposed; however, the paper copy
requirement applies to any updates which are required.
El Paso does not support the increase in the number of paper copies
to be filed. As discussed infra, the Commission is suspending
electronic filing of proposed changes in rates. Until electronic filing
is reinstated, the Commission will continue to require 12 paper copies
of rate case data. At the time electronic filing is reinstated, the
Commission will make any appropriate adjustment to the paper copy
requirements.
INGAA states that electronic filing should be the rule; in order to
receive
[[Page 52966]]
documents in another medium, the customer should have to demonstrate
its lack of ability to retrieve information electronically. ANR/CIG
suggests that the option should be the pipeline's where the customer is
able to receive information electronically. El Paso suggests the filing
of documents by electronic means such as telecommunications or upload
to the OPR Bulletin Board.
El Paso and Columbia support electronic service of filings upon
parties rather than service on paper. According to Columbia, parties
should be required to demonstrate their inability to receive electronic
service. Service could be accomplished through a central electronic
library of filings, from which copies could be made, or through
electronic transmission through the EBB or other communication links.
El Paso suggests the Federal Register notice be the only paper document
served on customers. The remaining portions of a filing should be
placed on the pipeline's EBB with the ability to view and download.
This enhancement to the EBB would promote timely access to relevant
information.
The Commission will not require customers to accept only electronic
versions of a pipeline's filings at this time. The new electronic
filing requirements are not yet finalized. No testing has been done. It
will take some time before anyone can be comfortable with solely
electronic filing. Therefore, until all of the issues related to
electronic only filing can be resolved, parties must continue to
receive paper copies of the filing. As the industry gains more
experience with electronic filings, parties may elect to receive only
an electronic version of the filing. The decision to send or receive an
electronic filing should be arrived at by mutual consent of the
pipeline and the interested party as noted in Sec. 154.2(d).
e. Section 154.5 Rejection of Filings. Section 154.5 states that
filings, that would prejudice the Commission in the discharge of its
duty to decide whether or not to investigate and suspend the increased
rates contained in the filing, will be rejected by the Director of the
Office of Pipeline Regulation. This section merely recognizes, in these
rate and tariff filing requirements, the existing power of the Director
of the Office of Pipeline Regulation to reject tariff or rate schedule
filings pursuant to the authority delegated to the Director by the
Commission in Sec. 375.307(b)(2) of the Commission's regulations.
Proposed Sec. 154.5 replaced current Sec. 154.15 with a definition
of filing date based on Sec. 35.2(c) of the Commission's regulations
for public utilities under the Federal Power Act. The rule, as
proposed, would allow the Director of the Office of Pipeline Regulation
to notify a natural gas company that its filing is rejected within 15
days of receipt of the document. Under this proposal, the date of
receipt stamped by the Secretary would not necessarily be the
officially recognized filing date.
This proposed regulation was met with approval by some commenters
such as APGA, Brooklyn Union, and AGD. However, others such as Columbia
and El Paso object to the proposal that the stamped date is not
necessarily the filing date. INGAA seeks clarification that the date
the pipeline submits its filing to the Secretary is the filing date for
determining compliance. INGAA and ANR/CIG state that the Commission
already has the authority to reject rate filings if deemed incomplete;
so, the proposal should be rejected because it may only create
confusion as to the official filing date.
Columbia argues that 15 days is more time than necessary and
creates uncertainty in trying to project and place rates into effect as
of a date certain. Panhandle states that the status of interventions
and protests would be unclear during the 15 days. Northwest/Williams
states that 7 days is sufficient for the Director's notice. Northwest/
Williams suggests that ``procedural'' revisions should be allowed
within 2 days without effecting the filing date.
Pacific Northwest Commenters recommends that the Commission issue a
notice that a filing is deemed incomplete, suspend any applicable dates
triggered by the original filing, and allow an additional 8 business
days for further protests or comments.
Columbia proposes that a modification permit pipelines to
supplement deficient filings rather than being rejected where the
deficiency is not substantive.
Arizona Directs sees conflict between this regulation and
Sec. 154.209. Arizona Directs states that there is no proposed
requirement that a filing be deemed complete before the NGA section
4(d) 30-day notice period begins. Arizona Directs states that it would
be burdensome for customers to review, intervene, and comment upon a
filing deemed incomplete. Arizona Directs suggests that a new comment
period be established with respect to the entire complete application,
not just the corrected portion. Further, public notice should be given
whenever a filing is deemed incomplete, and a second notice issued
designating the date the filing is deemed complete and filed and
establishing a new intervention, protest, and comment deadline. Arizona
Directs suggest that the rule provide that a section 4 rate filing is
not accepted for filing within the meaning of section 4(d) until after
the end of a 15-day public review period and a staff finding that the
filing is complete. Then, a notice could issue establishing the 10-day
comment period.
NGSA suggests retaining the current provision or modifying the
proposal to start a 15-day comment clock after the Director's review
period.
Panhandle states that the determination by the Director that a
filing is incomplete is tantamount to a rejection or a summary
judgment. Panhandle states that filings should not be rejected if they
are in substantial compliance with the regulations. Panhandle states
that the proposal allows the Director to decide rate cases on isolated
components without further proceedings.
Consumers Power does not object to the Director making the
determination of incompleteness but believes the Commission should
provide specific guidance as to conditions for rejection.
INGAA states that the Director's discretion should be limited so
that rejection does not take place where: in a section 4 case, a good
faith effort was made to include all of the required statements and
schedules; information has not been provided for which a legitimate or
routine waiver has been sought; information is provided under seal with
a request for confidential treatment.
Panhandle suggests modifying the regulation to read that the
``Secretary'' shall reject any material ``which patently fails to
substantially comply with the applicable requirements.''
INGAA states that the proposed regulation would create practical
problems. If the Commission rejects a filing and establishes another
filing date, the pipeline could be in violation of the requirement that
the data be based upon a period ending not more than 4 months prior to
the filing date. A delay in the start of the 30-day notice period could
leave the pipeline without authorization to provide services set to
coincide with the expiration of old contracts.
Although several commenters supported proposed Sec. 154.5, most
commenters either opposed the regulation or requested substantial
modifications to the proposed section. Because of the confusion and
uncertainty that may be created by the proposed regulation and the
numerous procedural problems raised by the commenters, the Commission
is not adopting Sec. 154.5 as proposed. New Sec. 154.5 is an indication
of the
[[Page 52967]]
Commission's intent to have the Director reject filings that do not
comply with the filing requirements promulgated by this order.
Finally, because the Commission is not adopting proposed
Sec. 154.5, the definition of filing date contained in current
Sec. 154.15 is retained in new Sec. 154.2(f).
f. Section 154.6 Acceptance for filing not approval. New Sec. 154.6
replaces current Secs. 154.23 and 24. The rejection language of
Sec. 154.24 is amended and the reference to fees is deleted.
g. Section 154.7 General Requirements for the Submission of a
Tariff Filing or Executed Service Agreement. Section 154.7 is a new
section setting forth the content of a tariff filing or executed
service agreement. In part, new Sec. 154.7 reflects the requirements of
current Sec. 154.63(b)(1). New Sec. 154.7 concerns all filings of
tariff sheets and executed service agreements. In light of the short
time period in which the Commission and interested parties have to
review the filing, several items have been added to speed processing of
the filing and minimize additional requests for information. These
include an expanded definition of the reference to the authority under
which the filing is made, addition of the name and telephone number of
an official able to respond to questions regarding the filing, and
clarification of the contents of the statement of the nature, reasons,
and basis for the filing.
Section 154.7(a)(9) requires that the transmittal letter contain
either a motion, in case of minimal suspension, to place the proposed
rates into effect at the end of the suspension period; or, a specific
statement that the pipeline reserves its right to file a later motion
to place the proposed rates into effect at the end of the suspension
period.
APGA supports the requirement to provide a detailed statement of
the nature, reasons, and basis for any rate filing.
Columbia suggested that the proposed Sec. 154.7(b) be modified to
refer to the posting requirements of Sec. 154.2(d) as sufficient
service. Columbia also states that filings should be provided only to
firm customers, not ``affected'' customers. Although these suggestions
have not been adopted, the service requirements have been further
refined and reduced as discussed supra.
NI-Gas suggests that Sec. 154.7(a)(2) be modified to require that
the transmittal letter include an address suitable for overnight
delivery as opposed to a PO Box and a facsimile (FAX) number. The
Commission has required a telephone number in the transmittal letter to
provide for those situations where an intervenor needs clarification or
detects a problem with a filing that could best be resolved by a phone
call. The address is required by Sec. 154.102 to be on the title page
of the tariff. There is no need for it to also be in the transmittal
letter.
Northwest/Williams requests clarification whether the letter of
transmittal and certificate of service are to be submitted on
electronic media. These items are not required to be submitted on
electronic media. Section 154.4(a) lists those filings that must be
filed electronically. As discussed in the section on electronic filing,
the Commission does not intend to require that all filings be made
electronically.
h. Section 154.8 Informal Submission for Staff Suggestions. Section
154.8 replaces current Sec. 154.25.
2. Subpart B--Form and Composition of Tariff
a. Section 154.101 Form. Section 154.101 replaces current
Sec. 154.32. The Commission is proposing to eliminate the requirement
that electronic media record format duplicate the page size, borders,
and margins of the paper copy. The electronic filing requirements are
in new Sec. 154.4. In addition, the Commission has eliminated the
requirement of a binder.
b. Section 154.102 Title Page and Arrangement. Section 154.102
replaces current Sec. 154.33. The Commission has eliminated the
reference to Sec. 154.52, as special exceptions are covered by new
Sec. 154.112. The Commission has also eliminated the requirement of a
binder. The Commission now requires that the numbering of sheets be as
provided in the Tariff Sheet Pagination Guidelines.23
\23\The guidelines and electronic filing instructions for tariff
sheets may be obtained at the Federal Energy Regulatory Commission,
Public Reference and Files Maintenance Branch, Washington, DC 20426.
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Currently, compliance with these guidelines is optional although
the Commission has required use of the pagination guidelines in
individual cases. Many companies have already voluntarily adopted the
Commission's guidelines. The Commission now makes these guidelines
mandatory. The guidelines provide the only means to ensure that tariff
sheets are in the proper order in the Commission's electronic database.
The guidelines also provide the basic knowledge necessary to create a
sorting methodology for any party that wishes to create a database.
Most importantly, the guidelines help to create a clear guide to the
succession of tariff sheets.
MoPSC suggests the title page of each volume of a pipeline's tariff
contain a phone number which customers and interested persons may call
to make inquiries about those tariffs.
NI-Gas suggested that communications information be expanded to
include an address suitable for overnight deliveries. Many pipelines
use post office boxes for their general mail deliveries, but expedited
delivery services cannot make deliveries to such locations. NI-Gas also
recommends that the information should include a fax number, so that
requests for additional information can be promptly delivered and
forwarded.
NGSA recommends tariff sheets be clearly distinguished from each
other as being one of the following: (1) Proposed, (2) accepted but
subject to refund, and (3) approved. It often becomes very confusing as
to whether the tariff being identified is currently effective (i.e.,
the rate currently being charged) or is to become effective on the date
proposed in the filing.
The Commission finds that the proposal to add a telephone number
and a fax number to the title page has merit. The regulations currently
require, on the title page, the name and address of a person to whom
communications concerning the tariff should be sent. A few pipelines
provide a telephone number and/or a fax number on the title page now.
Inclusion of a telephone number and a fax number on the title page will
be made mandatory. This modest addition should foster communication
about the tariff.
Pipelines are fairly evenly divided between those who put a post
office box number on the title page and those who put a street address.
The Commission does not believe it is burdensome to provide a street
address instead of, or in addition to, the post office box
number.24 This suggestion will be adopted.
\24\Those pipelines who prefer communications to be addressed to
a post office box number may wish to present the address information
in the way Northern Border Pipeline Company does. The street address
is noted specifically as the courier address.
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The Commission will not adopt the suggestion that the tariff sheets
carry designations as suggested by NGSA. Adoption of this suggestion
will require the pipelines to make filings of tariff sheets simply to
change the status designation. This would consume additional pipeline
and Commission staff resources. The tariff sheets available to the
public at the Commission's Washington, DC headquarters are marked in
the way suggested by NGSA. The electronic tariff sheets, in a format
readable by the Commission's software, can be downloaded from the
Commission's
[[Page 52968]]
bulletin board system. In this format, the tariff sheets each carry a
status indicator: proposed, effective, superseded, withdrawn, rejected,
or suspended. The tariff sheets also indicate if the order acting on
the sheets accepted the sheets subject to refund.
c. Section 154.103 Composition of Tariff. Section 154.103 is the
replacement for current Sec. 154.34. In recognition of prevailing
practice, the new section specifically requires that the tariff set
forth all currently effective rates. The Commission has deleted the
reference to special exceptions and changed the examples of classes of
service to reflect the current prevalent designations.
d. Section 154.104 Table of Contents. Section 154.104 replaces
current Sec. 154.35 with the clarification that the table of contents
must contain a list of the sections of the general terms and
conditions.
NI-Gas states that the inclusion of a detailed listing of the
General Terms and Conditions of the tariff in the table of contents
will be a major improvement in the current practice of some pipelines.
Columbia's tariffs have an initial table of contents in the front
of the tariff which contains a line item reference to ``General Terms
and Conditions'' and lists a page number for the ``General Terms and
Conditions Table of Contents'' located in approximately the middle of
the tariff, at the beginning of the General Terms and Conditions.
Columbia seeks clarification that this is permissible within the
context of the proposed regulation; and, if not, requests that the
regulation be modified to accept this format.
The intent of requiring the sections of the general terms and
conditions to be listed in the table of contents is to ensure such a
listing appears in the tariff. Columbia's approach to the table of
contents is acceptable.
e. Section 154.105 Preliminary Statement. Section 154.105 replaces
current Sec. 154.36 with stylistic changes only.
f. Section 154.106 Map. Section 154.106 is the replacement for
current Sec. 154.37. Maps must be submitted on paper and updated to
reflect major changes. The new section states a preference for zones to
be displayed on separate sheets.
Williston states that there should not be a map requirement in the
tariff because there is a map in the FERC Form No. 2. The Commission
has found that the presence of a map in the tariff is helpful in the
process of evaluating other provisions.
NGSA states that the map should identify storage, gathering, and
all off-system (non-contiguous) facilities as well as ``pipeline''
facilities.
Industrials recommend that pipelines be required to serve a hard
copy of system maps prepared in accordance with new Sec. 154.106, even
if the parties agree that tariff filings may be served via electronic
mail, in diskette form, or otherwise.
The Commission will not adopt NGSA's suggestion to require a more
detailed map in the tariff. A detailed map with the facilities NGSA
wishes identified is filed annually with the Form No. 2. Since the
Commission is not discontinuing paper filing of tariffs, all parties
receiving service of the tariff sheets are entitled to a paper copy
unless they agree otherwise. It is up to the parties and the pipeline
to determine the terms of electronic service, including exceptions to
electronic service.
g. Section 154.107 Currently Effective Rates. New Sec. 154.107
governs the tariff sheets setting forth the natural gas company's
currently effective rates. In part, this new section replaces
Sec. 154.38(d) (1) and (2). The section requires that rates be stated
in thermal units, as is the prevalent practice, rather than in units of
volume.
APGA points out that Sec. 154.107 formalizes the current practice
of providing a detailed statement of rates and charges in a particular
location in a pipeline's tariff. APGA supports this requirement. They
state it will be particularly helpful for customers to receive a
complete picture of effective and proposed rates upon the filing of a
new rate case.
Williston states that the language in this section appears to be
adding a level of complexity to the rate schedules that is unnecessary.
Williston requests clarification of a ``limited rate change.''
The Commission believes that Williston misunderstands the purpose
of this section. The summary of rates would not appear in the rate
schedule. This section is intended to codify the nearly universal
practice of placing a summary of rates on a tariff sheet or sheets
which generally appears in the tariff after the map. It is not part of
the rate schedule. We note that Williston's summary of rates fully
complies with Sec. 154.107.25 Proposed subpart E details the
filing requirements for limited rate changes. To avoid confusion, the
Commission will modify this section to reference Subpart E. Northwest/
Williams asks whether the required ``total rate'' column applies only
to the maximum rate and whether surcharges, ACA, and GRI charges are to
be included in the ``total rate.''
\25\Ninth Revised Sheet No. 15 to its FERC Tariff Second Revised
Volume No. 1.
---------------------------------------------------------------------------
Section 284.7(d)(5) requires that rate schedules filed under that
section must state a maximum and minimum rate. Therefore, the summary
of rates must show the total maximum and minimum rates. It is
preferable for all surcharges to be added into the maximum rate and, if
appropriate, into the minimum rate. However, it has been the
Commission's past practice, in appropriate cases, to accept summaries
of rates in which the GRI surcharge is noted in a footnote at the
bottom of the summary rate sheet but not added into the total rate.
This has been acceptable since the GRI surcharge does not necessarily
apply to all transactions under a rate schedule. The reverse is
accepted also--the GRI surcharge is listed in a column and added into
the total rate. In this case, a footnote states the GRI surcharge is
not applicable in certain circumstances.26 To a lesser degree, the
same can be said of the ACA surcharge. The Commission will not depart
from past practice on this issue. The regulations will be modified to
allow the ACA and GRI surcharges to be noted in a footnote. If the
footnote option is elected, the charges must be stated in the footnote,
it must be clear when the charges apply,27 and the footnote must
indicate that these charges are added to the total stated rate.
\26\Northwest's summary of rates reports the GRI and ACA
surcharges in separate columns and adds the charges into the total
rate, where appropriate. Williams, in contrast, states the level and
applicability of the GRI and ACA surcharges in footnotes on its
summary of rates but does not include them in the total rate.
\27\A reference to the section in the tariff where the
applicability of the surcharge is explained is acceptable.
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Columbia, AGD, and APGA are in favor of the requirement to state
rates in thermal units. APGA points out that many of its members and
most LDCs bill their retail customers on the basis of units of volume.
The use of units of heat content has been the standard measure for
pipelines for some time.
Great Lakes requests that the Commission clarify that, for
pipelines whose rates are currently stated on a volumetric basis,
inclusion of a statement of rates in thermal units should take place in
the pipeline's next section 4 rate case. Great Lakes also asks that the
Commission clarify whether ``thermal units'' refers to dekatherms or to
some other measurement. NGSA recommends that the rates be stated on the
same basis (Mcf or MMBtu) as they are charged, with the units clearly
[[Page 52969]]
labeled. NGSA maintains that the proper unit for stating rates has been
and can continue to be determined on an individual pipeline basis.
NGSA is opposed to a generic rulemaking which mandates the use of a
standard unit of measure in rate case filings at this time. NGSA states
that rates and tariffs should be stated in the same units as charged.
NGSA states that calculating the rates based on one unit of measurement
and then converting those rates to a different unit of measurement for
billing purposes creates confusion. Further, NGSA states, some
pipelines and shippers have negotiated private contracts based on an
``Mcf'' basis of measurement. NGSA states that the proposed requirement
is a substantive change in the Commission's rate policy which was not
the purpose of this rulemaking. NGSA states that in order to protect
the due process rights of all parties, any Commission imposed change in
measurement standards should be implemented on an individual pipeline,
on a prospective basis, when the pipeline files its next major rate
case. NGSA states that conversion to the thermal units will not be a
simple process. Therefore, NGSA states, parties should be able to
present the issues of material fact brought about by such conversion in
the context of a full evidentiary hearing, wherein disputes as to the
methodology of conversion may be resolved.
Kern River objects to the proposal and states that changing
measurement standards at this time from volumetric to thermal would be
a substantive change and would needlessly put it to the expense of
converting its tariff, contracts, and business systems. Whittier adds
that, at a minimum, individual pipelines, like Kern River should be
permitted to be exempt, if the thermal billing mandate would impair
individual shippers. Kern River states that if the final rule requires
billing unit uniformity, then the new Sec. 154.107 should be modified
to require only volumetric billing units.
Whittier states that volumetric billing is good policy because
volumetric rates; (1) Equitably allocate to shippers the capital and
operating cost of the pipeline on the basis of the units actually
transported; (2) allow shippers efficiently to use their contracted
space to transport as many Btu's as the quality specifications allow,
and gas suppliers are able to optimize the economic efficiency of their
own facilities by making the economic decision whether to leave
liquefiable hydrocarbon gases in the gaseous form and transport them in
the gas pipeline or to incur the cost of extracting and marketing them
as liquids; and (3) allow the appropriate costs to be divided by the
appropriate throughput in volume units. Whittier argues that there is
no reason for a commodity to be transported on the same basis that it
is purchased.
Whittier states that forcing pipelines that are content with
volumetric-based rates to change to thermal-based rates would be making
a substantive change in the contracts of shippers on pipelines that
measure and bill on a volumetric basis. Whittier states that this could
result in reopening contracts and rates.
Chevron, Whittier, and Kern River recommend deletion of the word
``thermal'' so that the proper unit for stating rates can continue to
be determined on an individual pipeline basis.
A significant majority of pipelines state their rates on the basis
of either MMBtu or Dth. Only a few pipelines continue to state their
rates in Mcf.28 The Commission earlier adopted the MMBtu
measurement base for all reports submitted under part 284, in
Sec. 284.4. The change to the regulations in this rulemaking expands on
the Commission's earlier action and reflects the prevalent practice in
the industry. The Commission recognizes that some companies perceive a
hardship in switching from Mcf to Dth or MMBtu. However, the Commission
also recognizes the ongoing industry concern with standardizing certain
practices as expressed at the EBB conference held on September 21,
1995. Standardizing industry practices, such as stating rates in
thermal units, facilitates cross-pipeline business. Accordingly, the
Commission will maintain this standard in the regulations. However, in
light of the difficulties expressed by some pipelines, the Commission
does not intend to actively enforce this section until one year after
the effective date of this rule.
\28\Approximately a dozen pipelines continue to state their
rates in Mcf. Another five state their reservation rates in Mcf but
state their usage rates in Dth or MMBtu.
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NGSA recommends that the rate sheets should state the amount of
each applicable surcharge and include a citation to the docket in which
such surcharge level was accepted by the Commission. The Commission
will not adopt NGSA's suggestion that the summary statement of rates
include the citation to the docket in which each surcharge level was
accepted. This would add a great deal of complexity to the summary
statement of rates. The information NGSA is interested in is available
publicly. Since comments in this docket were filed, the Commission
provided access to each company's electronic tariff sheets on the
Commission's bulletin board system.29 Each tariff sheet which is
not pending contains the citation to the order which acted on the
tariff sheet. With some careful checking, a researcher can identify
each tariff sheet containing a surcharge change and readily identify
the order acting on that sheet.
\29\Pipelines began filing electronic versions of their tariff
sheets with tariff sheets effective November 1, 1989. Some of the
tariff sheets filed early in the process are contained in separate
archive databases.
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h. Section 154.108 Composition of Rate Schedules. Section 154.108
replaces current Sec. 154.38. Current Sec. 154.38(d)(4), Refunds, is
moved to Sec. 154.501. Current Sec. 154.38(d)(5), RD&D, is moved to
Sec. 154.401. Current Sec. 154.38(d)(6), ACA expenditures, is moved to
Sec. 154.402. Current Secs. 154.38(d) (1) and (2) are revised and moved
to Sec. 154.107. Current Sec. 154.38(d)(3) is moved to Sec. 154.3.
Current Sec. 154.38(e), minimum bill, is deleted.
Williston objects to the requirement that pipelines provide a
description of the calculation of the monthly charges for each rate
component. It argues this would cause a pipeline's tariff to become
even more voluminous and onerous without serving any useful purpose.
Williston requests that the Commission eliminate this proposed
requirement.
Section 154.108 merely formalizes current practice. Virtually all
current tariffs include a section in the rate schedules explaining how
the rate is to be applied to derive monthly billings. This section of
the tariff is essential to determining the accuracy of a shipper's
bill. Under current practice, this section provides both a textual
description of the components of the rate and the mathematical method
to determine charges each month. The Commission notes that almost all
pipelines appear to comply with this regulation already.
i. Section 154.109 General Terms and Conditions. Section 154.109
replaces current Sec. 154.39. The company's discounting policies are
added to the tariff.
AGD, NI-Gas, and the LDC Caucus support the proposed requirement
that the pipeline set forth in its tariff its discount policy and the
order in which each pipeline charge will be discounted. The LDC Caucus
states that this would assist customers in ensuring that the pipeline's
discount policy is consistently applied and that adjustment to rates to
reflect discounted revenues are proper.
[[Page 52970]]
INGAA supports a requirement of providing broad policy statements
by pipeline companies concerning nondiscriminatory discounts but
objects to disclosure of management policies or any specific order in
which rate components would be discounted. The statement specifying the
order in which each rate component will be discounted must be in
accordance with Commission policy. This proposed regulation could be
interpreted to require pipelines to disclose the order in which each
rate component will be discounted. This portion of proposed
Sec. 154.109(c) reduces pipeline rights and flexibility as granted in
Order Nos. 436 and 500. Great Lakes, Columbia, KN, MRT, and Panhandle
concur.
Panhandle and Great Lakes state that a company's discount policy is
commercially sensitive information. Disclosure of this information may
interfere with a pipeline's ability to compete in the marketplace,
thwarting the Commission's goals in Order No. 636 to foster competition
and provide natural gas transportation service to the customer which
values it most. Great Lakes submits that a general statement of policy
will meet the Commission's intent without requiring the disclosure of
commercially sensitive information.
Columbia argues the proposed requirement is too broad. Columbia
notes that pipelines are already subject to nondiscriminatory standards
with respect to the granting of discounts, and must post/disclose
discounts to affiliates. Columbia requests deletion of this requirement
to the extent it requires setting forth the ``manner'' in which rates
are discounted.
KN fears that this provision would allow each pipeline to review
the discounting policies of other pipelines that compete with it for
business. KN states that the disclosure rule would serve to reward
those pipelines that are evasive or simplistic in their policy
statements and would punish those that are more descriptive or
detailed. KN states that there is no valid competitive purpose served
by compelling pipelines to reveal all their discount policies.
MRT fails to see the relevance of this provision. MRT states that
pipelines already file discount reports and report marketing affiliate
discounts on their Electronic Bulletin Boards. MRT states that this
provides sufficient information for both the Commission and the
pipeline's customers to monitor the discounts a pipeline is granting.
Great Lakes also states its opposition to the proposed section
requiring the pipeline to state in its general terms and conditions its
policy for financing and constructing laterals. Great Lakes states that
pipelines must be able to evaluate each proposal to finance and
construct lateral facilities on a case-by-case basis. Great Lakes
states that no set policy can contemplate all of the factors which
contribute to a pipeline's decision to finance and construct these
facilities. Great Lakes states that a pipeline's decisions with regard
to laterals are public knowledge since the financing, cost, location,
and customer information related to the construction of any lateral
facilities are disclosed in a pipeline's certificate application. Great
Lakes state that the Commission and others have the ability to
determine whether or not a pipeline is unduly discriminatory in its
decision regarding the financing and construction of laterals and so,
proposed Sec. 154.109(b) is not necessary for regulatory purposes.
Section 154.109(c) merely formalizes the Commission's policy on
recognition of discounts as enunciated in Natural.30 Under the
policy, the pipeline must recognize discounts in a specified order. The
first item of the overall reservation charge discounted will be the GRI
surcharge (for member pipelines), followed by the base rate reservation
charge, Account 858 or other Order No. 636 transition cost surcharges,
and, last, all GSR reservation surcharges. Other non-transition
reservation surcharges will be attributed as agreed by the pipeline and
its customers in individual proceedings.31
\30\Natural Gas Pipeline Company of America (Natural), 69 FERC
para. 61,029, (1994), reh'g, 70 FERC para. 61,317 (1995). Policy
applied in ANR, 69 FERC para. 61,322 (1994), and Tennessee, 69 FERC
para. 61,094 (1994). Policy applied to interruptible transportation
in Southern, 69 FERC para. 61,093 (1994), and MRT, 69 FERC para.
61,112 (1994).
\31\In Algonquin Gas Transmission Company, 69 FERC para. 61,105
(1994), the Commission clarified its policy with respect to
surcharges designed to collect costs in Account No. 858. If the
Account No. 858 costs at issue are not Order No. 636 transition
costs, but relate to upstream capacity retained by the pipeline for
operational use and are embedded in the pipeline's base rates, the
policy announced in Natural does not apply.
---------------------------------------------------------------------------
In adopting the policy in Natural, the Commission saw the need for
a generic methodology to recognize discounts in a transition cost
recovery filing. The Commission enumerated the advantages of its policy
as follows:
Maximize the pipeline's recovery of transition costs from
its discounted customers,
Minimize the need for a subsequent true-up to implement
the Commission's policy of permitting full recovery of transition
costs,
Ensure transition costs are spread as evenly and widely as
possible, and
Minimize discount adjustments in periodic filings.
The requirement, in Sec. 154.109(b), for a general statement of the
pipeline's policies on laterals formalizes the Commission's policy of
assuring that laterals are built on a non-discriminatory basis. By
placing the general policy in the tariff, parties may more effectively
monitor its application.
j. Section 154.110 Form of Service Agreement. Section 154.110
replaces current Sec. 154.40 with the addition of receipt points as an
item for insertion on the form when appropriate.
k. Section 154.111 Index of Customers. Section 154.111 replaces
current Sec. 154.41, Index of Purchasers, but with applicability
specifically limited to natural gas activities not subject to part 284
of this chapter. The Commission has expanded the Index of Customers to
include all firm transportation services and contract demand for each
customer for each rate schedule. In the order issued in Tennessee Gas
Pipeline Company's restructuring proceeding,32 the Commission
clarified that current Sec. 154.41 is not limited to the requirement to
file sales-related information. The changes here make that
interpretation explicit. Some pipelines have provided contract demand
information on a voluntary basis before this. The information has
proven valuable to the Commission in analyzing pipelines' filings and
in eliminating additional requests for information.
\32\Tennessee Gas Pipeline Company, 65 FERC para. 61,224 (1993).
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Pipelines that offer services under part 284 of this chapter,
exclusively or in addition to services authorized under part 157 of
this chapter, must comply with the requirements in the companion
rulemaking instead of this provision. In the companion rulemaking,
pipelines providing service pursuant to part 284 of this chapter,
provide an Index of Customers on their electronic bulletin board (EBB).
As an interim measure, we will require pipelines providing
transportation service under part 284 to comply with the Index of
Customers requirements as set forth in Sec. 154.111 until the
electronic index is implemented.
Panhandle recommends that the Index of Customers requirement remain
the same as that contained in the current regulations. Panhandle
objects to the expansion of the index as being anti-competitive.
Panhandle objects to the inclusion of the term of each contract,
arguing the duration of the contract is sensitive information. Further,
Panhandle believes this
[[Page 52971]]
information serves no valid regulatory purpose.
Columbia objects to the requirement to include contract demand for
each customer for each rate schedule in the Index of Customers.
Columbia believes public disclosure of such commercially-sensitive
information unfairly places pipelines and their customers at a
competitive disadvantage in the marketplace.
AGD supports the provision and suggests that this information
should be provided in both print and electronic media in order to
facilitate its full use by interested parties. AGD recommends that the
regulations be amended to require each pipeline to provide a sum of the
MDQ contract levels by rate schedule, at least in the paper copy of the
index of purchasers. This information is valuable because it
facilitates analysis of billing determinants in rate cases and between
rate cases.
The Pacific Northwest Commenters urge the Commission to continue to
require that the tariff include a reasonably current index of all firm
customers. Pipelines should be required to provide a completely current
customer index on their EBBs--but on a semi-annual basis the pipeline
should still file updated indices or firm customers in their tariffs.
Consistent with the action being taken in the companion rule, the
Index of Customers will include the full legal name of the shipper, the
rate schedule number of the service under contract, the effective date
of the contract, the termination date of the contract, and the maximum
daily contract quantity under the contract.
We will not adopt Columbia or Panhandle's recommendations. As we
note in our companion rulemaking, the index will contain fundamental
data about the natural gas industry--how much of the pipeline's
capacity shippers have under firm contract. This information is basic
to the Commission's understanding of events taking place in the
industry. With this information, the Commission will remain apprised of
trends in the industry, the willingness of shippers to hold firm
capacity, the average length of time capacity remains under contract,
the proportion of capacity rolling over under evergreen provisions,
etc. Pipelines are beginning to deal with complex issues related to
shippers' contracts coming up for renewal in the post restructuring
period.33 The lack of easily accessible data regarding customers'
contract levels and contract terms could hamper the Commission's
ability to assess the impact of this phenomenon on the industry. The
index will provide key data for this purpose. The Index of Customers
which is the subject of this section will be included in the tariff.
Currently, the tariff is filed both electronically and on paper.
Therefore, AGD's suggestion is moot.
\33\For example, Transwestern Pipeline Co. recently filed a
settlement in Docket No. RP95-271-000 to deal with the turn back of
significant amounts of capacity by a key customer.
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We will not require the pipelines offering service under part 284
to maintain the Index of Customers in both their tariff and on their
EBBs. It is the Commission's intention to reduce the filing burden on
the pipelines. Access to the Index of Customers through a downloadable
file or through the tariff should be sufficient. The Commission will
hold future conferences on the appropriate format for the electronic
Index of Customers.
The language originally proposed in Sec. 154.111 required the index
to be updated coincident with the filing of the Form No. 2 and Form No.
11. At the time, Form No. 11 was proposed to be filed semi-annually. In
our companion rulemaking, we are revising the Form No. 11 and requiring
it to be filed quarterly. In light of the change to the frequency of
the filing of Form No. 11, we will remove the reference to Form No. 11
and modify the language in this section to preserve the semi-annual
schedule originally contemplated.
l. Section 154.112 Exception to Form and Composition of Tariff.
Section 154.112(a) replaces current Sec. 154.52, but deletes those
paragraphs dealing with the sale of gas or purchased gas cost tracking.
Because the requirements of Sec. 154.101 (Form) and Sec. 154.102 (Title
page and arrangements) are applicable, Sec. 154.112(a) does not refer
to those matters.
Section 154.112(a) specifies that special rate schedules for
service under part 157 of this chapter are to be included in FERC
Volume No. 2. Section 154.112(b) mirrors the provision in Sec. 154.1(d)
which requires that contracts that deviate in any material aspect from
the form of service agreement must be filed with the Commission.34
Section 154.112(b) also requires that such contracts be referenced in
FERC Volume No. 1.
\34\The language proposed in the NOPR for Sec. 154.112(b), which
would require the filing of contracts ``that do not conform to the
form of service agreement'' has been changed to be consistent with
the provision of Sec. 154.1(d).
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m. Miscellaneous Subpart B Comments. AGD commented that proposed
Subpart B should be supplemented to include a provision requiring a
pipeline seeking a rate increase to identify (a) the new rate being
proposed by rate schedule and (b) for each proposed new rate the rate
which represents the refund floor or ``last clean rate.'' AGD states
that this information should be presented in a simple, easy-to-
understand format such as a chart or matrix so that interested parties
can quickly find in one place the rate levels which quantify the
totality of the applicant's rate increase proposal. Pipeline rate
changes are routinely made in response to various factors. Some of the
resultant adjustments are made effective subject to refund. AGD state
that these circumstances have the effect of obscuring the underlying
rate and that AGD's recommendation is intended to simplify the task of
the staff and the pipeline customer in discovering what rate is
proposed and what portion of that rate is already subject to change as
a result of some regulatory contingency.
AGD also suggests that many pipelines follow a practice of
providing to their customers a quarterly statement summarizing the
currently effective tariff sheets. This practice should be required of
all pipelines as it is an efficient mechanism for keeping abreast of
the developments affecting pipeline services.
Subpart B sets out the proper contents of a pipeline's tariff.
AGD's suggested summary appears in Sec. 154.7(a)(6) which requires ``a
summary of the changes or additions made to the tariff'' to be included
in the statement of the nature, the reasons, and the basis for the
filing. Thus, what AGD seeks is already required. No additional
language needs to be added to the regulations.
AGD's suggestion that the pipeline identify the last ``clean rate''
when it proposes an increased rate has merit. The identification will
assist the Commission and other interested parties in determining the
level of potential refunds if the proposed rate is suspended and
ultimately found unjust or unreasonable. It will also alert interested
parties to the fact that the underlying rate may also be in effect
subject to refund. Proposed Sec. 154.7(a) was modified to require that
the letter of transmittal identify the last rate found to be just and
reasonable that underlies the proposed rate.
The NGA requires a pipeline to ``keep open in convenient form and
place for public inspection, schedules showing all rates and charges
for any transportation or sale subject to the jurisdiction of the
Commission, * * *''35 Historically, this provision
[[Page 52972]]
has not been interpreted as requiring pipelines to provide periodic
copies of effective tariffs to each customer. The Commission notes that
much more can be done through electronic means, today. As a result, the
Commission makes available through its electronic bulletin board
system, each pipeline's complete tariff for downloading. As this
information is available through the Commission's EBB, we will not
require the pipelines to send their customers a copy of the pipeline's
current tariff on a quarterly basis.
\35\15 U.S.C. 717c.
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3. Subpart C--Procedures for Changing Tariffs
a. Section 154.201 Filing Requirements. New Sec. 154.201(a) is a
replacement for current Sec. 154.63(b)(1)(v), Marked Versions of Tariff
Changes. The new section clarifies that changes to both text and
numbers must be marked. New Sec. 154.201(b) is a replacement for
current Sec. 154.63(e)(4), Workpapers and Supporting Data. The intent
of this regulation is to ensure that all mathematical calculations are
complete and logically follow from the first calculation to the last;
so that, anyone attempting to recreate the calculations can do so. This
requirement will also ensure that any numbers that are not directly
from the company's source documents are explained.
Other parts of current Sec. 154.63 are revised and distributed
elsewhere in revised part 154.
Northwest/Williams requests clarification as to when the filing
requirements of subpart C or D apply. The confusion over the
applicability of subparts C and D turns on the inclusion of the section
titled ``Changes in rate schedules, forms of service agreements, or the
general terms and conditions,'' as proposed in subpart D, Sec. 154.301.
Some of subpart C applies to all changes to a tariff or executed
service agreement, such as Sec. 154.201 and the notice, service, and
protest requirements. There are other sections in subpart C which have
a more limited scope, such as the provisions for submission of new rate
schedules, filing of compliance filings, and changes to suspended
tariffs. The subject section is better positioned in subpart C since it
applies when a pipeline submits changes to specific portions of the
tariff. Subpart D applies to changes in rates other than those
described in subparts E, F, G, and H. To avoid any confusion, the
subject section is now Sec. 154.204 in Subpart C.
NI-Gas supports Sec. 154.201(a) but seeks clarification that all
changes be marked, not just substantive changes. The Commission
clarifies that the regulation applies to all changes in text and
numbers whether substantive or not.
Williston states that Sec. 154.201(a) should not apply to maps. The
regulation requires that changes in text and numbers be marked. This
includes text and numbers on pages containing maps. Whenever possible,
text and numbers on maps should be marked in the same manner as text
and numbers elsewhere in the filing. However, the Commission recognizes
that maps are often produced in such a fashion that this is not
practical. In such cases, the text and numbers on maps may be marked in
any clear fashion. Further, the Commission is not specifying any
particular method for marking changes to boundary lines, symbols, and
representative drawings. Such changes may also be demonstrated in any
clear fashion.
NI-Gas supports Sec. 154.201(b). NGSA approves of 201(b) (2) and
(4). Columbia states that while it supports adherence to principles of
disclosure and open communication with Commission staff and parties
concerning calculations and workpapers, Columbia avers that this
regulation is too broad and subjective. Columbia states that the
determination whether the calculations are complete and logically
follow so that anyone can recreate them, is a subjective standard which
is particularly onerous given that an incomplete filing may be rejected
pursuant to Sec. 154.5.
The Commission disagrees with Columbia. It has been the
Commission's experience that pipelines have not always included all of
the calculations necessary to support the proposed rate modification
even though the pipeline must have these calculations in order to
establish the rates in its filing. The lack of these calculations
causes unnecessary delay and raises questions about the filing. It is
impossible for the parties to determine if the proposed rate is just
and reasonable if the calculations are incomplete or unexplained.
Section 154.201(b) serves two purposes: it gives specific guidance
to the pipeline as to what is needed to fulfill the pipeline's
obligation to support proposed rates; and, it gives interested parties
useful information in a timely manner. This regulation should reduce
the necessity for data requests.
Columbia states that if this regulation is promulgated, pipelines
should not be subject to additional data requests about calculations.
Columbia's suggestion is not adopted. The Commission cannot anticipate
all of the information the parties may need in a rate case. It would be
improper to generalize that, under any circumstances, no pipeline would
be subject to additional data requests. Eliminating the possibility of
any data requests concerning the pipeline's rate calculations would
restrict the parties' options unnecessarily.
Pacific Northwest Commenters urge the Commission to require that
each filing contain a summary customer impact comparison setting forth
the amounts paid by customers under the current rates based on the most
recent test period determinants compared to what they would pay under
the proposed change based on the same determinants. Statements G-1 and
G-2 provide this information. The Commission will not require the
pipeline to provide an additional customer impact comparison. There
should be sufficient information available through the filing to allow
each customer to conduct its own comparison.
Pacific Northwest Commenters request that the current provision in
Sec. 154.63(e)(1) that pipelines include material reflecting rate
fixing adjustments in accord with Commission orders be included here.
AGD recommends that the regulation require a description of any Dth-
mile study relied upon by the applicant for the rate change.
The regulations already require that the pipeline provide
documentation to support proposed changes. It is not necessary to list
each and every document that might be needed for such support. It is
the pipelines' responsibility to provide the documents that prove that
its proposed rate change is just and reasonable.
The Commission modified proposed Sec. 154.301(c) to reinstate the
original language regarding alternate material reflecting rate fixing
adjustments. A regulation requiring a description of the Dth-mile study
will not be adopted.
b. Section 154.202 Filings to Initiate a New Rate Schedule. New
Sec. 154.202 replaces current Sec. 154.62. The new section does not
apply to initial executed service agreements. Very little data is
currently required to support an initial rate schedule or executed
service agreement. Because many services are now provided under blanket
authorizations, there is no review prior to the tariff filing. Thus,
the current filing requirements are no longer consistent with the needs
of the Commission for reviewing new rate schedules. The new section
relates to the requirements for a new rate schedule under the blanket
authority granted under part 284 of this chapter as well as to other
initial filings.
NI-Gas states that Sec. 154.202(a)(1)(iv)(B) should be expanded to
include information on
[[Page 52973]]
surcharges and crediting. On the other hand, Williston states that
Sec. 154.202(a) should be deleted because it requires filing data not
previously required, is burdensome, and prolongs review by staff.
Section 154.202(a) requires the pipeline to file basic information
about the proposed service which the Commission needs to know to make
an informed and timely decision. The current regulations are adapted
for individually certificated services where the information would be
provided in the certificate proceeding. Section 154.202(a) recognizes
the transition from individually certificated services to blanket
certificates. It requires less information than previously required for
an individual certificate application. It is designed to provide
Commission staff and others with enough information to review the rates
and charges for an initial service or service provided under a blanket
certificate authority. By requiring pipelines to submit this necessary
information when they make their initial filing, the Commission avoids
the need to formulate data requests which only delay the proceedings.
NI-Gas' interest in the applicability of surcharges to the new
service is understandable. However, no modifications to the proposed
regulations are necessary to accomplish NI-Gas' goal. Section 154.107
requires all surcharges applicable to a service to be displayed on the
tariff sheet showing currently effective rates. If a new rate is
proposed for the new service, a separate line or lines will appear on
this tariff sheet. All applicable surcharges would be displayed in
separate columns as provided under Sec. 154.107(d). Therefore, the
surcharges applicable to the new service would be discernible. The
Commission does not believe it is necessary to expand the list under
proposed Sec. 154.202(a)(1)(iv) to list all of the possible affects of
a new service upon existing shipper services since the regulations
state that information is to be provided is ``including but not limited
to'' the specific information noted. Any additional affects on existing
service would be covered by this inclusive phrase.
Panhandle states that the regulation should be clarified to
establish that only where a pipeline is proposing to change a rate
previously established in the section 7 proceeding should there be a
section 4 obligation. Section 154.202(b) states that where a rate,
service, or facility is certificated under section 7, the tariff sheets
filed to implement the terms of the certificate must comply with the
requirements for compliance filings. No change needs to be made to the
regulations to accommodate Panhandle's position. This regulation
creates an obligation applicable to initial rates and rates and charges
for services under a blanket authorization. Any proposed rate or charge
that differs from the rate or charge approved in a section 7 proceeding
is governed by Sec. 154.202(b)(2).
c. Section 154.203 Compliance Filings. Section 154.203 is a new
section addressing filings that are made to comply with a Commission
order. Filings made to comply with Commission orders must include only
those changes required to comply with the order. Such compliance
filings must not be combined with other rate or tariff change filings.
A compliance filing that includes other changes or that does not comply
with the applicable order in every respect may be rejected.
APGA and NI-Gas support this regulation.
Pacific Northwest Commenters states that compliance filings should
be designated and noticed as such, and recognized as not mandating
action within 30 days. The form of notice now requires the pipeline to
designate compliance filings.
CNG believes that Sec. 154.203(b) lacks flexibility. CNG states
that an alternate or creative response to a Commission requirement may
obviate the need for a rehearing request or court appeal. CNG argues
that including related rate or tariff changes in a compliance filing
saves parties time and money. On the other hand, Brooklyn Union
requests confirmation that compliance filings that do not conform to
the applicable order in all respects will be rejected.
The regulation states that a compliance filing that includes other
changes or that does not comply with the applicable order in every
respect ``may be rejected.'' In practice, the Commission regularly
rejects filings that go beyond the order. The Commission chose not to
use the phrase ``will be rejected'' in order to allow for some
flexibility to accommodate minor variations in special and rare
circumstances. However, the Commission will not accept any compliance
filing that contains any substantive difference from the underlying
order.
d. Section 154.204--Changes in Rate Schedules, Forms of Service
Agreements, or the General Terms and Conditions. Section 154.204
provides distinct requirements for filings to change rate schedules,
forms of service agreements, or the general terms and conditions of a
tariff.36 Such filings must explain the necessity for the change
and the impact on existing customers.
\36\This regulation appeared in the NOPR as Sec. 154.301.
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NI-Gas states that the inclusion of the information required in
Secs. 154.204 (b) and (c) will help in the timely analysis of tariff
changes by interested parties.
NDG supports the proposed requirement that the filing company must
include with its filing an explanation of why the proposed change is
necessary and the impact on existing customers. NDG also believes that
several additional filing requirements would further improve the rate
review process, including requiring the distribution of workpapers
provided to FERC staff in support of a filing to customers. Pipelines
should be required to (1) allow interested parties to notify the filing
pipeline that they wish to receive a copy of the workpapers on the
filing data, and (2) include with the copy of the filing served on
interested parties a notice describing the content of the workpapers.
It is unclear to what workpapers NDG refers. All workpapers
referred to in Sec. 154.204 are to be submitted as part of the filing.
Thus, the pipeline is already required to submit all workpapers.
Generally, Columbia does not object to the requirements of this
section. However, Columbia believes that much of the requested
information is irrelevant to many tariff filings e.g., workpapers
showing the estimated effect on revenues and costs over a 12-month
period.
The requirements of Sec. 154.204 are generally applicable. Further,
the specific requirement to which Columbia refers has been a
longstanding requirement for filings for changes other than in rate
level.37 However, if a particular requirement does not happen to
apply, a statement to that effect is all that is necessary.
\37\See Sec. 154.63(b)(2).
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e. Section 154.205 Changes Related to Suspended Tariffs, Executed
Service Agreements or Parts Thereof. Section 154.205 replaces current
Sec. 154.66.38 The change adds two exceptions to the rule
prohibiting tariff filings during a suspension period. The exceptions
are ``changes made under previously accepted tariff provisions
permitting periodic limited rate changes'' and ``accepted limited rate
changes.'' Section 154.205 recognizes that the Commission allows
periodic limited rate changes pursuant to accepted tariff
[[Page 52974]]
provisions and ACA and GRI surcharge changes to take place during the
period of suspension. This reflects current Commission policy.
\38\This regulation appeared in the NOPR as Sec. 154.204.
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Williston commented that the provision in current Sec. 154.66
providing that a proposed tariff or executed service agreement may be
withdrawn during the suspension period with special permission should
be retained. That provision has been reintroduced into the final rule.
f. Section 154.206 Motion to Place Suspended Rates Into Effect.
Section 154.206 replaces current Sec. 154.67(a).39 Current
Sec. 154.67(b), Reports, is deleted. This section requires that, when
rates have been suspended for more than a minimal period and the
Commission has ordered changes or the rates include costs of facilities
that are not in service, the motion to place suspended tariff sheets
into effect must be filed at least one day prior to the date the sheets
are to take effect. A motion is required where: The Commission has
ordered changes; the rates include facilities that are not in service;
or, the transmittal letter specifically reserves the pipeline's right
to file a motion.
\39\This regulation appeared in the NOPR as Sec. 154.205.
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Section 154.7(a)(9) adds a new provision whereby the transmittal
letter must include either a motion to place suspended rates into
effect, or a specific statement that the pipeline reserves its right to
file a later motion. If the pipeline includes a motion in its
transmittal letter, then the proposed rates will go into effect at the
end of the minimal suspension period. If the pipeline specifically
states that it reserves its right to file a later motion, then the
proposed rates will go into effect only after such later motion is
filed. Also, if a pipeline fails to comply with Sec. 154.7(a)(9) by not
including either a motion or a statement, the proposed rates will not
go into effect until the pipeline files a motion.
APGA requests that Sec. 154.206(a) be amended to make the form of
motion clear. However, the Commission does not believe that it is
necessary to standardize such a motion.
The NOPR had proposed that when rates have been suspended for more
than a minimal period and the Commission has ordered changes or the
rates include costs of facilities that are not in service, the motion
to place suspended tariff sheets into effect must be filed no less than
30 days nor more than 60 days prior to the date the sheets would take
effect. Columbia commented that the proposed requirement would cause
pipelines to estimate test period data for that portion of the test
period occurring after the date the pipeline must make the motion rate
filing. Columbia stated that this would only be acceptable if the
Commission accepted such estimates as of the end of the test period.
CNG and Columbia recommended no change to the current practice of
allowing pipelines to file motion rates one day before the effective
date. CNG commented that the current rules work well but the proposed
rule would require pipelines to rely on estimated plant balances in
determining the level of plant in service at the end of the test
period. Further, CNG stated, the pipeline would be unable to determine
the status of negotiations 30 days in the future, and would be
compelled to move to make the rate increase effective at the earliest
possible date. In the alternative, CNG states, the longest notice
period should be 6 to 10 days.
In light of these comments, the revised regulation has been
modified to be consistent with the current practice of allowing
pipelines to file motion rates one day before the effective date.
However, individual suspension orders may require pipelines to make
compliance filings earlier, to reflect changes required by the
Commission.
Columbia states that Sec. 154.206(c) should not state ``for less
than one day,'' but ``for one day.'' JMC suggests a change to ``one day
or less.''
Pacific Northwest Commenters suggest that the Commission retain the
motion filing requirement for all suspensions of more than one day and
delete the requirement for suspensions of one day or less. To comply
with section 4 of the NGA, Pacific Northwest Commenters argue that the
Commission should issue an express blanket grant of a motion for any
filing suspended for one day or less. Pacific Northwest Commenters
state that this approach would recognize the past practice of generally
suspending rate increases for 5 months and other changes for less than
one day. Thus, a pipeline could delay implementation where parties are
resolving issues through negotiation. Pacific Northwest Commenters
state that automatic implementation of a rate increase would restrict
this flexibility.
JMC supports the proposal to formalize the Commission's practice of
not requiring a motion when rates are suspended for a minimal period.
Panhandle states that the NGA requires that suspended rates only go
into effect upon motion by the pipeline. Panhandle recommends that when
the suspension period is minimal, the regulations should recognize that
the transmittal letter constitutes the requisite motion unless the
pipeline reserves the right to file a separate motion. This
recommendation has not been adopted. Unless the pipeline reserves the
right to file a separate motion, it must include a motion in the
transmittal letter.
JMC requests clarification that rates for separate, distinct
classes of customers need not be suspended for the same time period nor
be combined together for purposes of determining whether the proposed
rate is a decrease or increase. The Commission's policy is that
customers should only pay for the services they receive. Rates need not
be aggregated for the purpose JMC suggests.40
\40\See Tennessee Gas Pipeline Company, 62 FERC para.61,250 at
62,642 (1993).
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The revised regulation is consistent with current Commission
practice and the purposes of the NGA. Section 4(e) of the NGA
authorizes the Commission to suspend operation of a schedule and defer
the use of a rate pending a hearing ``but not for a longer period than
five months beyond the time when it would otherwise go into
effect.''41 If the proceeding has not been concluded and an order
made at the expiration of the suspension period, the proposed change
shall go into effect ``on motion of the natural gas company making the
filing.''42 The NGA continues that refunds may be ordered ``where
increased rates or charges are thus made effective.''43
Historically, the Commission has considered the suspension of a rate as
a necessary step to assure that refunds may be ordered when
appropriate.
\41\15 U.S.C. 717c(e).
\42\Id.
\43\Id.
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When the maximum five month suspension is applied, the earliest the
rates will become effective is on the day after the date the motion
filing is made. Where the rates have been suspended for the maximum
period, there is sufficient time for the pipeline to modify its
proposal, if necessary, and file the motion. However, as a practical
matter, where rates have been suspended for a minimal period as allowed
under the statute, a hearing could not possibly be concluded by the
expiration of the period. This regulation allows the pipeline to
specify whether or not the filing itself acts as a motion.
g. Section 154.207 Notice Requirements. Section 154.207 replaces
current Sec. 154.22 and Sec. 154.51.44 The new section applies
only to proposed changes. Reference to former Sec. 154.5,
[[Page 52975]]
which is no longer in part 154, is removed.
\44\This regulation appeared in the NOPR as Sec. 154.206.
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h. Section 154.208 Service on Customers and Other Parties. New
Sec. 154.208 formally requires the filing company to serve its
customers and state regulatory commissions on or before the filing
date.45 The regulation requires that all customers and state
commissions receive an abbreviated form of the filing. Customers and
state commissions with an interest may then request a full copy. The
pipeline must provide the full copy within 48 hours. However, pipelines
must comply with any customer's standing request to receive a complete
filing as the initial served filing.
\45\This regulation appeared in the NOPR as Sec. 154.207.
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The NOPR invited comments on whether the informational needs of
customers and state regulatory commissions would be adequately
fulfilled if the filing company was only required to serve the
transmittal letter and provide the rest of the filing upon request.
Some pipelines have used this procedure recently to minimize the costs
of reproduction and mailing where their lists of shippers are quite
large.
MRT, El Paso, NGSA, and NET support serving only a transmittal
letter to customers and state commissions on or before the filing date
with complete copies provided on request. They state that serving
complete copies wastes pipeline resources and annoys customers that are
not interested.
Columbia states that it is unduly burdensome to serve all filings
on all customers and suggests that the regulation be modified to
require service upon firm customers on the filing date. Columbia states
that such service along with the form of notice pursuant to
Sec. 154.209 is sufficient to assure adequate notice.
AF&PA, Arizona Directs, AGD, Industrials, and New York oppose
allowing pipelines to fulfill service by a transmittal letter. APGA
states that the service of only the transmittal letter would be neither
desirable nor lawful. APGA states that without a complete statement of
proposed rates, the notice is not meaningful.
Michigan and MoPSC state that state commissions should receive the
full filing.
Michigan states that, considering the time restraints in which the
Commission must act and the delay of requesting full service, the
burden to request full service should not be on the parties.
Michigan, MoPSC, and New York suggest that the Commission require
pipelines to provide state commissions and customers with notice of a
filing 30 days prior to the filing date.
Michigan and New York would like the pipelines to be required to
serve both the state commission and the designated counsel by the next
day.
Pacific Northwest Commenters points out that ``service'' under
Sec. 385.2010 (Rule 2010) may consist of merely depositing the filing
in the mail which may take 3 or 4 days for delivery. To assure that
customers get more timely notice and may prepare more complete comment
and analysis, they suggest that pipelines be required to certify that
arrangements have been made to assure receipt by customers no later
than the next business day, that customers elect whether to receive
full service or just transmittal letters, and that customers be able to
designate two representatives to receive service. They also request
that the Commission require pipelines to provide service of orders in
specific cases in lieu of Commission service.
APGA requests a requirement that pipelines must, at the request of
a customer, provide next-day service to attorneys or consultants
designated by customers.
AGD states that the regulation should require simultaneous service
upon the Commission and all customers except those known to prefer
transmittal letter service.
Columbia Distribution and NDG do not oppose offering the customers
the option of receiving a transmittal letter instead of the full
filing, however customers should be able to place a standing request
for complete filings by the next day.
Panhandle proposes that firm customers and state commissions
receive full service at the time of filing but that interruptible
customers receive an abbreviated service consisting of: The letter of
transmittal, the Statement of Nature, Reason, and Basis, the changed
tariff sheets, and the Notice. Notice would also be on the EBB.
INGAA and ANR/CIG ask that pipelines be allowed to make an
abbreviated form of service consisting of: The Letter of Transmittal;
the Statement of Nature, Reason, and Basis; the changed tariff sheets;
a summary cost-of-service and rate base; and, summary of magnitude of
change. Customers with an interest may then request a full copy.
El Paso suggests that the service obligation be fulfilled by
posting on the EBB.
In light of the responses to the NOPR, the revised regulation is a
combination of the alternatives suggested by several commenters and
represents a reasonable middle ground between requiring service of a
complete filing and service of just the transmittal letter. The
pipeline must provide the full copy within 48 hours if requested.
Additionally, the pipeline must comply with any customer's standing
request to receive a complete filing as the initial served filing.
Customers are defined as customers of the pipeline with a contract for
service as of the date of the rate case filing. While reducing the
filing burden to the pipeline, this course assures that all interested
parties receive complete notice adequate to making informed decisions
about the proposal. Also, those parties that desire service of complete
filings can make a standing request for such service in lieu of the
abbreviated and 48-hour follow-up services.
i. Section 154.209 Form of Notice for Federal Register. Section
154.209 replaces current Sec. 154.28.\46\ The modified form reflects
current practice. The form has been changed from that in the NOPR to
distinguish compliance filings that do not require Commission action
within 30 days from the date of filing, from other rate filings.
\46\This regulation appeared in the NOPR as Sec. 154.208.
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Michigan and New York request that the notice be modified to
contain a brief narrative discussing the financial impact of the
proposed change on each class of service and any conditions of service
affected by the change. Michigan and New York state that filings that
fail to include such notice should be rejected. The Commission rejects
this suggestion. This information can be derived from the filing that
is being noticed. The purpose of the notice is merely to get the
attention of interested parties who may then review the full filing.
NI-Gas states that the form of notice should also include the name,
address, telephone number, and FAX number of a contact person. This
information is on the title page of the filing and does not need to be
in the notice.
The NOPR invited comments on whether the Federal Register notice is
useful and should be retained in addition to the Commission's
electronic notice. Columbia, Consumers Power, UDC, and Northwest/
Williams state that the Federal Register notice is useful and should be
retained in addition to the Commission's electronic notice. El Paso
recommends that, if paper copies of filings are required, the Federal
Register notice should be the only document served on customers. The
full filing would be available on the EBB. SoCal prefers the Commission
CIPS as the
[[Page 52976]]
source for postings rather than the Federal Register.
Generally, these comments indicate that the Federal Register notice
is useful and should be retained in addition to the Commission's
electronic notice.
j. Section 154.210 Protests, Interventions, and Comments. Section
154.210 replaces current Sec. 154.27.47 The intervention, comment,
and protest periods are to be standardized as has been the practice
with oil pipeline tariff filings. Interventions, comments, and protests
must be filed within 12 calendar days of the filing date and comments
must be filed at the same time as interventions and protests.
\47\This regulation appeared in the NOPR as Sec. 154.209.
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The NOPR had proposed that the interventions, comments, and
protests be filed within ``10 days'' of the filing. Many commenters
objected to changing from the former 15-day time period and argued that
more time was needed to adequately review the more complete initial
filings. Numerous alternatives were suggested for comment periods
ranging from 10 to 30 days. The Commission has balanced the need to
allow sufficient time for interested parties to review a filing with
the need for the proceeding to progress swiftly. The use of the 12
calendar day standard achieves this balance.
4. Subpart D--Material to be Filed With Changes
a. Section 154.301 Changes in Rates. Section 154.301 establishes
that subpart D pertains to rate change filings under the cost-of-
service methodology; i.e., all rate change filings except those filed
under subparts E, F, and G.48 Subpart D is applicable to both rate
increase and decrease filings. The current special filing requirements
for ``minor pipelines'' are removed. Section 154.301(c) replaces
current Sec. 154.63(e)(1). Minor rate increase filings, as now covered
by Sec. 154.63(b)(4), and rate decreases have reduced filing
requirements under Sec. 154.313. In addition, proposed changes other
than to rate level must be made under subpart G, discussed infra.
\48\This regulation appeared in the NOPR as Sec. 154.302.
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NI-Gas strongly supports the proposal that a pipeline must be
prepared to prosecute its case based on the information included with
its original filing. NI-Gas argues that this requirement will help with
the initial review by parties; eliminate the first stage of many
procedural schedules; prevent a pipeline from introducing new
explanations, proposals, and evidence well into the course of a
contested proceeding; and allow more comprehensive Commission review
initially. AGD agrees that these regulations embody the proper approach
to the rate filing process, and argues that there should be no
reluctance on the Commission's part to reject incomplete rate filings
or any pipeline's attempts to supplement rate filings.
Conversely, INGAA believes the regulations severely restrict the
pipeline's ability to defend its submitted rate case. INGAA suggests
removing the word ``solely'' from this section (with regard to
requiring the pipeline to rely solely on its initial filing to sustain
its burden of proof on proposed changes) and broadening the material
that would be admissible in the defense of a rate case. Panhandle
believes requiring the pipeline to rely solely on its initial filing
would actually increase the time and effort required of other parties
and the Commission's staff. Panhandle maintains it is impossible to
anticipate every issue the parties may raise, and that the regulations
could be read to preclude the pipeline from filing supplemental direct
or rebuttal testimony to address issues raised subsequent to the rate
filing.
Similarly, Columbia requests clarification that nothing bars a
pipeline from filing answering and rebuttal testimony in its own rate
case proceedings. Williston also seeks clarification that the filing of
supplemental data by the company is not precluded. The Commission
confirms that this regulation does not interfere with a company's
rights, during a hearing, to respond to opposing testimony and
evidence.
The Commission agrees with the comments of NI-Gas and AGD, above.
Further, the substantial body of rate proceeding case law as well as
the practices that have developed in the prosecution of rate cases
should provide a pipeline with knowledge of what issues must be
developed in its case-in-chief.
Panhandle requests confirmation that Sec. 154.301(c) relates only
to proposed changes, and that the Commission does not intend by
promulgating these new regulations to change the prior holdings of the
courts or the Commission on the burden of going forward or the burden
of proof. Panhandle also requests clarification that matters already
sworn to in the filing need not be addressed again in Statement P.
The requirements found in Sec. 154.301(c) that a pipeline must be
prepared to go forward at hearing and sustain its burden of proof based
on the materials in its filing are the same as those currently in
effect in Sec. 154.63(e)(1), with some editorial changes and will be
interpreted by the Commission in the same way.
b. Section 154.302 Previously Submitted Material. Section 154.302
replaces current Sec. 154.63(c)(1) and (2). A current FERC Form No. 2
must accompany the filing.49
\49\This regulation appeared in the NOPR as Sec. 154.303.
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NGT requests clarification that this regulation represents no
change in current practice; submission of a copy of the Form No. 2 does
not constitute part of the rate filing for which service may be
required pursuant to Sec. 154.207.
The Commission notes that the language of the revised regulation is
essentially the same as the current section. The Commission clarifies
that the FERC Form No. 2 remains an item by reference and does not
constitute part of the filing for which service is required pursuant to
Sec. 154.207.
c. Section 154.303 Test Periods. Section 154.303 replaces current
Sec. 154.63(e)(2)(i) and (ii). The section has been completely
rewritten.50 The Commission clarifies that the pipeline must
remove from rates moved into effect the cost of any facilities not
certificated (where a certificate is required) and in service as of the
end of the test period.
\50\This regulation appeared in the NOPR as Sec. 154.304.
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National Fuel requested modification to the NOPR to clarify that
adjustments to the base period may include costs for facilities that do
not require a certificate and are in service by the end of the test
period. Language to that effect has been incorporated into the final
rule.
INGAA contends that Sec. 154.303(c)(2) requires that a plant not
certificated before the end of the test period must be excluded when
motion rates are filed. INGAA states that it is impossible for a
pipeline to estimate when the Commission will issue a certificate in a
pending matter; and therefore, pipelines are forced to exclude the
facilities in the compliance filing yet all other aspects of the
pipeline's activities are updated to the end of the test period.
NGT and Panhandle seek clarification that the new regulations
permit the inclusion of costs of facilities that are expected to be in
service by the end of the test period, regardless of the status of a
pending certificate application. NGT urge that the last sentence of the
revised regulation should be deleted.
INGAA states that the regulation forces pipelines to exclude from
the end of test period analysis of costs for certificated facilities.
INGAA states a
[[Page 52977]]
procedure should be adopted whereby a pipeline may reflect the cost of
facilities in service prior to the end of the test period if the end of
the test period is beyond the effective date of the proposed rates.
NET suggests a clarification that permits adjustments for
facilities for which a certificate application is pending, subject to
the requirement of Sec. 154.303(c)(2) that such costs be excluded if
the facilities are not in service by the end of the test period.
In light of the above comments, the proposed regulation has been
modified to allow adjustments for facilities for which a certificate
application is pending, subject to the requirement of
Sec. 154.303(c)(2) that such costs be excluded if the facilities are
not in service by the end of the test period.
Columbia urges the Commission to consider a more forward looking
test period. That is, allow pipelines to project the more routine cost
items (such as inflation and labor) one year beyond the end of the
current nine-month test period. This comment is, in effect, seeking an
extension of the test period. This the Commission is reluctant to do.
The regulations are constructed so that the rate paid by a customer is
based upon the costs incurred previously by the pipeline for providing
the services to that customer. The adjustment period allows for the
inclusion in rates of costs for items that are not a benefit to the
rate payers at the time of filing but will be within a reasonable time
thereafter. The Commission has set the cut off point for such costs at
9 months past the end of the chosen base period. The commenters have
not shown that this period is unreasonable.
d. Section 154.304 Format of Statements, Schedules, Workpapers, and
Supporting Data. Section 154.304 replaces current Sec. 154.63(c)(3) and
Sec. 154.63(e)(4).51 The Commission requires a narrative
explanation of each proposed adjustment to base period actual volumes
and costs.
\51\This regulation appeared in the NOPR as Sec. 154.305.
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INGAA states that the requirement to provide accounting workpapers
to support data or summaries reflecting the pipeline's books of account
will place a burden on the companies since the accounting workpapers
could be voluminous. The information should only be provided when
specifically requested by the Commission auditor. This suggestion has
been adopted.
With respect to statements, schedules, work papers and supporting
data, NGSA recommends that the filing format be standardized by
requiring that narrative explanations be placed at the beginning of the
specific statement or schedule to which they apply. To reduce discovery
burden rate case statement updates should be provided to parties
specifically requesting them, as well as to the Commission. This
suggestion has been adopted.
e. Section 154.305 Tax Normalization. Section 154.305 replaces
current Sec. 154.63a with revisions to clarify the section's
applicability.52 Pipelines will continue to be required to use tax
normalization to compute the income tax component of the cost-of-
service and to adjust rate base by accumulated deferred income taxes
related to components of the cost-of-service.
\52\This regulation appeared in the NOPR as Sec. 154.306.
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f. Section 154.306 Cash Working Capital. Section 154.306 replaces
current Sec. 154.63b.53
\53\This regulation appeared in the NOPR as Sec. 154.307.
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g. Section 154.307 Joint Facilities. Section 154.307 replaces
current Sec. 154.63(e)(3) with stylistic changes.54
\54\This regulation appeared in the NOPR as Sec. 154.308.
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h. Section 154.308 Representation of Chief Accounting Officer.
Section 154.308 replaces current Sec. 154.63(e)(5) with only stylistic
changes.55
\55\This regulation appeared in the NOPR as Sec. 154.309.
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i. Section 154.309 Incremental Expansions. Section 154.309 requires
separate statements and schedules for incremental facilities, including
those with Commission imposed at-risk provisions.56 In some cases,
pipelines maintain independent rate schedules (incremental rates) that
are based on the costs of specific facilities. Separate statements and
schedules for such facilities need to be provided to permit a proper
evaluation of the rates based on the costs of those facilities. When
pipelines have been unable to fully subscribe certain construction
projects, the Commission has permitted construction to go forward with
the pipeline placed at-risk for recovery of the costs associated with
the unsubscribed capacity. Separate statements and schedules for at-
risk facilities need to be provided so that the Commission can compare
the revenue generated from the use of the facilities with the cost of
the facilities, and determine whether to remove the at-risk condition.
\56\This regulation appeared in the NOPR as Sec. 154.310.
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The Pacific Northwest Commenters object to the requirement that
separate data be provided for major expansions since the pipeline's
last rate case. They are concerned that this provision may impinge upon
the development of policy in Docket No. PL94-4 on the pricing of
pipeline facilities. Pacific Northwest Commenters suggest that until
the Commission announces its policy, it would be better served to limit
the scope of Sec. 154.309 to existing incrementally priced services.
NGSA makes a similar argument.
Since the NOPR was issued, the Commission has issued its policy
statement regarding the pricing of pipeline facilities; and so, Pacific
Northwest Commenters concerns are moot.57
\57\Pricing Policy For New And Existing Facilities Constructed
By Interstate Natural Gas Pipelines, Docket No. PL94-4-000;
Statement of Policy, 71 FERC para.61,241 (1995).
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Northern Border argues that this section appears to require the
filing of a rate case within a rate case for facilities certificated
with at-risk provisions. Northern Border states that this section
appears to require a complete set of filing exhibits to be created for
each separate at-risk facility even if the at-risk condition is not
likely to be triggered and/or the company is not requesting within a
rate case filing to remove the at-risk provision. Northern Border
proposes that, if an at-risk provision has been triggered or it is
certain to be triggered during a reasonable forthcoming period, then
the company should be required to include in its filing any necessary
information to support it position in that regard.
INGAA seeks clarification that the Commission did not intend for
the pipeline to file separate schedules under Sec. 154.312 and
Sec. 154.313 for each major expansion. INGAA proposes that Sec. 154.309
be eliminated and that the Commission continue the current practice of
including the information in Schedule C. Alternatively, the data
required could be provided in summary form. Columbia does not object to
providing certain summary schedules with respect to incremental and
expansion facilities, but objects to the apparent requirement to
provide a full filing pursuant to Sec. 154.312 and Sec. 154.313.
Columbia supports INGAA's comments and further requests the Commission
clarify what is meant by the term ``major expansion.''
El Paso also argues that the regulations should provide for
flexible exhibits that produce information sufficient to demonstrate
the pipeline's position with respect to incremental, at-risk, and major
expansions since the pipeline's last rate case.
Great Lakes argues that this section: (1) Is premature until the
Commission
[[Page 52978]]
determines its course of action in Docket No. PL94-4; (2) fails to
recognize that each cost may not be separately identifiable; and (3)
magnifies the size of an applicant's filing (in Great Lakes's case, at
least 7 separate sets of schedules and statements would be required).
Great Lakes urges the Commission to delete proposed Sec. 154.309.
TransCanada filed similar comments.
NI-Gas supports the separate reporting of the costs associated with
facilities subject to an at-risk condition. NI-Gas also states that a
pipeline should be required to report the revenues associated with at-
risk or incremental facilities and the reasons why it allocated the
revenues to those facilities, rather than unsubscribed ``general''
system capacity.
The Commission did not eliminate proposed Sec. 154.309 as
requested, but did modify this section in several respects. First, the
Commission deleted the requirement that this section applies to ``every
major expansion since the pipeline's rate case.'' This information may
be too broad and need not be filed with the rate case filing. In this
respect, the Commission notes that Sec. 154.312, Statement O, as
modified by this rule, requires pipelines to list each major expansion
and abandonment since the pipeline's last rate proceeding and provide
the costs by function. This summary data should provide adequate
information for parties in the proceeding to evaluate significant
changes since the last rate case proceeding.
The Commission will require that the pipeline provide a summary
statement that lists the cost-of-service components and revenues
associated with each incremental and at-risk facility in lieu of
separately identifying each cost on the statements and schedules
contained in Sec. 154.312 and Sec. 154.313. However, where applicable,
appropriate cross references to Sec. 154.312 and Sec. 154.313 should be
made. This change eliminates the bulk of the burden imposed by the
section as proposed. The summary statement should provide pipelines
with the flexibility sought by El Paso.
Permitting the summary statement, in lieu of a separate
identification of each cost and revenue contained on the statements and
schedules in Sec. 154.312 and Sec. 154.313, balances the parties' needs
for informative data, but will not be so burdensome as to require a
``rate case within a rate case'' as suggested by some parties.
Lastly, with respect to NI-Gas' request to include revenues
associated with the incremental and at-risk facilities, the pipeline
will need to cross reference the statements and schedules contained in
Sec. 154.312 and 154.313. These sections include the recording of
revenues (For example, Schedule G-4). Therefore, the information sought
by NI-Gas will be provided in the pipeline's filing.
j. Section 154.310 Zones. Section 154.310 requires a cost breakdown
by zone if the pipeline maintains records of costs by zone.58
\58\This regulation appeared in the NOPR as Sec. 154.311.
---------------------------------------------------------------------------
Panhandle commented that proposed Sec. 154.310 and Sec. 154.312
were inconsistent. Proposed Sec. 154.310 required cost-of-service by
zone only if a pipeline proposes a zone rate method, while proposed
Sec. 154.312 appeared to require a cost-of-service for each zone
regardless of the underlying rate method. Panhandle suggested
clarifying language. The Commission agrees with Panhandle. Section
154.310 requires a cost-of-service by zone only if a pipeline maintains
records of costs by zones and proposes a zone rate methodology based on
these costs. Section 154.312, Schedule I-1 (c), has been modified as
proposed by Panhandle.
SoCal states that if the company files for zone rates, whether to
continue existing zone rates or to establish zone rates, a cost
breakdown should be mandatory. However, the Commission does not order
companies to maintain plant accounts and cost-of-service by zone. This
is an election made by the individual company. Section 154.312,
Schedule I-3 (a) requires a company to show how the cost-of-service is
allocated among rate zones by function. This schedule should give SoCal
the information it seeks by zone.
k. Section 154.311 Updating of Statements. The Commission requires
certain Statements and Schedules to be updated, once, 45 days after the
end of the test period.59 This provision has been changed from the
NOPR which required the statements and schedules to be updated,
quarterly, for each month of the test period.
\59\This regulation appeared in the NOPR as Sec. 154.312.
---------------------------------------------------------------------------
In response to comments, the Commission agrees that quarterly
updates are burdensome and will require only one update at the end of
the test period.
Northern Border states that this provision should not apply to
pipelines with cost-of-service tariffs. Because such pipelines do not
rely on test-year adjustments, updates would be burdensome and
unnecessary. This section was created to govern the vast majority of
the regulated entities that do not have cost-of-service tariffs. We
agree that the update is not necessary for a pipeline with a cost-of-
service tariff. Therefore, Northern Border's request for a waiver of
this section is granted.
MoPSC requests clarification that the filing of updated material
for the test period does not amend the company's direct case. MoPSC
contends it is essential that the Commission clarify that the required
filing of updated actuals will not amend/change a company's direct case
and that updates are intended to provide the Commission and interested
parties with additional information to help evaluate the projections
and estimates used by a company in its direct case. The Commission
grants both these clarifications.
l. Section 154.312 Composition of Statements. Section 154.312
replaces current Sec. 154.63(f) with revisions to the statements and
schedules as discussed below.60 Many changes are self explanatory
or merely editorial and are not discussed here.
\60\This regulation appeared in the NOPR as Sec. 154.313.
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1. Schedule B. INGAA requests that regulatory assets and
liabilities not be listed on Statement B unless entries specifically
are reflected in the computation of rate base.
The Commission agrees with INGAA's comments and clarifies that
regulatory assets and liabilities should only be listed if the pipeline
seeks recovery of these items in the computation of rate base.
2. Schedule C. Columbia states that only the end of base period
balances and test period adjustments and end of the test period
balances should be reflected on this statement. The Commission
disagrees. These beginning balances are currently required and have
proved to be necessary for a complete analysis of the pipeline's plant
and examination of specific plant changes.
NGSA recommends that Account 117 include volumes, as well as costs,
by subaccount and show activity by month for the base period, including
Account 117.4 (gas owed to system gas). NGSA believes this modification
is necessary to track the use of system gas.61 The Commission
agrees with NGSA's recommendation that Account 117 should include
volume data and show monthly activity to track the use of system gas.
In this restructured era, an accurate accounting of system gas is
important for the determination of the appropriate level for storage
gas and of
[[Page 52979]]
capacity retention. Proposed Statement C was modified accordingly.
\61\NGSA in its comments to the companion rule suggested
modifications to the Commission's proposal by retaining Account 117
as ``Base Gas'' and Account 164 as ``Working Gas''.
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3. Schedule C-1, End of Base Period Plant Functionalized. Schedule
C-1 does not refer to storage facilities as ``underground'' or
``local'' and requires the showing of plant in service by functional
classifications.
INGAA states that the same information is proposed to be required
by both Schedule C-1 and Statement I. INGAA's observation is correct,
proposed Schedule C-1 and proposed Statement I were duplicative with
regards to the requirements to reflect plant by zones and expansions.
Therefore, these requirements have been removed from revised Schedule
C-1.
INGAA and Columbia commented that proposed Schedules C-1 and C-2
appear to break information currently contained only in Schedule C-1
into two schedules. INGAA recommended that proposed Schedule C-2 be
deleted and the information be included in Schedule C-1 in order to
avoid an unnecessary administrative burden.
Proposed Schedule C-1 provided data on the functional gas plant for
the base period. Proposed Schedule C-2 provided data on the functional
gas plant for the test period. The Commission agrees with INGAA and
Columbia that these schedules should be combined in order to avoid
unnecessary administrative burden. Accordingly, Proposed Schedule C-1
has been modified to include the data provided in Proposed Schedule C-
2. Proposed Schedule C-2 was deleted and all subsequent schedules
renumbered.
Columbia states that the only significant data necessary is total
plant in service (as reflected in Account 101, et. seq.) and not data
by Account 300, et seq. Columbia states that the language specifying
that plant in service be detailed by account numbers should be deleted.
The Commission did not adopt Columbia's suggestion. The current
regulations require gas plant in service by plant account. The
Commission has found that account balances for plant in service are
critical to the analysis of changes in gas plant and determination of
depreciable plant.
4. Schedule C-2 (Proposed Schedule C-3). INGAA states that listing
every work order separately will result in unneeded and unhelpful
detail. INGAA suggested grouping by category of items whose cost is
less than a threshold level of $500,000. To reduce administrative
burdens, the Commission adopted INGAA's proposed modification to permit
grouping by category of items where the cost is less than $500,000.
Proposed Schedule C-2 was modified accordingly.
Columbia states that this information is provided in Schedule C-1
as plant adjustments and Schedule C-2 should be eliminated.
The Commission agrees that the plant totals are included in
Schedule C-1 as plant adjustment. However, the details of the plant
adjustments (i.e., work orders) are not reflected. The components of
these plant adjustments provide the data necessary to determine the
accuracy of the proposed plant adjustments and to determine which
additions are pending certificate authorizations.
5. Schedule C-3 (Proposed Schedule C-4). Columbia and INGAA state
that Schedule C-3 requires duplicate information and should be
eliminated because the pipeline customers own the majority of the gas.
This is true for those pipelines whose storage gas is owned by the
customers. However, many pipelines still own a portion of the storage
gas as base and system gas. Those pipelines must report this data.
AGD and Brooklyn Union recommend that this schedule specify: (1)
Monthly storage gas quantities; (2) the term ``storage projects owned''
be defined to include storage projects under contract to a pipeline;
(3) data on customer-owned gas, separately states the amounts held in
Account Nos. 117 and 164; and (4) pipeline owned and contracted storage
volumes be shown separately for Account 117 gas and Account 164 gas.
AGD concludes that these modifications will assist pipeline customers
and Commission staff in analyzing a pipeline's usage of storage
resources.
Modifying the regulations as recommended by AGD and Brooklyn Union
will aid in our investigation of the storage projects. The Commission
clarifies that the term ``storage projects owned'' includes storage
projects under contract to a pipeline. We note that customer-owned gas
is not reflected on the pipeline's books and therefore, is not included
in Account 117. Further, Schedule C-3 must reflect the monthly volume
activity in Account 117 and separately state the amounts and volumes
held in Account 117 for pipeline owned and contracted storage.
Columbia requested that the Commission reestablish the ability to
cross reference Schedule C-3 to FERC Form No. 2. The Commission agrees
that FERC Form No. 2 is an integral part of the Commission's analysis
of the pipeline's filing. Accordingly, the revised regulation
reestablishes a pipeline's ability to cross reference Schedule C-3 with
FERC Form No. 2.
6. Schedule C-4 (Proposed Schedule C-5). Williston states that this
schedule should be eliminated because the requested data is also
provided in FERC Form No. 2. The Commission did not adopt Williston's
suggestion. The Commission agrees with Williston that the information
required on this schedule would be duplicative if the pipeline has not
changed its procedures since it last filed FERC Form Nos. 2 and 2-A.
Therefore, the Commission's clarifies that Schedule C-4 must be
reported only if the pipeline has changed any of its procedures since
the last filed FERC Form Nos. 2 or 2-A.
7. Schedule C-5 (Proposed Schedule C-6). Columbia recommends that
since Accounts 101 and 106 can only be included in a pipeline's gas
operations, this schedule should be eliminated.
Schedule C-5 is reported only if significant changes over $500,000
have occurred since the end of the year reported in the company's last
FERC Form No. 2.
8. Schedule D. Columbia and INGAA recommend that only the base
period adjustments and test period balances be reflected on this
schedule. Furnishing these beginning balances is required by the
current regulations. The Commission has found that the beginning
balance is necessary for the analysis of the pipeline's plant reserve
and examination of specific plant reserve changes.
Columbia states that any authorized negative salvage value
reflected as a separate part of Account 108, should be required only if
the negative salvage value is defined and looking forward. Adopting
Columbia's suggestion would also require creating a separate subaccount
to specifically identify these amounts in the reserve account and
enhance our analysis of the negative salvage account balance and
associated rates. Accordingly, proposed Statement D was revised to
require that any included negative salvage value must be separately
maintained in a subaccount of Account 108.
9. Schedules D-1 and D-2. Proposed Schedule D-1 required actual end
of base period depreciation, depletion, and amortization balances by
functional classifications. Proposed Schedule D-2 required projected
end of test year balances for depreciation, depletion, and amortization
by functional classifications. Columbia and INGAA state that Proposed
Schedule D-2 should be deleted because the information is currently
reported on Statement D.
Proposed Schedule D-1 provides the functional gas plant for the
base period and Proposed Schedule D-2 provides
[[Page 52980]]
the functional gas plant for the test period. The Commission agrees
with Columbia and INGAA that these schedules could be combined in order
to avoid unnecessary administrative burden. Therefore, proposed
Schedule D-2 was deleted and combined with Schedule D-1 and Schedule D-
3 was renumbered as Schedule D-2.
10. Schedule D-2 (Proposed Schedule D-3). Williston states that
this schedule should be eliminated because the data is also provided in
FERC Form No. 2. However, Schedule D-2 (proposed Schedule D-3) is filed
only if a policy change has been made effective since the last annual
report on FERC Form No. 2 or 2-A was filed with the Commission. Thus,
there is no need to make the change suggested by Williston.
11. Statement E. Panhandle proposes to revise the instructions for
Statement E to reinstate the deletion of the gas stored underground. In
response to numerous commenters in the companion rule, the Commission
decided to permit a pipeline, in its next rate filing, to choose either
the fixed asset or the inventory model for storage accounting.
Therefore, all current gas stored underground previously recorded in
Account 164 will be recorded in Accounts 117.2, System Balancing Gas,
and 117.3, Gas Stored in Reservoirs and pipelines-noncurrent. Account
117.2 will be reflected in a pipeline's gas plant on Schedule C. Only
gas for resale from underground stored recorded in Account 117.3 will
be reported in Statement E. No additional recognition will be accorded
system gas in working capital, since no working capital requirement
should result from system balancing. Therefore, Statement E reinstates
the gas for resale underground storage. If a pipeline believes it can
show a working capital requirement for system gas, then the pipeline
can file for cash working capital in accordance with Schedule E-1.
Panhandle states that companies should continue to have the right
to request working capital treatment for other items. The Commission
clarifies that a company has the right to request any working capital
treatment of any justifiable item and the Commission can rule on the
appropriateness of that item based on the evidence presented.
12. Schedule E-3. Northwest/Williams recommend that this schedule
should only be submitted by a pipeline utilizing an authorized PGA
mechanism. The Pacific Northwest Commenters recommend that Schedule E-3
be submitted by any company which utilizes an authorized PGA mechanism
or which utilizes storage for system balancing. In addition, Panhandle
states that the instructions for Schedule E-3 should be revised by
deleting the first sentence restricting this schedule of gas stored
current to applicants utilizing a PGA mechanism.
Currently, there are only two pipelines with authorized PGA
mechanism and these pipelines have no storage. Thus, there is no reason
to maintain this schedule as originally proposed.
Panhandle does not support the change in accounting for storage and
therefore believes current Schedule E-2 should be retained. Since
pipelines may have gas for resale in underground storage, the current
Schedule E-3 will need to be reinstated to allow the reporting of this
gas. Thus current Schedule E-2, Storage Gas Inventory, is reinstated as
revised Schedule E-3.
14. Schedule E-4. NGSA recommends that Schedule E-4 (Storage
Inventory) show and explain the source, pricing, each use of working
gas (i.e., system balancing, working gas for sale, etc.) and be
reconciled to Account 117.3 (injected base gas, recoverable) and
Account 117.4 (gas owed to system gas). NGSA deems this modification
necessary to track the use of system gas. (NGSA in its comments to the
companion rule suggested retaining Account 117 as ``Base Gas'' and
Account 164 as ``Working Gas''.) The Pacific Northwest Commenters
believe that this information on storage inventory will be valuable for
any pipeline utilizing storage to provide system balancing.
The Commission agrees with NGSA's and Pacific Northwest's62
comments that the tracking of system gas is important. The companion
rule allows pipelines to use either the fixed asset model or the
inventory method for storage accounting for system gas included in
Account 117. Thus, system gas will be reported in Account 117.2 will be
accounted for or tracked on Schedule C. Account 117.3 will be reported
on Schedule E-3 and will reflect only gas for resale from underground
storage. No working capital requirement results from Account 117.4.
Therefore, proposed Schedule E-4 is not necessary and will be deleted.
\62\See comments on Schedule E-3.
---------------------------------------------------------------------------
15. Proposed Schedule E-5. INGAA states that proposed Schedule E-5
shows cross-references to other schedules containing the computations
and explanations, and so, this filing requirement should be made
optional to serve pipelines filing a lead-lag study.
Columbia states that the proposed schedule should be consolidated
with Statement E or eliminated because it requires the components of
working capital to be set forth in sufficient detail and contain cross
references to other schedules containing the computations and
components of working capital.
The Commission agrees with INGAA's and Columbia's comments and
incorporated the language of proposed Schedule E-5 into Statement E and
did not promulgate proposed Schedule E-5.
16. Statement F-2. NDG recommended requiring the filing pipeline to
submit a table showing the pipeline's earned rate of return on rate
base and earned return on equity for the base period. Thus, the
Commission and interested parties would be able to (1) evaluate whether
the Commission orders on previous rate filings have enabled the filing
company to earn the Commission authorized return and (2) evaluate the
pipeline's proposed revenue requirements.
The Commission disagrees with NDG's recommendations to modify
proposed Statement F-2. The information can be calculated from data
available in FERC Forms No. 2 and 2-A.
17. Statement G, Revenues, Credits, and Billing Determinants.
Statement G replaces current Statement G (Gas operating revenues and
sales volumes). The revised Statement G is a summary of information on
all jurisdictional services. Statement G must be filed with the rate
case. More specific information, in Schedules G-1 through 6, must be
filed 15 days later. Schedules G-1 through 6 must also be served on
parties that request such service within 15 days of the filing. The
sixth paragraph of current Statement G(e), concerning credits, is now
found in Statement G subparagraph (2). The Commission requires the
allocated GSR component of IT rates to be unbundled and treated as a
separate component for rate case filing purposes in order to better
compare and reconcile the cost-of-service to revenues. AGD supports the
portion of Statement G which provides that the filing must identify the
GSR component of interruptible transportation revenue as a ``transition
cost.''
The Industrials suggest standardized customer names or some way to
correlate data between Statement G and the proposed Index of Customers
(Sec. 154.111). The Commission does not believe it is necessary to
standardize names. Based on our experience, it is not difficult to
correlate the names used in Schedules G-1 and G-2 with those in the
Index of Customers.
AGD recommends that Statement G be modified so that Statement G is
required to be submitted to ``all Customers'' not
[[Page 52981]]
just to ``all affected customers.'' Under the revised regulation, all
customers who are customers of the pipeline on the date of the filing
of the rate case will receive an abbreviated form of the filing. Any
customer who has a standing request for service of the full filing will
receive the full filing, including the summary Statement G on the date
of the filing. Any other customer may request service of the complete
filing and receive the complete filing (with the summary Statement G)
within 48 hours of the request.
INGAA proposes that Statement G only include totals by rate
schedules and zones. Some pipelines proposed that detailed information
only be provided for customers that pay the maximum rate and that
aggregate information would be provided for customers that receive
discounts.
Panhandle, Great Lakes, and ANR/CIG state that the proposed
regulations governing Statement G significantly expand the previous
requirements and increase the burden on pipelines, without demonstrable
benefit.
CPCo and MGSCo believe that the Commission's proposed Statement G
would require pipelines to reveal commercially sensitive information.
Panhandle, INGAA, ANR/CIG, Great Lakes, and El Paso state that
pipelines should not be required to disclose commercially sensitive
information in Statement G. CPCo and MGSCo believe that the Commission
proposal should be modified such that information that is truly
commercially sensitive need not be provided until a protective
agreement covering such has been signed by the parties.
The Agreement filed by INGAA and AGD contained a detailed
alternative structure for Statement G. ANR/CIG also suggested revisions
to the Commission's proposed Statement G reporting requirements.
In light of the above comments, proposed Statement G has been
modified substantially. The Commission has required a summary Statement
G to provide enough information to begin the analysis of the rate case.
However, the customer specific information is not required immediately;
and, is only served on customers requesting service. The Commission has
not adopted commenters' position that such detailed information is
generically confidential, privileged, or proprietary. Rather, the
Commission concludes that, in the ordinary course, such information
should be publically available.
In support of the proposal in the AGD and INGAA Agreement that
contracts, discount information, and specific customer information
relating to revenue impact and billing determinants would be submitted
under seal, the Agreement stated ``AGD and INGAA agree that the
information discussed below is commercially-sensitive and that its
publication in mandatory filings may be detrimental to competition. AGD
and INGAA believe that the goals of the regulatory process can be
achieved without divulging information which is commercially-
sensitive.''63
\63\Agreement at 2. In the initial comments, INGAA had expressed
similar objection to public disclosure, stating that the ``proposed
disclosures would undermine the pipelines' competitive position and
would eventually stymie the same market competition that the
Commission strives to foster''. See pp. 3, 6, and 9.
---------------------------------------------------------------------------
The request that portions of the filing be treated as confidential
on a generic basis finds little support in either the statutory
framework or precedent. The NGA, on its face in section 4, requires
pipelines to file contracts when seeking a rate change. Section 4(c) of
the NGA provides that the pipeline shall file, under the Commission's
regulations, and shall:
Keep open in convenient form and place for public inspection,
schedules showing all rates and charges for any transportation or
sale subject to the jurisdiction of the Commission, and the
classifications, practices, and regulations affecting such rates and
charges, together with all contracts which in any manner affect or
relate to such rates, charges, classifications, and services.
If confidentiality is required as to any specific contract,
Sec. 388.112 of the Commission's regulations sets forth the procedure
to be followed.64
\64\18 CFR 388.112.
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With the introduction of competition in the interstate sale of gas,
the Commission has sustained the claim of confidentiality with respect
to price information where the party lacks market power, because the
information could be used by competitors to undercut that party's bids.
There is a different answer for transportation-related information.
Unless proven otherwise, there is a presumption that a pipeline still
retains a substantial degree of market power in the transportation of
natural gas. Therefore, the Commission cannot presume the existence of
competition for transportation. When the claim of confidentiality has
been asserted in Commission proceedings, the Commission has required
the claim to be supported with specificity, rather than with vague and
speculative allegations of competitive harm,65 since the
Commission must ``balance the need for public disclosure against the
harm caused by release of the information.''66 The Commission
intends to apply this standard to the customer-specific information in
Schedule G.
\65\Trunkline Gas Company, 49 FERC para.61,227 (1989).
\66\ANR Pipeline Co., 65 FERC para.61,280 at 62,305 (1993)
(ANR).
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18. Schedule G-1, Base Period Revenues. Schedule G-1 requires data
on actual revenues for all services and customers, rather than solely
on sales revenues, as currently required by Schedule G(a), or solely
aggregate transportation revenues, as currently required by Schedule
G(c). Schedule G-1 also requires: (1) Identification of revenues by
customer, by rate schedule, by month, and by billing determinant (not
adjusted for discounting) which is similar to the data currently
required by Schedule G(e) fifth paragraph; (2) separate identification
of revenues for short-term firm transportation services; (3) capacity
release information; (4) an identification of affiliated customers; and
(5) identification of rate schedules, where revenues are credited as
currently required by Schedule G(c).
NI-Gas supports Schedule G-1, specifically the reporting of the
actual revenues, including actual billing determinants. Panhandle
states that base period data on revenues (Schedule G-1) serve no
purpose in the design of rates and should not be required because rates
are designed using base period volumes as the starting point for
determining an appropriate level of test period volumes, but base
period revenues are not used.
The Commission disagrees. This information is needed to compare the
level of revenue change. The Commission notes that Schedule G(1)
reduces the burden by nearly half, compared to the current regulations,
because a pipeline is no longer required to show existing rates with
test period volumes and proposed rates with base period volumes.67
\67\See current Sec. 154.63, Statement G (a) and (b).
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The Commission clarifies, as requested by AGD, that the reference
to ``associated revenues'' in Schedule G-1 in connection with released
capacity relates only to the pipeline's collection of commodity charges
received from replacement shippers.
Pacific Northwest suggested that the Commission clarify that the
``separate identification'' of capacity release transactions means that
pipelines are to group together base period services which were
rendered for replacement customers, and indicate which customers
released the capacity to the replacement customer. The Commission is
not requiring the separate identification of transactions for
[[Page 52982]]
replacement customers. Since ``replacement'' customers have become
``primary'' customers of the pipeline, they will be identified in the
same manner as all other ``primary'' customers. The Commission is,
however, requesting summary information in Statement G on capacity
release revenues and throughput in order to evaluate the effect of the
secondary market on the level of other services, such as interruptible
transportation.
Pacific Northwest suggested changing the fifth sentence to: For
transportation services provided through released capacity during the
base period, identify the released usage quantities and associated
revenues by rate schedule, by contract, by month, and totals for the
base period, and identify the customer that released capacity. The
proposed regulation was modified similarly to Pacific Northwest's
suggestion.
19. Schedule G-2, Adjustment Period Revenues. Schedule G-2 requires
information similar to that required in Schedule G-1.
Panhandle and Great Lakes state that the requirements of Schedule
G-2 should be modified as there is no need to provide the requested
information by customer since rates are designed by rate schedule, not
by customer. This suggestion was not adopted. The Commission believes
that the customers should know the specific impact of the changes.
Further, the Commission observes, this requirement is contained in the
current regulations and we have not been persuaded that a change is
necessary.
Williston states that Schedule G-2 requires that billing
determinants not be adjusted for discounting. Williston believes that
this could cause a distortion in the calculation of proper rate levels.
However, such an adjustment is contemplated in Statement J-1. The
purpose of Statement G is to show actual and estimated throughput
levels, unadjusted for discounting.
ANR/CIG state that Schedule G-2 does not necessarily allow for the
validation of either cost-of-service data or proposed rate design, as
there is no linkage between designed and discounted rates.
The Commission finds that this data is necessary because revenue
should match the cost-of-service plus any surcharges.
ANR/CIG also state that Schedule G-2 requires a level of detail
which is simply not available with regard to discounted services. The
Commission believes that if a pipeline's rates reflect discounted
services, detailed information to support such discounts must be
provided. The Commission believes that discounting information is
available if the pipeline's proposed rates simply reflect a
continuation of the discounts experienced in the base period. If,
however, the pipeline is projecting different types of discounting, the
pipeline must provide data to support such discounting in Schedule G-2.
Indeed, the Commission believes that this information is necessary for
the pipeline to meet its burden of proof that proposed rates are just
and reasonable.
Third, ANR/CIG state that the requirements of Schedule G-2
exacerbate the confidentiality concerns raised by the industry both at
the pipeline and shipper levels. Instead, ANR/CIG suggest that the
Commission should require a revenue study using maximum rates and
design determinants. The Commission's position on confidentiality is
discussed supra.
Columbia states that including the effect of rates that may have
been in effect for a limited period of time during the base period will
only serve to distort the revenue comparison. The Commission disagrees.
The base period is a snapshot of a period of time and provides a
necessary reference point for determining the rates for a subsequent
period.
Great Lakes states that monthly adjustment period information would
not be useful and should not be reported in Schedule G-2. The
Commission disagrees. This monthly information is currently required by
Sec. 154.63(f), Statement G(b), and is used in determining trends in
throughput and whether seasonal rates are appropriate. There has been
no persuasive argument to change this requirement.
Pacific Northwest contends that pipelines should not be required to
attempt to identify expected future capacity releases by each customer
that is expected to release capacity; rather, the pipeline should be
required only to identify a total expected level of capacity release
activity based on experience in the base period as adjusted. The
Commission disagrees. The base period identifies capacity release data
by customer and the pipeline must justify any changes to base period
services in order to adequately explain any proposed changes in rates.
If the test period data is not provided with the level of detail
required, customers would not be able to challenge the pipeline's
projections with respect to their deliveries.
NI-Gas and Pacific Northwest ask the Commission to clarify that
pipelines are expected to include in the adjustment period a
representative level of services for which there may not be firm
contracts with primary terms extending to the test period, including
interruptible and short-term firm services. The Commission believes
this is already required by the regulations. Pipelines have always had
the burden to propose throughput based on actual experience adjusted
for known and measurable changes. If the pipeline provided
interruptible and short-term firm services during the base period, but
did not include representative levels for such services in the test
period projections, it must justify the difference in Schedule G-3.
Pacific Northwest suggests the Commission change the fifth sentence
to read as follows: Show separately any projected or representative
level of released capacity usage quantities (Unadjusted for
discounting) and associated revenues by rate schedule, by contract, by
month, and totals for the projected period. The Commission believes
that the proposed language change improves the text of the regulation.
Accordingly, this suggestion has been adopted.
NGSA states that to reconcile cost allocation and revenue recovery,
surcharge revenues should be separately shown for each applicable
surcharge; to reduce the filing burden, Schedules G-1 (Base Period
Revenues) and G-2 (Adjustment Period Revenues) should show total
volumes and revenues by month, rate schedule (separately showing
overrun and capacity release), rate charged and zone of receipt/zone of
delivery (or other category by which rates are charged). NGSA asserts
that information by customer should be available only upon specific
request. These comments are supported by Chevron and generally
supported by IPAA. The Commission notes that Statement G(A)(1) requires
the separate identification of revenues from surcharges. Further, as
noted earlier, the revised regulations only require the service of
customer-specific information contained in Schedules G-1 and G-2 upon
request.
Arizona Directs pointed out that proposed Sec. 154.313(j)(6)(ii)
appears to apply to all of Statement G and, if so, it should be
separately stated. Referring to Schedules G-1 and G-2, Arizona Directs
states that this data is extremely useful and should continue to be
provided by pipelines in their rate filings. Customers should not need
to make a specific request to obtain this information. Arizona Directs
states the specificity of (Statement G) and other filing requirements
will serve to
[[Page 52983]]
eliminate much current confusion. Arizona Directs' comments have caused
us to reconsider the need for this requirement. We have deleted the
proposed Sec. 154.313(j)(6)(ii) from the final rule, and have moved the
subject language to the front of Statement G. As explained earlier,
parties may request Schedules G-1 and G-2 from the pipeline to obtain
this information.
The Industrials state that revenue from transportation services
should be shown by delivery point and/or zone to enable interested
parties to determine if portions of a pipeline's system have become no
longer used and useful and to conduct the appropriate geographic market
analyses if a pipeline argues that it should be subject to non-cost-
based ratemaking. The Commission believes that these suggestions are
too burdensome. These regulations are only intended to cover filing
requirements for cost-based rates.
20. Schedule G-3. Schedule G-3 is a description of adjustments to
the base period. Schedule G-3 replaces current Schedule G(e) third
paragraph. Schedule G-3 requires quantification of the impact of each
proposed change rather than providing only throughput and contract
level differences. The Commission believes this requirement is
necessary in order for a pipeline to meet its burden of proof with
respect to changes to billing determinants. This schedule should reduce
follow-up data requests and shorten the time required to analyze and
evaluate the pipeline's proposed changes.
ANR/CIG and Great Lakes state that the proposed Schedule J-1 seeks
the same information as G-3, but on a summary level. ANR/CIG suggests
moving the requirements of Schedule G-3 to Schedule J-1 in order to
place the supporting calculations with the required summary and enhance
the use of this data.
Statement G shows throughput data while schedule J-1 shows the
billing determinants used to develop rates. As explained at Schedule J-
1, the two sets of data do not always coincide. Thus, a reconciliation
is needed. Because the two statements serve different purposes, the
Commission will not require that they be consolidated. However,
Proposed Schedule G-3 has been modified and no longer refers to
``discounting.''
Columbia states that this regulation could be interpreted to
require that a determination be made as to the impact of each change in
the cost-of-service on each customer. The Commission clarifies that the
intent is not to require a determination to be made as to the impact of
each change in the cost-of-service on each customer but rather to
explain and justify each adjustment.
AGD recommends that Schedule G-3 information be reported only by
pipeline rate zone and by rate schedule. This proposal was not adopted
as the NGA requires that the pipeline provide information necessary to
meet the burden that proposed rates are just and reasonable. The
required information is a necessary part of this proof.
NI-Gas supports Schedule G-3, specifically the requirement that
test period adjustments to base period billing determinants be
explained.
21. Schedule G-4, At-risk Revenue. Schedule G-4 compares revenues
generated by ``at-risk'' facilities to the cost of those facilities, as
specified in Sec. 154.310.
Columbia contends that the at-risk revenue requirements of proposed
Schedule G-4 are redundant and unnecessary given the present
requirements for certification of new facilities and expansions. The
Commission disagrees. The Commission believes that this requirement is
an important one providing a single list in a rate case filing of all
facilities that have an ``at-risk'' provision. This will ensure that
the Commission and all parties are able to thoroughly evaluate whether
the at-risk condition has been satisfied or should continue to apply to
the pipeline.
NI-Gas argues this schedule should specify the reasons why the
pipeline has assigned the particular revenues to the at-risk
facilities, rather than to general unsubscribed system capacity. This
suggestion was not adopted because Schedule G-4 requires the pipeline
to provide at-risk revenues by customer by rate schedule. If parties
disagree with the pipeline's assignment of revenues to specific
customers or rate schedules, they may challenge the pipeline on this
issue in the litigated phase of the rate proceeding. Pipelines are
encouraged to address this issue at the time they file to remove their
at-risk conditions.
22. Schedule G-5, Other Revenues. Schedule G-5 collects revenue
data regarding the sale of products extracted from natural gas and
other activities reported in Accounts 487-495. New requirements to
quantify and explain changes to base period actuals and provide
information about releases, penalties, cash outs, other imbalances, and
exit fees are incorporated in this schedule. Revenues from
miscellaneous services still must be reflected in Account 495. Further,
pipelines must explain the circumstances relating to revenues from
``special'' types of ``X'' rate schedules. Revenues from the release of
Account 858 capacity must be reflected as a credit to Account 858 in
both Schedule G-5 and Schedule I-4.
Panhandle maintains that the information required by proposed
Schedule G-5 should only be required of those pipelines who do not have
separate tariff provisions dealing with the disposition of cashout
revenues, exit fees, and penalty revenues. The Commission disagrees.
The items identified by Panhandle would apply to some items included in
Account 495--Other Revenues. However, Schedule G-5 also requires
information on sales of products extractions, revenues from gas
processed by others, incidental gasoline and oil sales, rents from gas
properties and interdepartmental rents (Accounts 490-494). Not
requiring the information if a pipeline has a tariff provision on a
non-related item will prevent the Commission and parties from receiving
an accurate portrait of the pipeline's revenues for base and test
period. Further, the information on all of the accounts is necessary
for auditing purposes. The requirement is not intended to modify the
pipeline's existing tariff provisions on releases, cashouts, imbalances
or exit fees.
23. Statement H-1. Columbia and INGAA states that the proposal to
identify specific months when a proposed test period adjustment will
occur serves no purpose in Staff's rate analysis and the company would
be required to speculate an event which places upon the company an
unnecessary burden with no probable benefit or purpose and should be
eliminated. The Commission agrees with Columbia and INGAA's comments
and has eliminated the requirement to identify the month of the
proposed test period adjustment.
The Pacific Northwest Commenters suggest that if the Commission
intends to deal with rate case issues expeditiously, the Commission
should require a pipeline to provide more adjustment information on
Operation and Maintenance Expenses, than required in the proposed
Statement H-1 description.
Proposed Statement H-1 requires a detailed explanation of the basis
for each adjustment with supporting workpapers. If additional
information is necessary, the parties can, through a data request,
obtain the information. We want to reduce the filing burden, not
increase it by requiring the filing of more adjustment information.
24. Schedule H-1(1). AGD recommends that expenses associated with
project development including engineering, administrative and legal,
and market development expenses be separately itemized by project. AGD
is
[[Page 52984]]
concerned that a pipeline may be accruing expenses over its cash
expenditures. AGD recognizes that some accruals may be in order,
however, it seeks data that will allow customers to test whether a
pipeline is inflating its expenses in order to increase its rates. AGD
recommends that the Commission require a pipeline to reconcile its base
period expenses with actual cash expenditures as a part of Schedule H-
1(1).
The Commission agrees with AGD's recommendation to require a
pipeline to reconcile the base period expenses to actual cash
expenditures. Proposed Schedule H-1 requires the disclosure and
explanation of any special accruals and will be modified to require
identification of all accruals which will met the AGD's recommendation.
25. Schedules H-1(1)(c), H-1(3)(a), and H-1(3)(b). Northwest/
Williams recommends that Schedules H-1(1)(c), H-1(2)(a), and H-1(2)(b)
should only be submitted by a pipeline utilizing an authorized PGA
mechanism.
The Commission rejects Northwest/Williams' recommendation.
Compressor fuel usage is reflected on these schedules and is used to
determine the appropriate fuel retention percentage whether or not a
pipeline has an authorized PGA mechanism.
Williston states that because fuel costs are recovered by a
separate mechanism under a pipeline's existing tariff such costs should
not be subject to review. Therefore, Schedule H-1(1)(c) should be
eliminated. However, Williston contends volume data should be provided
for gas balance purposes.
The Commission must review all fuel costs, whether recovered in a
separate mechanism or not. Fuel usage is an important element of a
pipeline's costs and though these costs may be tracked, a pipeline's
tracker may require a redetermination of the base level in a rate
proceeding. This data is reflected on Schedule H-1(1)(c) and therefore,
can not be eliminated. Since both volumes and costs are recorded in the
fuel accounts, the data is readily available. Thus, Schedule H-1(1)(c)
will continue to reflect both volumes (quantities) and costs
(expenses).
NGSA recommends that the following be grouped together and
reconciled with purchased gas costs and other fuel reimbursement:
Schedule H-1(1)(c) expenses and associated quantities applicable to
Account Nos. 810, 811, and 812; Schedule H-1(3)(a) accounts used to
record fuel use or gas losses; and Schedule H-1(3)(b) account used to
record other gas supply expenses. NGSA maintains this modification
would allow pipeline gas use to be better understood and tracked.
We agree with NGSA that these schedules could be grouped together.
However, we would prefer not to mix the fuel use schedule with the
system gas reimbursement and exchange gas schedules. Since both
Proposed Schedules H-1(3)(a) and (b) present primarily system gas
transactions, we will combine them into a new schedule incorporating
the same reporting requirements. Proposed Schedule H-1(1)(c) which
reflects the company-used gas will not be revised.
Columbia states with the advent of Order No. 636 and the
elimination of the merchant function throughout the industry, the need
to retain gas for operations is nearly universal. Because the rate that
shippers pay for the gas that is ultimately retained by a pipeline
varies, the rate assigned for reflecting an expense for gas used on the
system in Schedules H-1 and H-1(1)(c) is not meaningful for purposes of
reporting expenses in these schedules.
The Commission agrees with Columbia. However Schedule H-1(1)(c)
does not require the rate assigned for reflecting an expense for gas
used on the system. Only the costs (expenses) and volumes (quantities)
are required.
26. Schedules H-1(2)(a) and H-1(2)(b). These schedules were
required for pipelines with Commission approved PGA clauses in their
tariffs. Since these schedules would apply to only two pipelines, there
is no reason to maintain them in the regulations. The data reported on
these schedules will be gathered through the data request process.
Thus, Schedules H-1(2)(a) and H-1(2)(b) are deleted. All subsequent
schedules will be renumbered.
27. Schedule H-1(2) [Proposed Schedule H-1(3)]. Columbia
recommends that Schedule H-1(3) be eliminated because the data is also
provided in FERC Form No. 2.
The Commission disagrees with Columbia that the data reflected on
Schedule H-1(2) is provided in FERC Form No. 2. The data in the FERC
Form No. 2 is reported on a calendar year basis and may not reflect the
base period of a proposed rate filing.
28. Schedule H-1(2)(j) [Proposed Schedule H-1(3)(k)]. NGSA
recommends that proposed Schedule H-1(3)(k) be expanded under (iv) to
require a pipeline to: (1) Document and demonstrate the derivation of
the allocation bases used to allocate costs among affiliated companies;
(2) identify (by account number) all costs paid to, or received from
affiliated companies which are included in a pipeline's cost-of-service
for both the base and test periods; and (3) explain each test period
adjustment to base period actuals for intercompany costs included in
the cost-of-service. NGSA considers this information necessary where a
pipeline has affiliated gas related companies providing non-
jurisdictional services (e.g., marketing and gathering).
The Commission recognizes that NGSA's recommendations would provide
valuable information on the non-jurisdictional services of a pipeline.
As recommended by NGSA, the language in paragraph (iv) of Schedule H-
1(2)(j) will be modified to incorporate NGSA's recommendations (1) and
(2). Statement H-1 requires an explanation of all adjustments, and
therefore, NGSA's recommendation (3) is not necessary.
The Pacific Northwest Commenters recommends that the Commission
ensure that Schedule H-1(3)(k) or a separate schedule provides: (1)
Complete and clear disclosure of all corporate overheads allocated to a
pipeline; (2) a full explanation of the service provided; (3) a
demonstration that such service is not duplicative of functions
performed by the pipeline itself; and (4) the savings that result from
sharing such services with other corporate affiliates. In addition, the
Pacific Northwest Commenters recommend that where a pipeline uses an
allocation formula, the pipeline must show all calculations using the
formula.
Pacific Northwest Commenters's recommendations raise a valid area
of concern regarding pipelines' overhead allocation. However, requiring
a pipeline to provide the requested level of detail would be extremely
labor intensive and it would be difficult for a pipeline to determine
the savings without a costly study. We will clarify our instructions to
incorporate language requiring a complete and clear disclosure of all
corporate overhead allocated to the company with calculations
underlying all allocation formulas.
AGD states in order to determine how joint costs are allocated
between a pipeline and its affiliated entities, the Commission should
clarify its regulations by declaring that a pipeline bears the burden
of proving that all charges from affiliates and all overhead charges
are just and reasonable, including per book amounts. AGD further
recommends that a pipeline's failure to fully support charges from
affiliates and overhead allocations should be grounds for summary
rejection of any claimed amounts, including amounts taken from its
books.
The Commission agrees with AGD and clarifies that a pipeline bears
the
[[Page 52985]]
burden of proving that all charges from affiliates and all overhead
charges are just and reasonable. However, AGD's recommendation for
summary rejection of any claimed amounts would be prejudging a
pipeline's case prior to a appropriate hearing before this Commission.
The Commission disagrees with this recommendation.
Columbia and INGAA state that this schedule is voluminous and
usually the only item of importance is overhead allocations, which are
detailed on Schedule H-1(3)(f) (Account 923). They recommend that
Schedule H(1)-(3)(k) should reflect only total amounts, not monthly
amounts, and should reflect only major intercompany transactions. This
can be accomplished by increasing the minimum dollar level reported to
$500,000.
Intercompany transactions affect many operating accounts, not just
Account 923. However, to the extent details of intercompany
transactions affecting Account 923 are provided in Schedule H-1(2)(j),
pipelines may group all such transactions together in Schedule H-
1(2)(e). The Commission must scrutinize affiliate transactions,
particularly those with marketing affiliates. Therefore, a high
threshold is not appropriate.
Panhandle states that a complete explanation and workpapers
supporting each adjustment to base period expenses are already required
by instructions for Statement H-1. There is no need to report these
same adjustments separately in Schedule H-1(3)(k). The proposed
regulation does not provide any justification or explanation for this
added burden on the filing company.
Proposed Schedule H-1(3)(k) is a workpaper reporting the details of
these intercompany and interdepartmental transactions, by account.
Statement H-1 reports only the actual book balances for operating
expense accounts and proposed adjustments to these accounts. The
account details are necessary to determine the appropriateness of the
individual charges, which is only available on this schedule. Thus, the
Commission will not revise Schedule H-1(2)(j) to reflect Panhandle's
recommendation.
Panhandle states that the additional requirement to report charges
or credits to associated or affiliated companies should not be adopted
since the amounts charged to affiliates are not included in O&M
Expenses for the cost-of-service to the pipeline and are irrelevant to
a determination of the pipeline's rates. Panhandle asserts further that
the reporting of this data will add significantly to a pipeline's
burden without providing any demonstrated need for the data.
The Commission disagrees with Panhandle. Credits for charges to
affiliates reduce the pipeline's operating expenses and therefore, are
relevant to rate determinations. This requirement to report charges or
credits to associated or affiliated companies is not a new requirement,
and Panhandle has not provided a sufficient argument to change this
requirement.
29. Schedule H-1(2)(k) [Proposed Schedule H-1(3)(l)]. Panhandle
states that the details of all lease payments over $500,000 are not
required by Order No. 636, nor does this data appear to be required by
any current articulated ratemaking policy of the Commission. Panhandle
states that the Commission is imposing a significant new reporting
burden without an explanation of why the information in Schedule H-
1(3)(k) is needed or how it is significant. Panhandle states that the
requirement should be deleted or limited to leases applicable to gas
operations. The Commission clarifies that this schedule is for
reporting only the leases applicable to gas operations.
30. Schedule H-2(1). Northwest/Williams states that the information
included on Schedule H-2(1) can be found on other statements or
schedules.
Williston notes that Schedule H-2(1) rarely, if ever, draws
inquiry. Williston believes the information on this schedule serves no
regulatory purpose and should be deleted.
The Commission's disagrees with Northwest/Williams and Williston
that the information on Schedules H-2(1), H-3(3), and H-3(4) are not
useful in evaluating a rate filing or serves no regulatory purpose.
Schedules H-2(1) provides the reconciliation of depreciable plant to
the gas plant reflected in Schedule C-1. The Commission is unaware of
this information being available in another schedule.
31. Statement H-3. NGSA recommends that Proposed Sec. 154.305, Tax
Normalization, be incorporated into the instructions for income taxes
under Sec. 154.312, Statement H-3. The Commission agrees with NGSA and
modified Statement H-3, accordingly.
32. Schedules H-3(1)-(3). Columbia avers that Schedules H-3(1)
through (3) are rarely relied upon and should be eliminated and asks
that the Commission clarify the exact intent of this schedule with
respect to the proposed changes to Sec. 154.306(d)(2).
INGAA states that Schedule H-3(1) is seldom used in rate analysis
and should be deleted from the filing requirements. Columbia and INGAA
states that virtually all interstate gas companies utilize ``full
normalization'' concept in computing income taxes, therefore no
differences exist and Schedule H-3(2) should be deleted from the
filing.
Northwest/William states that Schedule H-3(3) is not useful in
evaluating a rate filing. Williston notes that Schedule H-3(3) rarely,
if ever, draw inquiry. Williston believes the information on this
schedule serve no regulatory purpose and should be deleted.
Schedules H-3(1) was intended to report the reconciliation of book
and taxable net income for a pipeline. The data as reported rarely
reflect the same time period as the base period of the rate filing.
Thus, we find the information has limited use in the overall analysis
by our staff. Therefore, we have deleted Schedule H-3(1).
Proposed Schedule H-3(2) had required reporting the differences
between book and tax depreciation on a straight-line basis and the
excess of liberalized depreciation for tax purposes. As noted by INGAA,
most pipelines utilize the ``full normalization'' concept in computing
income taxes, therefore no differences exist. Thus, the Commission will
delete Schedule H-3(2) in the final rule.
Proposed Schedule H-3(3) (New Schedule H-3(1)) reflects the state
income taxes paid during the current and/or previous year covered by
the test period. This is the only schedule of a rate filing where state
income taxes paid by state are reflected. A thorough evaluation of the
state tax rates, allocation factors, etc. is necessary to complete our
analysis of a rate filing.
33. Schedule H-3(4). Columbia recommends that the regulatory asset
or liability, net of deferred tax amounts, be included in a
reconciliation of Schedule H-3(4) or a workpaper be established to
support the calculation of the regulatory asset or liability on
Schedule B-2.
The Commission agrees with Columbia that the regulatory asset or
liability net of deferred tax amounts should be included in a
reconciliation of Schedule H-3(4) or as a workpaper to support the
calculation if included on Schedule B-2, if recovery of these costs are
included in the computation of rate base. However, the gross amounts
should also be included.
Williston notes that Schedule H-3(4) rarely, if ever, draws
inquiry. Williston believes the information on this schedule serves no
regulatory purpose and should be deleted.
Schedule H-3(4) presents accumulated deferred income taxes for the
latest reporting period reflected on Statement B, Rate Base. The
information
[[Page 52986]]
reported on this schedule is vital for the determination of a
pipeline's appropriate rate base level and will not be deleted.
Proposed Schedule H-3(4) is renumbered Schedule H-3(2).
34. Schedule H-4. INGAA states that the value of identifying the
amounts expended or accrued during the rate period would not be
comparative. This is so because there is usually an overlapping of a
payment year and the reported year in a rate filing.
Proposed Schedule H-4, except for editorial revisions, is identical
to the prior regulations. INGAA's arguments have not persuaded us that
there is no longer a need for this information to be reported. The
amounts reflected on this schedule provide the Commission with a
beginning point in the overall analysis of other taxes by furnishing
the expended and accrued taxes for the base period.
35. Schedule I-1, Functionalization of Cost-of-Service. Schedule I-
1 replaces current Statement I (Allocation of overall cost-of-service).
The information on jurisdictional and nonjurisdictional sales
allocation is eliminated as no longer needed.
Schedule I-1(c) requires a pipeline that maintains its records by
zones and proposes a zone rate methodology to provide functionalized
costs for each zone. NGSA suggests that Schedule I-1 (c) should only be
required for pipelines which separate their cost-of-service by zones.
This is already the case. Section 154.310 requires a cost-of-service by
zone only if a pipeline maintains records of costs by zones and
proposes a zone rate methodology based on these costs. (See the
discussion of Sec. 154.310.)
NGSA also states that on Schedule I-1 (d), pipelines should be
required to show the basis for allocating all costs (A&G, working
capital) among functions. This showing will be required by the new
regulations as it is required by the current regulations.
36. Schedules I-2(i) and (ii). Schedules I-2(i) and (ii) replace
present Schedule I-2. Schedule I-2(iii) requires an explanation of all
changes in classification from the pipeline's currently effective
rates. This information is required by current Schedule K-2, but is
often difficult to distinguish from other information.
INGAA, ANR, and CIG state that in Schedule I-2, classification of
administrative and general expenses by account serves no useful purpose
in rate analysis. Columbia notes that the classification of A&G costs
by account is not useful if the pipeline allocates on a direct labor
basis because the classification is fixed and recoveries occur through
the demand charge. The Commission disagrees. A&G costs by account, are
used to determine whether costs should be allocated by plant or direct
labor under the Kansas-Nebraska method. Accordingly, the proposed
requirement to provide A&G costs by account has not been removed.
NGSA states that Schedule I-2 should require the classification of
revenue credits by account. Revenue credits generally include Accounts
490-495. The amounts reflected in several of these accounts (such as
Account 492-Incidental Gasoline and Oil Sales) would ordinarily be
classified as variable costs. However, the revenues from Account 493-
Rent From Gas Property would be classified as a fixed cost. Thus, a
breakout of the classification of revenue credits by account is needed.
The Commission modified proposed Schedule I-2 accordingly.
37. Schedule I-3, Allocation of Cost-of-Service. Schedule I-3
replaces current Schedule J. Schedule I-3(ii) bridges the gap between
the cost-of-service and rates. The information required is now filed
under current Schedule K-1. Schedule I-3(ii) follows a more logical
order. It also recognizes that there are often several allocation steps
before rates are actually calculated. Schedule I-3(iii) requires the
formulae and allocation determinants. Schedule I-3(iv) requires an
explanation of any changes from the current methodology, as is required
under current Schedule K-2.
38. Schedule I-4, Transmission and Compression of Gas by Others
(Account 858). Schedule I-4 replaces current Schedule I-4. The
revisions reflect current operations. Schedule I-4(i) requires
information on the expiration date of each contract with an upstream
pipeline. This will provide the Commission with information about the
status of contracts. Schedule I-4(iii) requires the pipeline to report
monthly usage volumes and monthly costs. Schedule I-4(v) requires
minimal information about capacity release. It does not request any
information on the identity of the contracting party. The information
on revenues for releases is necessary to ensure that the pipelines'
customers that pay the Account 858 costs receive a credit for revenue
from capacity releases made by the pipeline of this upstream capacity.
AGD states that Schedule I-4 should require the reporting of rates
that are in effect subject to refund and a statement of last approved
rates. AGD avers that the additional information will notify parties of
any refund contingencies reflected in the pipeline's Account 858 costs
and will provide a basis for the Commission to order the flowthrough of
refunds to customers. The Commission declines to add this
administrative burden. Such information is not generally required for a
rate case.
Northwest/Williams states that Schedule I-4 is no longer needed in
an Order No. 636 environment. The Commission disagrees. Several
pipelines retain capacity on upstream pipelines for operational
purposes. This statement is needed to ensure that the level of such
Account 858 costs is appropriate. We note that pipelines that do not
retain upstream capacity for operational purposes do not need to file
this information.
The Industrial Groups note that proposed Schedule I-4(d) required
monthly ``revenues'' but should refer to ``costs.'' The regulation has
been corrected.
39. Schedule I-5. Current Schedule I-5 requiring information on
meters, is deleted.
The NOPR had proposed a new Schedule I-5, Three-day peak
deliveries, to replace current Schedule I-6. However, in light of
comments and reconsideration, the Commission has determined that the
information on 3-day peak deliveries is no longer generally useful in a
rate case.68
\68\Pipelines with non-jurisdictional sales must provide this
data in Statement J.
---------------------------------------------------------------------------
Northwest/Williams notes that, in a restructured environment,
contract demand or MDQs are the primary basis for the design of firm
transportation reservation charge, therefore the average 3-day peak
information is not required for rate design for many pipelines.
Northwest/Williams is generally correct; however, if a pipeline
allocates costs on the basis of 3-day peaks, it must provide the basis
for such allocation in Schedule I-3(c).
40. Schedule I-5, Gas Balance. Schedule I-5 replaces current
Schedule I-7 with the deletion of that schedule's last sentence.69
\69\This schedule appeared in the NOPR as proposed Schedule I-6.
---------------------------------------------------------------------------
Williston commented that this schedule should be deleted because it
does not provide useful information for the design of base rates and
requires information also required in FERC Form No. 2. Williston is
mistaken. This schedule shows the pipeline's actual and projected
physical operations. Such information assists the Commission and
parties in evaluating whether the pipeline's rate design is appropriate
for its operating characteristics. For example, if transportation
throughput during the winter is significantly higher than during the
summer, seasonal rates
[[Page 52987]]
may be appropriate. Further, FERC Form No. 2 does not provide test
period data.
41. Statement J, Comparison and Reconciliation of Estimated
Revenues With Cost-of-service. Statement J replaces current Statement
K. Statement J will provide the same type of comparison as the current
schedule, except that Schedule J specifically requires that Schedule G-
2 must be compared to Statement I. Statement J also requires that
surcharges be reflected and recognizes that they are not derived from
the cost-of-service, but are jurisdictional revenues. Also, discounting
adjustments are provided in this statement.
42. Schedule J-1, Summary of Billing Determinants. Schedule J-1
will help correlate the volumes in Schedule G to the volumes used to
develop rates.
ANR and CIG state that this schedule seeks the same information as
Schedule G-3, but on a summary level, therefore, the requirements of
Schedule G-3 should also apply to Schedule J-1 so that the supporting
calculations are provided with the summary. Williston states that this
schedule duplicates existing information in Schedule G and should be
deleted. The Commission disagrees. Schedule G-3 provides detailed
information for each proposed adjustment to actual base period billing
determinants while the information in Schedule J-1 is summarized for
rate design purposes. Each schedule is retained because each serves a
different purpose.
Columbia states that the requirement to include surcharges as part
of the revenues in Schedule G needlessly complicates the reconciliation
process. Columbia advocates ignoring surcharges of limited duration or
those subject to intermittent changes.
The Commission recognizes that surcharges are not part of the cost-
of-service; however, surcharge information enables the Commission and
parties to verify whether discounts are attributed to base rates or
surcharges consistent with Sec. 154.109.
AGD states that requirements should be supplemented to facilitate
reconciliation calculations. AGD recommends requiring the pipeline to
include a summary by rate schedule and by zone of billing determinant
adjustments provided in Statement G. The Commission disagrees. As
stated above, all reconciliations to billing determinants in the design
of rates, including discounting adjustments, must take place in
Statement J, not Statement G.
43. Schedule J-2, Derivation of Rates. Schedule J-2 replaces
current Schedule K-1. Schedule J-2 more clearly specifies what
information is required and requires that costs and billing
determinants be cross-referenced.
44. Schedule J-2(iii). Schedule J-2(iii) requires the same
information as current Schedule K-2.
Pacific Northwest Commenters states that the Commission should
expand the requirements to include a full narrative of the method used
and step-by step calculations for each rate component of each rate. The
Commission notes that such narratives are already required by Schedule
G-3 and Sec. 154.201(b)(2).
Columbia seeks clarification that the rate component referenced
relates to a reservation/usage distinction and not a distinction based
on the individual components of the cost-of-service. Columbia's
interpretation is correct.
NI-Gas suggests that pipelines be required to include schedules
with Statement I that specify the impact of each proposed change in
functionalization, classification, allocation or rate design. NI-Gas
also suggests that the explanation of changes in rate derivation
required by Schedule J-2 provide the impact on shippers of each change.
Such impacts and explanations are not required under the current
regulations and would be too burdensome as a generally applicable
requirement. Section 154.201 (b)(2) requires a pipeline to support rate
changes with step-by-step calculations and a written narrative to allow
the parties to duplicate the pipeline's calculations. Section 154.313,
Statements I and J, set out guidelines on how a pipeline should present
its rate case. These requirements should provide sufficient information
for a party to compute the impact of each change. Moreover, as the need
arises, additional information may be provided through discovery at a
hearing.
The Industrial Groups state that this schedule should incorporate
the Schedule K-2 requirements verbatim. The Commission did not adopt
this suggestion because such requirements are found in
Sec. 154.201(b)(2) and so, no change is necessary.
45. Statement P. AGD, APGA, Consumers Power, Brooklyn Union, IPAA,
JMC, Michigan, Pacific Northwest Commenters, Columbia Distribution, LDC
Caucus, NDG, SoCal, and UDC support the initial filing of Statement P
as part of the pipeline's rate filing. Many of these commenters note
that Statement P is the key element in understanding a pipeline's rate
filing. The availability of a properly prepared Statement P will help
the pipeline's customers identify the real issues presented by the rate
filing in time for the issues to be raised in initial interventions and
pleadings. In addition, by requiring that Statement P be filed with the
rate case, the number of protests should be reduced, since intervenors
will only have to file protests when warranted, rather than
protectively. IPAA states that filing Statement P with the rate case
will allow for more expeditious processing of rate cases and will
shorten the time period during which shippers can be held hostage to
unjust and unreasonable rates collected subject to refund. The LDC
Caucus notes that many state Public Utility Commissions (PUCs) require
Local Distribution Companies (LDCs) to file testimony concurrently with
their rate cases. Finally, Brooklyn Union notes in support of the
proposed Statement P requirement, that the Commission's regulations
require electric utilities to file testimony with rate increase
filings.
ANR/CIG, INGAA, NGT and Panhandle suggest, as an alternative, that
a two-phase filing of Statement P be considered. In Phase I, pipelines
would file testimony with the rate case concerning the rate case issues
for which refunds are not a remedy. In Phase II, 15 or 30 days later,
the pipeline would file remaining testimony on the ``boiler plate''
issues of cost-of-service, billing-determinants levels, rate base, etc.
Columbia questions whether filing Statement P with the rate case
filing has any significant benefit or purpose. Columbia supports
maintaining the old rule (15-day lag) with respect to cost-of-service
and rate testimony, but would not object to the new rule with respect
to issues where rate refunds are not an adequate remedy.
KNI contends that the extra 15 days presently allowed for filing
Statement P provides time to develop more comprehensive and detailed
testimony than would otherwise be produced if Statement P had to be
submitted concurrently with all other schedules. KNI contends that more
``polished'' testimony is likely to reduce discovery requests.
MRT submits that requiring testimony to be filed concurrently with
a rate case would create an enormous and unnecessary burden on
pipelines. If, however, the Commission requires Statement P to be filed
concurrently, then MRT proposes that the Commission take additional
actions to reduce the burden. MRT requests that the Commission amend
Sec. 154.304(a)(1) to lengthen the time from the last day of the base
period to the filing date from 4 months to 5 months. Alternatively, MRT
requests that pipelines not be required to file all schedules and
[[Page 52988]]
statements with the rate case. Rather, schedules ``which are not
essential to the Commission's development of a suspension order''
should be delayed until 15 days after the initial filing.
Panhandle is concerned about the requirement that a pipeline must
be prepared to sustain its burden of proof on the proposed changes
solely on the basis of the prepared testimony submitted with its
initial rate case filing. Panhandle states that this requirement could
be interpreted to require a pipeline to anticipate and address every
issue which may be raised in the rate case. In addition, Panhandle is
concerned about the proposed regulation could be interpreted to
preclude a pipeline from filing either supplemental direct or rebuttal
testimony to address issues raised subsequent to the rate filing.
Panhandle states that if the proposed regulations on Statement P are
adopted, they should be clarified to make it clear that the pipeline
has the right to file both supplemental and rebuttal testimony.
Panhandle also states that if it is required to make its case-in-chief
solely on the Statement P evidence, then the Staff and intervenors
should not be allowed to use actual information for the test period as
the basis of their testimony to show that the pipeline's estimates
should be rejected and substituted with ``better'' actual numbers.
A filing pipeline has the statutory burden to support its rates as
just and reasonable. The Commission emphasizes that it expects
pipelines to make their case-in-chief at the outset of the case and not
rely on supplemental and rebuttal testimony for that purpose. However,
as a proceeding progresses through the hearing process, the need may
arise for the pipeline to supplement its prepared testimony and to
present testimony in rebuttal to the adverse positions of others.
m. Section 154.313 Schedules for Minor Rate Changes. The
Commission intends that the filing burden for minor rate increases and
rate decreases be less than that for other rate changes.\70\ Minor rate
increases usually relate to a few schedules and are designed to bring
such schedules into harmony with general tariff policy, to eliminate
inequities, and to achieve other formal adjustments, in cases where any
increase in revenue is subordinate to some other purpose. They include
changes that are not designed to provide general revenue increases such
as to offset increased costs or otherwise achieve a fair return on the
overall jurisdictional business. Increases in rates or charges which,
for the test period, do not exceed the smaller of $1,000,000 or 5
percent of the revenues under the jurisdiction of the Commission will
be considered minor. A change in rate level, no part of which directly
or indirectly results in any increased charge to a customer or class of
customers, will also be considered a minor rate change.
\70\This regulation appeared in the NOPR as Sec. 154.314.
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MoPSC recommends that the specific words ``rate decrease'' be added
to Sec. 154.313, to clarify what requirements are applicable for rate
decrease applications. In addition, MoPSC believes the threshold
definition for minor rate changes is too broad. MoPSC recommends a
minor rate decrease be redefined as ``a change which does not increase
a company's revenues by $1,000,000 and does not directly or indirectly
increase a rate or charge to any customer by more than 2%''.
Comments concerning the threshold definition were considered.
However, in light of the probable burden of reporting the rate impact
to specific customers the threshold was not revised.
NDG states that while the net impact of the ``minor'' change on the
pipeline's customers in aggregate may be minimal, the impact on
individual customers may be significant. NDG proposes that the standard
for what constitutes a ``minor'' rate change be based on the magnitude
of individual customer specific impacts resulting from the filing. Thus
any rate change which increases a single customer's costs by more than
the lesser of $250,000 or 10% of the amount previously being charged
for the effected services, should be considered to be a major rate
change and should be required to be supported by the full filing
requirements.
The Commission notes that the requirements for rate decrease
filings should be clarified. These filings must meet the same criteria
as rate increase filings, i.e., increases or decrease in rates or
charges which, for the test period, do not exceed the smaller of
$1,000,000 or 5 percent of the revenues under the jurisdiction of the
Commission will be considered minor.
Northern Border states that proposed Secs. 154.301, 154.311, and
154.312 appear to have overlooked the ratemaking circumstances for
pipelines utilizing a cost-of-service form of tariff. Northern Border
believes Sec. 154.313 (minor increases) is designed for stated rate
tariffs and would not be appropriate for the cost-of-service form of
tariff. Therefore, Northern Border recommends that the Commission
reinstate Statement N for pipelines with the cost-of-service form of
tariff.
With regards to Northern Border's comments recommending the
reinstatement of Statement N for pipeline with the cost-of- service
form of tariffs, the Commission understands the particular problems
relating to this pipeline. Because of the nature of cost-of-service
tariffs, Northern Border would only file under Sec. 154.314 when
changes in approved rate of return or services are proposed. Any other
filings to recoup costs are considered limited section 4 filings and
would not be affected by this section. Cost-of-service tariff holders
filings under this section must request a waiver of the test period
adjustments and updating, since these pipelines are required to recover
only actual costs, not adjusted costs. Therefore, the Commission will
not provide any specific revisions for cost-of-service tariff holders.
n. Section 154.314 Other Support for a Filing. Section 154.314
provides that any company filing for a rate change is responsible for
preparing prior to filing, and maintaining, workpapers sufficient to
support the filing.\71\ In addition to the workpapers, the NOPR
provided that certain other material, related to the test period, must
be provided, such as copies of monthly financial reports prepared for
management purposes, and copies of accounting analyses of balance sheet
accounts.
\71\This regulation appeared in the NOPR as Sec. 154.315.
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INGAA is opposed to the submission of financial reports prepared
for management and the accounting analysis of such financial
statements. INGAA states that this information is sensitive and is not
generally provided to the general public.
The requirement to provide this other material to the Commission
upon request has been removed from the revised regulation. This
information can be obtained by any party through discovery after a rate
case has been set for hearing.
5. Subpart E--Limited Rate Changes
a. Section 154.401 RD&D Expenditures. Section 154.401 replaces
current Sec. 154.38(d)(5).
b. Section 154.402 ACA Expenditures. Section 154.402 replaces
current Sec. 154.38(d)(6).
c. Section 154.403 Periodic Rate Adjustments. New Sec. 154.403
governs the passthrough, on a periodic basis, of a single cost item or
revenue item not otherwise covered by subpart E, such as remaining
purchased gas adjustment mechanisms, fuel loss and unaccounted-
[[Page 52989]]
for gas, and transition cost filings. These new regulations are
consistent with current Commission policy governing these filings and
generally reflect currently effective tariff provisions.
The requirements of this section are subdivided into two parts.
The initial part sets forth the minimum general requirements the
pipeline must meet if it proposes, or the Commission requires, a
periodic passthrough mechanism in the future. Significant among the new
requirements of this section is the requirement to include a sample
calculation in the tariff of the periodic rate change methodology. This
sample calculation will assist the Commission and interested parties in
understanding the proposal and ensure that the tariff language
adequately explains the calculation steps. Further, it will provide a
template for future filings under the tariff provision.
The general requirements portion of Sec. 154.403 also include the
requirement that all periodic rate change mechanisms include a
description of the timing and methodology of the adjustments, including
a description of all mathematical calculations. No steps should be
excluded. Given the numbers from the source documents, anyone reading
the tariff should be able to arrive at the rate component by following
the steps described in the tariff.
The second portion of Sec. 154.403 addresses the information to be
submitted with each filing. The filings should contain workpapers which
show the calculations described by the tariff. The Commission intends
to collect sufficient supporting calculations to show a clear path from
the source data to the rate component.
Pacific Northwest Commenters generally support the proposed rules
governing filings to track specific cost items where permitted.
However, they believe the rules should be clarified to provide that (1)
the general terms and conditions for a tracker must be approved and
effective before a rate change is filed, and (2) any filing of a rate
change under a tracker should include a summary table showing the
impact on customers.
The proposed regulation was not modified as Pacific Northwest
Commenters suggest. Commonly, a cost tracker is adopted during a
general rate proceeding where the tracker can be established prior to
its use. The parties subject to the tracker have ample opportunity to
explore issues related to the tracker in the rate proceeding. Further,
there should be sufficient data available in the filing, tariff, and
service agreement to permit each customer to determine the impact of
the tracker adjustments. No customer impact statement will be required.
CNG requests clarification to assure that these new requirements
will not be retroactively applied to existing tariff provisions. The
Commission affirms that any tariff provisions which have been approved
will not be reviewed anew to determine their compliance with these
regulations. Any future filings under currently effective tariff
provisions must comply with Sec. 154.403(d), however.
INGAA wants the Commission to expand the items tracked (allowed for
periodic rate adjustments) to include costs incurred to comply with
governmental regulations under federal and state environmental and
safety laws. Pipelines should be afforded the option of a limited
Section 4 filing or a deferred account to recover costs associated with
compliance with environmental and safety regulations without incurring
the costs of filing a full rate case.
KNI would also like to see recovery of Department of Transportation
(D.O.T.) pipeline user fees via a periodic rate adjustment (tracker).
D.O.T. user fees are presently recovered as part of the cost-of-service
reflected in the demand charge; however, these fees are similar to ACA
and GRI charges and should be similarly tracked and recovered through a
surcharge. KNI argues that, as it stands now, any changes in D.O.T.
fees can only be reflected in rates by making a general rate case
filing. KNI maintains that use of a tracker would avoid the need for a
rate case filing to recover the significant increase in these federal
taxes currently under consideration.
The Commission is not adopting regulations for each different type
of cost or revenue tracked. By adopting a generally applicable
provision, the Commission avoids having to modify its regulations every
time a new cost is tracked or ceases being tracked.
The Commission is adopting regulations to be generally applicable.
The specific types of costs or revenues subject to these regulations
are not an issue for this rulemaking. Instead, pipelines may propose
trackers for costs incurred to comply with governmental regulations
under federal and state environmental and safety laws, such as D.O.T.
user fees, in individual proceedings.
NGSA states that, for clarity and to ensure that the filings
contain the proper information necessary to evaluate the proposed
changes, the regulations should be written separately for the types of
filings to which they apply (i.e., fuel filings, GSR filings, Account
858 filings, IT revenue credit filings, etc.). NGSA suggests the
following items be required with filings made under this section:
a. Reconciliation information for the past period which compares
the volumes and revenues actually recovered to the volumes and costs
used to design the rates previously in effect, with discounted
transactions separately identified, and showing any past period
underrecovery to be included in the new rate;
b. Actual data on costs incurred since the last filing, compared
to the costs on which the previous rates were based;
c. Derivation of any discounting adjustment included in the
proposed rates, citing the authority under which such adjustment is
being made;
d. Citations to data sources and approval order for data used
which is derived elsewhere; and
e. Requirement that costs, volumes, allocation and rate design
be shown by zone of receipt/zone of delivery or other category used
to charge rates, where appropriate.
NGSA suggests several specific modifications to the proposed
regulations in Sec. 154.403. Section 154.403(c) directs the pipeline to
include in its tariff information about the mechanism which will be
used to adjust the pipeline's rates. The Commission anticipates that
all the information NGSA seeks will be available through the tariff or
in the filing. No modification to the regulations is required.
Northern Border recommends eliminating the requirement that a
company that recovers fuel use and unaccounted-for gas in-kind state
its reimbursement percentages in its tariff. Northern Border prefers
that pipelines be allowed to show such changes by posting on the EBBs,
in lieu of numerous and untimely tariff filings. Northern Border
maintains that due to the operation of its system, percentages change
monthly or more often, and changes are computed and implemented within
one week. Northern Border currently uses its EBB in such a manner, and
it is considered an efficient and accepted practice by its customers.
By far, the most common practice among pipelines is to state their
fuel reimbursement percentages in the tariffs. The Commission is
adopting the regulation to reflect this common practice. The manner in
which Northern Border posts its fuel reimbursement percentages has
already been approved by the Commission and the Commission does not
intend to apply this regulation to pipelines with approved tariffs that
provide otherwise.
Northwest/Williams believes that the requirement that tariffs
contain step-by-step descriptions of the amounts
[[Page 52990]]
calculated and of the flowthrough mechanism is burdensome because it
will require many pages of text and will be difficult to predict every
possible scenario that might impact the calculations. Northwest/
Williams would like to see the step-by-step descriptions eliminated and
a general description included in the tariff instead, with any further
explanations handled through data requests or informal technical
conferences. Williston also requests deletion of the step-by-step
description requirement because it is unnecessary and will clutter the
tariff making it inflexible and potentially unworkable.
Columbia argues that a clarification is necessary because, as
drafted, the regulations could be read to require that a pipeline
incorporate into each rate schedule ``a sample calculation in the
tariff provision governing the periodic rate change methodology.''
Similarly, El Paso argues that no sample mathematical calculations
should be required in the tariff. El Paso states it is unclear what the
Commission wants included in the tariffs, but El Paso opposes inclusion
of a sample calculation because it would duplicate information already
provided in the workpapers of each filing and use of the Commission's
software does not allow for the use of special characters, resulting in
a difficult and burdensome task which will reduce the reader's ability
to understand the information provided.
Individual shippers that are asked to pay a rate have a right to
know how the rate is derived without having to seek basic information
about the rate derivation through data requests and technical
conferences. Requiring the tariff to contain a clear statement of how a
rate is calculated is not unreasonable. As we stated in the preamble to
the NOPR, these new regulations are consistent with current Commission
policy and generally reflect currently effective tariff provisions that
include a general description of the calculations.
Columbia and El Paso are correct: the preamble states that a sample
calculation will be included in the tariff. However, the regulations do
not reflect this provision. In this case, the preamble is in error. No
further action is required.
NI-Gas finds the increased specificity in periodic rate adjustments
is an improvement over existing practice. NI-Gas maintains, however,
that shippers subject to pipeline trackers should be able to argue that
they are entitled to refunds from pre-tracker periods. Otherwise,
pipelines will have a strong incentive to allocate refunds to pre-
tracker periods, while agreeing to higher rates for tracked periods. As
a general matter, NI-Gas asserts that pipeline shippers do not have the
means to aggressively participate in all proceedings which give rise to
or affect tracked costs.
The section to which NI-Gas refers, Sec. 154.403(d)(4), is not
intended to apply to refunds due as a result of a Commission
determination that increased rates or charges are not justified or to
refunds approved by the Commission as part of a settlement. The
reference to the return of revenues in this section refers to revenues
subject to a revenue crediting mechanism approved under this section.
The section underscores the precept that the effect of any new rate
recovery mechanism is prospective not retroactive.
Finally, Foothills filed comments to state that it does not oppose
the deletion of Secs. 154.201 through 154.213 of the regulations with
regard to the tracker mechanism that allows pipeline shippers to track
ANGTS charges in their own rates. Foothills states these regulations
are unnecessary in the post-Order No. 636 period because interstate
pipelines are no longer in the merchant business and no longer hold
capacity on third-party pipelines. Foothills emphasizes its continued
reliance, however, on the Commission's unwavering support of the ANGTS
project. As stated previously, the Commission continues to support the
ANGST project.
6. Subpart F--Refunds and Reports
a. Section 154.501 Refunds. Section 154.501 replaces current
Sec. 154.67(c). The refund carrying charge rule, currently
Sec. 154.38(d)(4), applies to all refunds. The new section reflects
current Commission policy.
The Commission has added a requirement for pipeline refunds to be
made within 60 days of the order date to ensure refunds are disbursed
on a timely basis. Refunds received by the pipeline must be disbursed
within 30 days of receipt. This period of time should be adequate to
disburse refunds.
Section 154.501(c) is added to reflect current Commission policy
with respect to supplier refunds which apply to the period during which
the company had a purchased gas adjustment clause in its tariff.
Instructions regarding the contents of a refund report are added to
provide additional guidance.
INGAA argues that the Commission's refund policy should not
obligate pipelines to refund amounts that have not been collected in
full. Section 154.501(a)(1) sets a 60-day refund period. This provision
may require pipelines to pay out refunds before surcharges recover the
full amount of the refunds. INGAA suggests removing the 60-day limit or
specifying that refunds will only be paid out to the extent the amounts
have been collected in full.
INGAA also urges the Commission to delete the proposal in
Sec. 154.501(a)(2) that any natural gas company must refund to its
jurisdictional customers the jurisdictional portion of any refund it
receives within 30 days of receipt. In the alternative, INGAA suggests
allowing pipelines a reciprocal right to surcharge jurisdictional
customers, if they are subject to paying a higher rate to upstream
pipelines, within the 30 days.
ANR/CIG argue that the proposed language mandates the institution
of a one-way tracker and imposes the obligation on a pipeline to pass
through refunds to customers in 30 days, but does not provide the
pipeline with a reciprocal right to begin surcharging jurisdictional
customers within 30 days if the pipeline is subjected to paying a
higher rate to another pipeline for services. ANR/CIG states that this
should only be imposed if it tracks both the refunds received by the
pipeline and the cost increases incurred by the pipeline for particular
services.
Panhandle argues that this section should be limited to refunds of
costs tracked in the pipeline's rates or for which the pipeline has a
pre-existing refund obligation. Otherwise, Panhandle states, the
section may be interpreted to require vendor refunds, or rebates from
manufacturers or suppliers when no such refunds are required under the
law. Panhandle proposes the following revision to Sec. 154.501(a)(2):
``Any natural gas company must refund to its jurisdictional
customers the jurisdictional portion of any refund it receives which
is required by prior Commission order to be flowed through to its
jurisdictional customers or is an amount previously included in a
tracker filing and charged and collected from jurisdictional
customers within thirty days of receipt.''
Williston opposes the 30-day time period, arguing that it may not
be enough time within which to issue refunds. Williston states that the
time period should be the same as in Sec. 154.501(a), 60 days. Columbia
also recommends that the 30-day period be extended to ``within 60 days
of receipt'' to allow for refunds received shortly before bills are
issued to be disbursed as billing credits with the second billing after
receipt of the refund.
CNG urges the Commission to revise the proposal to provide that
each pipeline's current tariff should control
[[Page 52991]]
the timing and method of flowing through refunds from other pipelines.
Northwest suggests adding language regarding normalization of
income tax timing differences in paragraph (d) similar to that proposed
in Sec. 154.403(c)(7).
AGD recommends that the Commission eliminate the 30-day lag in the
pipeline's obligation to submit its report explaining its refund of
excessive charges. AGD states that the refund report should be in hand
before the refund check is cashed as the cashing of a check may be
treated legally as full compensation by the pipeline. Pacific Northwest
Commenters recommend refund reports be served on all customers,
interested state commissions, and designated representatives. Williston
asserts a provision should be added to Sec. 154.501(e) providing that
each shipper will only be provided with its applicable portion of the
refund report in order to ensure that confidentiality of commercially
sensitive information is maintained.
Williston argues that refunds should be required only upon issuance
of a final Commission order. Williston states that, when a pipeline
requests rehearing or circuit court review of a Commission order,
refunds should be deferred until after the final order to avoid the
necessity for further refunds or rebilling of prematurely refunded
amounts.
Williston also suggests that Secs. 154.501(d)(1) and (2) be deleted
from the regulations as no they are no longer necessary. Pacific
Northwest Commenters urge the Commission to add a new
Sec. 154.501(a)(3) requiring that a pipeline offer its customers the
option of electronic transfer of the refund amount on the date refunds
are made.
In response to INGAA's request, the Commission clarifies that a
pipeline is not required to pay out a refund until it recovers the full
amount of the refund through its rates.
The Commission agrees with Panhandle that the language of
Sec. 154.501(a)(2) should be clarified. It was not the Commission's
intention to require refunds of vendor refunds or manufacturer rebates.
Rather, the section is intended to apply to refunds required by the
Commission and passed through by the pipeline to its customers.
Several commenters seek a different time period for disbursement of
refunds the pipeline has received. The Commission will adopt a single
standard which will be generally applicable. For refunds received from
an upstream supplier, thirty days should not be unduly burdensome.
However, since many pipelines have currently effective tariff
provisions providing for a different time period or passthrough by a
deferred account surcharge, the regulatory text will be modified to
grandfather these provisions. This modification will result in the
least disruption.
The Commission disagrees with the position that Sec. 154.501(a)(2)
represents a one-way tracker. The refunds which are the subject of this
section are required to be passed through by Commission order as
clarified above. Cost increases must be filed for by the pipeline
before being passed through according to section 4 of the NGA. If the
pipeline wishes to institute a tracker, it must file tariff provisions
with the Commission to do so.
The language regarding normalization of income tax timing
differences found in Sec. 154.403(c)(7) is inappropriate here. Refunds
do not give rise to a tax timing difference which would affect carrying
charge calculations.
The Commission generally has provided for a 30-day time period
between the date when refunds are ordered and the date when and the
report of the refund must be filed.72 Thirty days is a reasonable
period to provide the report. The Commission reviews refund reports for
accuracy. If as a result of its review, the Commission finds that a
pipeline has failed to accurately compute a refund, the pipeline will
be directed to correct the deficiency.
\72\See, e.g., Trunkline Gas Company, 62 FERC para.61,199
(1992), and Florida Gas Transmission Co., 71 FERC para.61.363
(1995).
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Two commenters address the issue of service. The regulations have
been revised such that all parties that have standing requests for full
refund report service will receive a copy of a pipeline's entire refund
report. Otherwise, parties receiving the refund will receive an
abbreviated form of the refund report.
The Commission will not adopt Williston's suggestion. If a pipeline
believes there is confidential material in a particular refund report,
the pipeline may request that the Commission treat all or part of the
report as confidential pursuant to Sec. 388.112 of the Commission's
regulations.
The date for disbursement of the refund whether after a final
Commission order or otherwise is properly the subject of the proceeding
in which the refund obligation arises. The Commission will not adopt
language in the regulations mandating a specific date.
Williston suggests removing the portion of the proposed regulations
which govern the interest level used to calculate interest on refunds
pre-dating September 30, 1979. Upon further reflection, the Commission
believes the possibility of requiring refunds dating back to this time
period are remote. These sections of the proposed regulations have been
removed.
The Commission notes that several pipelines have provisions in
their tariffs offering their customers the option of receiving refunds
by electronic transfer.73 At this point, the Commission prefers
that the pipelines and their customers work out procedures for
electronic funds transfers where appropriate. For this reason, the
regulations will not mandate electronic funds transfers.
\73\See, e.g., ANR Pipeline Co., Original Sheet No. 146, Second
Revised Volume No. 1, Columbia Gas Transmission Corp., Second
Substitute Original Sheet No. 331, Second Revised Volume No. 1, and
Panhandle Eastern Pipe Line Co., Original Sheet No. 287, First
Revised Volume No. 1.
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b. Section 154.502 Reports. New Sec. 154.502 requires that tariffs
include information about reports required by the Commission.
Arizona Directs approve of the provision as a convenient reference
point for a description of all reports required by the Commission to be
filed by the pipeline on a periodic basis. They recommend, as a
modification, that pipelines be required to state in their tariffs the
name, address, and phone number of the company representative who
should be contacted if copies of a particular report are desired.
INGAA states that the requirement to include descriptions of all
filed reports in pipelines' tariffs is redundant and should be deleted.
The Commission already publishes a directory of all reports that
interstate pipeline companies are required to file. INGAA states that
this regulation is too broad and will lead to a significant increase in
the size of tariff filings because the reports could conceivably
include periodic, yet short-term, reports that are required for
environmental compliance during a certificate proceeding. National Fuel
argues that this provision should either be eliminated or its scope
narrowed to reports arising out of litigated or settled rate
proceedings.
INGAA misinterprets the scope of this regulation. The regulation is
not intended to include a list of reporting requirements already set
forth in the Commission's regulations. This section of the regulations
applies to periodic reports required by a Commission order or a
settlement in a proceeding initiated under part 154 or part 284. For
example, during restructuring several pipelines
[[Page 52992]]
were required to submit reports when they issued an operational flow
order. The regulations are clarified to more clearly reflect the scope
of this requirement.
The information on the title page of the tariff contains the name,
address, and, as modified, the telephone number of an individual to
whom communications concerning the tariff should be directed. This
individual should be able to respond to inquiries regarding reports
filed consistent with this section of the regulations.
7. Subpart G--Other Tariff Changes
a. Section 154.601 Change in Executed Service Agreement. Section
154.601 replaces current Sec. 154.63(d)(2). The section concerns
executed service agreements ``on file with the Commission'' and does
not refer to ``well names.''
b. Section 154.602 Cancellation or Termination of a Tariff,
Executed Service Agreement or Part Thereof. Section 154.602 replaces
current Sec. 154.64. The section does not require sales information. It
does require a list of the affected customers and the contract demand
under the service to be canceled.
INGAA and Panhandle object to the new requirement that a natural
gas company must provide notice to the Commission at least 30 days
prior to the effective date of a proposed cancellation or termination
of an effective tariff or contract because these transactions have been
pre-granted abandonment under each pipeline's blanket certificate. In
the alternative, Panhandle seeks clarification of this provision.
This requirement is not new but is a revised version of the current
requirement at Sec. 154.64. It only applies to (1) tariff sheets on
file with the Commission, and (2) service agreements that are on file
with the Commission and not subject to pre-granted abandonment. Except
for the reduction in filing requirements, the Commission does not
anticipate any change in the operation of this provision.
c. Section 154.603 Adopting of a Tariff by a Successor. Section
154.603 replaces current Sec. 154.65. The section concerns adopted
tariffs or contracts ``on file with the Commission'' as opposed to any
tariff or contracts.
C. Comments Requesting Further Changes
Most suggestions for additional regulations are discussed with the
regulation they would logically follow or supplement. Several
additional suggestions are addressed below.
Columbia proposes a requirement that Staff issue a written
settlement position within 60 days of the initial suspension order. AGD
suggests a rule requiring that Staff serve top sheets within 60 days of
the issuance of the suspension order. APGA recommends that the
Commission adopt a rule requiring submission of Staff top sheets within
120 days of a filing. Panhandle suggests that an appropriate time for
the Staff to file its position would be four months after the filing
date. To be useful, such Staff top sheets should conform in all
material respects to the proposed Sec. 154.301 and Sec. 154.304
standards, i.e. to reflect all changes reasonably expected as to any
adjustments it is proposing to the company's filing along with
supporting work papers and formulae for any calculations upon which it
is relying. Further, Staff should be required to either accept the
company's position or provide a fully supported alternative position.
Michigan urges that the Commission reinstate the practice of
establishing a date for service of top sheets as a part of this
rulemaking. Michigan notes that revised filing requirements will: (1)
Streamline the discovery process by providing Commission Staff and
interveners with information much sooner than current procedures, and
(2) result in the expeditious resolution of rate cases.
Staff initial settlement positions, or ``top sheets,'' have long
assisted the settlement process. The Commission expects that the timely
service of top sheets will assist parties in cases set for hearing in
the future as well, and the Commission will endeavor to continue that
practice. However, the Commission declines to establish a rigid
deadline for service of top sheets because of the variety of
circumstances that may arise in particular cases.
AGD requests regulations such that rulings on certain issues can be
secured before the end of the suspension period and whereby the
Commission may instruct the ALJ to resolve certain issues within
specified deadlines as justified by circumstances. JMC suggests
establishing procedures for staff to routinely examine rates to
determine if they are just and reasonable, under section 5. JMC also
suggests conditioning all settlement approvals upon the pipeline's
agreement to make a general section 4 rate case within 3 years. The
Commission will not adopt these suggestions at this time.
Northern Border states that its tariff is different from the
industry standard and requests reinstatement of regulations (Statement
N) that are appropriate for a cost-of-service tariff.
SoCal urges the Commission to encourage pipelines to have pre-
filing meetings with customers. NDG suggests regulations requiring
pipelines to include a description of the workpapers in the filing,
serve parties workpapers on the filing date, and supply information on
the electronic format. NDG suggests that pipelines requesting
confidential treatment must include a confidentiality agreement in
their filings. NDG suggests that every section 4 filing contain a
capacity release log for the base period and a table showing earned
rate of return on equity for the base period. These are also helpful
suggestions and may be considered at a later time, but will not be
adopted here.
NDG suggests that a request for blanket waiver of regulations not
be allowed but pipelines must specifically identify what waivers are
required. This has been adopted in Sec. 154.7(a)(7).
D. Electronic Filing
1. Industry-Wide Conference
The Commission recognizes that changes to these regulations and to
the forms in the companion rule necessitate modifications to the
electronic formats for the affected filings and forms. To ensure the
widest possible input, the NOPR directed Commission staff to convene a
technical conference to obtain the participation of the industry and
other users of the filed information in designing the electronic filing
requirements. The conference was held on April 4, 1995 (conference),
and provided an excellent start to the process of modifying the
Commission's electronic filing requirements to complement the revisions
to the regulations set forth in the companion rules. Most of the
comments to the NOPR addressed issues discussed at the conference.
As a result of the conference and comments to the NOPR, the
Commission is able to make a number of decisions related to electronic
filing in this rule. The only electronic filing requirements affected
by this rule deal with the form of notice, the tariff sheets and the
statements and worksheets required under subpart D. The electronic
filing requirements for FERC Forms 2, 2A, 11, discount rate reports,
and Index of Customers are dealt with in our companion rulemaking. No
changes are proposed for the electronic form of notice.
The Commission will adopt a tab delimited ASCII format for most
numeric data and a format compatible with the filing company's
spreadsheet
[[Page 52993]]
application for selected statements required by subpart D of part
154.74
\74\ASCII American Standard Code for Information Interchange can
convey only letters, punctuation and certain symbols. It does not
convey how the document should be formatted or what fonts to use. A
delimited file is created by keypunching a series of symbols using
commas, tab, or some other symbol to designate the space at the end
of a word or number (thus, ``tab delimited,'' ``comma delimited,''
etc.)
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The electronic tariff sheet formats are modified as proposed in the
NOPR. However, as Columbia suggested in its comments, the electronic
tariff sheet formats are modified further in this final rule to
accommodate Sec. 154.102(e)(5) which requires a FERC citation in the
margin of the tariff sheet. The FERC Automated System for Tariff
Retrieval (FASTR) software is modified for the change also. The
modification will not affect the software's ability to read, display,
or print tariff sheets filed pursuant to the pre-existing requirements.
The Commission will adopt submittal on diskette as the standard
medium on which pipelines will submit their reports and filings. CD-ROM
will be accepted as well.
Other issues remain. Therefore, the Commission directs staff to
convene another technical conference in order to resolve the
outstanding electronic filing issues jointly with the industry. This
second conference is to be held as soon as possible after issuance of
this rule.
2. Delayed Implementation of Electronic Filing Requirements
Many commenters urge the Commission to delay implementation of the
revised electronic filing requirements until after the final rule is
issued and procedures and formats have been further developed.
INGAA suggests a grace period during which a pipeline could file a
rate case under either the current or revised regulations depending on
its progress in making the necessary changes to its data acquisition
and accounting systems. In its comments, Great Lakes argued for an
immediate suspension of the current electronic filing requirements,
stating the current filing requirements are obsolete. Great Lakes
argued that the suspension would not have prejudiced any party wishing
to review a pipeline's rate application but simply would have moved the
suspension date forward.
The Commission did not suspend the electronic filing requirements
at the time Great Lake's comments were filed. The Commission disagreed
with Great Lakes' contention that the electronic filing requirements
were obsolete. The Commission noted in the NOPR the possibility of
suspending the electronic filing requirements due to the fact that the
paper filing requirements in this rule could be made effective before
the electronic filing requirement specifications could be made ready.
Until that time, however, the Commission continued to derive benefits
from the existing electronic filing requirements. Therefore, the
Commission declined to act on Great Lakes' request. That request is
denied.
The Commission will not adopt INGAA's suggestion to allow filing a
rate case under the old or new regulations depending on the pipeline's
capabilities. However, since all of the revisions to the electronic
filing requirements will not be completed by the issuance date of this
rule, the Commission is suspending the requirement to submit the
filings made pursuant to subpart D electronically until the new
electronic filing requirements are fully developed. During the
suspension, only paper copies of the filings under subpart D are
required. The electronic version of the tariff sheets and the notice of
filing must continue to be filed electronically.
3. Software
Northwest/Williams suggests retaining only that portion of the rate
case requirements referred to as ``File 3.''75 Northwest/Williams
lists numerous shortcomings with the Commission's current rate case
filing requirements and software and questions whether the Commission
uses the data.
\75\For general rate cases, three files are filed
electronically. File 1 consists of the filing in a standard format
designated by the Commission for use by all companies. The
Commission provides edit check and print software. File 2 contains
the footnotes for File 1. File 3 contains the rate filing in a
format preferred by the company (``free form''). This data is
converted to an ASCII file and appears exactly as the hard copy.
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With the exception of the tariff sheets and notice of filing, all
of the current electronic filing instructions, including those
Northwest/Williams finds objectionable, will be revised. The Commission
intends to seek the cooperation of the industry in developing the file
structure required for each filing or form. The Commission does not
intend to develop form fill, edit, or print software for use by the
natural gas industry. Allowing private industry to develop software is
the most cost-effective and efficient process. Software developed by
the Commission would need to accommodate all potential users. The
Commission believes that any such product would unnecessarily restrict
the flexibility of individual companies. Accordingly, the Commission
will not attempt to develop the associated software but will allow the
industry to develop software that meets the requirements of both the
company and the regulations.
4. Using Rich Text Format for Text
Several alternatives for electronic filing formats were discussed
at the conference. Many pipelines recommended the use of Rich Text
Format (RTF) for text.76 INGAA states that use of RTF for text is
most efficient since it allows any party to access the files using
commonly available software packages.
\76\RTF permits the transfer of word files that have embedded
text enhancement such as bold or underscoring. RTF was developed by
Microsoft as a word processing document-exchange format and is
available royalty free. It permits documents to be exchanged among
diverse platforms. Since its inception it has gained most prominence
as a format for the creation of Graphical-User-Interface based
``Help'' files. Apparently, this is related in part to its support
of hyper-text.
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The Commission is seeking to adopt a format for text that is
compatible with use in a database, does not lead to excess errors in
the text after conversion, and is available through several software
packages. In light of comments strongly recommending RTF, the
Commission staff has considered the efficacy of RTF for reporting
text.77 The conference participants should address alternatives to
RTF and whether: the data would be error free when translated,
translation would be available in the most popular word processing
programs, and RTF text would be usable in databases. Further, the basic
issue of when to employ RTF and when to employ delimited ASCII must be
resolved to ensure uniform treatment.
\77\RTF is essentially a primitive example of a genre called
text markup languages. It allows both the content and the appearance
of a body of text to be represented as a stream of plain ASCII text,
unlike a typical word processor document which consists of text
interleaved with binary control information. The text stream is made
up of special reserved commands and delimiters interspersed with the
actual text. White space in the file is essentially ignored; line,
paragraph, and page breaks are controlled by RTF commands, as are
fonts, colors, margins, tabstops, and every other characteristic of
text appearance you can imagine.
PC Magazine, February 7, 1995, v14, n3, p. 267.
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5. Appropriate Format for Numeric Data
Comments regarding the appropriate format to adopt for numeric data
broke down into two camps--those supporting delimited ASCII and those
arguing for a spreadsheet format.
Many pipelines recommended the use of delimited formats for numeric
files. INGAA states that use of ASCII delimited formats for numeric
files
[[Page 52994]]
allows any party to access the files using commonly available software
packages. Panhandle and Williston agree noting that a delimited format
permits columnar data fields to be imported and exported into and out
of most off-the-shelf spreadsheet and database applications. Panhandle
and INGAA note that many pipelines recommended at the conference that
electronic filing requirements should allow a pipeline to use its
current hardware. Delimited ASCII would allow them to do so.
Several pipelines argued against submission of numeric data in a
spreadsheet format. Northwest states that submitting its rate case in
spreadsheet format would require 23 diskettes. INGAA notes that
pipelines, regulatory agencies, and intervenors employ a wide range of
software and hardware products, sometimes using different releases of a
single software package. Panhandle states that mandating particular
application software with which to manipulate data would force parties
to use a single format, and restrict parties' ability to use data filed
with the Commission. Several commenters object to providing data with
formulas and linkages embedded. INGAA notes that these equations tend
to be complex, cumbersome, and hard to follow even in modest rate case
filings. As an alternative, INGAA suggests that formulas could be
provided in written form. Northwest argues that formulas and links
developed by Northwest should remain confidential and proprietary and
so, Northwest might seek copyrights on such information.
On the other hand, several commenters argue that numeric data
should be filed in a spreadsheet format with formulas and links intact.
The Industrials, AGD, and APGA urge that pipelines be required to
submit spreadsheets with embedded formulas and linkages. The
Industrials argue that having PC-compatible spreadsheet files with
formulas and linkages intact available to customers and intervenors
will speed the processing of rate cases and allow many issues to be
resolved in the suspension order.
The Industrials argue that the formulas which substantiate rate
increase proposals are not proprietary. Requiring parties, including
staff, to input all the figures from the rate case and spend weeks and
rounds of testimony to recreate the pipeline's computations is grossly
inefficient and unduly burdensome. The Industrials state that the
regulations should explicitly state that the filing must be in
spreadsheet format with formulas and linkages intact; and, that failure
to do so is grounds for rejection. Industrials state that receiving the
rate case in a manipulable format will be critical given the 10-day
period for comment and protest.
Williston notes that using the formats of the software the pipeline
employs, the tab-delimited format, or RTF allows use of pre-determined
row/column identifier formats. However, free form type structures
should be utilized as much as possible to allow for the myriad of
differences among the various pipelines' data processing requirements.
Williston does not oppose filing data in the format of the application
software it uses; provided numerical data does not include formulas or
links.
One of the stated goals of the conference was to ensure that all
spreadsheets contain the underlying formulas and links. Delimited
formats are not capable of transmitting formulas and equations. The
Commission agrees with the parties arguing for a spreadsheet format
where the formulas in the workpaper or statement are important to the
understanding of the pipeline's filing. To be useful, the data,
required in subpart D, by Statements I and J and the state tax
formulations in Statement H, must be received with the formulas
included. These formulas are necessary to understand the pipeline's
position with respect to cost allocation and rate design. In section 4
rate cases, the Commission has routinely obtained the formulas through
data requests asking that the information be in spreadsheet form. The
requirement that the initial filing be in spreadsheet format avoids the
burden of having the same data submitted once as a tab delimited file
and again, in response to a data request, in spreadsheet form, in order
to capture the formulas. Accordingly, Statements I and J and a portion
of H, containing state tax formulations submitted pursuant to subpart
D, must be filed in the same format generated by the spreadsheet
software used to create the statement or workpaper. These spreadsheets
must include all the formulas and all links to other spreadsheets filed
in the same rate case.
The Commission will not require the entire rate case to be filed in
spreadsheet form. The other statements in the rate case generally do
not contain formulas of a complex nature. These remaining statements
will be filed in tab delimited ASCII format. As noted by some of the
commenters, a delimited ASCII format for numeric data provides a format
which can be written or read by several software packages on multiple
platforms.
As suggested by several commenters, the Commission is specifying
``tab'' delimited ASCII formats for all other numeric data to ensure
uniformity in filing. Adopting a delimited ASCII format without
specifying the delimiters would lead to confusion.
NDG suggests that, upon request by an interested party, the
pipeline be required to supply copies of the spreadsheets, models, and
databases relied upon to prepare the filing in an electronic format,
including all accompanying workpapers. This requirement would shorten
the time necessary to analyze a rate case. The Commission is not
convinced that this requirement must be made a part of the regulations.
The underlying spreadsheets, models, and databases relied upon to
prepare the filing in an electronic format may be discoverable at
hearing if found necessary in a particular case.
6. Security and Reliability of Data
Williston and INGAA urge the Commission to adopt procedures to
ensure the integrity of electronic filings and the security of any
confidential data. Panhandle adds that the Commission should safeguard
against accidental publishing of confidential data submitted
electronically.
Confidential data filed with the Commission electronically will
receive the same level of care extended to confidential data filed on
paper. Any pipeline seeking confidential treatment for electronically
filed data should adhere to the requirements of Sec. 385.112.
7. Submission of Data to the Commission
Panhandle supports continuing data submission via diskettes, while
permitting other options such as CD-ROM or high-speed
telecommunications. Williston and El Paso also support the use of
telecommunications for submission and dissemination of electronically
filed data. However, Williston does not support the use of EDI for the
filings under subpart D.78 If telecommunication is not used,
Williston suggests use of CD-ROM as an alternative to diskettes.
\78\Electronic Data Interchange (EDI) is a means by which
computers exchange information over communication lines using
standardized formats. For example, the capacity release data posted
on a pipeline's electronic bulletin board is also available in
downloadable files that conform to the standards for EDI promulgated
by the American National Standards Institute (ANSI) Accredited
Standards Committee (ASC).
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El Paso states that the Commission could permit the filing of a
document by upload to the OPR bulletin board. Northwest suggests that,
considering the prominence of electronic mail and internet, eventually,
pipelines should
[[Page 52995]]
transmit information only electronically. Sending an electronic version
with paper available upon request would save money on postage and
paper. El Paso requests that the Commission permit the filing of
documents by electronic means only and eliminate, or reduce, the
requirement to file paper copies.
The Commission will continue to require paper filings to accompany
Form No. 2, Form No. 2A, Form No. 11, discount rate reports, and rate
case filings. At the conference, the parties should consider whether
any submission (such as the discount rate report) could effectively be
filed through electronic media only. Continuing the paper copies for
some filings and forms does not signal the Commission's unwillingness
to eventually forgo paper versions of these filings and forms at some
future time. The Commission intends to continue to work with the
industry to overcome the technological and procedural hurdles
associated with telecommunications and enhance the reliance on
electronic filings.
Currently, electronic filings are submitted commonly on diskette.
Continuation of diskette submission is appropriate as the standard
means of submission since there continues to be substantial support for
use of diskettes. The Commission will also permit submission on CD-
ROM.79 The Commission intends to continue to work with the
industry to overcome the technological and procedural hurdles
associated with telecommunications. The Commission agrees with comments
by Williston and will not adopt EDI for natural gas rate cases. Many
schedules are not standardized and are not compatible with this
alternative.
\79\Technical specifications for CD-ROM submission will appear
in the electronic filing instructions for each individual form or
filing.
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8. Dissemination of Data by the Commission
Panhandle and Williston suggest that the Commission disseminate
filed information. Applicants could provide electronic information on a
voluntary basis. INGAA supports the increased dissemination of filed
documents through the Commission; similar to the successful example of
electronic dissemination of tariff sheets. INGAA and Williston suggest
the elimination of hard copy dissemination whenever possible.
The Commission will continue to make paper copies of filings
available since all members of the public are not prepared to rely
solely on electronic dissemination. However, except in rare cases where
the file size makes downloading impractical, the Commission intends to
disseminate all filed electronic data to the general public through the
Commission's gas pipeline data bulletin board. Dissemination
electronically by the Commission will greatly reduce demands on the
pipelines for such information in either paper or electronic form.
The Registry recommends the rate case data be made available to
intervenors in a rate case in zipped (compressed) files on 3.5''
diskettes in both edit protected and edit enabled modes in at least one
of the following three applications: Excel, Lotus and,
QuattroPro.80 Where edit-protection cannot be password locked, the
diskette should be marked appropriately. The uncompressed file names
should appear on the label or sleeve wrapper of the diskette.
\80\The National Registry of Capacity Rights (The Registry)
filed comments in Docket No. RM95-4-000. However, this comment
related solely to rate case filings and, therefore, is addressed
here.
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The Industrials argue that, while there are good grounds for
submitting a password protected version of the filing, the pipeline
should give Commission staff and, upon request, others, a version
without such password protection. The unprotected version should be
available through downloadable electronic postings and/or on diskette.
Password protection or other forms of security should be discussed
at the conference. However, as long as a paper copy is available, there
is a reliable way to check the accuracy of the electronic data. Both
the electronic data and the paper version of the filing are part of the
official filing and should contain the same information.
The Commission will not favor one commercial vendor over another;
and so, will not adopt a specific file compression or spreadsheet
software. When the pipeline has a file it believes needs to be
compressed, the pipeline should contact the Commission to determine if
the Commission can accommodate the file compression the pipeline
chooses to use. The Commission will accept rate case data in the file
form generated by the spreadsheet used by the filing pipeline.
Northwest asserts that only those electronic filings that do not
contain formulas and links should be accessible to the public. The
Commission disagrees, if the spreadsheets do not contain confidential
data, there is no reason why they cannot be released to the public as
submitted.
9. Fees for Costs of Electronic Filing
Panhandle asserts that the Commission should permit pipelines to
assess fees to recover the costs of implementing and providing the new
data requirements. However, the issue of cost recovery for implementing
the electronic filing requirements is dealt with more appropriately in
a rate proceeding and not in this rulemaking.
V. Regulatory Flexibility Act Certification
The Regulatory Flexibility Act (RFA)81 requires agencies to
prepare certain statements, descriptions, and analyses of proposed
rules that will have a significant economic impact on a substantial
number of small entities. The Commission is not required to make such
analyses if a rule would not have such an effect.
\81\5 U.S.C. 601-612.
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The Commission does not believe that this rule will have such an
impact on small entities. Most filing companies regulated by the
Commission do not fall within the RFA's definition of small
entity.82 Further, the filing requirements of small entities are
reduced by the rule. Therefore, the Commission certifies that this rule
will not have a significant economic impact on a substantial number of
small entities.
\82\5 U.S.C. 601(3), citing to section 3 of the Small Business
Act, 15 U.S.C. 632. Section 3 of the Small Business Act defines a
``small-business concern'' as a business which is independently
owned and operated and which is not dominant in its field of
operation.
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VI. Environmental Statement
The Commission has excluded certain actions not having a
significant effect on the human environment from the requirement to
prepare an environmental assessment or an environmental impact
statement.83 No environmental consideration is raised by the
promulgation of a rule that is clarifying, corrective, or procedural or
that does not substantially change the effect of legislation or
regulations being amended.84 The instant rule changes the
information to be filed, and the manner by which that information is
filed, with the Commission but does not substantially change the effect
of the underlying legislation or the regulations being replaced or
revised. Accordingly, no environmental consideration is necessary.
\83\18 CFR 380.4.
\84\18 CFR 380.4(a)(2)(ii).
[[Page 52996]]
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VII. Information Collection Statement
The Office of Management and Budget's (OMB) regulations85
require that OMB approve certain information and recordkeeping
requirements imposed by an agency. The information collection
requirements in this final rule are contained in the following: FERC
Form 542 ``Gas Pipeline Rates: Initial Rates, Rate Change and Rate
Tracking'' (1902-0070); FERC Form 542A Tracking and Recovery of Alaska
Natural Gas Transportation System'' (1902-0129); FERC Form 543 ``Gas
Pipeline Rates: Rate Tracking, Formal Rates'' (1902-0152); FERC Form
544 ``Gas Pipeline Rates: Rate Change, Formal Rates'' (1902-0153); FERC
Form 545 ``Gas Pipeline Rates: Rate Change, Nonformal Rates'' (1902-
0154); FERC Form 546 ``Certificated Rate Filings: Gas Pipeline Rates''
(1902-0155); and, FERC Form 547 Gas Pipeline Rates: Refund Report
Requirements'' (1902-0084).
\85\5 CFR 1320.13.
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By this rule, the Commission is modernizing its regulations to
reflect the current regulatory environment that it instituted with
Order No. 636 and the restructuring of the natural gas industry.
Specifically, the Commission is revising its regulations in part 154 to
focus on transportation services instead of pipeline sales activities.
The revised filing requirements will improve the internal support of a
pipeline's filing and facilitate more rapid settlement or adjudication
of pipeline rate proposals. The Commission's Office of Pipeline
Regulation uses the data in rate proceedings to review rate and tariff
changes by natural gas companies for the transportation of gas and for
general industry oversight under the Natural Gas Act. The Commission's
Office of Economic Policy also uses this data in its analysis of
interstate natural gas pipelines.
The Commission is submitting to the Office of Management and Budget
a notification of these collections of information. Interested persons
may obtain information on these reporting requirements by contacting
the Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426 (Attention: Michael Miller, Information Services
Division, (202) 208-1415). Comments on the requirements of this rule
can be sent to the Office of Information and Regulatory Affairs of OMB,
Washington, DC 20503, (Attention: Desk Officer for Federal Energy
Regulatory Commission) FAX: (202)395-5167. You shall not be penalized
for failure to respond to this collection of information unless the
collection of information displays a valid OMB control number.
VIII. Effective Date
The final rule will be effective November 13, 1995.
List of Subjects in 18 CFR Part 154
Natural gas companies, Rate schedules and tariffs.
By the Commission.
Lois D. Cashell,
Secretary.
For the reasons set out in the preamble, 18 CFR part 154 is revised
to read as follows.
PART 154--RATE SCHEDULES AND TARIFFS
Subpart A--General Provisions and Conditions
Sec.
154.1 Application; Obligation to file.
154.2 Definitions.
154.3 Effective tariff.
154.4 Electronic and paper media.
154.5 Rejection of filings.
154.6 Acceptance for filing not approval.
154.7 General requirements for the submission of a tariff filing or
executed service agreement.
154.8 Informal submission for staff suggestions.
Subpart B--Form and Composition of Tariff
154.101 Form.
154.102 Title page and arrangement.
154.103 Composition of tariff.
154.104 Table of contents.
154.105 Preliminary statement.
154.106 Map.
154.107 Currently effective rates.
154.108 Composition of rate schedules.
154.109 General terms and conditions.
154.110 Form of service agreement.
154.111 Index of customers.
154.112 Exception to form and composition of tariff.
Subpart C--Procedures for Changing Tariffs
154.201 Filing requirements.
154.202 Filings to initiate a new rate schedule.
154.203 Compliance filings.
154.204 Changes in rate schedules, forms of service agreements, or
the general terms and conditions.
154.205 Changes related to suspended tariffs, executed service
agreements, or parts thereof.
154.206 Motion to place suspended rates into effect.
154.207 Notice requirements.
154.208 Service on customers and other parties.
154.209 Form of notice for Federal Register.
154.210 Protests, interventions, and comments.
Subpart D--Material to be Filed With Changes
154.301 Changes in rates.
154.302 Previously submitted material.
154.303 Test periods.
154.304 Format of statements, schedules, workpapers and supporting
data.
154.305 Tax normalization.
154.306 Cash working capital.
154.307 Joint facilities.
154.308 Representation of chief accounting officer.
154.309 Incremental expansions.
154.310 Zones.
154.311 Updating of statements.
154.312 Composition of Statements.
154.313 Schedules for minor rate changes.
154.315 Other support for a filing.
Subpart E--Limited Rate Changes
154.400 Additional requirements.
154.401 RD&D expenditures.
154.402 ACA expenditures.
154.403 Periodic rate adjustments.
Subpart F--Refunds and Reports
154.501 Refunds.
154.502 Reports.
Subpart G--Other Tariff Changes
154.600 Compliance with the subparts.
154.601 Change in executed service agreement.
154.602 Cancellation or termination of a tariff, executed service
agreement or part thereof.
154.603 Adoption of the tariff by a successor.
Authority: 15 U.S.C. 717-717w; 31 U.S.C. 9701; 42 U.S.C. 7102-
7352.
Subpart A--General Provisions and Conditions
Sec. 154.1 Application; Obligation to file.
(a) The provisions of this part apply to filings pursuant to
section 4 of the Natural Gas Act.
(b) Every natural gas company must file with the Commission and
post in conformity with the requirements of this part, schedules
showing all rates and charges for any transportation or sale of natural
gas subject to the jurisdiction of the Commission, and the
classifications, practices, rules, and regulations affecting such
rates, charges, and services, together with all contracts related
thereto.
(c) No natural gas company may file, under this part, any new or
changed rate schedule or contract for the performance of any service
for which a certificate of public convenience and necessity or
certificate amendment must be obtained pursuant to section 7(c) of the
Natural Gas Act, until such certificate has been issued.
(d) For the purposes of paragraph (b) of this section, any contract
that conforms to the form of service agreement that is part of the
pipeline's tariff pursuant to Sec. 154.110 does not
[[Page 52997]]
have to be filed. Any contract or executed service agreement which
deviates in any material aspect from the form of service agreement in
the tariff is subject to the filing requirements of this part.
Sec. 154.2 Definitions.
(a) Contract means any agreement which in any manner affects or
relates to rates, charges, classifications, practices, rules,
regulations, or services for any transportation or sale of natural gas
subject to the jurisdiction of the Commission. This term includes an
executed service agreement.
(b) FERC Gas Tariff or tariff means a compilation, either in book
form or on electronic media, of all of the effective rate schedules of
a particular natural gas company, and a copy of each form of service
agreement.
(c) Form of service agreement means an unexecuted agreement for
service included as an example in the tariff.
(d) Post means: to make a copy of a natural gas company's tariff
and contracts available during regular business hours for public
inspection in a convenient form and place at the natural gas company's
offices where business is conducted with affected customers; and, to
mail to each affected customer and interested state commission a copy
of the tariff, or part thereof. Mailing must be accomplished by U.S.
Mail, unless some other method is agreed to by the parties.
(e) Rate schedule means a statement of a rate or charge for a
particular classification of transportation or sale of natural gas
subject to the jurisdiction of the Commission, and all terms,
conditions, classifications, practices, rules, and regulations
affecting such rate or charge.
(f) Filing date means the day on which a tariff, or part thereof,
or a contract is received in the Office of the Secretary of the
Commission for filing in compliance with the requirements of this part.
Sec. 154.3 Effective tariff.
(a) The effective tariff of a natural gas company is the tariff
filed pursuant to the requirements of this part, and permitted by the
Commission to become effective. A natural gas company must not directly
or indirectly, demand, charge, or collect any rate or charge for, or in
connection with, the transportation or sale of natural gas subject to
the jurisdiction of the Commission, or impose any classifications,
practices, rules, or regulations, different from those prescribed in
its effective tariff and executed service agreements on file with the
Commission, unless otherwise specifically permitted by order of the
Commission.
(b) No tariff provision may purport to change an effective rate or
charge except in the manner provided in section 4 of the Natural Gas
Act, and the regulations in this part. The tariff may not provide for
any rate or charge to be automatically changed by an index or other
periodic adjustment, without filing for a rate change pursuant to these
regulations.
Sec. 154.4 Electronic and paper media.
(a) General rule. All statements filed pursuant to subpart D of
this part, and all workpapers in spreadsheet format, and tariff sheets
other than those in Volume No. 2, must be submitted on electronic
media. Filings pursuant to this part 154 must also include the
prescribed number of paper copies. Tariffs, rate schedules, and
contracts, or parts thereof, and material related thereto, including
any change in rates, notice of cancellation or termination, and
certificates of adoption, must be submitted to the Commission in an
original and 5 paper copies, except that filings pursuant to subpart D
of this part must be submitted in an original and 12 paper copies.
(b) All filings must be signed in compliance with the following.
(1) The signature on a filing constitutes a certification that: The
signer has read the filing signed and knows the contents of the paper
copies and electronic media; the paper copies contain the same
information as contained on the electronic media; the contents as
stated in the copies and on the electronic media are true to the best
knowledge and belief of the signer; and, the signer possesses full
power and authority to sign the filing.
(2) A filing must be signed by one of the following:
(i) The person on behalf of whom the filing is made;
(ii) An officer, agent, or employee of the governmental authority,
agency, or instrumentality on behalf of which the filing is made; or,
(iii) A representative qualified to practice before the Commission
under Sec. 385.2101 of this chapter who possesses authority to sign.
(c) Electronic media suitable for Commission filings are listed in
the instructions for each form and filing. Lists of suitable electronic
media are available upon request from the Commission. The formats for
the electronic filing and paper copy can be obtained at the Federal
Energy Regulatory Commission, Public Information and Reference Branch,
888 First Street, NE., Washington, D.C. 20426.
(d) Where to file. The electronic media, the paper copies and
accompanying transmittal letter must be submitted in one package to:
Office of the Secretary, Federal Energy Regulatory Commission, 888
First Street, NE., Washington, D.C. 20426.
(e) Waiver. A natural gas company may request a waiver of the
requirement to submit filings by electronic media, by filing an
original and 5 copies of a request for waiver. The request must
demonstrate that the natural gas company does not have, and is unable
to acquire, the technical capability to file the information on
electronic media.
Sec. 154.5 Rejection of filings.
A filing that fails to comply with this part may be rejected by the
Director of the Office of Pipeline Regulation pursuant to the authority
delegated to the Director in Sec. 375.307(b)(2) of this chapter.
Sec. 154.6 Acceptance for filing not approval.
The acceptance for filing of any tariff, contract or part thereof
does not constitute approval by the Commission. Any filing which does
not comply with any applicable statute, rule, or order, may be
rejected.
Sec. 154.7 General requirements for the submission of a tariff filing
or executed service agreement.
The following must be included with the filing of any tariff,
executed service agreement, or part thereof, or change thereto.
(a) A letter of transmittal containing:
(1) A list of the material enclosed,
(2) The name of a responsible company official to whom questions
regarding the filing may be addressed, with a telephone number at which
the official may be reached,
(3) The date on which such filing is proposed to become effective,
(4) Reference to the authority under which the filing is made,
including the specific section of a statute, subpart of these
regulations, order of the Commission, provision of the company's
tariff, or any other appropriate authority. If an order is referenced,
the letter must include the citation to the FERC Reports, the date of
issuance, and the lead docket number of the proceeding in which the
order was issued.
(5) A list of the tariff sheets enclosed,
(6) A statement of the nature, the reasons, and the basis for the
filing. The statement must include a summary of the changes or
additions made to the tariff or executed service agreement, as
[[Page 52998]]
appropriate. A detailed explanation of the need for each change or
addition to the tariff or executed service agreement must be included.
The natural gas company also must note all relevant precedents relied
upon to prepare its filing.
(7) Any requests for waiver. A request for waiver must include a
reference to the specific section of the statute, regulations, or the
company's tariff from which waiver is sought, and a justification for
the waiver.
(8) Where the natural gas company proposes a new rate,
identification of the last rate, found by the Commission to be just and
reasonable, that underlies the proposed rate.
(9) A motion, in case of minimal suspension, to place the proposed
rates into effect at the end of the suspension period; or, a specific
statement that the pipeline reserves its right to file a later motion
to place the proposed rates into effect at the end of the suspension
period.
(b) A certification of service pursuant to Sec. 154.2(d) to all
customers on the service list and interested state commissions.
Sec. 154.8 Informal submission for staff suggestions.
Any natural gas company may informally submit a proposed tariff or
any part thereof or material relating thereto for the suggestions of
the Commission staff prior to filing. Opinions of the Commission staff
are not binding upon the Commission.
Subpart B--Form and Composition of Tariff
Sec. 154.101 Form.
The paper copies of the tariff must be printed, typewritten, or
otherwise reproduced on 8\1/2\ by 11 inch sheets of a durable paper so
as to result in a clear and permanent record. The sheets of the tariff
must be ruled to set off borders of \1/4\ inches on top, bottom, and
left sides and \1/2\ inch on the right side, and punched (3 holes) on
the left side.
Sec. 154.102 Title page and arrangement.
(a) The title page must show on the front cover:
FERC Gas Tariff
[Volume number. For example: ``Original Volume No. 1''] of [Name of
Natural-Gas Company]
Filed with The Federal Energy Regulatory Commission
(b) If the tariff consists of two or more volumes, the volumes must
be identified by ``(Original) Volume No. (1)'', directly below the
words ``FERC Gas Tariff.''
(c) When any volume of a tariff is to be superseded or replaced in
its entirety, the replacing volume must show prominently on the title
page the volume number being superseded or replaced. For example:
FERC Gas Tariff
First Revised Volume No. 1 (Supersedes Original Volume No. 1)
(d) The first page must be a title page which must carry the
information shown in paragraph (b) of this section and, in addition,
the name, title, and address, telephone number, and facsimile number of
the person to whom communications concerning the tariff should be sent.
If the address is a post office box number, a street address must also
be included.
(e) All sheets must have the following information placed in the
margins:
(1) Identification. At the left, above the top marginal ruling, the
exact name of the company must be shown, under which must be set forth
the words ``FERC Gas Tariff,'' together with volume identification.
(2) Numbering of sheets. Except for the title page, at the right
above the top marginal ruling, the sheet number must appear after the
words ``(Original) Sheet No.(number).'' All sheets must be numbered in
the manner set forth in the Tariff Sheet Pagination Guidelines
contained in the instructions for filing natural gas company tariffs on
electronic media.
(3) Issuing officer and issue date. On the left below the lower
marginal ruling, must be placed ``Issued by'': followed by the name and
title of the person authorized to issue the sheet. Immediately below
must be placed ``Issued on'' followed by the date of issue.
(4) Effective date. On the right below the lower marginal ruling
must be placed ``Effective'': followed by the specific effective date
proposed by the company.
(5) Tariff Sheets filed to comply with Commission orders. Tariff
sheets which are filed to comply with Commission orders must carry the
following notation in the bottom margin: ``Filed to comply with order
of the Federal Energy Regulatory Commission, Docket No. (number),
issued (date), (FERC Reports citation).''
Sec. 154.103 Composition of tariff.
(a) The tariff must contain sections, in the following order: A
table of contents, a preliminary statement, a map of the system,
currently effective rates, composition of rate schedules, general terms
and conditions, form of service agreement, and an index of customers.
(b) Rate schedules must be grouped according to class and numbered
serially within each group, using letters before the serial number to
indicate the class of service. For example: FT-1, FT-2 may be used for
firm transportation service; IT-1, IT-2 may be used for interruptible
transportation service; X-1, X-2 may be used for schedules for which
special exception has been obtained.
Sec. 154.104 Table of contents.
The table of contents must contain a list of the rate schedules,
sections of the general terms and conditions, and other sections in the
order in which they appear, showing the sheet number of the first page
of each section. The list of rate schedules must consist of: The
alphanumeric designation of each rate schedule, a very brief
description of the service, and the sheet number of the first page of
each rate schedule.
Sec. 154.105 Preliminary statement.
The preliminary statement must contain a brief general description
of the company's operations and may also contain a general explanation
of its policies and practices. General rules and regulations, and any
material necessary for the interpretation or application of the rate
schedules, may not be included in the preliminary statement.
Sec. 154.106 Map.
(a) The map must show the general geographic location of the
company's principal pipeline facilities and of the points at which
service is rendered under the tariff. The boundaries of any rate zones
or rate areas must be shown and the areas or zones identified. The
entire system should be displayed on a single map. In addition, a
separate map should be provided for each zone.
(b) The map must be provided on paper only.
(c) The map must be revised to reflect any major changes. The
revised map must be filed no later than April 30 of the calendar year
after the major change.
Sec. 154.107 Currently effective rates.
(a) This section of the tariff must present the currently effective
rates and charges under each rate schedule.
(b) All rates must be stated clearly in cents or dollars and cents
per thermal unit. The unit of measure must be stated for each component
of a rate.
(c) A rate having more than one part must have each component set
out separately under appropriate headings (e.g., ``Reservation
Charge,'' ``Usage Charge.'')
(d) Where a component of a rate is adjusted pursuant to a mechanism
[[Page 52999]]
approved under subpart E of this part, the adjustment must be stated in
a separate column on the rate sheet.
(e) Exception to paragraph (d) of this section. Where the rate
component is an Annual Charge Adjustment or Gas Research Institute
surcharge approved by the Commission, the adjustment or surcharge may
be stated in a footnote on the rate sheet.
(f) A total rate, indicating the sum of the rate components under
paragraph (c) of this section plus the adjustments under paragraph (d)
of this section, must be shown in the last column at the end of a line
for a rate, so that a reader can readily determine the separate
components comprising the total rate for a service.
Sec. 154.108 Composition of rate schedules.
The rate schedule must contain a statement of the rate or charge
and all terms and conditions governing its application, arranged as
follows:
(a) Title. Each rate schedule must have a title consisting of a
designation of the type or classification of service (see
Sec. 154.103(b)), and a statement of the type or classification of
service to which the rate is applicable.
(b) Availability. This paragraph must describe the conditions under
which the rate is offered, including any geographic zone limitations.
(c) Applicability and character of service. This paragraph must
fully describe the kind or classification of service to be rendered.
(d) Summary of rates. This paragraph must briefly set forth all
components of the rates, refer to the location of the rates in the
Currently Effective Rates, and provide a description of the calculation
of the monthly charges for each rate component.
(e) Other provisions. All other major provisions governing the
application of the rate schedule, such as determination of billing
demand, contract demand, heat content, and measurement base, must be
set forth with appropriate headings or incorporated by reference to the
applicable general terms and conditions.
(f) Applicable terms and conditions. This paragraph either states
that all of the general terms and conditions set forth in the tariff
apply to the rate schedule, or specifies which of the general terms and
conditions do not apply.
Sec. 154.109 General terms and conditions.
(a) This section of the tariff contains terms and conditions of
service applicable to all or any of the rate schedules. Subsections and
paragraphs must be numbered for convenient reference.
(b) The general terms and conditions of the tariff must contain a
statement of the company's policy with respect to the financing or
construction of laterals including when the pipeline will pay for or
contribute to the construction cost. The term ``lateral'' means any
pipeline extension (other than a mainline extension) built from an
existing pipeline facility to deliver gas to one or more customers,
including new delivery points and enlargements or replacements of
existing laterals.
(c) The general terms and conditions of the tariff must contain a
statement of the order in which the company discounts its rates and
charges. The statement, specifying the order in which each rate
component will be discounted, must be in accordance with Commission
policy.
Sec. 154.110 Form of service agreement.
The tariff must contain an unexecuted pro forma copy of each form
of service agreement. The form for each service must refer to the
service to be rendered and the applicable rate schedule of the tariff;
and, provide spaces for insertion of the name of the customer,
effective date, expiration date, and term. Spaces may be provided for
the insertion of receipt and delivery points, contract quantity, and
other specifics of each transaction as appropriate.
Sec. 154.111 Index of customers.
(a) If a pipeline is in compliance with the reporting requirements
of Sec. 284.106 or Sec. 284.223 of this chapter, then an index of
customers need not be provided in the tariff.
(b) If all of a pipeline's jurisdictional transportation and sales
are pursuant to part 157 of this chapter, then an index of customers
must be provided that contains: a list of the pipeline's firm
transportation, storage, and sales customers, and the rate schedule
number for the services for which the shippers are contracting; the
effective date of the contract; the expiration date of the contract; if
the service is transportation or sales, the maximum daily contract
demand under the contract; and, if the service is storage, the maximum
storage quantity. Specify units of measurement when reporting contract
quantities.
(c) The index of customers must be kept current by filing new or
revised sheets, semi-annually. One filing must coincide with the filing
of the natural gas company's FERC Form No. 2 or 2-A with a proposed
effective date of June 1. The other filing must be made six months
later with a proposed effective date of December 1. The Index of
Customers must contain a list of the contracts in effect as of the
filing date.
Sec. 154.112 Exception to form and composition of tariff.
(a) The Commission may permit a special rate schedule to be filed
in the form of an agreement in the case of a special operating
arrangement, previously certificated pursuant to part 157 of this
chapter, such as for the exchange of natural gas. The special rate
schedule must contain a title page showing the parties to the
agreement, the date of the agreement, a brief description of services
to be rendered, and the designation: ``Rate Schedule X-[number].''
Special rate schedules may not contain any supplements. Modifications
must be by revised or insert sheets. Special rate schedules must be
included in Volume No. 2 of the tariff. Volume No. 2 must contain a
table of contents which is incorporated with the table of contents of
Volume No. 1.
(b) Contracts for service pursuant to part 284 of this chapter that
deviate in any material aspect from the form of service agreement must
be filed. Such non-conforming agreements must be referenced in FERC
Volume No. 1.
Subpart C--Procedures for Changing Tariffs
Sec. 154.201 Filing requirements.
In addition to the requirements of subparts A and B of this part,
the following must be included with the filing of any tariff, executed
service agreement, or part thereof, that changes or supersedes any
tariff, contract, or part thereof, on file with the Commission.
(a) A marked version of the pages to be changed or superseded
showing additions and deletions. All new numbers and text must be
marked by either highlight, background shading, bold, or underline.
Deleted text and numbers must be indicated by strike-through. A marked
version of the pages to be changed must be included in each copy of the
filing required by these regulations.
(b) Documentation whether in the form of workpapers, or otherwise,
sufficiently detailed to support the company's proposed change.
(1) The documentation must include but is not limited to the
schedules, workpapers, and supporting documentation required by these
rules and regulations and the Commission's orders.
(2) All rate changes in the filing must be supported by step-by-
step mathematical calculations and sufficient
[[Page 53000]]
written narrative to allow the Commission and interested parties to
duplicate the company's calculations.
(3) Any data or summaries included in the filing purporting to
reflect the books of account must be supported by accounting workpapers
setting forth all necessary particulars from which an auditor may
readily verify that such data are in agreement with the company's books
of account. All statements, schedules, and workpapers must be prepared
in accordance with the classifications of the Commission's Uniform
System of Accounts. Workpapers in support of all adjustments,
computations, and other information, properly indexed and cross-
referenced to the filing and other workpapers, must be available for
Commission examination.
(4) Where a rate, cost, or volume is derived from another rate,
cost, or volume, the derivation must be shown mathematically and be
accompanied by a written narrative sufficient to allow the Commission
and interested parties to duplicate the calculations. If the derivation
is due to a load factor adjustment, application of a percentage, or
other adjusting factor, the pipeline must also note or explain the
origin of the adjusting factor.
(5) Where workpapers show progressive calculations, any
discontinuity between one working paper and another must be explained.
Sec. 154.202 Filings to initiate a new rate schedule.
(a) When the filing is to initiate a new service authorized under a
blanket authority in part 284 of this chapter, the filing must comply
with the requirements of this paragraph.
(1) Filings under this paragraph must:
(i) Adhere to the requirements of subparts A, B, and C of this
part;
(ii) Contain a description of the new service, including, but not
limited to, the proposed effective date for commencement of service,
applicability, whether the service is interruptible or firm, and the
necessity for the service;
(iii) Explain how the new service will differ from existing
services, including a concise description of the natural gas company's
existing operations;
(iv) Explain the impact of the new service on existing firm and
interruptible customers, including but not limited to:
(A) The adequacy of existing capacity, if the proposed service is a
firm service, and
(B) The effect on receipt and delivery point flexibility,
nominating and scheduling priorities, allocation of capacity, operating
conditions, and curtailment, for any new service;
(v) Include workpapers that detail the computations underlying the
proposed rate under the new rate schedule; or, if the rate is a
currently effective rate, include the appropriate reference and an
explanation of why the rate is appropriate;
(vi) Give a justification, similar in form to filed testimony in a
general section 4 rate case, explaining why the proposed rate design
and proposed allocation of costs are just and reasonable;
(vii) If the costs relating to existing services are reallocated to
new services, explain the method for allocating the costs and the
impact on the existing customers;
(viii) Include workpapers showing the estimated effect on revenue
and costs over the twelve-month period commencing on the proposed
effective date of the filing.
(ix) List other filings pending before the Commission at the time
of the filing which may significantly affect the filing. Explain how
the instant filing would be affected by the outcome of each related
pending filing;
(2) Any interdependent filings must be filed concurrently and
contain a notice of the interdependence.
(b) If a new service, facility, or rate is specifically authorized
by a Commission order pursuant to section 7 of the Natural Gas Act,
with the filing of tariff sheets to implement the new rate schedule,
the natural gas company must:
(1) Comply with the requirements of Sec. 154.203; and
(2) Where the rate or charge proposed differs from the rate or
charge approved in the certificate order, the natural gas company must:
Show that the change is due to a rate adjustment under a periodic rate
change mechanism previously accepted under Sec. 154.403 which has taken
effect since the certificate order was issued; or, show that the rate
change is in accordance with the terms of the certificate, and provide
workpapers justifying the change.
Sec. 154.203 Compliance filings.
(a) In addition to the requirements of subparts A, B, and C of this
part, filings made to comply with orders issued by the Commission,
including those issued under delegated authority, must contain the
following:
(1) A list of the directives with which the company is complying;
(2) Revised workpapers, data, or summaries with cross-references to
the originally filed workpapers, data, or summaries;
(b) Filings made to comply with Commission orders must include only
those changes required to comply with the order. Such compliance
filings may not be combined with other rate or tariff change filings. A
compliance filing that includes other changes or that does not comply
with the applicable order in every respect may be rejected.
Sec. 154.204 Changes in rate schedules, forms of service agreements,
or the general terms and conditions.
A filing to revise rate schedules, forms of service agreements, or
the general terms and conditions, must:
(a) Adhere to the requirements of subparts A, B, and C, of this
part;
(b) Contain a description of the change in service, including, but
not limited to, applicability, necessity for the change, identification
of services and types of customers that will be affected by the change;
(c) Explain how the proposed tariff provisions differ from those
currently in effect, including an example showing how the existing and
proposed tariff provisions operate. Explain why the change is being
proposed at this time;
(d) Explain the impact of the proposed revision on firm and
interruptible customers, including any changes in a customer's rights
to capacity in the manner in which a customer is able to use such
capacity, receipt or delivery point flexibility, nominating and
scheduling, curtailment, capacity release;
(e) Include workpapers showing the estimated effect on revenues and
costs over the 12-month period commencing on the proposed effective
date of the filing. If the filing proposes to change an existing
penalty provision, provide workpapers showing the penalty revenues and
associated quantities under the existing penalty provision during the
latest 12-month period; and
(f) List other filings pending before the Commission which may
significantly affect the filing.
Sec. 154.205 Changes related to suspended tariffs, executed service
agreements, or parts thereof.
(a) Withdrawal of suspended tariffs, executed service agreements,
or parts thereof. A natural gas company may not, within the period of
suspension, withdraw a proposed tariff, executed service agreement, or
part thereof, that has been suspended by order of the Commission,
except by special permission of the Commission granted upon application
therefor and for good cause shown.
[[Page 53001]]
(b) Changes in suspended tariffs, executed service agreements, or
parts thereof. A natural gas company may not, within the period of
suspension, file any change in a proposed tariff, executed service
agreement, or part thereof, that has been suspended by order of the
Commission, except by special permission of the Commission granted upon
application therefor and for good cause shown.
(c) Changes in tariffs, executed service agreements, or parts
thereof continued in effect, and which were to be changed by the
suspended filing. A natural gas company may not, within the period of
suspension, file any change in a tariff, executed service agreement, or
part thereof, that is continued in effect by operation of the order of
suspension, and that was proposed to be changed by the suspended
filing, except:
(1) Under a previously approved tariff provision permitting a
limited rate change, or
(2) By special permission of the Commission.
Sec. 154.206 Motion to place suspended rates into effect.
(a) If, prior to the end of the suspension period, the Commission
has issued an order requiring changes in the filed rates, or the filed
rates recover costs for facilities not certificated and in service as
of the proposed effective date, in order to place the suspended rates
into effect, the pipelne must file a motion at least one day prior to
the effective date requested by the pipeline. The motion must be
accompanied by revised tariff sheets reflecting any changes ordered by
the Commission or modifications approved by the Commission during the
suspension period under Sec. 154.205. The filing of the revised tariff
sheets must:
(1) Comply with the requirements of subparts A, B, and C of this
part;
(2) Identify the Commission order directing the revision;
(3) List the modifications made to the currently effective rate
during the suspension period, the docket number in which the
modifications were filed, and identify the order permitting the
modifications.
(b) Where the Commission has suspended the effective date of a
change of rate, charge, classification, or service for a minimal period
and the pipeline has not included a motion in its transmittal letter,
or has specified in its transmittal letter pursuant to
Sec. 154.7(a)(9), that it reserves its right to file motion to place
the proposed change of rate, charge, classification, or service into
effect at the end of the suspension period, the change will go into
effect, subject to refund, upon motion of the pipeline.
(c) Where the Commission has suspended the effective date of a
change of rate, charge, classification, or service for a minimal period
and the pipeline has included, in its transmittal letter pursuant to
Sec. 154.7(a)(9), a motion to place the proposed change of rate,
charge, classification, or service into effect at the end of the
suspension period, the change will go into effect, subject to refund,
on the authorized effective date.
Sec. 154.207 Notice requirements.
All proposed changes in tariffs, contracts, or any parts thereof
must be filed with the Commission and posted not less than 30 days nor
more than 60 days prior to the proposed effective date thereof, unless
a waiver of the time periods is granted by the Commission.
Sec. 154.208 Service on customers and other parties.
(a) On or before the filing date, the company must serve, upon all
customers as of the date of the filing and all affected state
regulatory commissions, an abbreviated form of the filing consisting
of: The Letter of Transmittal; the Statement of Nature, Reason, and
Basis; the changed tariff sheets; a summary of the cost-of-service and
rate base; and, summary of the magnitude of the change.
(b) On or before the filing date, the company must serve a full
copy of the filing upon all customers and state regulatory commissions
that have made a standing request for such service.
(c) Within 48 hours of receiving a request for a complete copy from
any customer or state commission that has not made a standing request,
the company must serve a full copy of any filing.
Sec. 154.209 Form of notice for Federal Register.
The company must file a form of notice suitable for publication in
the Federal Register. The company must also submit a copy of the notice
on a separate 3\1/2\'' diskette in ASCII format. Each diskette must be
labelled with the name of the company and the words ``notice of
filing.'' The notice must be in the following form:
United States of America Federal Energy Regulatory Commission
(Name of Company) Docket No.
Notice of Proposed Changes in FERC Gas Tariff (or Notice of Compliance
Filing)
Take notice that on (date),(name of company) tendered for filing
as part of its FERC Gas Tariff, Volume No. (number), the following
tariff sheets, to become effective (insert effective date). (List
tariff sheets). [The following language in the first paragraph
applies only to compliance filings.] (Name of company) asserts that
the purpose of this filing is to comply with the Commission's order
issued (insert issue date), in (docket). [The following language in
the first paragraph applies only to rate change filings.] The
proposed changes would (increase/decrease) revenues from
jurisdictional service by (dollar amount) based on the 12-month
period ending (date), as adjusted. [For proposed changes other than
changed rates and charges, the company must state concisely the
nature of these changes.]
[The company must briefly describe the reasons for the proposed
changes in the second paragraph.]
Any person desiring to be heard or to protest this filing should
file a motion to intervene or protest with the Federal Energy
Regulatory Commission, Washington, DC 20426, in accordance with
Sec. 385.214 and Sec. 385.211 of the Commission's rules and
regulations. All such motions or protests must be filed on or before
(insert date 12 days after filing date). Protests will be considered
by the Commission in determining the appropriate action to be taken,
but will not serve to make protestants parties to the proceeding.
Any person wishing to become a party must file a motion to
intervene. Copies of this filing are on file with the Commission and
are available for public inspection in the Public Reference Room.
Sec. 154.210 Protests, interventions, and comments.
(a) Unless the notice issued by the Commission provides otherwise,
any protest, intervention or comment to a tariff filing made pursuant
to this part must be filed in accordance with Sec. 385.211 of this
chapter, not later than 12 days after the subject tariff filing. A
protest must state the basis for the objection. A protest will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make the protestant a party to the
proceeding. A person wishing to become a party to the proceeding must
file a motion to intervene.
(b) Any motion to intervene must be filed not later than 12 days
after the subject tariff filing in accordance with Sec. 385.214 of this
chapter.
Subpart D--Material To Be Filed With Changes
Sec. 154.301 Changes in rates.
(a) Except for changes in rates pursuant to subparts E, F and G, of
this part, any natural gas company filing for a change in rates or
charges, except for a minor rate change, must submit, in addition to
the material required by subparts A, B, and C of this part, the
Statements and Schedules described in Sec. 154.312.
[[Page 53002]]
(b) A natural gas company filing for a minor rate change must file
the Statements and Schedules described in Sec. 154.313.
(c) A natural gas company filing for a change in rates or charges
must be prepared to go forward at a hearing and sustain, solely on the
material submitted with its filing, the burden of proving that the
proposed changes are just and reasonable. The filing and supporting
workpapers must be of such composition, scope, and format as to
comprise the company's complete case-in-chief in the event that the
change is suspended and the matter is set for hearing. If the rate
fixing adjustments presented are not in full accord with any prior
Commission decision directly involving the filing company, the company
must include in its working papers alternate material reflecting the
effect of such prior decision. (For purposes of this section, rate of
return is not a rate fixing adjustment.)
Sec. 154.302 Previously submitted material.
(a) If all, or any portion, of the information called for by this
part has already been submitted to the Commission within six months of
the filing date of this application, or is included in other data filed
pursuant to this part, specific reference thereto may be made in lieu
of resubmission.
(b) If a new FERC Form No. 2 or 2-A is required to be filed within
60 days from the end of the base period, the new FERC Form No. 2 or 2-A
must be filed concurrently with the rate change filing. There must be
furnished to the Director, Office of Pipeline Regulation, with the rate
change filing, one copy of the FERC Form No. 2 or 2-A.
Sec. 154.303 Test periods.
Statements A through M, O, P, and supporting schedules, in
Sec. 154.312 and Sec. 154.313, must be based upon a test period.
(a) If the natural gas company has been in operation for 12 months
on the filing date, then the test period consists of a base period
followed by an adjustment period.
(1) The base period consists of 12 consecutive months of the most
recently available actual experience. The last day of the base period
may not be more than 4 months prior to the filing date.
(2) The adjustment period is a period of up to 9 months immediately
following the base period.
(3) The test period may not extend more than 9 months beyond the
filing date.
(4) The rate factors (volumes, costs, and billing determinants)
established during the base period may be adjusted for changes in
revenues and costs which are known and measurable with reasonable
accuracy at the time of the filing and which will become effective
within the adjustment period. The base period factors must be adjusted
to eliminate nonrecurring items. The company may adjust its base period
factors to normalize items eliminated as nonrecurring.
(b) If the natural gas company has not been in operation for 12
months on the filing date, then the test period must consist of 12
consecutive months ending not more than one year after the filing date.
Rate factors may be adjusted as in paragraph (a)(4) of this section but
must not be adjusted for occurrences anticipated after the 12-month
period.
(c)(1) Adjustments to base period experience, or to estimates where
12 months' experience is not available, may include the costs for
facilities for which either a permanent or temporary certificate has
been granted, provided such facilities will be in service within the
test period; or a certificate application is pending. The filing must
identify facilities, related costs and the docket number of each such
outstanding certificate. Subject to paragraph (c)(2) of this section,
adjustments to base period experience, or to estimates where 12 months'
experience is not available, may include any amounts for facilities
that require a certificate of public convenience and necessity, where a
certificate has not been issued by the filing date but is expected to
be issued before the end of the test period. Adjustments to base period
may include costs for facilities that do not require a certificate and
are in service by the end of the test period.
(2) When a pipeline files a motion to place the rates into effect,
the filing must be revised to exclude the costs associated with any
facilities not in service as of the earlier of the effective date or
the end of the test period.
(d) The Commission may allow reasonable deviation from the
prescribed test period.
Sec. 154.304 Format of statements, schedules, workpapers and
supporting data.
(a) All statements, schedules, and workpapers must be prepared in
accordance with the Commission's Uniform System of Accounts.
(b) The data in support of the proposed rate change must include
the required particulars of book data, adjustments, and other
computations and information on which the company relies, including a
detailed narrative explanation of each proposed adjustment to base
period actual volumes and costs.
(c) Book data included in statements and schedules required to be
prepared or submitted as part of the filing must be reported in a
separate column or columns. All adjustments to book data must also be
reported in a separate column or columns so that book amounts,
adjustments thereto, and adjusted amounts will be clearly disclosed.
All adjustments must be supported by a narrative explanation.
(d) Certain of the statements and schedules of Sec. 154.313 are
workpapers. Any data or summaries reflecting the books of account must
be supported by accounting workpapers setting forth all necessary
particulars from which an auditor may readily identify the book data
included in the filing and verify that such data are in agreement with
the company's books of account.
Sec. 154.305 Tax normalization.
(a) Applicability. An interstate pipeline must compute the income
tax component of its cost-of-service by using tax normalization for all
transactions.
(b) Definitions.
(1) Tax normalization means computing the income tax component as
if transactions recognized in each period for ratemaking purposes are
also recognized in the same amount and in the same period for income
tax purposes.
(2) Commission-approved ratemaking method means a ratemaking method
approved by the Commission in a final decision. This includes a
ratemaking method that is part of an approved settlement or arbitration
providing that the ratemaking method is to be effective beyond the term
of the settlement or arbitration.
(3) Income tax purposes means for the purpose of computing actual
income tax under the provisions of the Internal Revenue Code or the
income tax provisions of the laws of a State or political subdivision
of a State (including franchise taxes).
(4) Income tax component means that part of the cost-of-service
that covers income tax expenses allowable by the Commission.
(5) Ratemaking purposes means for the purpose of fixing, modifying,
accepting, approving, disapproving, or rejecting rates under the
Natural Gas Act.
(6) Tax effect means the tax reduction or addition associated with
a specific expense or revenue transaction.
(7) Transaction means an activity or event that gives rise to an
accounting entry.
[[Page 53003]]
(c) Reduction of, and addition to, Rate Base. (1) The rate base of
an interstate pipeline using tax normalization under this section must
be reduced by the balances that are properly recordable in Account 281,
``Accumulated deferred income taxes-accelerated amortization
property''; Account 282, ``Accumulated deferred income taxes--other
property'': and Account 283, ``Accumulated deferred income taxes--
other.'' Balances that are properly recordable in Account 190,
``Accumulated deferred income taxes,'' must be treated as an addition
to rate base. Include, as an addition or reduction, as appropriate,
amounts in Account 182.3, Other regulatory assets, and Account 254,
Other regulatory liabilities, that result from a deficiency or excess
in the deferred tax accounts (see paragraph (d) of this section) and
which have been, or are soon expected to be, authorized for recovery or
refund through rates.
(2) Such rate base reductions or additions must be limited to
deferred taxes related to rate base, construction, or other costs and
revenues affecting jurisdictional cost-of-service.
(d) Special rules. (1) This paragraph applies:
(i) If the rate applicant has not provided deferred taxes in the
same amount that would have accrued had tax normalization always been
applied; or
(ii) If, as a result of changes in tax rates, the accumulated
provision for deferred taxes becomes deficient in, or in excess of,
amounts necessary to meet future tax liabilities.
(2) The interstate pipeline must compute the income tax component
in its cost-of-service by making provision for any excess or deficiency
in deferred taxes.
(3) The interstate pipeline must apply a Commission-approved
ratemaking method made specifically applicable to the interstate
pipeline for determining the cost-of-service provision described in
paragraph (d)(2) of this section. If no Commission-approved ratemaking
method has been made specifically applicable to the interstate
pipeline, then the interstate pipeline must use some ratemaking method
for making such provision, and the appropriateness of such method will
be subject to case-by-case determination.
(4) An interstate pipeline must continue to include, as an addition
or reduction to rate base, any deficiency or excess attributable to
prior flow-through or changes in tax rates (paragraphs (d)(1)(i) and
(d)(1)(ii) of this section), until such deficiency or excess is fully
amortized in accordance with a Commission approved ratemaking method.
Sec. 154.306 Cash working capital.
A natural gas company that files a tariff change under this part
may not receive a cash working capital adjustment to its rate base
unless the company or other participant in a rate proceeding under this
part demonstrates, with a fully developed and reliable lead-lag study,
a net revenue receipt lag or a net expense payment lag (revenue lead).
Any demonstrated net revenue receipt lag will be credited to rate base;
and, any demonstrated net expense payment lag will be deducted from
rate base.
Sec. 154.307 Joint facilities.
The Statements required by Sec. 154.312 must show all costs
(investment, operation, maintenance, depreciation, taxes) that have
been allocated to the natural gas operations involved in the subject
rate change and are associated with joint facilities. The methods used
in making such allocations must be provided.
Sec. 154.308 Representation of chief accounting officer.
The filing must include a statement executed by the chief
accounting officer or other authorized accounting representative of the
filing company representing that the cost statements, supporting data,
and workpapers, that purport to reflect the books of the company do, in
fact, set forth the results shown by such books.
Sec. 154.309 Incremental expansions.
(a) For every expansion for which incremental rates are charged,
the company must provide a summary with applicable cross-references to
Sec. 154.312 and Sec. 154.313, of the costs and revenues associated
with the expansion, until the Commission authorizes the costs of the
incremental facilities to be rolled-in to the pipeline's rates. For
every expansion that has an at-risk provision in the certificate
authorization, the costs and revenues associated with the facility must
be shown in summary format with applicable cross-references to
Sec. 154.312 and Sec. 154.313, until the Commission removes the at-risk
condition.
(b) The summary statements must provide the formulae and explain
the bases used in the allocation of common costs to each incremental
facility.
Sec. 154.310 Zones.
If the company maintains records of costs by zone, and proposes a
zone rate methodology based on these costs, the statements and
schedules in Sec. 154.312 and Sec. 154.313 must reflect costs detailed
by zone.
Sec. 154.311 Updating of statements.
(a) Certain statements and schedules in Sec. 154.312, that include
test period data, must be updated with actual data by month and must be
resubmitted in the same format and with consecutive 12 month running
totals, for each month of the adjustment period. The updated statements
or schedules must be filed 45 days after the end of the test period.
The updated filing must reference the associated docket number and must
be filed in the same format, form, and number as the original filing.
(b) The statements and schedules in Sec. 154.312 to be updated are:
Statements C, D and H-4; Schedules B-1, B-2, C-3, D-2, E-2, E-4, G-1,
G-4, G-5, G-6, H-1 (1)(a), H-1 (1)(b), H-1 (1)(c), H-1 (3)(a) through
H-1 (3)(l), H-2 (1), H-3 (3), I-4, and I-6.
Sec. 154.312 Composition of Statements.
(a) Statement A. Cost-of-service Summary. Summarize the overall gas
utility cost-of-service: operation and maintenance expenses,
depreciation, taxes, credits to cost-of-service, and return as
developed in other statements and schedules.
(b) Statement B. Rate Base and Return Summary. Summarize the
overall gas utility rate base shown in Statements C, D, E, and
Schedules B-1 and B-2. Show the application of the claimed rate of
return to the overall rate base.
(1) Schedule B-1. Accumulated Deferred Income Taxes (Account Nos.
190, 282, and 283). Show monthly book balances of accumulated deferred
income taxes for each of the 12 months during the base period. List all
items for which the accumulated deferred income taxes are calculated.
In adjoining columns, show additions and reductions for the adjustment
period balance and the total adjusted balance. Separately identify the
individual components and the amounts in these accounts that the
company seeks to include in its rate base.
(2) Schedule B-2. Regulatory Asset and Liability. If the pipeline
seeks recovery of such balances in rate base, show monthly book
balances of regulatory assets (Account 182.3) and liabilities (Account
254) for each of the 12 months during the base period. In adjoining
columns, show additions and reductions for the adjustment period
balance and the total adjusted balance. Separately identify the
individual components and the amounts in these accounts that the
company seeks to include in its rate base. Identify any specific
Commission authority that
[[Page 53004]]
required the establishment of these amounts. Regulatory asset or
liability net of deferred tax amounts should be included. Also,
separately state the gross amounts of the regulatory asset and
liability.
(c) Statement C. Cost of Plant Summary. Show the amounts of gas
utility plant classified by Accounts 101, 102, 103, 104, 105, 106, 107,
117.1, and 117.2 as of the beginning of the 12 months of actual
experience, the book additions and reductions (in separate columns)
during the 12 months, and the book balances at the end of the 12-month
period. In adjoining columns, show the claimed adjustments, if any, to
the book balances and the total cost of plant to be included in rate
base. For Account 117, also provide the volumes by subaccount. State
the method used for accounting for system gas recorded in Account
117.2. Explain all adjustments in the following schedules.
(1) Schedule C-1. End of Base and Test Period Plant Functionalized.
Demonstrate the ending base and test period balances for Plant in
Service, in columnar form, by detailed plant account prescribed by the
Commission's Uniform System of Accounts for Natural Gas Companies (part
201 of this chapter) with subtotals by functional classifications,
e.g., Intangible Plant, Manufactured Gas Production Plant, Natural Gas
Production and Gathering Plant, Products Extraction Plant, Storage
Plant, Transmission Plant, Distribution Plant, and General Plant. Show
zones, to the extent required by Sec. 154.310, and expansions, to the
extent required by Sec. 154.309. Separately identify those facilities
and associated costs claimed for the test period that require
certificate authority but such authority has not been obtained at the
time of filing. Give the docket number of the certificate proceeding.
(2) Schedule C-2. Show, for Accounts 106 and 107, a list of work
orders claimed in the rate base. Give the work order number, docket
number, description, amount of each work order, and the amounts of each
type of undistributed construction overhead. Work orders amounting to
$500,000 or less may be grouped by category of items.
(3) Schedule C-3. A cross-reference to updated information in the
company's FERC Form No. 2 may be substituted for this Schedule. Give
details of each storage project owned and storage projects under
contract to the company, showing cost by major functions. Show base and
system gas storage quantities and associated costs by account for the
test period and for the 12 months of actual experience with monthly
inputs and outputs to system gas.
(4) Schedule C-4. This schedule is part of the workpapers. State
the methods and procedures followed in capitalizing the allowance for
funds used during construction and other construction overheads. This
schedule must be provided only in situations when the pipeline has
changed any of its procedures since the last filed FERC Forms No. 2 or
2-A.
(5) Schedule C-5. This schedule is part of the workpapers. Set
forth the cost of Plant in Service carried on the company's books as
gas utility plant which was not being used in rendering gas service.
Describe the plant. This schedule must be provided only if there is a
significant change of $500,000 or more since the end of the year
reported in the company's last FERC Form No. 2 or 2-A.
(d) Statement D. Accumulated Provisions for Depreciation,
Depletion, and Amortization. Show the accumulated provisions for
depreciation, depletion, amortization, and abandonment (Account 108,
detailed by functional plant classification, and Account 111), as of
the beginning of the 12 months of actual experience, the book additions
and reductions during the 12 months, and the balances at the end of the
12-month period. In adjoining columns, show adjustments to these ending
book balances and the total adjusted balances. All adjustments must be
explained in the supporting material. Any authorized negative salvage
must be maintained in a separate subaccount of Account 108. For each
functional plant classification, show depreciation reserve associated
with offshore and onshore plant separately. The following schedules and
additional material must be submitted as part of Statement D:
(1) Schedule D-1. This schedule is part of the workpapers. Show the
depreciation reserve book balance applicable to that portion of the
depreciation rate not yet approved by the Commission, the depreciation
rates, the docket number of the order approving such rate, and an
explanation of any difference. Reflect actual end of base period
depreciation reserve functionalized. Show accumulated depreciation and
amortization, in columnar form, for the ending base and test period
balances by functional classifications of Accumulated Depreciation
reserve. (Examples are provided in Schedule C-1). For each functional
plant classification, show depreciation reserve associated with
offshore and onshore plant separately.
(2) Schedule D-2. This schedule is part of the workpapers. Give a
description of the methods and procedures used in depreciating,
depleting, and amortizing plant and in recording abandonments. This
schedule must be filed only if a policy change has been made effective
since the period covered by the last annual report on FERC Form No. 2
or 2-A was filed with the Commission.
(e) Statement E. Working Capital. Show the components of working
capital in sufficient detail to explain how the amount of each
component was computed. Components of working capital, other than cash
working capital, may include an allowance for the average of 13 monthly
balances of materials and supplies and prepayments actually expended
and gas for resale. To the extent the applicant files to adjust the
average of any 13 monthly balances, workpapers must be submitted that
support the adjustment(s). Show the computations, cross-references, and
sources from which the data used in computing claimed working capital
are derived. The following schedules and material must be submitted as
part of Statement E:
(1) Schedule E-1. Show the computation of cash working capital
claimed as an adjustment to the gas company's rate base. Any adjustment
to rate base requested must be based on a fully-developed and reliable
lead-lag study. The components of the lead-lag study must include
actual total company revenues, purchased gas costs, storage expense,
transportation and compression of gas by others, salaries and wages,
administrative and general expenses, income taxes payable, taxes other
than income taxes, and any other operating and maintenance expenses for
the base period. Cash working capital allowances in the form of
additions to rate base may not exceed one-eighth of the annual
operating expenses, as adjusted, net of non-cash items.
(2) Schedule E-2. Set forth monthly balances for materials,
supplies, and prepayments in such detail as to disclose, either by
subaccounts regularly maintained on the books or by analysis of the
principal items included in the main account, the nature of such
charges.
(3) Schedule E-3. For FERC Accounts 117.3, 164.1, 164.2 and 164.3,
show the quantities and the respective costs of natural gas stored at
the beginning of the test period, the input, output and balance
remaining in Dth and associated costs by months. The method of pricing
input, output and balance, and the claimed adjustments shall be
disclosed and clearly and fully explained.
[[Page 53005]]
Pipelines using the inventory method for system gas should not include
any system gas inventory balances in this schedule.
(f) Statement F-1. Rate of Return Claimed. Show the percentage rate
of return claimed and the general reasons therefor. Where any component
of the capital of the filing company is not primarily obtained through
its own financing, but is primarily obtained from a company by which
the filing company is controlled, as defined in the Commission's
Uniform System of Accounts, then the data required by these statements
must be submitted with respect to the debt capital, preferred stock
capital, and common stock capital of such controlling company or any
intermediate company through which such funds have been secured.
Furnish the Commission staff a copy of the latest prospectus issued by
the filing natural gas company, any superimposed holding company, or
subsidiary companies.
(g) Statement F-2. Show
(1) The capitalization, capital structure, cost of debt capital,
preferred stock capital, and the claimed return on stockholders'
equity;
(2) The weighted cost of each capital class based on the capital
structure; and,
(3) The overall rate of return claimed.
(h) Statement F-3. Debt Capital. Show the weighted average cost of
debt capital based upon the following data for each class and series of
long-term debt outstanding according to the balance sheet, as of the
end of the 12-month base period of actual experience and as of the end
of the 9-month test period.
(1) Title.
(2) Date of issuance and date of maturity.
(3) Interest rate.
(4) Principal amount of issue: Gross proceeds; Underwriters'
discount or commission: Amount; Percent gross proceeds; Issuance
expense: Amount; Percent gross proceeds; Net proceeds; Net proceeds per
unit.
(5) Cost of money: Yield to maturity based on the interest rate and
net proceeds per unit outstanding determined by reference to any
generally accepted table of bond yields. The yield to maturity is to be
expressed as a nominal annual interest rate. For example, for bonds
having semiannual payments, the yield to maturity is twice the
semiannual rate.
6) If the issue is owned by an affiliate, state the name and
relationship of the owner.
(7) If the filing company has acquired, at a discount or premium,
some part of its outstanding debt which could be used in meeting
sinking fund requirements, or for other reasons, separately show: The
annual amortization of the discount or premium for each series of debt
from the date of reacquisition over the remaining life of the debt
being retired; and, the total discount and premium, as a result of such
amortization, applicable to the test period.
(i) Statement F-4. Preferred Stock Capital. Show the weighted
average cost of preferred stock capital based upon the following data
for each class and series of preferred stock outstanding according to
the balance sheet, as of the end of the 12-month base period of actual
experience and as of the end of the nine-month test period.
(1) Title.
(2) Date of issuance.
(3) If callable, call price.
(4) If convertible, terms of conversion.
(5) Dividend rate.
(6) Par or stated amount of issue: Gross proceeds; Underwriters'
discount or commission: Amount; Percent gross proceeds; Issuance
expenses: Amount; Percent gross proceeds; Net proceeds; Net proceeds
per unit.
(7) Cost of money: Annual dividend rate divided by net proceeds per
unit.
(8) State whether the issue was offered to stockholders through
subscription rights or to the public.
(9) If the issue is owned by an affiliate, state the name and
relationship of the owner.
(j) Statement G. Revenues, Credits, and Billing Determinants.
(1) Show in summary format the information requested below on
revenues, credits and billing determinants for the base period and the
base period as adjusted. Explain the basis for adjustment to the base
period. The level of billing determinants should not be adjusted for
discounting.
(i) Revenues. Provide the total revenues, from jurisdictional and
non-jurisdictional services, classified in accordance with the
Commission's Uniform System of Accounts for the base period and for the
base period as adjusted. Separate operating revenues by major rate
component (e.g., reservation charges, demand charges, usage charges,
commodity charges, injection charges, withdrawal charges, etc.) from
revenues received from penalties, surcharges or other sources (e.g.,
ACA, GRI, transition costs). Show revenues by rate schedule and by
receipt and delivery rate zones, if applicable. Show separately the
revenues for firm services under contracts with a primary term of less
than one year. For services provided through released capacity,
identify total revenues by rate schedule and by receipt and delivery
rate zones, if applicable.
(ii) Credits. Show the principal components comprising each of the
various items which are reflected as credits to the cost-of-service in
preparing Statement A, Overall Cost-of-service for the base period and
the base period as adjusted. Any transition cost component of
interruptible transportation revenue must not be treated as operating
revenues as defined above.
(iii) Billing Determinants. Show total reservation and usage
billing determinants for the base period and the base period as
adjusted, by rate schedule by receipt and delivery rate zones, if
applicable. Show separately the billing determinants for firm services
under contracts with a primary term of less than one year. For services
provided through released capacity, identify billing determinants by
rate schedule and by receipt and delivery rate zones, if applicable.
(2) The Schedules G-1 through G-6 must be filed at the FERC and
served on all state commissions having jurisdiction over the affected
customers within fifteen days after the rate case is filed. Schedules
G-1 through G-6 must also be served on parties that request such
service within 15 days of the filing of the rate case.
(i) Schedule G-1. Base Period Revenues. For the base period, show
total actual revenues and billing determinants by month by customer
name, by rate schedule, by receipt and delivery zone, if applicable, by
major rate component (e.g., reservation charges) and totals. Billing
determinants must not be adjusted for discounting. Provide actual
throughput (i.e., usage or commodity quantities, unadjusted for
discounting) and actual contract demand levels (unadjusted for
discounting). Provide this information separately for firm service
under contracts with a primary term of less than one year. Separate
operating revenues from revenues received from surcharges or other
sources (e.g., ACA, GRI, transition costs). Identify customers who are
affiliates. Identify rate schedules under which costs are allocated and
rate schedules under which revenues are credited for the base period
with cross-references to the other filed statements and schedules.
(ii) Schedule G-2. Adjustment Period Revenues.
(A) Show revenues and billing determinants by month, by customer
name, by rate schedule, by receipt and delivery zone, if applicable, by
major rate component (e.g., reservation charges) and totals for the
base period
[[Page 53006]]
adjusted for known and measurable changes which are expected to occur
within the adjustment period computed under the rates expected to be
charged. Billing determinants must not be adjusted for discounting.
Provide projected throughput (i.e., usage or commodity quantities,
unadjusted for discounting) and projected contract demand levels
(unadjusted for discounting). Provide this information separately for
firm service under contracts with a primary term of less than one year.
Separate operating revenues from revenues received from surcharges or
other sources (e.g., ACA, GRI, transition costs). Identify customers
who are affiliates. Identify rate schedules under which costs are
allocated and rate schedules under which revenues are credited for the
adjustment period with cross-references to the other filed statements
and schedules.
(B) Provide a reconciliation of the base period revenues and
billing determinants and the revenues and billing determinants for the
base period as adjusted.
(iii) Schedule G-3. Specify, quantify, and justify each proposed
adjustment (capacity release, plant closure, contract termination,
etc.) to base period actual billing determinants, and provide a
detailed explanation for each factor contributing to the adjustment.
Include references to any certificate docket authorizing changes.
Submit workpapers with all formulae.
(iv) Schedule G-4. At-Risk Revenue. For each instance where there
is a separate cost-of-service associated with facilities for which the
applicant is ``at risk,'' show the base period and adjustment period
revenue by customer or customer code, by rate schedule, by receipt and
delivery zone, if applicable, and as 12-month totals. Provide this
information by month unless otherwise agreed to by interested parties
and if monthly reporting is consistent with past practice of the
pipeline. However, if seasonal services are involved, or if billing
determinants vary from month to month, the information must be provided
monthly. Provide projected throughput (i.e., usage or commodity
quantities, unadjusted for discounting) and projected contract demand
levels (unadjusted for discounting).
(v) Schedule G-5. Other Revenues.
(A) Describe and quantify, by month, the types of revenue included
in Account Nos. 490-495 for the base and test periods. Show revenues
applicable to the sale of products. Show the principal components
comprising each of the various items which are reflected as credits to
cost-of-service in Statement A.
(B) To the extent the credits to the cost-of-service reflected in
Statement A differ from the amounts shown on Schedule G-5, compare and
reconcile the two statements. Quantify and explain each proposed
adjustment to base period actuals. For Account No. 490, show the name
and location of each product extraction plant processing gas for the
applicant, and the inlet and outlet monthly dth of the pipeline's gas
at each plant. Show the revenues received by the applicant by product
by month for each extraction plant for the base period and proposed for
the test period.
(C) Separately state each item and revenue received for the
transportation of liquids, liquefiable hydrocarbon, or nonhydrocarbon
constituents owned by shippers. For both the base and test periods,
indicate by shipper contract: The quantity transported and the revenues
received.
(D) Separately state the revenues received from the release by the
pipeline of transportation and compression capacity it holds on other
pipeline systems. The revenues must equal the revenues reflected on
Schedule I-4(iv).
(vi) Schedule G-6. Miscellaneous Revenues. Separately state by
month the base and adjustment period revenues and the associated
quantities received as penalties from jurisdictional customers; the
revenues received from cash outs and other imbalance adjustments; and,
the revenues received from exit fees.
(k) Statement H-1. Operation and Maintenance Expenses. Show the gas
operation and maintenance expenses according to each applicable account
of the Commission's Uniform System of Accounts for Natural Gas
Companies. Show the expenses under columnar headings, with subtotals
for each functional classification, as follows: Operation and
maintenance expense by months, as booked, for the 12 months of actual
experience, and the 12-month total; adjustments, if any, to expenses as
booked; and, total adjusted operation and maintenance expenses. Provide
a detailed narrative explanation of, and the basis and supporting
workpapers for, each adjustment. The following schedules and additional
material must be submitted as part of Statement H-1:
(1) Schedule H-1 (1). This schedule is part of the workpapers. Show
the labor costs, materials and other charges (excluding purchased gas
costs) and expenses associated with Accounts 810, 811, and 812 recorded
in each gas operation and maintenance expense account of the Uniform
System of Accounts. Show these expenses, under the columnar headings,
with subtotals for each functional classification, as follows:
Operation and maintenance expenses by months, as booked, for the 12
months of actual experience, and the 12-month total; adjustments, if
any, to expenses as booked; and total adjusted operation and
maintenance expenses. Disclose and explain all accrual or other
normalizing accounting entries for internal purposes reflected in the
monthly expenses presented per book. Explain any amounts not currently
payable, except depreciation charged through clearing accounts,
included in operation and maintenance expenses.
(2) Schedule H-1 (1)(a). Labor Costs.
(3) Schedule H-1 (1)(b). Materials and Other Charges (Excluding
Purchased Gas Costs and items shown in Schedule H-1 (1)(c)).
(4) Schedule H-1 (1)(c). Quantities Applicable to Accounts Nos.
810, 811, and 812. Show the quantities for each of the contra-accounts
for both base and test periods.
(5) Schedule H-1 (2). This schedule is part of the workpapers.
Show, for the 12 months of actual experience and claimed adjustments: A
classification of principal charges, credits and volumes; particulars
of supporting computations and accounting bases; a description of
services and related dollar amounts for which liability is incurred or
accrued; and, the name of the firm or individual rendering such
services. Expenses reported in Schedules H-1 (2)(a) through H-1 (2)(k)
of $100,000 or less per type of service may be grouped.
(6) Schedule H-1 (2)(a). Accounts 806, 808.1, 808.2, 809.1, 809.2,
813, 823, and any other account used to record fuel use or gas losses.
Provide details of each type of expense.
(7) Schedule H-1 (2)(b). Accounts 913 and 930.1. Advertising
Expenses. Disclose principal types of advertising such as TV,
newspaper, etc.
(8) Schedule H-1 (2)(c). Account 921. Office Supplies and Expenses.
(9) Schedule H-1 (2)(d). Account 922. Administrative Expenses
Transferred Credit.
(10) Schedule H-1 (2)(e). Account 923. Outside Services Employed.
(11) Schedule H-1 (2)(f). Account 926. Employee Pensions and
Benefits.
(12) Schedule H-1 (2)(g). Account 928. Regulatory Commission
Expenses.
(13) Schedule H-1 (2)(h). Account 929. Duplicate Charges. Credit.
(14) Schedule H-1 (2)(i). Account 930.2. Miscellaneous General
Expenses.
(15) Schedule H-1 (2)(j). Intercompany and Interdepartmental
Transactions. Provide a complete disclosure of all corporate overhead
[[Page 53007]]
allocated to the company. If the expense accounts contain charges or
credits to and from associated or affiliated companies or nonutility
departments of the company, submit a schedule, or schedules, as to each
associated or affiliated company or nonutility department showing:
(i) The amount of the charges, or credits, during each month and in
total for the base period and the adjustment period.
(ii) The FERC Account No. charged (or credited).
(iii) Descriptions of the specific services performed for, or by,
the associated/affiliated company or nonutility department.
(iv) The bases used in determining the amounts of the charges
(credits). Explain, document, and demonstrate the derivation of the
allocation bases with underlying calculations used to allocate costs
among affiliated companies, and identify (by account number) all costs
paid to, or received from affiliated companies which are included in a
pipeline's cost-of-service for both the base and test periods.
(16) Schedule H-1 (2)(k). Show all lease payments applicable to gas
operation contained in the operation and maintenance accounts. Leases
of $500,000 or less may be grouped by type of lease.
(l) Statement H-2. Depreciation, Depletion, Amortization and
Negative Salvage Expenses. Show, separately, the gas plant
depreciation, depletion, amortization, and negative salvage expenses by
functional classifications. For each functional plant classification,
show depreciation reserve associated with offshore and onshore plant
separately. Show, in separate columns: expenses for the 12 months of
actual experience; adjustments, if any, to such expense; and, the total
adjusted expense claimed. Explain the bases, methods, essential
computations, and derivation of unit rates for the calculation of
depreciation, depletion, and amortization expense for the 12 months of
actual experience and for the adjustments. The amounts of depreciable
plant must be shown by the functions specified in paragraph C of
Account 108, Accumulated Provisions for Depreciation of Gas Utility
Plant, and Account 111, Accumulated Provision for Amortization and
Depletion of Gas Utility Plant, of the Commission's Uniform System of
Accounts for Natural Gas Companies, and, if available, for each
detailed plant account (300 Series) together with the rates used in
computing such expenses. Explain any deviation from the rates
determined to be just and reasonable by the Commission. Show the rate
or rates previously used together with supporting data for the new rate
or rates used for this filing. The following schedule and additional
material must be submitted as a part of Statement H-2:
(1) Schedule H-2 (1). Depreciable Plant.
(i) Reconcile the depreciable plant shown in Statement H-2 with the
aggregate investment in gas plant shown in Statement C, and the expense
charged to other than prescribed depreciation, depletion, amortization,
and negative salvage expense accounts. Identify the amounts of plant
costs and associated plant accounts used as the bases for depreciation
expense charged to clearing accounts. For each functional plant
classification, show depreciation reserve associated with offshore and
onshore plant separately.
(ii) Schedule H-2 (1) must be updated, as set forth in
Sec. 154.310, with actual depreciable plant and reconciled with updated
Statement C.
(m) Statement H-3. Income Taxes. Show the computation of allowances
for Federal and State income taxes for the test period based on the
claimed return applied to the overall gas utility rate base. To
indicate the accounting classification applicable to the amount
claimed, the computation of the Federal income tax allowance must show,
separately, the amounts designated as current tax and deferred tax.
Section 154.306, Tax Normalization, is incorporated in these
instructions by reference. All the requirements of this section apply
to Schedule H-3. The following schedules and additional material must
be submitted as a part of Statement H-3:
(1) Schedule H-3 (1). This schedule is part of the workpapers. Show
the income tax paid each State in the current and/or previous year
covered by the test period.
(2) Schedule H-3 (2). This schedule is part of the workpapers. Show
the computation of an updated reconciliation between book depreciable
plant and tax depreciable plant and accumulated provision for deferred
income taxes, for the base period or latest calendar or fiscal year
(depending on the company's reporting period). Regulatory asset or
liability net of deferred tax amounts should be included in this
reconciliation. Also, separately state the gross amounts of the
regulatory asset and liability.
(n) Statement H-4. Other Taxes. Show the gas utility taxes, other
than Federal or state income taxes, in separate columns, as follows:
Tax expense per books for the 12 months of actual experience
(separately identify the amounts expensed or accrued during the
period); adjustments, if any, to amounts booked; and, the total
adjusted taxes claimed. Show the kind and amount of taxes paid under
protest or in connection with taxes under litigation. Show taxes by
state and by type of tax. The following schedules and additional
material must be submitted as a part of Statement H-4:
(1) Schedule H-4. This schedule is part of the workpapers. Show the
computations of adjusted taxes claimed in Statement H(4).
(o) Statement I. Statement I consists of the following Schedules:
(1) Schedule I-1. Functionalization of Cost-of-service. Show the
overall cost-of-service contained in Statement A as supported by
Statements B, C, D, E, G (revenue credits), and H:
(i) Schedule I-1(a). Separate overall cost-of-service by function
of facility.
(ii) Schedule I-1(b). Separate the transmission, storage, and
gathering facilities between incremental and non-incremental
facilities. If the pipeline proposes to directly assign the costs of
specific facilities, it must provide a separate cost-of-service for
every directly assigned facility (e.g., lateral or storage field).
(iii) Schedule I-1(c). If the pipeline maintains records of costs
by zone and proposes a zone rate methodology based on those costs
separately state transmission, storage, and gathering costs, for each
zone.
(iv) Schedule I-1(d). Show the method used to allocate common and
joint costs to various functions. Provide the factors underlying the
allocation of general costs (e.g., miles of pipe, cost of plant,
labor). Show the formulae used and explain the bases for the allocation
of common and joint costs.
(2) Schedule I-2. Classification of Cost-of-service.
(i) For each functionalized cost-of-service provided in Schedule I-
1 (a), (b), and (c), show the classification of costs between fixed
costs and variable costs and between reservation costs and usage costs.
The classification must be for each element of the cost-of-service
(e.g., depreciation expenses, state income taxes, revenue credits). For
operation and maintenance expenses and revenue credits, the
classification must be provided by account and by total.
(ii) Explain the basis for the classification of costs.
(iii) Explain any difference between the method for classifying
costs and the classification method underlying the pipeline's currently
effective rates.
(3) Schedule I-3. Allocation of Cost-of-service.
[[Page 53008]]
(i) If the company provides gas sales and transportation as a
bundled service, show the allocation of costs between direct sales or
distribution sales and the other services. If the company provides
unbundled transportation, show the allocation of costs between services
with cost-of-service rates and services with market-based rates,
including products extraction, sales, and company-owned production. If
the cost-of-service is allocated among rate zones, show how the
classified cost-of-service is allocated among rate zones by function.
If the pipeline proposes to establish rate zones for the first time, or
to change existing rate zone boundaries, explain how the rate zone
boundaries are established.
(ii) Show how the classified costs of service provided in Schedule
I-2 or Schedule I-3 (i) are allocated among the pipeline's services and
rate schedules.
(iii) Provide the formulae used in the allocation of the cost-of-
service. Provide the factors underlying the allocation of the cost-of-
service (e.g., contract demand, annual billing determinants, three-day
peak). Provide the load factor or other basis for any imputed demand
quantities.
(iv) Explain any changes in the basis for the allocation of the
cost-of-service from the allocation methodologies underlying the
currently effective rates.
(4) Schedule I-4. Transmission and Compression of Gas by Others
(Account 858). Provide the following information for each transaction
for the base and adjustment period:
(i) The name of the transporter.
(ii) The name of the rate schedule under which service is provided,
and the expiration date of the contract.
(iii) Monthly usage volumes.
(iv) Monthly costs.
(v) The monthly revenues for volumes flowing under released
capacity. The revenues in Schedule I-4 (iv) must also be reflected,
separately, as a credit in Schedule G-5.
(5) Schedule I-5. Gas Balance. Show by months and total, for the 12
months of actual experience, the company's Gas Account, in the form
required by FERC Form No. 2 pages 520 and 521. Show corresponding
estimated data, if claimed to be different from actual experience.
Provide the basis for any variation between estimated and actual base
period data.
(p) Statement J. Comparison and Reconciliation of Estimated
Operating Revenues With Cost-of-service. Compare the total revenues by
rate schedule (Schedule G-2) to the allocated cost-of-service
(Statement I). Identify any surcharges that are reflected in Statement
N or in Statement I.
(1) Schedule J-1. Summary of Billing Determinants. Provide a
summary of all billing determinants used to derive rates. Provide a
reconciliation of customers' total billing determinants as shown on
Schedule G-2 with those used to derive rates in Schedule J-2. Provide
an explanation of how any discount adjustment is developed. If billing
determinants are imputed for interruptible service, explain the method
for calculating the billing determinants.
(2) Schedule J-2. Derivation of Rates. Show the derivation of each
rate component of each rate. For each rate component of each rate
schedule, include:
(i) A reference (by page, line, and column) to the allocated cost-
of-service in Statement I.
(ii) A reference to the appropriate billing determinants in
Schedule J-1.
(iii) Explain any changes in the method used for the derivation of
rates from the method used in developing the underlying rates.
(q) Statement K. [Reserved]
(r) Statement L. Balance Sheet. Provide a balance sheet in the form
prescribed by the Commission's Uniform System of Accounts for Natural
Gas Companies as of the beginning and end of the base period. Include
any notes. If the natural gas company is a member of a group of
companies, also provide a balance sheet on a consolidated basis.
(s) Statement M. Income Statement. Provide an income statement,
including a section on earnings, in the form prescribed by the
Commission's Uniform System of Accounts for Natural Gas Companies for
the base period. Include any notes. If the natural gas company is a
member of a system group of companies, provide an income statement on a
consolidated basis.
(t) Statement N. [Reserved]
(u) Statement O. Description of Company Operations. Provide a
description of the company's service area and diversity of operations.
Include the following:
(1) Only if significant changes have occurred since the filing of
the last FERC Form No. 2 or 2-A, provide a detailed system map.
(2) A list of each major expansion and abandonment since the
company's last general rate case. Provide brief descriptions,
approximate dates of operation or retirement from service, and costs
classified by functions.
(3) A detailed description of how the company designs and operates
its systems. Include design temperature.
(v) Statement P. Explanatory Text and Prepared Testimony. Provide
copies of prepared testimony indicating the line of proof which the
company would offer for its case-in-chief in the event that the rates
are suspended and the matter set for hearing. Name the sponsoring
witness of all text and testimony. Statement P must be filed
concurrently with the other schedules.
Sec. 154.313 Schedules for minor rate changes.
(a) A change in a rate or charge that, for the test period, does
not increase the company's revenues by the smaller of $1,000,000 or 5
percent is a minor rate change. A change in a rate level that does not
directly or indirectly result in an increased rate or charge to any
customer or class of customers is a minor rate change.
(b) In addition to the schedules in this section, filings for minor
rate changes must include Statements L, M, O, P, I-1 through I-4, and J
of Sec. 154.312.
(c) The schedules of this section must contain the principal
determinants essential to test the reasonableness of the proposed minor
rate change. Any adjustments to book figures must be separately stated
and the basis for the adjustment must be explained.
(d) Schedules B-1, B-2, C, D, E, H, H-2, and H-4 of Sec. 154.313,
must be updated with actual data by month and must be resubmitted in
the same format and with consecutive 12 month running totals, for each
month of the adjustment period. The updated statements or schedules
must be filed 45 days after the end of the test period. The updated
filing must reference the associated docket number and must be filed in
the same format, form, and number as the original filing.
(e) Composition of schedules for minor rate changes.
(1) Schedule A. Overall Cost-of-service by Function. Summarize the
overall cost-of-service (operation and maintenance expenses,
depreciation, taxes, return, and credits to cost-of-service) developed
from the supporting schedules below.
(2) Schedule B. Overall Rate Base and Return. Summarize the overall
gas utility rate base by function. Include the claimed rate of return
and show the application of the claimed rate of return to the overall
rate base.
(3) Schedule B-1. Accumulated Deferred Income Taxes (Account Nos.
190, 281, 282, and 283). Show monthly book balances of accumulated
deferred income taxes for each of the 12 months during the base period.
In adjoining columns, show additions and reductions for the adjustment
period balance and the total adjusted balance.
[[Page 53009]]
(4) Schedule B-2. Regulatory Asset and Liability. Show monthly book
balances of regulatory asset (Account 182.3) and liability (Account
254) for each of the 12 months during the base period. In adjoining
columns, show additions and reductions for the adjustment period
balance and the total adjusted balance. Only include these accounts if
recovery of these balances are reflected in the company's costs.
Identify the specific Commission authority which required the
establishment of these accounts.
(5) Schedule C. Cost of Plant by Functional Classification as of
the End of the Base and Adjustment Periods.
(6) Schedule D. Accumulated Provisions for Depreciation, Depletion,
Amortization, and Abandonment by Functional Classifications as of the
Beginning and as of the End of the Test Period.
(7) Schedule E. Working Capital. Show the various components
provided for in Sec. 154.312, Statement E.
(8) Schedule F. Show the rate of return claimed with a brief
explanation of the basis.
(9) Schedule G. Revenues and Billing Determinants.
(i) Show in summary format the information requested below on
revenues and billing determinants for the base period and the base
period as adjusted. Schedule G must be submitted to all customers of
the pipeline that received service during the base period or are
expected to receive service during the base period as adjusted and on
State commissions having jurisdiction over the affected customers.
(A) Revenues. Provide the total revenues by rate schedule from
jurisdictional services, classified in accordance with the Commission's
Uniform System of Accounts for the base period and for the base period
as adjusted. Separate operating revenues by major rate component (e.g.,
reservation charges, demand charges, usage charges, commodity charges,
injection charges, withdrawal charges, etc.) from revenues received
from penalties, surcharges or other sources (e.g., ACA, GRI, transition
costs). For services provided through released capacity, identify total
revenues by rate schedule and by receipt and delivery rate zones, if
applicable.
(B) Billing Determinants. Show total reservation and usage billing
determinants by rate schedule for the base period and the base period
as adjusted. For services provided through released capacity, identify
total billing determinants by rate schedule and by receipt and delivery
rate zones, if applicable.
(ii) Schedule G-1 must be filed at the Commission and on all state
commissions having jurisdiction over the affected customers within 15
days after the rate case is filed. Schedule G-1 must also be served on
parties that request such service within 15 days of the filing of the
rate case.
(A) Schedule G-1. Adjustment Period Revenues.
(1) Show revenues and billing determinants by month, by customer
name, by rate schedule, by major rate component (e.g., reservation
charges) and totals for the base period adjusted for known and
measurable changes which are expected to occur within the adjustment
period computed under the rates expected to be charged. Show commodity
billing determinants by rate schedule. Billing determinants must not be
adjusted for discounting. Provide projected throughput (i.e., usage or
commodity quantities, unadjusted for discounting) and projected
contract demand levels (unadjusted for discounting). Separate operating
revenues from revenues received from surcharges or other sources (e.g.,
ACA, GRI, transition costs). Identify customers who are affiliates.
Identify rate schedules under which costs are allocated and rate
schedules under which revenues are credited for the adjustment period
with cross-references to the other filed statements and schedules.
(2) Provide a reconciliation of the base period revenues and
billing determinants and the revenues and billing determinants for the
base period as adjusted.
(10) Schedule H. Operation and Maintenance Expenses. Show the gas
operation and maintenance expenses according to each applicable account
of the Commission's Uniform System of Accounts for Natural Gas
Companies. The expenses must be shown under appropriate columnar-
headings, by labor, materials and other charges, and purchased gas
costs, with subtotals for each functional classification: Operation and
maintenance expense by months, as booked, for the 12 months of actual
experience, and the total thereof; adjustments, if any, to expenses as
booked; and, total adjusted operation and maintenance expenses claimed.
Explain all adjustments. Specify the month or months during which the
adjustments would be applicable.
(11) Schedule H-1. Workpapers for Expense Accounts. Furnish
workpapers for the 12 months of actual experience and claimed
adjustments and analytical details as set forth in Sec. 154.312,
Schedule H-1 (3).
(12) Schedule H-2. Depreciation, Depletion, Amortization and
Negative Salvage Expenses. Show, separately, the gas plant
depreciation, depletion, amortization, and negative salvage expenses by
functional classifications. For each functional plant classification,
show depreciation reserve associated with offshore and onshore plant
separately. The bases, methods, essential computations, and derivation
of unit rates for the calculation of depreciation, depletion,
amortization, and negative salvage expenses for actual experience must
be explained.
(13) Schedule H-3. Income Tax Allowances Computed on the Basis of
the Rate of Return Claimed. Show the computation of allowances for
Federal and State income taxes based on the claimed return applied to
the overall gas utility rate base.
(14) Schedule H-3 (1). This schedule is part of the workpapers.
Show the computation of an updated reconciliation between book
depreciable plant and tax depreciable plant and accumulated provision
for deferred income taxes, for the base period or latest calendar or
fiscal year (depending on the company's reporting period).
(15) Schedule H-4. Other Taxes. Show the gas utility taxes, other
than Federal or state income taxes in separate columns, as follows: Tax
expense per books for the 12 months of actual experience;) adjustments,
if any, to amounts booked; and, the total adjusted taxes claimed.
Provide the details of the kind and amount of taxes paid under protest
or in connection with taxes under litigation. The taxes must be shown
by states and by kind of taxes. Explain all adjustments.
Sec. 154.314 Other support for a filing.
(a) Any company filing for a rate change is responsible for
preparing prior to filing, and maintaining, workpapers sufficient to
support the filing.
(b) If the natural gas company has relied upon data other than
those in Statements A through P in Sec. 154.312 in support of its
general rate change, such other data must be identified and submitted.
Subpart E--Limited Rate Changes
Sec. 154.400 Additional requirements.
In addition to the requirements of subparts A, B, and C of this
part, any proposal to implement a limited rate change must comply with
this subpart.
Sec. 154.401 RD&D expenditures.
(a) Requirements. Upon approval by the Commission, a natural gas
company may file to recover research,
[[Page 53010]]
development, and demonstration (RD&D) expenditures in its rates under
this subpart.
(b) Applications for rate treatment approval. (1) An application
for advance approval of rate treatment may be filed by a natural gas
company for RD&D expenditures related to a project or group of projects
undertaken by the company or as part of a project undertaken by others.
When more than one company supports an RD&D organization, the RD&D
organization may submit an application that covers the organization's
RD&D program. Approval by the Commission of such an RD&D application
and program will constitute approval of the individual companies'
contributions to the RD&D organization.
(2) An application for advance approval of rate treatment must
include a 5-year program plan and must be filed at least 180 days prior
to the commencement of the 5-year period of the plan.
(3) A 5-year program plan must include at a minimum:
(i) A statement of the objectives for the 5-year period that
relates the objectives to the interests of ratepayers, the public, and
the industry and to the objectives of other major research
organizations.
(ii) Budget, technical, and schedule information in sufficient
detail to explain the work to be performed and allow an assessment of
the probability of success and a comparison with other organizations'
research plans.
(iii) The commencement date, expected termination date, and
expected annual costs for individual RD&D projects to be initiated
during the first year of the plan.
(iv) A discussion of the RD&D efforts and progress since the
preparation of the program plan submitted the previous year and an
explanation of any changes that have been made in objectives,
priorities, or budgets since the plan of the previous year.
(v) A statement identifying all jurisdictional natural gas
companies that will support the program and specifying the amounts of
their budgeted support.
(vi) A statement identifying those persons involved in the
development, review, and approval of the plan and specifying the amount
of effort contributed and the degree of control exercised by each.
(c) Applications must describe the RD&D projects in such detail as
to satisfy the Commission that the RD&D expenditures qualify as valid,
justifiable, and reasonable.
(d) Within 120 days of the filing of an application for rate
treatment approval and a 5-year program plan, the Commission will state
its decision with respect to acceptance, partial acceptance, or
rejection of the plan, or, when the complexity of issues in the plan so
requires, will set a date certain by which a final decision will be
made, or will order the matter set for hearing. Partial rejection of a
plan by the Commission will be accompanied by a decision as to the
partial level of acceptance which will be proportionally applied to all
contributions listed for jurisdictional companies in the plan. Approval
by the Commission of a 5-year plan constitutes approval for rate
treatment of all projects identified as starting during the first year
of the approved plan. Continued rate treatment will depend upon review
and evaluation of subsequent annual applications and 5-year program
plans.
Sec. 154.402 ACA expenditures.
(a) Requirements. Upon approval by the Commission, a natural gas
pipeline company may adjust its rates, annually, to recover from its
customers annual charges assessed by the Commission under part 382 of
this chapter pursuant to an annual charge adjustment clause (ACA
clause). The ACA clause must be filed with the Commission and indicate
the amount of annual charges to be flowed through per unit of energy
sold or transported (ACA unit charge). The ACA unit charge will be
specified by the Commission at the time the Commission calculates the
annual charge bills. A company must reflect the ACA unit charge in each
of its rate schedules applicable to sales or transportation deliveries.
The company must apply the ACA unit charge to the usage component of
rate schedules with two-part rates. A company may recover annual
charges through an ACA unit charge only if its rates do not otherwise
reflect the costs of annual charges assessed by the Commission under
Sec. 382.106(a) of this chapter. The applicable annual charge, required
by Sec. 382.103 of this chapter, must be paid before the company
applies the ACA unit charge.
(b) Application for Rate Treatment Authorization. A company seeking
authorization to use an ACA unit charge must file with the Commission a
separate ACA tariff sheet containing:
(1) A statement that the company is collecting an ACA per unit
charge, as approved by the Commission, applicable to all the pipeline's
sales and transportation schedules,
(2) The per unit charge of the ACA,
(3) The proposed effective date of the tariff change (30 days after
the filing of the tariff sheet, unless a shorter period is specifically
requested in a waiver petition and approved), and
(4) A statement that the pipeline will not recover any annual
charges recorded in FERC Account 928 in a proceeding under subpart D of
this part.
(c) Changes to the ACA unit charge must be filed annually, to
reflect the annual charge unit rate authorized by the Commission each
fiscal year.
Sec. 154.403 Periodic rate adjustments.
(a) This section applies to the passthrough, on a periodic basis,
of a single cost item or revenue item for which passthrough is not
regulated under another section of this subpart, and to revisions on a
periodic basis of a gas reimbursement percentage.
(b) Where a pipeline recovers fuel use and unaccounted-for natural
gas in kind, the fuel reimbursement percentage must be stated in the
tariff either on the tariff sheet stating the currently effective rate
or on a separate tariff sheet in such a way that it is clear what
amount of natural gas must be tendered in kind for each service
rendered.
(c) A natural gas company that passes through a cost or revenue
item or adjusts its fuel reimbursement percentage under this section,
must state within the general terms and conditions of its tariff, the
methodology and timing of any adjustments. The following must be
included in the general terms and conditions:
(1) A statement of the nature of the revenue or costs to be flowed
through to the customer;
(2) A statement of the manner in which the cost or revenue will be
collected or returned, whether through a surcharge, offset, or
otherwise;
(3) A statement of which customers are recipients of the revenue
credit and which rate schedules are subject to the cost or fuel
reimbursement percentage;
(4) A statement of the frequency of the adjustment and the dates on
which the adjustment will become effective;
(5) A step-by-step description of the manner in which the amount to
be flowed through is calculated and a step-by-step description of the
flowthrough mechanism, including how the costs are classified and
allocated. Where the adjustment modifies a rate established under
subpart D of this part, the methodology must be consistent with the
methodology used in the proceeding under subpart D of this part;
(6) Where costs or revenue credits are accumulated over a past
period for periodic recovery or return, the past period must be defined
and the
[[Page 53011]]
mechanism for the recovery or return must be detailed on a step-by-step
basis. Where the natural gas company proposes to use a surcharge to
clear an account in which the difference between costs or revenues,
recovered through rates, and actual costs and revenues accumulate, a
statement must be included detailing, on a step-by-step basis, the
mechanism for calculating the entries to the account and for passing
through the account balance.
(7) Where carrying charges are computed, the calculations must be
consistent with the methodology and reporting requirements set forth in
Sec. 154.501 using the carrying charge rate required by that section. A
natural gas company must normalize all income tax timing differences
which are the result of differences between the period in which expense
or revenue enters into the determination of taxable income and the
period in which the expense or revenue enters into the determination of
pre-tax book income. Any balance upon which the natural gas company
calculates carrying charges must be adjusted for any recorded deferred
income taxes.
(8) Where the natural gas company discounts the rate component
calculated pursuant to this section, explain on a step-by-step basis
how the natural gas company will adjust for rate discounts in its
methodology to reflect changes in costs under this section.
(9) If the costs passed through under a mechanism approved under
this section are billed by an upstream natural gas company, explain how
refunds received from upstream natural gas companies will be passed
through to the natural gas company's customers, including the
allocation and classification of such refunds;
(10) A step-by-step explanation of the methodology used to reflect
changes in the fuel reimbursement percentage, including the allocation
and classification of the fuel use and unaccounted-for natural gas.
Where the adjustment modifies a fuel reimbursement percentage
established under subpart D of this part, the methodology must be
consistent with the methodology used in the proceeding under subpart D
of this part;
(11) A statement of whether the difference between quantities
actually used or lost and the quantities retained from the customers
for fuel use and loss will be recovered or returned in a future
surcharge. Include a step-by-step explanation of the methodology used
to calculate such surcharge. Any period during which these differences
accumulate must be defined.
(d) Filing requirements.
(1) Filings under this section must include:
(i) A summary statement showing the rate component added to each
rate schedule with workpapers showing all mathematical calculations.
(ii) If the filing establishes a new fuel reimbursement percentage
or surcharge, include computations for each fuel reimbursement or
surcharge calculated, broken out by service, classification, area,
zone, or other subcategory.
(iii) Workpapers showing the allocation of costs or revenue credits
by rate schedule and step-by-step computations supporting the
allocation, segregated into reservation and usage amounts, where
appropriate.
(iv) Where the costs, revenues, rates, quantities, indices, load
factors, percentages, or other numbers used in the calculations are
publicly available, include references by source.
(v) Where a rate or quantity underlying the costs or revenue
credits is supported by publicly available data (such as another
natural gas company's tariff or EBB), the source must be referenced to
allow the Commission and interested parties to review the source. If
the rate or quantity does not match the rate or quantity from the
source referenced, provide step-by-step instructions to tie the rate in
the referenced source to the rate in the filing.
(vi) Where a number is derived from another number by applying a
load factor, percentage, or other adjusting factor not referenced in
paragraph (d)(1)(i) of this section, include workpapers and a narrative
to explain the calculation of the adjusting factor.
(2) If the natural gas company is adjusting its rates to reflect
changes in transportation and compression costs paid to others:
(i) The changes in transportation and compression costs must be
based on the rate on file with the Commission. If the rate is not on
file with the Commission or a discounted rate is paid, the rate
reflected in the filing must be the rate the natural gas company is
contractually obligated to pay;
(ii) The filing must include appropriate credits for capacity
released under Sec. 284.243 of this chapter with workpapers showing the
quantity released, the revenues received from the release, the time
period of the release, and the natural gas pipeline on which the
release took place; and,
(iii) The filing must include a statement of the refunds received
from each upstream natural gas company which are included in the rate
adjustment. The statement must conform to the requirements set forth in
Sec. 154.501.
(3) If the natural gas company is reflecting changes in its fuel
reimbursement percentage, the filing must include:
(i) A summary statement of actual gas inflows and outflows for each
month used to calculate the fuel reimbursement percentage or surcharge.
For purposes of establishing the surcharge, the summary statement must
be included for each month of the period over which the differences
defined in paragraph (c) of this section accumulate.
(ii) Where the fuel reimbursement percentage is calculated based on
estimated activity over a future period, the period must be defined and
the estimates used in the calculation must be justified. If any of the
estimates are publicly available, include a reference to the source.
(4) The natural gas company must not recover costs and is not
obligated to return revenues which are applicable to the period pre-
dating the effectiveness of the tariff language setting forth the
periodic rate change mechanism, unless permitted or required to do so
by the Commission.
Subpart F--Refunds and Reports
Sec. 154.501 Refunds.
(a) Refund obligation. (1) Any natural gas company that collects
rates or charges pursuant to this chapter must refund that portion of
any increased rates or charges either found by the Commission not to be
justified, or approved for refund by the Commission as part of a
settlement, together with interest as required in paragraph (d) of this
section. The refund plus interest must be distributed as specified in
the Commission order requiring or approving the refund, or if no date
is specified, within 60 days of the order. However, the pipeline is not
required to make any refund until it has collected the refundable money
through its rates.
(2) Any natural gas company must refund to its jurisdictional
customers the jurisdictional portion of any refund it receives which is
required by prior Commission order to be flowed through to its
jurisdictional customers or represents the refund of an amount
previously included in a filing under Sec. 154.403 and charged and
collected from jurisdictional customers within thirty days of receipt
or other time period established by the Commission or as established in
the pipeline's tariff.
(b) Costs of Refunding. Any natural gas company required to make
refunds
[[Page 53012]]
pursuant to this section must bear all costs of such refunding.
(c) Supplier Refunds. The jurisdictional portion of supplier
refunds (including interest received), applicable to periods in which a
purchased gas adjustment clause was in effect, must be flowed through
to the natural gas company's jurisdictional gas sales customers during
that period with interest as computed in paragraph (d) of this section.
(d) Interest on Refunds. Interest on the refund balance must be
computed from the date of collection from the customer until the date
refunds are made as follows:
(1) At an average prime rate for each calendar quarter on all
excessive rates or charges held (including all interest applicable to
such rates and charges) on or after October 1, 1979. The applicable
average prime rate for each calendar quarter must be the arithmetic
mean, to the nearest one-hundredth of one percent, of the prime rate
values published in the Federal Reserve Bulletin, or in the Federal
Reserve's ``Selected Interest Rates'' (Statistical Release G, 13), for
the fourth, third, and second months preceding the first month of the
calendar quarter.
(2) The interest required to be paid under paragraph (d)(1) of this
section must be compounded quarterly.
(3) The refund balance must be either:
(i) The revenues resulting from the collection of the portion of
any increased rates or charges found by the Commission not to be
justified; or
(ii) An amount agreed upon in a settlement approved by the
Commission; or
(iii) The jurisdictional portion of a refund the natural gas
company receives.
(e) Unless otherwise provided by the order, settlement or tariff
provision requiring the refund, the natural gas company must file a
report of refunds, within 30 days of the date the refund was made,
which complies with Sec. 154.502 and includes the following:
(1) Workpapers and a narrative sufficient to show how the refunds
for jurisdictional services were calculated;
(2) Workpapers and a narrative sufficient to determine the origin
of the refund, including step-by-step calculations showing the
derivation of the refund amount described in paragraph (d)(3) of this
section, if necessary;
(3) References to any publicly available sources which confirm the
rates, quantities, or costs, which are used to calculate the refund
balance or which confirm the refund amount itself. If the rate,
quantity, cost or refund does not directly tie to the source, a
workpaper must be included to show the reconciliation between the rate,
quantity, cost, or refund in the natural gas company's report and the
corresponding rate, quantity, cost or refund in the source document;
(4) Workpapers showing the calculation of interest on a monthly
basis, including how the carrying charges were compounded quarterly;
(5) Workpapers and a narrative explaining how the refund was
allocated to each jurisdictional customer. Where the numbers used to
support the allocation are publicly available, a reference to the
source must be included. Where the allocation methodology has been
approved previously, a reference to the order or tariff provision
approving the allocation methodology must be included.
(6) A letter of transmittal containing:
(i) A list of the material enclosed;
(ii) The name and telephone number of a company official who can
answer questions regarding the filing;
(iii) A statement of the date the refund was disbursed;
(iv) A reference to the authority by which the refund is made,
including the specific subpart of these regulations, an order of the
Commission, a provision of the company's tariff, or any other
appropriate authority. If a Commission order is referenced, include the
citation to the FERC Reports, the date of issuance, and the docket
number;
(v) Any requests for waiver. Requests must include a reference to
the specific section of the statute, regulations, or the company's
tariff from which waiver is sought, and a justification for the waiver.
(7) A certification of service to all affected customers and
interested state commissions.
(f) Each report filed under paragraph (e) of this section must be
posted no later than the date of filing. Each report must be posted to
all recipients of a share of the refund and all state commissions whose
jurisdiction includes the location of any recipient of a refund share
that have made a standing request for such full report.
(g) Recipients of refunds and state commissions that have not made
a standing request for such full report shall receive an abbreviated
report consisting of the items listed in Sec. 154.501 (e)(5) and
(e)(6).
Sec. 154.502 Reports.
(a) When the natural gas company is required, either by a
Commission order or as a part of a settlement in a proceeding initiated
under this part 154 or part 284 of this chapter, to make a report on a
periodic basis, details about the nature and contents of the report
must be provided in an appropriate section of the general terms and
conditions of its tariff.
(b) The details in the general terms and conditions of the tariff
must include the frequency and timing of the report. Explain whether
the report is filed annually, semi-annually, monthly, or is triggered
by an event. If triggered by an event, explain how soon after the event
the report must be filed. If the report is periodic, state the dates on
which the report must be filed.
(c) Each report must include:
(1) A letter of transmittal containing:
(i) A list of the material enclosed;
(ii) The name and telephone number of a company official who can
answer questions regarding the filing;
(iii) A reference to the authority by which the report is made,
including the specific subpart of these regulations, an order of the
Commission, a provision of the company's tariff, or any other
appropriate authority. If a Commission order is referenced, include the
citation to the FERC Reports, the date of issuance, and the docket
number;
(iv) Any requests for waiver. Requests must include a reference to
the specific section of the statute, regulations, or the company's
tariff from which waiver is sought, and a justification for the waiver.
(2) A certification of service to all affected customers and
interested state commissions.
(d) Each report filed under paragraph (b) of this section must be
posted no later than the date of filing.
Subpart G--Other Tariff Changes
Sec. 154.600 Compliance with other subparts.
Any proposal to implement a tariff change other than in rate level
must comply with subparts A, B, and C of this part.
Sec. 154.601 Change in executed service agreement.
Agreements intended to effect a change or revision of an executed
service agreement on file with the Commission must be in the form of a
superseding executed service agreement only. Service agreements may not
contain any supplements, but may contain exhibits which may be
separately superseded. The exhibits may show, among other things,
contract demand delivery points, delivery pressures, names of
industrial customers of the distributor-customer, or names of
distributors (with one distributor named as agent where delivery to
several distributors is effected at the same delivery points).
[[Page 53013]]
Sec. 154.602 Cancellation or termination of a tariff, executed service
agreement or part thereof.
When an effective tariff, contract, or part thereof on file with
the Commission, is proposed to be canceled or is to terminate by its
own terms and no new tariff, executed service agreement, or part
thereof, is to be filed in its place, the natural gas company must
notify the Commission of the proposed cancellation or termination on
the form indicated in Sec. 250.2 or Sec. 250.3 of this chapter,
whichever is applicable, at least 30 days prior to the proposed
effective date of such cancellation or termination. With such notice,
the company must submit a statement showing the reasons for the
cancellation or termination, a list of the affected customers and the
contract demand provided to the customers under the service to be
canceled. A copy of the notice must be duly posted.
Sec. 154.603 Adoption of the tariff by a successor.
Whenever the tariff or contracts of a natural gas company on file
with the Commission are to be adopted by another company or person as a
result of an acquisition, or merger, authorized by a certificate of
public convenience and necessity, or for any other reason, the
succeeding company must file with the Commission, and post within 30
days after such succession, a certificate of adoption on the form
prescribed in Sec. 250.4 of this chapter. Within 90 days after such
notice is filed, the succeeding company must file a revised tariff with
the sheets bearing the name of the successor company.
Note: These appendices will not be published in the Code of
Federal Regulations.
Appendix A
------------------------------------------------------------------------
Prior regulation Revised regulation
------------------------------------------------------------------------
Sec. 154.1............................. Sec. 154.1,
Sec. 154.4.
Sec. 154.11............................ Sec. 154.2(e).
Sec. 154.12............................ Sec. 154.2(a).
Sec. 154.13............................ Sec. 154.2(c).
Sec. 154.14............................ Sec. 154.2(b).
Sec. 154.15............................ Sec. 154.2(f).
Sec. 154.16............................ Sec. 154.2(d).
Sec. 154.21............................ Sec. 154.3.
Sec. 154.22............................ Sec. 154.1(c),
Sec. 154.207.
Sec. 154.23............................ Sec. 154.6.
Sec. 154.24............................ Sec. 154.6.
Sec. 154.25............................ Sec. 154.8.
Sec. 154.26............................ Sec. 154.4.
Sec. 154.27............................ Sec. 154.210.
Sec. 154.28............................ Sec. 154.209.
Sec. 154.31............................ Removed.
Sec. 154.32............................ Sec. 154.101.
Sec. 154.33............................ Sec. 154.102.
Sec. 154.34............................ Sec. 154.103.
Sec. 154.35............................ Sec. 154.104.
Sec. 154.36............................ Sec. 154.105.
Sec. 154.37............................ Sec. 154.106.
Sec. 154.38(d)(1)...................... Sec. 154.107.
Sec. 154.38(d)(2)...................... Sec. 154.107.
Sec. 154.38(d)(3)...................... Sec. 154.3.
Sec. 154.38(d)(4)...................... Sec. 154.501.
Sec. 154.38(d)(5)...................... Sec. 154.401.
Sec. 154.38(d)(6)...................... Sec. 154.402.
Sec. 154.38(e)......................... Deleted.
Sec. 154.38............................ Sec. 154.108.
Sec. 154.39............................ Sec. 154.109.
Sec. 154.40............................ Sec. 154.110.
Sec. 154.41............................ Sec. 154.111.
Sec. 154.42............................ Removed.
Sec. 154.51............................ Sec. 154.207.
Sec. 154.52............................ Sec. 154.112.
Sec. 154.61............................ Removed.
Sec. 154.62............................ Sec. 154.202.
Sec. 154.63(b)(1)...................... Sec. 154.7.
Sec. 154.63(b)(1)(v)................... Sec. 154.201(a).
Sec. 154.63(c)(1)...................... Sec. 154.302.
Sec. 154.63(c)(2)...................... Sec. 154.302.
Sec. 154.63(c)(3)...................... Sec. 154.314.
Sec. 154.63(d)(2)...................... Sec. 154.601.
Sec. 154.63(e)(1)...................... Sec. 154.301(c).
Sec. 154.63(e)(2)(i)................... Sec. 154.303.
Sec. 154.63(e)(2)(ii).................. Sec. 154.303.
Sec. 154.63(e)(3)...................... Sec. 154.307.
Sec. 154.63(e)(4)...................... Sec. 154.304,
Sec. 154.201(b)(3)
Sec. 154.63(e)(5)...................... Sec. 154.308.
Sec. 154.63(f)......................... Sec. 154.312.
Sec. 154.63a........................... Sec. 154.305.
Sec. 154.63b........................... Sec. 154.306.
Sec. 154.64............................ Sec. 154.602.
Sec. 154.65............................ Sec. 154.603.
Sec. 154.66............................ Sec. 154.205.
Sec. 154.67............................ Sec. 154.206.
Sec. 154.67(b)......................... Deleted.
Sec. 154.67(c)......................... Sec. 154.501.
------------------------------------------------------------------------
New sections of part 154: 203, 204, 208, 301, 309, 310, 311, 313, 314,
403, 502.
Appendix B
Commenters to Docket No. RM95-3-000
American Forest and Paper American Forest.
Association.
American Gas Association..... AGA.
American Public Gas APGA.
Association.
ANR Pipeline/Colorado ANR/CIG.
Interstate Gas Co.
Application Solutions & ASTI.
Technologies Inc.
Arizona Direct Customers Arizona Directs.
(Arizona Public Service Co./
Phelps Dodge Corp./Salt
River Agric. Improvement and
Power District).
Associated Gas Distributors.. AGD.
Association of Texas Texas Intrastates.
Intrastate Natural Gas
Pipelines.
Brooklyn Union Gas........... Brooklyn Union.
Cascade Natural Gas Corp/ Pacific Northwest Commenters.
Northwest Natural Gas Corp/
Washington Natural Gas Co./
Washington Water Power Co./
Northwest Industrial Gas
Users.
Chevron, U.S.A............... Chevron.
CINergy Corp (Cincinnati Gas CINergy.
& Electric/The Union Light,
Heat and Power Company/
Lawrencebury Gas Company).
CNG Transmission Corp........ CNG.
Columbia Gas Distribution Columbia Distribution.
Companies.
Columbia Gas Transmission/ Columbia.
Columbia Gulf Transmission.
Consumers Power Co./Michigan Consumers Power.
Gas Storage Co.
Electronic Bulletin Board EBB Working Group.
Working Group.
El Paso Natural Gas Co....... El Paso.
Enogex Inc................... Enogex.
Enron Interstate Pipelines Enron.
(Northern Natural Gas Co./
Transwestern Pipeline Co./
Florida Gas Trans. Co./Black
Marlin Pipeline Co.).
Equitable Gas Storage........ Equitable.
Foothills Pipe Lines, Ltd./ Foothills.
Alaskan Northwest Natural
Gas Transportation Company.
Freeport Interstate Pipeline Freeport.
Co.
Gaslantic Corp............... Gaslantic.
Great Lakes Gas Transmission Great Lakes.
Limited Partnership.
Independent Petroleum IPAA.
Association of America.
[[Page 53014]]
Interstate Natural Gas INGAA.
Association of America.
JMC Power Projects........... JMC.
KN Interstate Gas KNI.
Transmission.
KN Energy.................... KN.
Kern River Gas Transmission Kern River.
Company.
LDC Caucus................... LDC Caucus.
Michigan Public Service Michigan.
Commission/State of Michigan.
MidCon Corp., Natural Gas MidCon.
Pipeline Corp, MidCon Gas
Services Corp.
Mississippi River MRT.
Transmission Co.
NorAM Gas Transmission Co.... NGT.
Missouri Public Service MoPSC.
Commission.
National Fuel Gas Supply Corp National Fuel.
National Registry of Capacity Registry.
Rights.
Natural Gas Supply NGSA.
Association.
Northern Border Pipeline Northern Border.
Company.
Northern Distributor Group... NDG.
Northwest Pipeline Corp/ Williams.
Williams Natural Gas Co.
Panhandle Eastern Pipeline/ Panhandle.
Trunkline Gas Company/Texas
Eastern Transmission/
Algonquin Gas Transmission.
Pacific Gas and Electric PG&E.
Company.
Process Gas Consumers Group/ Industrials.
American Iron & Steel Inst.
Georgia Industrial Group.
Producer-Marketer PMTG.
Transportation Group.
Public Service Commission of Nevada.
Nevada.
Public Service Commission of New York.
the State of New York.
Southern California Gas SoCal.
Company.
Tennessee Gas Pipeline/ Tennessee.
Midwestern Gas Transmission/
East Tennessee Natural Gas.
Texas Gas Transmission Corp.. Texas Gas.
TransCanada PipeLines Ltd.... TransCanada.
Transcontinental Gas Pipeline Transco.
Corp.
Transok, Inc................. Transok.
United Distribution Companies UDC.
United States Department of USDOE.
Energy.
M.H. Whittier Corp........... Whittier.
Williston Basin Interstate Williston.
Pipeline Company.
Williams Natural Gas Co...... Williams.
Appendix C--Tariff Filing Formats
Explanation of Changes
Background
On June 8, 1989, we issued the ``Notice of availability of
record formats and hard copy filing formats for certificate and
tariff filings'' in Docket No. RM87-17-000. On August 31, 1989, we
issued a revision entitled ``Notice of availability of print
software and corrected formats for rate, tariff, and certificate
filings''. On February 28, 1990, we issued the ``Notice of Tariff
Retrieval System Software Availability,'' otherwise referred to as
the FASTR software package.
The following document includes updated electronic tariff filing
formats as well as the revised tariff pagination guidelines that was
mailed to most gas pipeline companies on May 13, 1992, modified only
for readability. The revised formats take into consideration
improvements in the FASTR software which reads the tariff ASCII
files submitted by the companies to the Commission. Companies are
strongly encouraged to use the FASTR software to (1) maintain their
own tariff database, (2) generate the paper copies of the tariff
sheets submitted with filings, and (3) pre-check the electronic
tariff filings for errors prior to submittal.
Summary of Changes
References to the requirement that all companies must
restate their tariffs electronically with the filing of a rate case
or restatement of base rates after October 31, 1989, has been
removed. All companies who have not yet restated their paper tariffs
electronically must do so on or before 120 days after the date of
issuance of a final rule in Docket No. RM95-3-000;
Electronic filings must be submitted on diskette,
preferably a 3.5'' High Density diskette. The Commission will no
longer accept tariff sheets filed on 9-track tape or 18-track
cartridge. This modification will not be burdensome since it is very
rare for the Commission to receive tariff sheets now on anything but
diskette;
Standard Form 277 is no longer required (Transmittal
Form for Describing Computer Magnetic Tape File Properties) since we
are requiring all tariff sheets to be filed on diskette;
The Company Header Record (TF01) and Tariff Volume
Header Record (TF02) should be included only once per filing,
dataset, and tariff volume.
The Superseded Sheet Header Record, (TF04) can be
omitted with ``Original'' sheets. The Issuing Officer Header Record,
(TF05) and The Date and Docket Header Record, (TF06) are required
only with the first sheet, unless this information changes on a
subsequent sheet in the dataset. Previously this information was
required for every sheet. Companies may still report these records
with every sheet if complying with this new requirement necessitates
a change to the company's data-entry software. The intent of this
change was to reduce the burden on those companies who must key in
the information required in these records for each sheet.
Exhibit A, Magnetic Tape Procedures is removed since we
no longer accept tariff sheets on magnetic tape. Diskette Filing
Procedures are moved from Exhibit B to Exhibit A.
Tariff Sheet Pagination Guidelines are moved to Exhibit
B from Exhibit C. Examples demonstrating the tariff sheet pagination
guidelines are added to assist companies applying the guidelines.
Certain editorial changes have been made for clarity.
Natural Gas Pipeline Company Tariff Filings
Revised
Docket No. RM
This Document Replaces the Tariff Filing Record Formats Issued August
31, 1989
General Information
I. Purpose
All companies which maintain a gas tariff with the Federal
Energy Regulatory Commission (FERC) are required to submit, along
with the paper copies, an electronic version of all tariff filings
pursuant to section 385.2011 of the Commission's regulations.
Companies are required to have an electronic version of their entire
gas tariff (excluding Volume No. 2 contractual rate schedules) on
[[Page 53015]]
file with FERC on or before 120 days after the issuance of a final rule
in Docket No. RM95-3-000. This form does not modify the existing
tariff sheet format required in section 154.102 or section 385.2003
for tariff sheets filed on paper. Nor does it modify the requirement
in section 154.201(a) to file a marked paper version of the pages to
be changed by showing additions and deletions using highlighting,
background shading, bold text, or underlined text.
II. Who Must File
All companies who are required to maintain a FERC Gas Tariff on
file with the FERC.
III. What To Submit
All proposed revisions to the FERC Gas Tariff will be submitted
in conformance with this form. Such proposed revisions include, but
are not limited to, rate changes pursuant to a Section 4 filing or
changes in service pursuant to a certificate issued as a result of a
section 7 proceeding. Upon request of the Secretary of the FERC,
companies must submit such additional supporting and clarifying data
and information as may be specified.
All data will be submitted on diskette(s), preferably 3.5'' High
Density diskettes, and must conform to the specific instructions
provided in Exhibit A. The diskette(s) must be accompanied by paper
copies of the information submitted on the diskette. The paper
copies must conform in all respects to the requirements of sections
154 and 157 and will consist of the required number of copies of the
transmittal letter, the tariff sheets, the certification of service,
and a form of notice suitable for publication in the Federal
Register.
The letter of transmittal and the certification of service will
be submitted on paper only. The letter of transmittal must include
the subscription provided in section 385.2005(a). The subscription
provided must state, in addition to the requirement in section
385.2005(a), that the paper copies contain the same information as
the diskette(s) and that the signer has read and knows the contents
of the paper copies and that the contents as stated in the paper
copies are true to the best knowledge and belief of the signer.
Respondents claiming that information is privileged must file in
accordance with section 385.1112; otherwise, all data submitted will
be considered non-privileged and will be made available to the
public upon request.
IV. When To Submit
The tariff sheets should be filed with the Commission at the
time the company proposes a change in service or rate. The notice
period should be consistent with the Commission's regulations.
V. Where To Submit
(1) Submit this report to: Office of the Secretary, Federal
Energy Regulatory Commission, Room 3110, 825 N. Capitol Street, NE.,
Washington, DC 20426.
(2) Hand deliveries may be made to the same address.
General Instructions
(1) Schedule TF. Records TF01 through TF06 and the text line
records are intended to capture all of the tariff elements which the
pipeline has historically filed as part of its FERC Gas Tariff.
Record TF01 identifies the company and the filing date. Record TF02
captures information about the tariff volume; and Records TF03,
TF04, TF05, and TF06 contain requisite marginal information for an
individual tariff sheet. The actual tariff sheet text will follow
Record TF06.
Each tariff sheet should be identified by the nature of the
sheet, and assigned the appropriate ``Text ID'' from among those
listed in the layout for Record TF03. For example, a tariff sheet
which includes the table of contents must be assigned Text ID =
``1''. The text of a tariff sheet should include any footnotes
applicable to the individual tariff sheet. When filing the tariff
sheet on paper, footnotes should appear inside the ruled borders
required by section 154.101.
All of the marginal information required under 18 CFR 154.102(d)
is to be included only in the tariff sheet header records. These
header records will be utilized to print a hard copy with the
appropriate marginal information.
If a tariff sheet is filed to be read vertically in hard copy,
this is referred to hereinafter as ``Portrait'' orientation. If the
sheet will be read horizontally, the orientation is referred to as
``Landscape''. The requirements of section 154.102(d) imply that the
length of a line of actual text is 6.75 inches in Portrait
orientation, and 10.0 inches in Landscape. The pitch, the number of
print characters per horizontal inch (cpi); the number of lines per
vertical inch (lpi); and the page orientation for printing the
tariff sheet must be given in the first Tariff Sheet Header Record,
(Record TF03). The number of characters per horizontal inch (cpi)
must not exceed 17. The acceptable lines per vertical inch are 6 or
8. The maximum line length and lines per page for Portrait and
Landscape orientation are as follows:
----------------------------------------------------------------------------------------------------------------
Maximum line length (characters) Maximum lines per page
Page orientation -----------------------------------------------------------------------------
10cpi 12cpi 15cpi 17cpi 6lpi 8lpi
----------------------------------------------------------------------------------------------------------------
Vertical (Portrait)............... 65 79 98 112 50 70
Horizontal (Landscape)............ 98 118 148 168 31 44
----------------------------------------------------------------------------------------------------------------
(2) Record Types. Records must be filed in the following order:
Company Header Record (TF01): One record per dataset.
Volume Header Record (TF02): One record per volume. All pages
for the same volume will be grouped together. If more than one
dataset is required for the filing of a volume, this record must
appear in each dataset. Note: When more than one dataset is needed
to accommodate a filing, name the datasets in accordance with the
instructions in Exhibit A.
Note: The appropriate tariff sheet header records must precede
each tariff sheet!
Sheet Header Record (TF03): One record per sheet.
Superseded Sheet Header Record (TF04): This record pertains to
the superseded sheet information. One record per sheet unless there
is no superseded sheet (e.g., Original and Substitute Original
sheets). In that case, this record may be omitted.
Issuing Officer Header Record (TF05): One record per filing,
unless the filing contains sheets that reference more than one
issuing officer or the tariff sheets are submitted in more than one
dataset. Optionally, this record may precede every tariff sheet
filed.
Date and Docket Header Record (TF06): One record per filing,
unless the effective date or other information in this record
changes from sheet to sheet or the tariff sheets are submitted in
more than one dataset. Optionally, this record may precede every
tariff sheet filed.
Text Line Records: The actual tariff sheet text. Note: any
special codes placed in the text (such as bold, italic, underline,
etc.) are removed when converting to ASCII format.
(3) Numeric Fields. All numeric fields in Records TF01 through
TF06 must not be left blank, and must be right justified unless
indicated otherwise. The following conventions should be followed in
preparing each header record in the filing:
(A) If a numeric data item is not applicable to the respondent,
enter the numeric value ``0'' in the field provided for this data
item.
(B) Do not include commas in reporting any numeric value.
(C) Report all dates as six digit numerics (month, day, year,
MMDDYY).
(4) Pipeline Company ID. Use the code for the pipeline as
contained in the Buyer Seller Code List, U.S. Department of Energy's
publication DOE/EIA-0176. A code may be obtained by calling EIA at
(202) 586-8841.
(5) Record Lengths. Do not pad the end of data records with
blanks.
Specific Instructions
(1) Effective Date. The date, given as month, day, and year, on
which the respondent expects the filing to be put into effect
subject to the concurrence of the FERC.
(2) Tariff Volume Number. The number of the volume to which the
tariff sheets belong. For example, if the volume is labeled ``First
Revised Volume No. 1'', report a ``1'' in this field.
(3) Tariff Volume Revision Number. Report the number of the
revision. For example, if the tariff volume is labelled ``Second
Revised
[[Page 53016]]
Volume No. 1'', report a ``2'' in this field. If the tariff volume is
an original volume, report a zero in this field.
(4) Tariff Volume ID. Report the full tariff volume name in this
field. For example, if the volume is labelled ``First Revised Volume
No. 1'', report ``First Revised Volume No. 1'' in this field.
(5) Sheet Number. Report the number of the tariff sheet being
filed. For example, if the sheet is numbered ``First Revised Sheet
No. 3 superseding Original Sheet No. 3'', report a ``3'' in this
field.
(6) Sheet Revision Number. Report the number of the revision.
For example, if the tariff sheet is numbered ``Second Substitute
Third Revised Sheet No. 4 superseding Second Revised Sheet No. 4'',
report a ``3'' in this field. If this is an original tariff sheet,
report a ``0'' in this field.
(7) Sheet ID. Report the full designation for the tariff sheet
being reported. For example, if the sheet is designated ``First
Revised Sheet No. 3 superseding Original Sheet No. 3'', report
``First Revised Sheet No. 3'' in this field. If the Sheet ID exceeds
the allowed 40 character positions for this item, use the
``Abbreviation Conventions List'' at Exhibit C.
(8) Superseded Sheet ID. Report the full designation for the
tariff sheet being superseded. For example, if the tariff sheet
being filed is designated ``First Revised Sheet No. 3 superseding
Original Sheet No. 3'', report ``Original Sheet No. 3'' in this
field. If the Superseded Sheet ID exceeds the allowed 40 character
positions for this item, use the ``Abbreviation Conventions List''
at Exhibit C.
(9) First Superseded Sheet Number. When a single sheet
supersedes a range of sheets (such as canceling a rate schedule or
reserving sheets for future use), report the number of the first
sheet in the range. Otherwise this field may be left blank.
(10) Last Superseded Sheet Number. When a single sheet
supersedes a range of sheets (such as canceling a rate schedule or
reserving sheets for future use), report the number of the last
sheet in the range. Otherwise this field may be left blank.
(11) Alternate Sheet ID. When filing primary and alternative
tariff sheets, the sheets are uniquely identified by reporting
``00'' in this field for the primary sheet, ``01'' for the first
alternate, ``02'' for the second alternate, and so on.
(12) Issuing Officer. Report the name and title of the person
authorized to issue the tariff sheet.
(13) Issue Date. The date given as month, day, and year when the
tariff sheet is issued.
(14) Order Reference. For tariff sheets which are filed to make
rate schedules or provisions ordered by the Commission effective,
report the Docket Number and the date of such order. (If more than
one docket applies, report the lead docket relating to the filing
company in the proceeding.)
(15) FERC Cite. Enter the numbers of the cite to the FERC
Reports in this field as follows: For a citation which appears as 12
FERC para.34,567, enter all of the numbers but none of the letters,
symbols, or commas. It will appear as 1234567.
Electronic Tariff File Layout--Schedule TF
----------------------------------------------------------------------------------------------------------------
Character
Item position Data type Comments
----------------------------------------------------------------------------------------------------------------
(1) Company Header Record
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................... 1-2 Character.................... Sch = TF.
Record ID............................ 3-4 Numeric...................... Code--01.
Company ID........................... 5-10 Numeric...................... Company code from buyer/
seller code list, see
general instruction 4.
Date Submitted....................... 11-16 Numeric...................... Month, day and year report is
filed (mmddyy).
Company Name......................... 17-65 Character.................... Name of filing company.
----------------------------------------------------------------------------------------------------------------
(2) Volume Header Record
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................... 1-2 Character.................... Sch = TF.
Record ID............................ 3-4 Numeric...................... Code = 02.
Tariff Volume Number................. 5-8 Character.................... See specific instruction 2.
Tariff Volume Revision Number........ 9-11 Numeric...................... See specific instruction 3.
Tariff Volume ID..................... 12-51 Character.................... See specific instruction 4.
----------------------------------------------------------------------------------------------------------------
(3) Sheet Header Record
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................... 1-2 Character.................... Sch = TF.
Record ID............................ 3-4 Numeric...................... Code = 03.
Sheet Number......................... 5-12 Character.................... See specific instruction 5.
Sheet Revision Number................ 13-15 Numeric...................... See specific instruction 6.
Alternate Sheet ID................... 16-17 Numeric...................... See specific instruction 11.
Text ID.............................. 18-19 Numeric...................... 0 = Title Page.
1 = Table of Contents.
2 = Preliminary Statement.
3 = Rate Sheets.
4 = Rate Schedule Text.
5 = General Terms and
Conditions.
6 = Form of Service
Agreements.
7 = Index of Customers.
8 = Other Indices.
9 = Other Tariff Sheets.
10 = Sheets Reserved for
Future Use.
Orientation.......................... 20 Character.................... P = Portrait.
L = Landscape.
Pitch................................ 21-22 Numeric...................... Characters per Horizontal
Inch = 10, 12, 15, or 17.
Lines Per Inch....................... 23 Numeric...................... Lines per Vertical Inch = 6
or 8.
Sheet ID............................. 24-63 Character.................... See specific instruction 7.
----------------------------------------------------------------------------------------------------------------
[[Page 53017]]
(4) Superseded Sheet Header Record
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................... 1-2 Character.................... Sch = TF.
Record ID............................ 3-4 Numeric...................... Code = 04.
First Superseded Sheet Number........ 5-12 Character.................... See specific instruction 9.
Last Superseded Sheet Number......... 13-20 Character.................... See specific instruction 10.
Superseded Sheet ID.................. 21-60 Character.................... See specific instruction 8.
----------------------------------------------------------------------------------------------------------------
(5) Issuing Officer Header Record
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................... 1-2 Character.................... Sch = TF.
Record ID............................ 3-4 Numeric...................... Code = 05.
Issued By............................ 5-58 Character.................... Name and title of issuing
official; see specific
instruction 12.
----------------------------------------------------------------------------------------------------------------
(6) Date and Docket Header Record
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................... 1-2 Character.................... Sch = TF.
Record ID............................ 3-4 Numeric...................... Code = 06.
Date Issued.......................... 5-10 Numeric...................... (mmddyy); see specific
instruction 13.
Order Date........................... 11-16 Numeric...................... (mmddyy); see specific
instruction 14.
Docket Number........................ 17-36 Character.................... See specific instruction 14.
Effective Date....................... 37-42 Numeric...................... (mmddyy); see specific
instruction 1.
----------------------------------------------------------------------------------------------------------------
(7) FERC Cite
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................... 1-2 Character.................... Sch = TF.
Record ID............................ 3-4 Numeric...................... Code = 07.
FERC Cite............................ 43-49 Numeric...................... See specific instruction 15.
----------------------------------------------------------------------------------------------------------------
(8) Sheet Text Line Records
----------------------------------------------------------------------------------------------------------------
Each entire record consists of the text of the corresponding line of the tariff sheet, without prefix of any
kind.
----------------------------------------------------------------------------------------------------------------
Exhibit A--Diskette Filing Procedures
Diskette(s) containing the information specified for each record
ID of the tariff filing filed with the FERC must conform with the
following requirements:
(1) The character code for representing all data should be the
American National Standard Code for Information Interchange (ASCII)
as defined in FIPS PUB 1-2. An exception will be made for the cents
( cents) symbol, which should be coded as hexadecimal 8B, or decimal
155, as defined in the IBM-US (PC-8) symbol set. Note that there are
symbol sets which define it differently.
(2) The definitions, instructions, and schedule ID/record ID
data layouts for this form specify explicitly the data items to be
reported and the sequence for recording the information on the
diskette(s). The information required for a tariff filing should be
recorded on the diskette(s) exactly as specified in the data layout
for each schedule/record and in accordance with the general
instructions.
(3) All tariff sheets filed under a given docket number should
all be included in the same ``file'' or data set, if possible.
(Large files may be split as a matter of convenience or diskette
size limitation). The file should be named: ``TFMMDDYY.ASC'' where
``TF'' stands for ``Tariff Filing'', and ``MMDDYY'' is the two digit
month, day, and year the tariff filing is submitted. If more than
one tariff filing is made on the same day, the subsequent filings
should be given file names ``TFMMDDYY.BSC'', ``TFMMDDYY.CSC'', etc.,
where ``BSC'' indicates the second filing of the day, ``CSC'' the
third filing, etc. The file name for each submission should be
included in the transmittal letter accompanying the respondent's
filing.
(4) Each logical record must be terminated by a CR (ASCII
carriage return--13 decimal, OD hexadecimal). An ASCII line feed
(LF) following a CR is accepted but not required as part of
termination. Do Not pad the end of data records with spaces.
(5) Do not omit any numeric item. Numeric items do not require
leading zeros unless specifically noted in the description of the
data item. See the General Instructions of this form for detailed
instructions for recording numeric data on the diskette(s).
(6) When refiling a diskette only to correct an electronic data
error on the electronic version of a tariff sheet and not in the
paper version, use the same file name, pagination and submittal
date.
(7) Each diskette must state on the label that tariff sheets are
enclosed. If more than one diskette is necessary to accommodate a
filing, the diskettes should be numbered 1 of N, 2 of N, etc., where
N is the total number of diskettes.
Exhibit B--Tariff Sheet Pagination Guidelines
Section 154.102(d)(2) of the Commission's regulations requires
companies to number their tariff sheets as provided below.
(1) Original Sheets. Paginate a sheet as ``Original Sheet No.
________'' when the sheet number has not been used previously in the
tariff volume. When filing an entire original or revised tariff
volume, all sheets should be paginated as ``Original Sheet No.
________'' unless the sheet falls within the exception under
Guideline (11).
(2) Revised Sheets. Designate a sheet as ``Revised'' if it is
(a) filed in a different proceeding than the sheet it is superseding
or (b) filed in the same proceeding but given a new proposed
effective date. Each subsequent ``Revised'' pagination should be
numbered sequentially. (See Examples 1 and 2.)
(3) Substitute Sheets. Designate a sheet as ``Substitute
________ Revised Sheet No. ________'' if it is filed to replace a
sheet filed in the same proceeding with the same effective date. If
a substitute sheet needs to be replaced, paginate the new sheet as
``Second Substitute,'' and so on. (See Example 1.)
[[Page 53018]]
(4) Superseded Sheets. Designate as the superseded sheet the
most recent sheet filed in a different proceeding effective or
proposed to be effective on the same day or on a day prior to the
new sheet. This means when filing a substitute sheet the designated
superseded sheet stays the same. Provided that the sheet does not
fall under the exception in guideline (9). Never designate a
rejected or suspended sheet as the superseded sheet. However, if a
sheet designated as superseded is subsequently rejected, it is not
necessary to refile solely to correct the superseded sheet
designation. (See Example 1.)
(5) Rejected Sheets. If a sheet is rejected by order of the
Commission, do not reuse the pagination of the rejected sheets.
Designate a sheet ``Substitute'' if it is filed to replace a
rejected sheet in the same proceeding, but do not designate a
rejected sheet as the superseded sheet. Refer to Guidelines (3) and
(4).
(6) Alternate Sheets. When filing two versions of a proposed
tariff sheet, designate the sheets `` ________ Revised Sheet No.
________'' and ``Alternate ________ Revised Sheet No. ________.''
Paginate a replacement alternate sheet ``Sub Alternate.''
(7) Inserted Sheets. Designate sheets inserted between two
consecutively numbered sheets using an uppercase letter following
the first sheet number (e.g., sheets inserted between sheets 8 and 9
would be 8A, 8B, etc.). For sheets inserted between two
consecutively lettered sheets, add a ``.'' followed by a two digit
number (e.g., sheets inserted between sheets 8A and 8B would be
8A.01 through 8A.99). For further insertions, add a lowercase letter
(e.g., between sheets 8A.01 and 8A.02 would be 8A.01a, 8A.01b,
etc.).
(8) Pre-dated Sheets. When a sheet is filed with a proposed
effective date which pre-dates the effective date of a suspended or
effective sheet with the same number filed in a different
proceeding, designate the new sheet ``________ Rev________ Revised
Sheet No. ________'' where the second and third blanks are numbered
the same as the sheet with the later effective date and the first
blank contains ``1st,'' ``2nd,'' etc. Commonly, this situation
occurs when a sheet is suspended for five months and subsequent
sheets need to be made effective prior to the date the suspended
sheet becomes effective. (See Example 3.) Note: When using the ``1st
Rev'' pagination, drop extraneous words if the superseded sheet
provides the same information. (See Example 4.)
(9) Retroactive Sheets. When filing a retroactive change back to
a certain date, all sheets which are or were in effect from that
date forward need to be changed. The first sheet should be
designated either as ``Substitute'' in accordance with Guideline (3)
above or ``________ Rev'' in accordance with Guideline (8),
depending on whether the retroactive filing is in the same docket as
or a different docket from the sheet being replaced. The rest of the
sheets should be designated as a ``Substitute'' of each sheet
already on file. For the first new sheet in the series of sheets,
the superseded sheet shall be designated in accordance with
Guideline (4) above. However, the remainder of the sheets in the
series should supersede each other in order, even though they are
all filed in the same docket. In this way, the ``superseded''
designation will reflect the last sheet in effect on each given
effective date. (See Examples 5 and 6.)
(10) Canceled Sheets. When filing to cancel a rate schedule,
file one sheet with a new revision number and the sheet number of
the first canceled sheet. Designate as superseded ``Sheet Nos.
________-________'' where the blanks refer to the first and last
canceled sheet numbers in a series. The specific pagination of each
individual canceled sheet should be included in the body of the
tariff sheet. When using the formerly canceled sheet numbers, refer
to the pagination of the sheets listed in the body of the canceling
sheet, and paginate each sheet with the next higher revision number.
See Example 8.
(11) Sheets Reserved For Future Use. When reserving a number of
sheets for future use, file one sheet paginated ``Sheet Nos.
________-________'', where the blanks refer to the first and last
reserved sheet numbers in series. In the body of the sheet state
``Reserved for Future Use.'' (See Example 9.) Note: in the
electronic tariff sheet records, report the first sheet number in
the series in the ``Sheet No.'' field and the full pagination in the
``Sheet ID'' field.
(12) Abbreviations. Pagination cannot exceed 40 characters.
Abbreviate from left to right using the Abbreviation Conventions
List in Exhibit C. Abbreviate only as needed to reduce the
pagination to 40 characters or less. (See Example 7.) Electronic and
paper versions of a tariff sheet must be paginated exactly alike,
including abbreviations.
Example 1
``Original Sheet No. 4'' is filed in Docket No. CP94-44-000 to be
effective January 1, 1994. Subsequently, a sheet filed in Docket RP94-
1-000 is to be effective February 1, 1994. Paginate that sheet ``First
Revised Sheet No. 4 superseding Original Sheet No. 4.'' A mistake is
discovered and a corrected sheet needs to be filed in Docket No. RP94-
1-001. Paginate that sheet ``Substitute First Revised Sheet No. 4
superseding Original Sheet No. 4.'' Note the superseded sheet is from
the prior proceeding.
----------------------------------------------------------------------------------------------------------------
Superseded
Docket Filed Effective Pagination sheet
----------------------------------------------------------------------------------------------------------------
CP94-44-000.................... 11/30/93 1/1/94 Original............................
RP94-1-000..................... 12/31/93 2/1/94 First Revised....................... Original.
RP94-1-001..................... 2/15/94 2/1/94 Sub First Revised................... Original.
----------------------------------------------------------------------------------------------------------------
Example 2
``Second Revised Sheet No. 4'' is filed in Docket No. TM94-1-77-000
to be effective April 1, 1994. Subsequently, a sheet is filed in Docket
No. RS94-1-50-000 to be effective on the same date. Paginate that sheet
with the next revision number, ``Third Revised Sheet No. 4'' even
though it is to be effective on the same date.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Docket Filed Effective Pagination Superseded sheet
--------------------------------------------------------------------------------------------------------------------------------------------------------
TM94-1-77-000........................... 2/28/94 4/1/94 Second Revised............................... Sub First Revised.
RS94-1-50-000........................... 3/31/94 4/1/94 Third Revised................................ Second Revised.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Example No. 3
``Fourth Revised Sheet No. 4'' is filed July 31, 1994, in Docket
No. RP94-134-000 to be effective September 1, 1994. An order suspends
this sheet until February 1, 1995. Subsequently two filings are to be
made effective prior to February 1, 1995. Paginate these sheets as
``1st Rev Third Revised Sheet No. 4'' and ``2nd Rev Third Revised Sheet
No. 4.'' When filing to move the suspended tariff sheet into effect,
paginate the revised tariff sheet as ``Sub Fourth Revised Sheet No.
4''. Note: using the alpha-numeric ``1st, 2nd'' for the additional
revision number assists in keeping the pagination clear.
[[Page 53019]]
----------------------------------------------------------------------------------------------------------------
Docket Filed Effective Pagination Superseded sheet
----------------------------------------------------------------------------------------------------------------
RP94-134-000................. 7/31/94 2/1/95 Fourth Revised................... Third Revised.
TM94-2-77-000................ 8/31/94 10/1/94 1st Rev Third Revised............ Third Revised.
TM94-3-77-000................ 10/31/94 11/1/94 2nd Rev Third.................... 1st Rev Third.
RP94-134-001................. 1/31/95 2/1/95 Sub Fourth Revised............... 2nd Rev Third.
----------------------------------------------------------------------------------------------------------------
Example 4
When needing to insert a sheet between ``Third Revised'' and ``Sub
Alt Second Revised'' with the designation 1st Rev Sub Alt Second
Revised, paginate the new sheet ``1st Rev Second Revised'' (dropping
``Sub Alt'' from the name), and designate the superseded sheet ``Sub
Alt Second Revised.'' In the alternative, the abbreviations in Exhibit
C may be used.
Example No. 5
The sheet given in Example No. 1, ``Sub First Revised Sheet No. 4''
filed in Docket No. RP94-1-001 is in effect February 1, 1994, subject
to the resolution of issues. A year later, settlement is reached
resulting in a restatement of base rates back to that date. The revised
sheets filed under Docket No. RP94-1-002 (using prior examples):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Docket Filed Effective Pagination Superseded sheet
--------------------------------------------------------------------------------------------------------------------------------------------------------
RP94-1-002.......................... 4/15/95 2/1/94 2nd Sub First Revised..................................... Original.
4/1/94 Sub Second Revised........................................ 2nd Sub First
4/1/94 Sub Third Revised......................................... Sub Second
10/1/94 Sub 1st Rev Third Revised................................. Sub Third.
11/1/94 Sub 2nd Rev Third......................................... 1st Rev Third.
2/1/95 2nd Sub Fourth Revised.................................... 2nd Rev Third.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Example No. 6
Continuing from Example 5, a subsequent tracker filing retroactive
to November 1, 1994:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Docket Filed Effective Pagination Superseded sheet
--------------------------------------------------------------------------------------------------------------------------------------------------------
TM96-1-77-000..................... 4/30/95 11/1/94 3rd Rev Third Revised................................... Sub 2nd Rev Third
2/1/95 3rd Sub Fourth Revised.................................. 3rd Rev Third.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Example No. 7
Abbreviate ``Fourth Revised Twenty-Third Revised Sheet No. 4'' as
``4th Rev Twenty-Third Revised Sheet No. 4.''
Example No. 8
To cancel Rate Schedule X-26 which consists of Original Sheet No.
10, First Revised Sheet Nos. 11 through 36, Substitute First Revised
Sheet No. 37, and Second Revised Sheet Nos. 38 and 39, file ``First
Revised Sheet No. 10:''
My Pipeline Company, FERC Gas Tariff, Original Volume No. 1
First Revised Sheet No. 10 Superseding Sheet Nos. 10 Through 39
Notice of Cancellation
Rate Schedule X-26, Exchange Agreement with YOUR Pipeline Company,
Dated January 1, 1980.
The following tariff sheets have been superseded:
Original Sheet No. 10
First Revised Sheet Nos. 11 through 36
Substitute First Revised Sheet No. 37
Second Revised Sheet Nos. 38 and 39
Example No. 9
Your general terms and conditions end on page 75 and you want to
reserve sheets 76 through 99 for future use:
My Pipeline Company, FERC Gas Tariff, Original Volume No. 1
Sheet Nos. 76 through 99
Sheet Nos. 76 through 99 are reserved for future use.
Exhibit C--Abbreviation Conventions List
Substitute: Sub
Alternate: Alt
Revised: /
First, Second, etc.: 1st, 2nd, etc.
Sheet No.: (omit these words)
[FR Doc. 95-24723 Filed 10-10-95; 8:45 am]
BILLING CODE 6717-01-P
