[Federal Register Volume 60, Number 9 (Friday, January 13, 1995)]
[Proposed Rules]
[Pages 3141-3168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-653]
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DEPARTMENT OF ENERGY
18 CFR Parts 158, 201, 250, 260, and 284
[Docket No. RM95-4-000]
Revisions to Uniform System of Accounts, Forms, Statements, and
Reporting Requirements for Natural Gas Companies; Notice of Proposed
Rulemaking
December 16, 1994.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission is proposing to amend
its Uniform System of Accounts, its forms, and its reports and
statements for natural gas companies. The proposed revisions reflect
the current regulatory environment of unbundled pipeline sales for
resale at market-based prices and open-access transportation of natural
gas. The Commission seeks to simplify and streamline its requirements
to reduce the burden of respondents.
DATES: Comments are due no later than April 13, 1995.
ADDRESSES: An original and 14 copies of written comments must be filed.
All filings should refer to Docket No. RM95-4-000 and should be
addressed to Office of the Secretary, Federal Energy Regulatory
Commission, 825 North Capitol Street, NE., Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT: Jeffrey A. Braunstein, Office of the
General Counsel, Federal Energy Regulatory Commission, 825 North
Capitol Street, NE., Washington, DC 20426, (202) 208-2114.
SUPPLEMENTARY INFORMATION: In addition to publishing the full text of
this document, excluding Appendices A (FERC Form No. 2), B (FERC Form
No. 2-A), and C (FERC Form No. 11), 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 in Room 3104, 941 North Capitol 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 (202) 208-1397. 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 for 60 days from the date of
issuance in ASCII and WordPerfect 5.1 format. After 60 days the
document will be archived, but still accessible. 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.
I. Introduction
The Federal Energy Regulatory Commission (Commission) proposes to
amend its Uniform System of Accounts,1 its forms, and its reports
and statements for natural gas companies.2 This Notice of Proposed
Rulemaking (NOPR) is a companion to the Commission's Notice of Proposed
Rulemaking ``Filing Requirements for Interstate Natural Gas Company
Rate Schedules and Tariffs'', which proposes to amend Part 154 of the
Commission's regulations and is issued contemporaneously with this
NOPR. In brief, the Commission proposes, in this NOPR, changes to the
Uniform System of Accounts' treatment of gas stored underground,3
revenues,4 gas supply expenses,5 and to eliminate all
accounts for Nonmajor respondents and to redesignate accounts used only
by Major respondents for use by all respondents. The Commission also
proposes to change or eliminate various forms, reports, and statements.
This includes changes to, and deletions from, FERC Form No. 2 (Form No.
2), Annual report [[Page 3142]] for Major natural gas companies, and
Form No. 2-A (Form No. 2-A), Annual report for Nonmajor natural gas
companies.6
\1\Section 8 of the Natural Gas Act (NGA), 15 U.S.C. 717g
(1988), authorizes the Commission to prescribe rules and regulations
concerning accounts, records and memoranda as necessary or
appropriate for purposes of administering the NGA. The Commission
may prescribe a system of accounts for jurisdictional companies and,
after notice and opportunity for hearing, may determine the accounts
in which particular outlays and receipts will be entered, charged,
or credited.
\2\Section 10 of the NGA, 15 U.S.C. 717i (1988), authorizes the
Commission to prescribe rules and regulations concerning annual and
other periodic or special reports, as necessary or appropriate for
purposes of administering the NGA. The Commission may prescribe the
manner and form in which such reports are to be made, and require
from natural gas companies specific answers to all questions on
which the Commission may need information. The reports must be made
under oath unless the Commission otherwise specifies.
\3\The Commission proposes to amend Account 117, Account 164.1,
and other accounts that refer to Account 117.
\4\The Commission proposes to amend Account 489 and Account 495.
\5\The Commission proposes to amend Account 806.
\6\Form No. 2 consists of approximately 162 non-consecutively
numbered pages and a four-page index. See 18 CFR 260.1. The current
version bears OMB approval No. 1902-0028. Form No. 2-A consists of
approximately 22 consecutively numbered pages, 1-22, and 32 non-
consecutively numbered substitute pages from the Form No. 2 that may
be used in lieu of the comparable pages in the first section. See 18
CFR 260.2. The current version bears OMB approval No. 1902-0030.
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The Commission is proposing the changes in order to create forms,
reports, and statements that reflect the current regulatory environment
of unbundled pipeline sales for resale at market-based prices and open-
access transportation of natural gas. In doing that, the Commission
seeks to simplify and streamline its requirements to reduce the burden
on respondents. Hence, the Commission is proposing to eliminate
reporting requirements (as well as a few non-reporting requirements)
that are outdated or nonessential in light of current regulation, or
are duplicative of other reporting requirements. At the same time, the
proposed revisions, especially of Form No. 2, will provide financial,
rate, and statistical information on transactions that is more useful
than what is currently available to regulatory agencies and other users
of the financial statements and reports of natural gas companies. The
Commission believes the proposed changes to Form No. 2 are needed
because companies are giving different accounting treatment to similar
transactions, and the characteristics of certain balance sheet and
income statement items for the restructured industry are different from
what they were when the current accounting regulations were adopted.
In Part III, A of this NOPR, the Commission will discuss the
proposed changes to the Uniform System of Accounts with respect to
storage gas. In Part III, B the Commission will address the other
proposed revisions to the Uniform System of Accounts. In Part IV, the
Commission will discuss the changes to Part 250 of the Commission's
regulations, ``Approved Forms, Natural Gas Act.'' In Part V, the
Commission will discuss the proposed changes to Part 260 of the
Commission's regulations, ``Statements and Reports (Schedules).'' That
discussion will include the proposed changes to Forms No. 27 and
No. 2-A.8 In Part VI, the Commission will discuss the proposed
changes to Part 284 of the Commission's regulations, ``Certain Sales
and Transportation of Natural Gas Under the Natural Gas Policy Act of
1978 and Related Authorities.''
\7\Appendix A consists of the proposed revised Form No. 2.
Appendix A is not being published in the Federal Register, but is
available from the Commission's Public Reference Room.
\8\Appendix B consists of the proposed revised Form No. 2-A.
Appendix B is not being published in the Federal Register, but is
available from the Commission's Public Reference Room.
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The Commission recognizes that the changes to these regulations and
forms and to the regulations in the companion notice of proposed
rulemaking titled, ``Filing Requirements for Interstate Natural Gas
Company Rate Schedules and Tariffs,'' will necessitate modifications to
the electronic formats for the affected filings and forms. To ensure
the widest possible input, the Commission is directing its staff here,
and in the companion NOPR, to convene a single technical conference to
obtain the participation of the industry and other users of the filed
information in designing the electronic filing requirements. By the
time the Commission issues final rules in these companion rulemakings,
the Commission expects staff, with the participation of interested
parties, to have developed the changes needed to make the electronic
filings that would be required under the regulations proposed in both
of the rulemaking proceedings. The Commission intends to move toward a
PC-based electronic filing system and away from mainframes. The
Commission intends to use user friendly form-fill, word processing, and
spreadsheet application software as much as possible.
The changes to the Uniform of System of Accounts and Form Nos. 2
and 2-A in this NOPR are proposed to be effective January 1, 1995. The
remainder of the proposed rule is proposed to be effective 30 days
after publication in the Federal Register.
II. Public Reporting Burden
The proposed rule, if adopted, would establish new reporting
requirements, modify existing reporting requirements and eliminate
those requirements that are now obsolete. The Commission seeks to
simplify and streamline its requirements to reduce the burden on
pipelines. The current public reporting burden for these information
collections is estimated to average the following number of hours per
response: FERC Form No. 2--2,475 hours for the 46 gas companies that
complete a filing; FERC Form No. 2-A--30 hours for the 87 gas companies
that complete a filing; FERC Form No. 11--5.7 hours for the 50 gas
companies that complete a filing; FERC Form No. 549--2.7 hours for the
294 companies that complete a filing; FERC Form No. 549B--6,770 hours
for the 78 gas companies that complete a filing; FERC Form No. 576--3
hours for the 8 gas companies that complete filing; FERC Form No. 8--
3.6 hours for the 30 gas companies that complete a filing; and FPC-14
(redesignated herein as FERC Form No. 14)--3.1 hours for the 46 gas
companies that complete a filing. These estimates include the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information.
With respect to the gas companies filing the FERC Form No. 2, the
Commission believes that there will be an average burden decrease due
to the elimination of several schedules and significant increases in
the thresholds for the reporting of information on other schedules.
There will be some additional information required, but there should be
a minimal burden increase as a result, because much of the information
is already collected by the industry in other contexts.
Also, those natural gas companies filing the FERC Form No. 2-A, and
previously designated as ``Nonmajor'' who do not presently use the
accounts formerly reserved for Major natural gas companies, may
experience a one-time increase in burden associated with the conversion
of their books and records. It is anticipated that this one-time burden
will not be significant.
The Commission estimates the public reporting burden for other
filing requirements under the proposed rule will reduce the existing
reporting burden. With respect to FERC Form No. 11, the semi-annual
Form No. 11 will contain monthly details of data required annually on
an aggregate basis in FERC Form No. 2. The semi-annual filing of FERC
Form No. 11 on April 30 and October 31 of each year, rather than
monthly, will reduce the number of reports from 600 to 100. In
addition, data are primarily required by rate schedule or Uniform
System of Accounts entries. These consistencies in reporting will
simplify the filing burden. The revised reporting schedule will reduce
the existing reporting burden by a total of 2,500 hours, or
approximately 50 hours per respondent each year.
The proposed elimination of initial, subsequent, termination, and
annual reports, FERC Form No. 549, for interstate pipelines, and the
retention of only the annual reports for intrastate pipelinesm, will
reduce the reporting burden by a total of 13,295 hours. The Commission
estimates that the annual report for the 75 remaining respondents
[[Page 3143]] will require an average of ten hours to complete.
The proposed Index of Customers requirement will add approximately
11,700 hours to the total burden under FERC Form No. 549B. However, the
Commission proposes to delete the paper filing requirement and require
that the index be available through a pipelines electronic bulletin
board. The average burden of approximately 25 hours per respondent
consists of 135 hours for pipelines to establish the initial index, and
three hours per filing to compile an average of six monthly updates.
Allowing reporting of service interruptions in FERC Form No. 576 by
any electronic means, including facsimile or telegraph, as proposed,
will expedite the notice process, and reduce the burden to one hour per
response. This report is required only in the event of an interruption
to normal service lasting three hours or longer.
The Commission is not proposing any substantive changes to FERC
Form Nos. 8 and 14, but requests comment on whether data from other
sources makes these forms unnecessary.
On balance, therefore, the Commission believes the overall burden
on the industry will be lessened over time by the proposed changes. To
consider the impact of the persons affected by this rulemaking, the
Commission would like specific comments on the impact of this rule on
individual natural gas companies. Both estimates of current burden and
impact should be in work hours and dollar costs in sufficient detail to
demonstrate methodology and assumptions.
Comments regarding these burden estimates or any other aspect of
this collection of information, including suggestions for reducing this
burden, can be sent to the Federal Energy Regulatory Commission, 941
North Capitol Street, NE., Washington, DC 20426 [Attention: Michael
Miller, Information Services Division, (202) 208-1415]; and to the
Office of Information and Regulatory Affairs of OMB (Attention: Desk
Officer for Federal Energy Regulatory Commission), FAX: (202) 395-5167.
III. Revisions to Uniform System of Accounts
A. Storage Accounting
Before the recent industry restructuring, natural gas companies
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
its gas on a bundled basis. Now, pipeline companies are primarily
transporters of gas. The physical operation of a pipeline used for
open-access transportation, however, is much the same as when it was
used for bundled merchant service. A transportation pipeline continues
to need gas for compressor fuel, gas losses, line pack, and base
storage gas. In addition, in order for the system to operate
efficiently, it must have sufficient gas volumes and/or storage
capacity available to provide for transportation imbalances and no-
notice transportation. Although these resource needs are not new ones,
in the Commission's view, the mandate to unbundle and the changed
primary role of pipelines from merchants to transporters require
recognition, measurement, and reporting of these resources differently
than presently required.
One might argue that the present accounting requirements contained
in the Uniform System of Accounts are adequate and appropriate for
accounting for gas costs of a transportation pipeline. Under this view,
it could be argued that the loss of the sales function does not change
the economic character of the transportation function. Physically, the
pipeline must operate essentially as it always has in performing a
transportation function, and that the loss of the sales function does
not change the economic character of the transactions that must be
accounted for. Our analysis, however, indicates otherwise. We find that
the financial and regulatory accounting needs for a transporter are
sufficiently different from those of a merchant to warrant changes to
our Uniform System of Accounts.
To meet regulatory needs, the Commission's regulations should
provide recognition and measurement criteria for accounting elements
(e.g. revenues, expenses, assets, liabilities, equity capital) that not
only represent their economic characteristics but also provide useful
financial information relating to services provided. Further, the
regulations should provide for uniform accounting. It is indisputable
that regulation is improved when similar economic events are accounted
for consistently between periods, and uniformly between companies. In
the Commission's view, uniformity in accounting is essential for
developing just and reasonable rates, for compliance review purposes,
and for the preparation of meaningful intra- and inter-company
statistics.
The Commission believes that the financial statement treatment most
consistent with the economic character of the accounting transactions,
and the treatment that produces the most useful regulatory information,
can be obtained if we require that: (1) Volumes maintained for system
balancing purposes, including those needed for no-notice transportation
service, be accounted for as fixed assets rather than as inventory held
for sale, which is the current practice; and (2) gas furnished by
transportation customers for compressor fuel, line losses, or other
operational purposes be viewed as additional compensation for services,
and an appropriate amount of expense be recognized concurrent with the
use of such volumes by the pipeline. With respect to the second item,
the current practice is, in general, not to recognize either the gas
consideration received as revenues or to recognize an expense when the
gas is consumed in system operations.
1. System Gas
The Commission's existing accounting regulations for gas
transactions (purchases, storage, exchanges, sales, system use, etc.)
were developed when a typical natural gas pipeline company offered
bundled sales service. Gas used in providing unbundled transportation
service has characteristics that are different from gas used in
providing bundled sales service. A transportation pipeline is a dynamic
system where there are constant imbalances between what has been
delivered to the system by customers or gas suppliers, on one hand, and
what has been delivered to customers or used to operate the pipeline,
on the other. Although a transportation pipeline has an obligation to
transport and deliver gas provided to it by a shipper, gas is a
fungible commodity. There is no specific identification of the
molecules of gas that a transportation customer (shipper) delivers into
the system with the volumes that it receives at the delivery point. The
pipeline's obligation to the customer is satisfied when the customer
either receives at the appropriate delivery point sufficient volumes,
from whatever source, to meet the quantity, quality, and heat content
called for by the tariff's terms and conditions or it is otherwise
settled through cash-out provisions or balancing arrangements entered
into between two or more customers.
In order to meet its obligation to shippers, the pipeline must have
available sufficient volumes to meet the operational dynamics of its
system (after consideration of imbalance agreements between customers).
For purposes of [[Page 3144]] this discussion these volumes will be
referred to collectively as system gas. In our view, the character of
the accounting for system gas needs falls into three categories: (1) A
fixed asset for those volumes needed to provide for pressure
maintenance, (2) a fixed asset for those volumes needed to meet
imbalances, including no-notice transportation, and (3) operating
expenses for volumes used for compression, line losses, and other
operational uses.
The first fixed asset category includes line pack gas,9 LNG
``heel'',10 and gas held in underground or other natural gas
storage facilities for purposes of pressure maintenance.11 The
cost to the pipeline of these volumes, taken collectively, represents
its fixed investment in the gas necessary to operate the pipeline
transportation system. Under the current Uniform System of Accounts,
the investment cost of these volumes is recorded as gas plant in
service except for recoverable base storage gas which is recorded in
Account 117, Gas Stored Underground- Noncurrent.
\9\Gas Plant Instruction 3(20).
\10\Gas Plant instruction 3(21).
\11\The gas needed to maintain pressure requirements refers to
those volumes needed to maintain the system at its design operating
capacity. It includes the volumes of gas held in natural gas storage
facilities in order to maintain pressure and deliverability
requirements. These storage volumes are often referred to as base or
cushion gas.
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Aside from these volumes, however, pipelines as merchants have also
traditionally maintained ``investments'' in additional volumes of gas
that were needed for system balancing12 or to provide gas sales
service at the city gate on demand during peak periods. These
additional volumes were included in the pipeline's system as additions
to line pack and/or underground storage. When the additional volumes
were added to line pack, many pipelines charged the cost of the gas to
expense at that time, even though the gas was not physically delivered
to a customer until a later period. When the additional volumes were
injected into underground storage, the cost of the gas was charged to
either Account 164.1 or Account 117. As the volumes were withdrawn from
inventory for load balancing or sales service, the related cost was
charged to expense. The cost of gas withdrawn from storage would be
determined in accordance with a generally accepted inventory method,
consistently applied. The accounting costs were then recovered from
sales customers through purchased gas adjustments (PGAs).
\12\System balancing, as used here, refers to those situations
where the pipeline provided gas from its own source of supply in
order to meet deficiencies caused by a shipper tendering less
volumes to the pipeline at the receipt point than it took from the
systems at the delivery point. The term can also be used to refer to
situations where the shipper tenders more volumes than it takes from
the system.
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In the post-Order No. 636 period, there is a need to measure and
recognize the additional volumes of gas needed for load balancing and
no-notice transportation service, as well as the recoverable base gas
volumes, differently from how they have been measured and recognized in
the past. This is because such investments are necessary to perform a
transmission function whether there continue to be sales services or
not. Further, with the implementation of unbundled services, pipelines
generally discontinued their PGAs. Most pipelines that continue to
provide sales service do so at market-based prices. It is obviously
important to identify and aggregate the costs of transportation service
separately from the costs of providing sales service, in order to avoid
inappropriate allocations of costs between the two.
Under Order No. 636, pipelines were required to relinquish most of
the capacity of their transmission system, including storage, to their
customers. The Commission permits pipeline companies to retain for
their own use only a designated volume of storage capacity on their
systems for use in load balancing and no-notice transportation service.
These volumes, in general, are intended to represent the maximum volume
needed to maintain reliability and continuity of transportation service
during peak periods. It would be inappropriate to classify these
volumes as gas held for resale in the ordinary course of business, i.e.
inventory; instead, they represent permanent investments that a
pipeline must make for providing transportation service. The Commission
believes that the use of this gas provides further support for no
longer viewing the costs incurred to provide this transportation
function as inventory (or expended when acquired in the case of some
line pack). To account for this gas in such a manner, which would be
more appropriate for an enterprise engaged in a merchant type of
business activity, is no longer the best financial statement
representation.
Even if a pipeline receives payment for system gas delivered to
meet an imbalance or no-notice transportation requirement, the
Commission does not believe that it should account for the transaction
as if a sale has occurred. Simultaneously with the gas delivery, the
transportation pipeline has an obligation, in order to maintain the
integrity of the transportation system, to replenish the designated
volumes that make up system supply. The obligation to replace these
volumes would more appropriately be accounted for as if ``owed to
system gas'' rather than as a sale. There is no expectation by the
pipeline of realizing a profit from this type of gas transaction. It is
merely a loan that is to be repaid by the shipper through either
providing gas in kind or through cash-out provisions.
The primary difference between the fixed asset accounting model and
the inventory model for system gas is in the carrying value of the
asset. Under the inventory model, the carrying value of the asset will
change over time as withdrawals of system gas are made and replacements
are brought back into the system. The inventory model would permit
various methods of pricing these withdrawals. For instance, an entity
could assign a cost to these withdrawals using LIFO, FIFO, or a
weighted average inventory method, or specific identification, provided
that the method is consistently applied. Replacements would be priced
at their acquisition cost. Under the fixed asset model, as we view it,
the carrying value for system gas would not change except for
recognition of changes in designated volumes. Instead, the carrying
value would be locked-in the same way that plant investments are to
historical cost. Further, the fixed asset model would permit only one
method for assigning cost to the temporary ``owed to system gas''
account--current market price. Gain or loss recognition, if any, would
be limited to any differences between the actual replacement cost of
system gas and reimbursements from customers on a cash-out basis where
the differences are not required to be passed along to customers.
The Commission believes that the fixed asset model is superior for
several reasons.
First, it more accurately reflects the economics of transportation
transactions. If the withdrawal/replacement transaction is satisfied by
gas in kind, it is obvious that there should be no economic gain or
loss realized. Since the cash-out provisions are intended to be
substitutes for gas deliveries, it should likewise be obvious that no
economic gain or loss occurred from the basic transaction. However, the
inventory method would result in a gain or loss being recognized to the
extent that the accounting cost of gas withdrawn from storage
(historical cost) differs from the cash-out price (generally current
spot market prices). On the other hand, the fixed asset model would not
show a gain or loss from the withdrawal/replacement activity. Both
[[Page 3145]] models, however, will correctly show that a gain or loss
has been realized by the pipeline on the difference between the cash-
out price and the actual cost of replacement gas (if such gain or loss
is not passed along to customers).
Second, the fixed asset model better matches cost (expenses) with
services. To the extent that accounting gains and losses on system gas
transactions are required to be passed along to transportation
customers, the fixed cost model would achieve a closer matching of
current gas cost with current service than would the inventory model.
For instance, if a company uses a FIFO inventory pricing method, the
effect of gas costs incurred in prior years will enter into the
determination of the revenue requirements for current service. This
distortion does not occur under the fixed asset model.
Third, the fixed asset model for assigning costs to unbundled
services permits a clearer separation of costs deemed to be
transmission from costs related to other functions.
And fourth, the fixed asset model, once adopted, should make the
Commission's ratemaking and compliance activities an easier task since
the investment included in rate base would be fixed. Any cash flow
requirements/benefits related to the proposed ``Gas owed to system
gas'' account and the companion account receivable could be included in
cash working capital consideration.
2. Revenues and Expenses Associated With Compressor Fuel
Some transportation tariffs provide for the shippers to furnish gas
for compressor fuel and other pipeline system use. In other instances,
the pipeline is required to purchase gas for such purposes from a third
party. It is the Commission's understanding that, at least in the
majority of instances, no accounting recognition is currently being
given to the compensation in the form of gas that is received for the
transportation service when the pipeline reports transportation
revenues. However, in any instances where it is the pipeline's
responsibility to purchase the gas, gas cost reimbursements would be
included in reported revenues. Similarly, the pipeline that does not
report the furnished gas as compensation would not show an expense for
fuel burned, whereas the pipeline that purchases the gas would.
This diversity in accounting treatment is not warranted. The
Commission believes that all consideration received for services should
be reported as revenues, whether paid in cash or otherwise. If the
consideration is other than cash, then the non-cash consideration
should be measured on a cash basis. In the case of gas furnished by a
customer for compressor fuel, the Commission believes that an
appropriate measure of the revenues received by the transportation
pipeline is the cost that would have been incurred had the pipeline
been required to purchase the gas itself. The same assigned value
should be used when costing the gas actually used for compressor fuel.
It is only through such accounting that uniformity can be achieved and
valid financial comparisons made. The Commission invites comments from
the industry about whether a price index should be used to account for
the value of gas furnished by customers; if so, what would be the
appropriate price index, and how should that price index be applied?
The Commission is not proposing changes to its Uniform System of
Accounts for these items since it believes that the current system
already adequately provides for such recognition. However, it should be
made clear that the expense account to be charged with the gas provided
by shippers is the same purchased gas account that would have been
charged if the gas was separately purchased in a cash transaction.
Further, the records supporting the purchased gas accounts for retained
gas must be so maintained that there will be readily available for each
shipper and point of receipt, the quantity of gas tendered and the
values assigned.
3. The Proposed Rule
The Commission is proposing to revise its accounting regulations to
provide for uniform accounting for all pipeline investment in the
volumes of gas needed to operate the transportation system. The
Commission is not proposing changes to the accounting requirements for
initial line pack, LNG heel, and non-recoverable base gas. The cost of
this gas will continue to be recorded in the utility plant accounts.
The proposed rule will require, however, that Account 117, Gas Stored
Underground-Noncurrent, be replaced by new accounts Account 117.1, Gas
stored-Base Gas, Account 117.2, System balancing gas, Account 117.3,
Gas stored in reservoirs and pipelines-noncurrent, and Account 117.4,
Gas owed to system gas.
Account 117.1 is to include the cost of recoverable gas volumes
that are necessary, in addition to those volumes for which costs are
properly includable in Account 352.3, Nonrecoverable Natural Gas, to
maintain pressure and deliverability requirements for the storage
facility. Account 117.2 is to be used to record a pipeline's investment
in any additional system gas volumes, including line pack not
capitalized in Account 101, Gas Plant in Service, designated as maximum
system gas needed for load balancing, no-notice transportation, and
other operational purposes. Account 117.3 is to include the cost of
noncurrent company-owned stored gas not includable in Accounts 117.1 or
117.2. Account 117.4 is to include encroachments upon system gas which
result from transportation imbalances, no-notice transportation, and
other operational needs.
The initial investment cost to be recorded in Account 117.1 and
117.2 is to be determined from the book balances on the date of
adoption of the new accounts. If there is no Commission approved method
to the contrary, volumes in Account 117.1 are to be priced consistent
with the inventory method previously in use. Volumes includable in
Account 117.2 are to be priced at the inventory price that would be
applicable to the last volumes that would be withdrawn from storage
before encroachment upon base gas. If there are insufficient volumes in
gas storage to fully provide for the volumes designated as system gas
as of the adoption date, the deficient volumes are to be priced at the
current market price with an equal amount being credited to Account
117.4. Future encroachments upon system gas are to be credited to
Account 117.4 at the then current market price of gas with a
corresponding charge to Account 808.1, Gas Withdrawn From Storage-
Debit. Account 806, Exchange Gas, would be credited and Account 174,
Miscellaneous Current and Accrued Assets, would be debited
simultaneously with the entries to system gas.
If a customer responsible for an owed-to-system gas balance meets
his responsibility for repayment by delivering gas in kind, Account 806
would be debited and Account 174 credited at the market price
originally used to establish the Account 174 balance. The next volumes
injected into system gas would likewise be priced at this same price by
crediting 808.2 Gas Delivered to Storage-Credit and debiting Account
117.4. If the owed to system gas balance (Account 117.4) is due to more
than one transaction, the above accounting would follow a queue with
the earliest transaction first. Such accounting would be followed until
the credit balance in Account 117.4 was eliminated.
If the customer responsible for an owed-to-system gas balance meets
his [[Page 3146]] responsibility for repayment through a cash-out
provision, similar accounting would be followed. However, a gain or
loss may be realized under either settlement method selected. The gain
or loss could result from either the book amount for the account
receivable (Account 174, Miscellaneous Current and Accrued Assets)
being different than the cash-out settlement or the price paid for the
replacement volumes being different than the price used to establish
the owed to system gas account or both.
If the pipeline's tariff provides that gains and losses on such
transactions are to be passed along to customers in future periods, the
gain or loss should be included in either Account 182.3, Other
Regulatory Assets or Account 254, Other Regulatory Liabilities, with
contra entries to Account 407.3, Regulatory Debits, or Account 407.4,
Regulatory Credits, as appropriate. If the gain or loss on settlement
of the imbalance receivable or payable is not to be passed along to
customers, Account 495, Other Gas Revenues, or Account 813, Other Gas
Supply Expenses, as appropriate, should be used to record the gain or
loss.
B. Other Revisions to Uniform System of Accounts
1. Revenues
At present, a pipeline includes in Account 489, Revenues from
transportation of gas of others, ``revenues from transporting gas for
other companies through the production, transmission, and distribution
lines, or compression stations of the utility.'' Service charges for
the storage of gas of others is included in Account 495, Other gas
revenues, (See Item No. 5 of Account 495). The Commission proposes to
delete Account 489 (Revenues from transportation of gas of others) in
its entirety and Item No. 5 of Account 495 (Service charges for storing
gas for others) and replace them with four new accounts. Those are:
Account 489.1 in which the pipeline would include revenues from
transportation of gas through gathering facilities; Account 489.2 in
which the pipeline would include revenues from transportation of gas
through transmission facilities; Account 489.3 in which the pipeline
would include revenues from transportation of gas through distribution
facilities; and Account 489.4 in which the pipeline would include
revenues from storing gas of others. In addition, the Commission
proposes to add a new item to the list of items in Account 495. This is
item 8, ``Gains on settlements of imbalance receivables (See Account
806).''
The Commission is proposing the above changes in order to
appropriately record revenues from unbundled services.
2. Gas Supply Expenses
The Commission proposes to revise Account 806, Exchange gas, so
that it will include debits or credits for the cost of gas in
unbalanced transactions and not just unbalanced exchange transactions.
Such unbalanced transactions would be those whereby gas is delivered to
another party in exchange, load balancing, or no-notice transportation
transactions. In addition, the Commission proposes to revise the
instructions in paragraph B concerning the recording of revenue, gain,
expense, or loss in connection with the performance of exchange
services and to revise paragraph C with respect to the maintenance of
records so that there would be readily available for each party
entering gas exchange, load balancing, or no-notice transportation
transactions by point of receipt and delivery, the quantity of gas
delivered and received, the amount of consideration if other than gas,
and the basis for the consideration. The Commission also proposes to
revise Account 813, Other gas supply expenses, so that it will include
losses on settlements of imbalance receivables.
3. Major/Nonmajor Accounts
The Commission is proposing to eliminate all Nonmajor accounts in
the Uniform System of Accounts and to require all natural gas companies
to use the same accounts. The Commission is, thus, also proposing that
the Major accounts be changed to eliminate their application to Major
natural gas companies only and to revise the instructions, notes and
items accordingly. In addition, as discussed below, the Commission is
proposing to revise Form No. 2-A to require Nonmajor respondents to
file certain Form No. 2 pages as their Form No. 2-A report. The
Commission is also proposing to revise part 158 of the regulations to
delete the references to major and nonmajor in sections 158.10 and
158.11. In addition, the Commission proposes to further amend section
158.10(a) so that it applies to all examinations of accounts without
limitation and requires independent licensed public accountants to be
licensed on or before December 30, 1970 as is the case in current
section 158.10(b) and to delete present section 158.10(b). Further, the
Commission proposes to revise section 158.11 to require the filing of
the independent accountant's letter or report of certification with the
original and each copy of the Form No. 2 or Form No. 2-A. Last, the
Commission proposes to revise section 158.12 by removing the words,
``The Commission will not recognize any certified public accountant or
public accountant through December 31, 1975, who is not in fact
independent. Beginning January 1, 1976, and each year thereafter, the''
and adding in their place, the word ``The''.
4. Mcf to Dth
At present, the Uniform System of Accounts requires reporting
volumes by Mcf. The Commission proposes to amend the Uniform System of
Accounts where applicable to measure gas by dekatherms rather than by
Mcf to reflect the current measurement of gas by heat content rather
than by volume.
IV. Part 250
Part 250 of the Commission's regulations specifies the use of
certain forms for accomplishing specific actions. The most significant
change proposed in Part 250 is the removal of section 250.16 (Format of
compliance plan for transportation services and affiliate transactions)
of the transportation discount information that a pipeline transporting
gas under subparts B or G of Part 284 and conducting discounted
transportation transactions with a marketing or brokering affiliate
must maintain for each billing period. As more fully explained under
the discussion in this NOPR regarding the changes proposed for Part
284, infra, the discount reporting requirements under section 250.16(d)
are somewhat duplicative of the discount reports required under section
284.7(d)(5)(iv). Therefore, the Commission is proposing in this NOPR
various modifications to section 284.7(d)(5)(iv) (proposed section
284.7(c)(6)) that will make the discount reporting information under
section 250.16(d) unnecessary. Accordingly, the Commission proposes to
delete section 250.16(d).
The other proposed changes to Part 250 are essentially intended to
simplify, update, or eliminate these forms to reflect current
regulatory practice, and to eliminate the forms related to the
regulation of producers and gatherers, since the wellhead gas market
has been finally deregulated and such forms are required by regulations
that have been removed in Parts 154 and 157.
Section 250.2 sets forth the forms required under section 154.64
(proposed section 154.602) for notification to the
[[Page 3147]] Commission of a cancellation of a filed tariff or part
thereof, or a termination of the tariff by its own terms, when no new
tariff or part thereof is to be filed in its place. The Commission
proposes to simplify and clarify section 250.2 by stating that the
notices of cancellation to be used when canceling an entire tariff or
an entire rate schedule should be filed as a tariff sheet. Currently,
the existing forms themselves include the header and footer information
normally associated with a tariff sheet, which is unnecessary and
confusing.
In addition, the Commission proposes to modify section 250.2 by
eliminating the requirement that a specific form be used when providing
notice of the cancellation of individual tariff sheets. Rather, section
250.2 will provide that when a single sheet is canceled, it should be
reserved for future use. This does not represent a substantive change,
but more accurately represents the current practice in canceling a
tariff sheet, and will allow the sheet to conform better to the
Commission's electronic tariff sheet filing requirements.
Section 250.3 specifies the form required under section 154.64
(proposed section 154.602) for notification to the Commission of a
cancellation or termination of a contract, or executed service
agreement. The Commission proposes to change the current instruction in
the form to indicate the ``name of purchaser or purchasers'' to an
instruction to indicate the ``name of customer or customers.'' The use
of ``customer'' rather than ``purchaser'' better reflects the shift in
today's gas market from sales to transportation service.
The Commission proposes to modify the headings of sections 250.2,
250.3, and 250.4 (governing the form of the certificate of adoption
required under existing section 154.65 (proposed section 154.603) to be
used when the tariff or contracts of a natural gas company are to be
adopted by a successor entity) to refer to the new section numbers of
the regulations from which their authority stems, since the Commission
proposes in the companion rulemaking to redesignate the referenced
sections of Part 154. Thus, the reference in sections 250.2 and 250.3
to section 154.64 is changed to section 154.602, and the reference in
section 250.4 to section 154.65 is changed to section 154.603. The
Commission also proposes, in section 250.4, to modify the line
indicating the date of the form of certificate of adoption by removing
the year indicator of ``194 --.''
Many of the forms set forth in Part 250 relate to the filing
requirements of natural gas producers and gatherers under Parts 154 and
157 of the Commission's regulations. Specifically, section 250.5
specifies the form of contract summary required to be filed under
section 154.24(a) by independent producers applying for a certificate
of public convenience and necessity under section 7 of the NGA for the
transportation, or sale for resale, of natural gas in interstate
commerce. Section 250.7 specifies the form of contract summary required
to be filed under section 157.30(b) by independent producers seeking
abandonment authorization. Section 250.8 specifies the form for the
summary of contract information required by section 154.92(d) to be
filed by independent producers seeking authority to provide natural gas
service, previously authorized by the Commission, as a successor-in-
interest. Section 250.9 specifies the form of notice required under
section 154.97(a) to be filed by an independent producer when a rate
schedule is proposed to be cancelled, or will terminate by its own
terms, and no new schedule is to be filed in its place. Section 250.10
specifies the form required to be filed under section 157.40(b)(4) by
independent producers applying for a small producer exemption from
certain filing requirements. Section 250.14 specifies the form of the
initial billing statement required under section 154.92 to be filed
with the filing of a rate schedule by every independent producer, and
the form required under section 154.94(f) to be used by an independent
producer seeking a change in its rate schedule.
All of the above-referenced sections of Parts 154 and 157 have been
removed from the Commission's regulations by Order No. 567, issued July
28, 1994, in Docket No. RM94-18-000.\13\ Order No. 567 deleted certain
regulations related to natural gas producer rate regulation that were
either obsolete or nonessential in light of the deregulation of
wellhead gas prices under the Natural Gas Wellhead Decontrol Act of
1989,\14\ that finally occurred on January 1, 1993. Since the
regulations requiring that independent producers make certain filings,
and in specific forms, have been deleted, sections 250.5, 250.7, 250.8,
250.9, 250.10, and 250.14 of part 250, setting forth the actual forms,
should also be deleted. Thus, the Commission is proposing to remove
these sections.
\13\68 FERC 61,135 (1994).
\14\Pub. L. No. 101-60; 103 Stat. 157 (1989).
---------------------------------------------------------------------------
The Commission also proposes to remove section 250.12, governing
the form of escrow agreements. This regulation was originally
promulgated by Order No. 400, issued April 28, 1970, in Docket No. R-
376. It is rarely used. In the instances in which companies are
required to place funds in escrow, the Commission proposes to determine
in the proceeding establishing the escrow requirement whether, and in
what form, the escrow agreement should be filed with the Commission.
However, the Commission will invite comments from parties who believe
it would be useful to retain a form of escrow agreement, or suggestions
as to how this regulation could be modified to become more useful,
rather than eliminated.
Finally, the Commission proposes to change all references in Part
250 from the ``FPC'' and the ``Federal Power Commission'' to the
``FERC,'' and to the ``Federal Energy Regulatory Commission,''
respectively.
V. Part 260
The provisions of Part 260 require that pipelines file certain
forms and reports with the Commission, such as the FERC Form Nos. 2, 2-
A, 11, and 549-ST. As further discussed below, the Commission is
proposing to modify the actual Form Nos. 2, 2-A, and 11, and various
sections of Part 260. The proposed changes to Part 260 are simply
designed to update these reporting requirements to reflect current
regulatory practice, and to conform these prescriptive requirements to
the changes to the other parts of the Commission's regulations proposed
in this NOPR.
A. Revisions to Form No. 2
The Commission is proposing to revise Form No. 2 for a variety of
reasons. First, it is desirable to update Form No. 2 by deleting
unneeded schedules, or individual data elements, by clarifying and
modernizing schedules and instructions, and by increasing the
thresholds for the reporting of certain information. Second, it is
vital to revise Form No. 2 to accurately present the restructured
nature of the natural gas pipeline industry, which is primarily focused
on the transportation of gas rather than the sale of gas. Only then
will the Form No. 2 provide more useful and relevant information to the
Commission and to pipeline customers for the assessment of pipeline
operations. A sample copy of the proposed revised Form No. 2 is
attached as Appendix A.
The specific changes the Commission proposes are: [[Page 3148]]
General Information--Pages i and ii
The Commission proposes to require Form No. 2 to be filed by each
major interstate natural gas company having combined gas transported or
stored for a fee exceeding 50 million dekatherms (Dth) in each of the
three previous calendar years. This will replace the present
requirement that Form No. 2 must be filed by major companies which are
those having combined gas sold for resale and gas transported or stored
for a fee exceeding 50 million Mcf at 14.70 psia (60 deg.F) in each of
the three previous calendar years. The proposed elimination of ``gas
sold for resale'' reflects the current nature of the pipeline industry
where pipelines are primarily transporters of gas and make sales for
resale on an unbundled basis in the supply area. The proposed
replacement of Mcf with Dth reflects the current measurement of gas by
heat content rather than by volume.
The Commission also proposes to eliminate the words ``is a
Regulatory Support Requirement (18 CFR 260.1)'' in the first sentence
of page i as not needed and to revise the last sentence in Instruction
1, to eliminate the reference to the Energy Information
Administration's statistical publication (Financial Statistics of
Interstate Natural Gas Pipeline Companies), to delete the words, ``as
classified in the Commission's Uniform System of Accounts Prescribed
for Natural Gas Companies Subject to the Provisions of the Natural Gas
Act (18 CFR 201),'' from the first sentence in Instruction II, and to
add the words, ``which meets the filing requirements of 18 CFR 260.1''
after the word company in that sentence.
The Commission proposes to revise Instruction III(a) to add the
present requirement for filing on an electronic medium. The Commission
further proposes to change Instruction III(c) to replace the present
Certified Public Accountant (CPA) certification statement with a
flexible format that will enable the respondent's CPA firm to prepare
its certification statement in accordance with current standards of
reporting and still attest as to the conformity of listed FERC Form No.
2 schedules with the Commission's Uniform System of Accounts and the
Chief Accountant's published accounting releases.
In addition, the Commission proposes that the letter or report
required by Instruction III(c) for the CPA certification be submitted
with each copy as well as with the original submission and be submitted
with that submission rather than alternatively within 30 days after the
filing date for Form No. 2.
General Instructions--Page iii
The Commission proposes to replace Mcf with Dth in General
Instruction II on page (ii) and ``14.73 psia and a temperature base of
60 deg.F'' with ``in Btu and Dth,'' in General Instruction XII on page
(iii). The Commission also proposes to delete General Instruction V
with respect to the means of completing the report as outdated and
unnecessary.
Definitions--Page iv
The Commission proposes to define dekatherm as a unit of heating
value equivalent to 10 therms or 1,000,000 Btu.15
\15\Btu refers to British Thermal Unit--the quantity of heat
required to raise the temperature of one pound of water by one
degree Fahrenheit.
---------------------------------------------------------------------------
Excepts From the Law--Page iv
The Commission proposes to correct the quoted language of the
Natural Gas Act.
List of Schedules (Natural Gas Company)--Pages 2-4
The Commission proposes to revise the list of schedules to conform
with the changes proposed to the schedules by this NOPR.
Control Over Respondent--Page 102
The Commission proposes to revise the instructions and provide a
format for information required with respect to entities controlling
the respondent natural gas company to provide better reporting of the
vertical integration of the respondent and its parents.
The Commission is proposing to delete referencing the SEC 10-K
Report Form because most respondents are included in consolidated
reports and do not prepare separate 10-K reports.
Corporations Controlled By Respondent--Page 103
The Commission proposes to delete instruction 4, which permits
referencing the SEC 10-K Report Form filing for the reason stated
above. The Commission also proposes to add a new instruction 4 and new
column (b) for designation of the type of control held by the
respondent.
Definitions--Page 103
The Commission proposes to delete column (d) entitled ``Footnote
Ref.''
Officers--Page 104
The Commission proposes to delete this page because it is not
needed for Commission regulatory purposes.
Directors--Page 105
The Commission proposes to delete this page because it is no longer
needed for Commission regulatory purposes.
Security Holders and Voting Powers (Continued)--Page 107
The Commission proposes to delete this continuation page because it
is not needed with electronic reporting since supplemental pages can be
added if more space is needed.
Important Changes During the Year--Page 108
The Commission proposes to delete item 12, which allows the
respondent to substitute notes from the annual report to stockholders
for required data because most respondents are included in consolidated
reports and do not prepare separate annual reports.
Important Changes During the Year--Page 109
The Commission proposes to delete this continuation page because it
is not needed with electronic reporting.
Comparative Balance Sheet (Assets and Other Debits)--Page 110
The Commission proposes to modify column (c) by deleting ``Balance
at Beginning of Year'' and inserting ``Balance at End of Current Year
(in dollars)'' and to modify column (d) by deleting ``Balance at End of
Year (in dollars)'' and inserting ``Balance at End of Previous Year (in
dollars).'' The Commission also proposes to delete ``Gas Stored
Underground Noncurrent (117)'' at Line 12 and replace it with four new
accounts--Gas Stored--Base Gas (117.1), System Balancing Gas (117.2),
Gas Stored in Reservoirs and Pipelines--Noncurrent (117.3), and Gas
Owed to System Gas (117.4). The Commission discussed the proposed new
accounts above.
Comparative Balance Sheet (Assets and Other Debits) (Continued)--Page
111
The Commission proposes to modify column (c) by deleting ``Balance
at Beginning of Year'' and inserting ``Balance at End of Current Year
(in dollars)'' and to modify column (d) by deleting ``Balance at End of
Year'' and inserting ``Balance at End of Previous Year (in dollars).''
Comparative Balance Sheet (Liabilities and Other Credits)--Page 112
The Commission proposes to modify column (c) by deleting ``Balance
at Beginning of Year'' and inserting ``Balance at End of Current Year
(in dollars)'' and to Modify Column (d) by deleting ``Balance at End of
Year'' and [[Page 3149]] inserting ``Balance at End of Previous Year
(in dollars).'' The Commission also proposes to add the language
``(Less) Current Portion of Long-Term Debt'' to Line 22 and to add the
language ``Current Portion of Long-Term Debt'' as Line No. 33.
Comparative Balance Sheet (Liabilities and Other Credits) (Continued)--
Page 113
The Commission proposes to modify column (c) by deleting ``Balance
at Beginning of Year'' and inserting ``Balance at End of Current Year
(in dollars)'' and to modify column (d) by deleting ``Balance at End of
Year'' and inserting ``Balance at End of Previous Year (in dollars).''
Statement of Income for the Year--Page 114
The Commission proposes to move instructions 5 and 6 from this
schedule to Notes to Financial Statements on page 122.
Statement of Income for the Year (Continued)--Page 115
The Commission proposes to delete instruction 7, which permits the
attaching at page 122 of any notes appearing in the report to
stockholders that are applicable to this Statement of Income, and to
move instruction 8 from this schedule to Notes to Financial Statement
on page 122.
Statement of Income for the Year (Continued)--Page 116
The Commission proposes to delete this continuation page because it
is not needed with electronic reporting.
Statement of Retained Earnings for the Year--page 118
The Commission proposes to modify column (c) by deleting ``Amount''
and inserting ``Current Year Amount (in dollars)'' and to add column
(d) ``Previous Year Amount (in dollars).'' The Commission also proposes
to delete instruction 8, which requires the attaching at page 122 of
applicable notes in the annual report to stockholders.
Statement of Retained Earnings for the Year (Continued)--Page 119
The Commission proposes to modify column (b) by deleting ``Amount''
and inserting ``Current Year Amount'' and adding column (c) ``Previous
Year Amount.''
Statement of Cash Flows--Pages 120 and 121
The Commission proposes to delete the first sentence of instruction
1, which requires the attaching at page 122 of applicable notes in the
annual report to stockholders.
The Commission proposes to modify column (b) by deleting
``Amounts'' and inserting ``Current Year Amount'' and to add Column (c)
``Previous Year Amount.''
Notes to Financial Statement--Page 122
The Commission proposes to change instruction one to require at
least the same level of detail for disclosures that would be given in
shareholder annual reports and to add new instructions to provide
significant details on: the respondent's pension and other benefit
plans; income tax accounting; differences in the way in which
transactions are presented in the shareholder annual reports versus the
Form No. 2; and disclosure of financial changes either to the
respondent or the respondent's consolidated group that will directly
affect the respondent's gas pipeline operations. The Commission also
proposes to delete instructions 3 (``For Account 116, Utility Plant
Adjustments'') and 6 (permitting the attaching of notes to financial
statements in the annual report to stockholders). In addition, as
stated above, the Commission proposes to move three instructions from
pages 114 and 115 to page 122.
Notes to Financial Statement (Continued)--Page 123
The Commission proposes to delete this continuation page between it
is not needed with electronic reporting.
Summary of Utility Plant and Accumulated Provisions for Depreciation,
Amortization and Depletion (Continued)--Page 201
The Commission proposes to delete columns (f) and (g) both entitled
``other (specify)'' as unneeded because electronic reporting permits
additional columns to be added as necessary.
Gas Property and Capacity Leased From Others--Page 212
The Commission proposes a new schedule to provide detailed
information about gas property and capacity leased from others,
including leases involving property constructed by the respondent,
sold, and then leased back. The Commission proposes to require only the
reporting of property leases in which the average annual lease payment
under the initial term of the lease exceeds $500,000.
Gas Property and Capacity Leased to Others--Page 213
The Commission proposes to revise the schedule on page 213 entitled
``Gas Plant Leased to Others (Account 104)'' by changing the schedule
and instructions to obtain details about gas property and capacity
leased to others. The changes are necessary to provide information that
would allow the Commission to determine whether ratepayers are paying
for facilities not used in the respondent's utility operations. The
Commission proposes to require only the reporting of property leases in
which the average lease income over the initial term of the lease
exceeds $500,000.
Gas Plant for Future Use (Account 105)--Page 214
The Commission proposes to raise the reporting threshold from
$250,000 to $500,000 and to delete the language in Line No. 1 which
refers to pages 500-01, which are proposed to be deleted.
Production Properties Held for Future Use (Account No. 105.1)--Page 215
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Gas Stored (Accounts 117.1, 117.2, 117.3, 117.4, 164.1, 164.2, and
164.3)--Page 220
The Commission proposes to delete Account 117 and replace it with
four new accounts as discussed above. The Commission also proposes to
change Mcf to Dth in instruction 1 and lines 6 and 7, to redesignate
the column letters, to eliminate instructions 2 through 5 as no longer
necessary, and to add a new instruction on encroachments on base gas,
system gas, and gas properly recordable.
Non-utility Property (Account No. 121) and Accumulated Provision for
Depreciation and Amortization of Nonutility Property (Account 122)--
Page 221
The Commission proposes to delete these schedules because they are
not needed for Commission regulatory purposes.
Gas Prepayments Under Purchase Agreements--Pages 226 and 227
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Advances for Gas Prior to Initial Deliveries or Commission
Certification (Accounts 124, 166, and 167)--Page 229
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Prepayments (Account 165)--Page 230
The Commission proposes to eliminate the instruction requiring the
[[Page 3150]] reporting of all payments for undelivered gas and the
completion of pages 226 to 227, along with Line 5, Gas Prepayments
(pages 226-227). Pages 226 and 227 are also proposed to be eliminated.
Preliminary Survey and Investigation Charges (Account 183)--Page 231
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Other Regulatory Assets (Account 182.3)--Page 232
The Commission proposes to raise the reporting threshold for minor
items from $50,000 to $100,000 and to add new instruction 4--``Report
separately any `deferred regulatory Commission expenses' that are also
reported on pages 350-351, Regulatory Commission Expenses.''
Miscellaneous Deferred Debits (Account 186)--Page 233
The Commission proposes to raise the reporting threshold for minor
items from $100,000 to $250,000 and to delete Line No. 48 ``Deferred
Regulatory Commission Expenses (see pages 350-351).
Capital Stock (Accounts 201 and 204)--Page 250
The Commission proposes to delete part of instruction 1, which
permits referencing the SEC 10-K Report Form filing. The Commission is
proposing this deletion because most respondents are included in
consolidated reports and do not prepare separate 10-K reports.
Long-Term Debt (Accounts 221, 222, 223, and 224)--Page 256
The Commission proposes to delete part of instruction 1, which
permits referencing the SEC 10-K report Form filing for the reason
stated above.
Investment Tax Credits Generated and Utilized--Pages 264 and 265
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Accumulated Deferred Investment Tax Credits (Account 253)--Pages 266
and 267
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Miscellaneous Current and Accrued Liabilities (Account 242)--Page 268
The Commission proposes to raise the reporting threshold for minor
items from $100,000 to $250,000.
Other Deferred Credits (Account 253)--Page 269
The Commission proposes to raise the reporting threshold for minor
items from $100,000 to $250,000 and to delete instruction 4 as not
needed for Commission regulatory purposes in that it refers to
undelivered gas obligations to customers under take-or-pay clauses in
sales agreements.
Undelivered Gas Obligations Under Sales Agreements--Pages 270 and 271
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Accumulated Deferred Income Taxes--Accelerated Amortization Property
(Account 281)--Pages 272 and 273
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Other Regulatory Liabilities (Account 254)--Page 278
The Commission proposes to raise the reporting threshold for minor
items from $50,000 to $100,000 and to correct a typographical error.
Gas Operating Revenues (Account 400)--Pages 300, 301, and 301A
The Commission proposes substantial and significant changes to this
schedule. The proposed changes are: (1) the elimination of instruction
1's reference to manufactured gas revenues; (2) the deletion of
instruction 2 defining natural gas; (3) the deletion of instruction 3
and present columns (f) and (g) concerning average number of natural
gas customers per month; (4) the deletion of instruction 4 with respect
to Mcf and therms; (5) the revision of instruction 5 to eliminate the
reference to columns (c), (e), and (g); (6) the deletion of instruction
6 concerning commercial and industrial sales; (7) the revision of
instruction 7 to read, ``Include information on page 106, Important
Changes During Year, for important new service added and important rate
increases and decreases;'' (8) the addition of new instruction 2 to
provide that other revenues are recovery of Order No. 636 transition
costs and take-or-pay costs; (9) the addition of a new instruction 5
with respect to reporting the revenue of bundled transportation and
storage service as transportation service revenue; (10) the addition of
new instruction 6 with repect to the reporting in columns (j) and (k)
of revenues received for operational penalties (e.g., operational flow
order penalties, scheduling penalties, penaties for failure to cycle
storage gas, (11) the revising of operating revenues in columns (b) and
(c) to revenues excluding GRI, ACA, other revenues, and penalties, (12)
the deletion of lines 2-12 and 28-32, which provide for the reporting
of sales revenues; (13) the addition of lines to show separately sales
revenues,16 and revenues from gathering, transmission,
distribution, and storage services; and (14) added columns showing GRI
revenues, ACA revenues, other revenues, penalty revenues, and total
operating revenues and dekatherms of natural gas, each for the current
reporting year and the previous year.
\16\The proposed new sales line includes Accounts 480-84 which
are now reported on lines 2-12.
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The Commission's main reason for proposing these changes is to
recognize that pipelines now receive most of their revenues from
transportation and not sales. Hence, the breakout of information by
types of sales is not needed. The Commission proposes to break out
Account 489 into four new accounts (Accounts 489.1-489.4) as discussed
above. The segregation of operating revenues from other types of
revenues will facilitate comparisons to operating costs.
Revenues From Transportation of Gas of Others Through Gathering
Facilities (Account 489.1)--Pages 302, 303, and 304
The Commission proposes to replace the schedule ``Distribution Type
Sales by States'' with several new schedules. The current schedule,
which reflects residential, commercial, and industrial revenues and
volumes by state is no longer needed for Commission regulatory purposes
because with unbundling those sales are now unbundled and occur in the
production area rather than in the market area.
In the proposed new Revenues from Transportation of Gas of Others
Through Gathering Facilities Schedule, the pipeline would have to
report its revenues by state of delivery and by rate. The pipeline
would have to report for both the current and previous year its
revenues,17 GRI revenues, ACA revenues, other revenues,18 and
total operating revenues, along with its Dth of gas delivered. The
Commission believes that this proposed schedule will provide the
information needed with respect to gathering to obtain a good
description of the pipeline's activities in the unbundled environment.
\17\Revenues excludes GRI, ACA, and other revenues.
\18\Other revenues are Order No. 636 transition costs and take-
or-pay costs.
[[Page 3151]]
Revenues From Transportation of Gas of Others Through Transmission
Facilities (Account 489.2)--Pages 302A, 303A, and 304A
In the proposed new Revenues from Transportation of Gas of Others
Through Transmission Facilities Schedule, the pipeline would have to
report its revenues by state of delivery and by rate schedule. The
pipeline would have to report for both the current and previous year
its revenues,19 GRI revenues, ACA revenues, other revenues,20
and total operating revenues, along with its Dth of gas delivered. The
Commission believes that this reporting reflects the current unbundled
environment's emphasis on transportation for others.
\19\Revenues excludes GRI, ACA, and other revenues.
\20\Other revenues are Order No. 636 transition costs and take-
or-pay costs.
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Revenues From Storage of Gas of Others--Pages 302B, 303B and 304B
In the proposed new Revenues from Storage of Gas of Others
schedule, the pipeline would have to report its revenues by rate
schedule. The pipeline would have to report for both the current and
previous year its revenues,21 GRI revenues, ACA revenues, other
revenues,22 and total operating revenues, along with the Dth
withdrawn from storage.
\21\Revenues excludes GRI, ACA, and other revenues.
\22\Other revenues are Order No. 636 transition costs and take-
or-pay costs.
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The Commission believes that this proposed schedule will provide
the information needed with respect to unbundled storage to obtain a
good description of the pipeline's activities in the unbundled
environment.
Residential and Commercial Space Heating Customers and Interruptible,
Off-Peak, and Firm Sales to Distribution System Industrial Customers--
Page 305
The Commission proposes to delete this page because it is not
needed for Commission regulatory purposes.
Sales of Natural Gas--Pages 306 Through 309
The Commission proposes to change the title of this schedule from
Field and Main Line Industrial Sales of Natural Gas to ``Sales of
Natural Gas'', to revise instruction 1, and the information required,
and to delete continuation sheets on pages 308 and 309.
The proposed new schedule will include all sales information on the
schedule. The pages when revised will require respondents to report all
sales by customer in Dth rather than Mcf (column (c)), by point of
delivery (column (b)), and with total sales revenue from the customer
(column (d)). The Commission also proposes to eliminate current
instructions 2, 3, 4, 6, 7, and 8 and current columns (b), and (d)-(m)
because that detailed information is no longer needed for Commission
regulatory purposes. Pages 308 and 309 are proposed to be deleted
because they are continuation pages and are no longer needed with
electronic reporting.
Sales for Resale--Natural Gas (Account 483)--Pages 310 and 311
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Transportation Dth and Revenues--Pages 312 and 313
The Commission proposes to replace the schedule ``Revenue From
Transportation of Gas of Others--Natural Gas (Account 489)'' (pages 312
and 313) with ``Transportation Dth and Revenues'', ``Storage Dth and
Revenues'', and ``Gathering Dth and Revenues.''
In the proposed new Transportation Dth and Revenues schedule, the
respondent would have to list annual Dth of Gas delivered by state of
delivery by rate schedule by customer.23 The respondent would have
to report its deliveries separately to interstate pipelines and to
others. The respondent would no longer have to set forth the distance
the gas was transported in miles. In addition, the respondent would
have to report operating revenues,24 GRI revenues, ACA revenues,
other revenues,25 and total revenues by state of delivery by rate
schedule by customer.
\23\The respondent's Dth of gas reported would not be adjusted
for discounting.
\24\Operating revenues excludes GRI, ACA, and other revenues and
includes reservation and usage charges.
\25\Other revenues are Order No. 636 transition costs, take-or-
pay costs.
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Storage Dth and Revenues--Pages 312(a) and 313(a)
In the proposed new Storage Dth and Revenues schedule, the
respondent would have to list annual Dth withdrawn from storage by rate
schedule by customer. In addition, the respondent would have to report
operating revenues,26 GRI revenues, ACA revenues, other
revenues,27 and total revenues by rate schedule and by customer.
\26\Operating revenues excludes GRI, ACA, and other revenues and
includes reservation, deliverability, injection, and withdrawal
charges.
\27\Other revenues are Order No. 636 transition costs, take-or-
pay costs.
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Gathering Dth and Revenues--Pages 312(b) and 313(b)
In the proposed new Gathering Dth and Revenues schedule, the
respondent would have to list annual Dth of gas delivered by state of
delivery by rate by customer. In addition, the respondent would have to
report operating revenues,28 GRI revenues, ACA revenues, other
revenues,29 and total revenues by rate of delivery by rate by
customer.
\28\Operating revenues excludes GRI, ACA, and other revenues and
includes reservation and usage charges.
\29\Other revenues are Order No. 636 transition costs, take-or-
pay costs.
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Revenues From Natural Gas Processed by Others (Account 491)--Page 315
The Commission proposes to replace Mcf with Dth in column (b).
Other Gas Revenues (Account 495)--Page 316
The Commission proposes new schedule ``Other Gas Revenues (Account
495)'' for the reporting of a variety of other gas revenues, such as
revenues from dehydration and gains on settlements of imbalance
receivables.
Exploration and Development Expenses (Accounts 795, 796, 798) (Except
Abandoned Leases, Account 797)--Page 326
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Abandoned Leases (Account 797)--Page 326
The Commission proposes to delete this schedule because it is not
needed for Commission regulating purposes.
Gas Receipts--Page 327
The Commission proposes to revise instruction 5 to require the
providing of the total quantity and cost data for gas supplied by
shippers on lines 12, 13, and 14. The Commission proposes to add line
11 as a heading, ``Gas Received From Shippers Included in Accounts 800-
805,'' line 12, ``Gas Received From Shippers as Fuel'', line 13, ``Gas
Received From Shippers As Lost and Unaccounted'', and line 14, ``Total
(Enter Total of Lines 12 and 13).'' The Commission also proposes that
gas purchases in column (b) and average cost in column (d) be reported
in Dth. [[Page 3152]]
Exchange Gas Transactions (Account 806, Exchange Gas)--Pages 328, 329
and 330
The Commission proposes to revise instruction 1 to require the
reporting of gas quantities rather than gas volumes and to require the
reporting of load balancing and no-notice transactions separately from
other exchange transactions. The Commission also proposes to revise
instruction 4 by adding the words, ``For exchanges only,'' at the
beginning of the instruction and to delete instruction 6 with respect
to the pressure base of gas volumes. The Commission also proposes to
replace Mcf with Dth in instruction 1 and in columns (c), (f) and (h).
Gas Used In Utility Operations--Page 331
The Commission proposes to strike ``Credit (Accounts 810, 811,
812)'' from the title, to replace Mcf with Dth, and to delete part of
Instruction 1 and all of instructions 2, 3 and 5 concerning the
definition of natural gas and Mcf reporting.
Transmission and Compression of Gas By Others (Account 858)--Pages 332
and 333
The Commission proposes to replace Mcf with Dth and to delete
current columns (b)-(f) and to require the reporting of Dth of gas
delivered in new column (b). This would eliminate the reporting of the
distance gas is transported and revenue information. The continuation
page 333 is deleted.
Other Gas Supply Expenses (Account 813)--Page 334
The Commission proposes to require the reporting of losses on
settlements of imbalance receivables.
The Commission also proposes to require that items of $25,000 or
more be listed separately.
Miscellaneous General Expenses (Account 930.2)(Gas)--Page 335
The Commission proposes to divide Line No. 2 (Experimental and
general research expenses) into (a) Gas Research Institute (GRI)
expenses and (b) other expenses. In addition, the Commission proposes
to raise the thresholds from $5,000 to $25,000.
Depreciation, Depletion, and Amortization of Gas Plant (Accounts 403,
404.1, 404.2, 404.3, 405) (Except Amortization of Acquisition
Adjustment)--Page 336
The Commission proposes to delete instruction 2 to report
information called for in Section B every fifth year after 1974 and to
insert the words ``and amortizable'' in the first line of new
instruction 2 after the word ``depreciable.''
Depreciation, Depletion, and Amortization of Gas Plant (continued)--
Page 338
The Commission proposes to revise the headings to column (b) to
read ``Plant Base (thousands)'' and column (c) to read ``Applied
Depreciation or Amortization Rates (Percent).''
Income From Utility Plant Leased to Others (Account 412 and 413)--Page
339
The Commission proposes to delete this schedule because the
information will be reported on page 213.
Particulars Concerning Certain Income Reductions and Interest Charges
Accounts--Page 340
The Commission proposes the raise the threshold for the grouping of
items from $10,000 to $25,000.
Regulatory Commission Expenses--Pages 350 and 351
The Commission proposes to change the account number reference in
the headings to columns (e), (i) and (l) from 186 to 182.3, and to
replace instruction 4 on page 351, which references Account No. 186,
with ``4. Identify separately all annual charge adjustments (ACA).'' In
addition, the Commission proposes to raise the threshold for minor
items from $25,000 to $50,000.
Research, Development, and Demonstration Activities--Pages 352 and 353
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Charges for Outside Professional and Consultative Services--Pages 357
The Commission proposes to raise the threshold from $25,000 to
$50,000.
Natural Gas Reserves and Land Acreage--Pages 500 and 501
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Changes in Estimated Gas Reserves--Page 503
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Changes in Estimated Hydrocarbon Reserves and Costs, and Net Realizable
Value--Page 504 and 505
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Natural Gas Production and Gathering Statistics--Page 506
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Products Extraction Operations--Natural Gas--Page 507
The Commission proposes to replace Mcf with Dth and to delete Line
15, ``For Line 9, Do Fuel Costs Include Gas Used From Company's Own
Supply?''
Compressor Stations--Pages 508 and 509
The Commission proposes to replace the reporting of number of
employees in column (b) with a report of the number of units and the
horsepower of each unit and to redesignate the remaining columns. In
addition, gas for compressor fuel would be reported by Dth rather than
by Mcf.
Gas and Oil Wells--Page 510
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Field and Storage Lines--Page 511
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Gas Storage Projects--Page 512
The Commission proposes to delete this schedule because it is not
needed in that the same information is reported on Form No. 8.
Gas Storage Projects--Page 513
The Commission proposes to replace Mcf with Dth and to delete Lines
42-44 and 58 concerning top gas and cushion gas because this
information is reported on Form No. 8. In addition, the Commission
proposes to renumber Lines 45-57 as 1-13 and to add two new
instructions.
Liquefied Petroleum Gas Operations--Pages 516 and 517
The Commission proposes to delete this schedule because it is not
needed for Commission regulatory purposes.
Transmission System Peak Deliveries--Page 518
The Commission proposes to replace Mcf with Dth and to require the
reporting of total deliveries, deliveries of gas to interstate
pipelines, and [[Page 3153]] deliveries to others. The Commission also
proposes to delete the information with respect to the second and third
highest peak day deliveries and the section, Highest Month's System
Deliveries. Single peak day and consecutive three-day peak deliveries
would be reported by various services and activities. The
differentiation between jurisdictional and non-jurisdictional
deliveries would be eliminated as no longer pertinent with unbundling.
Auxiliary Peaking Facilities--Page 519
The Commission proposes to replace Mcf with Dth.
Gas Account-Natural Gas--Pages 520 and 521
The Commission proposes to revise instruction 1 to exclude the
reference to consideration of pressure bases in measuring Mcf of
natural gas and replace Mcf with Dth in instruction 3 and column (c) on
pages 520 and 521. The Commission also proposes to make line 17,
``Exchange Gas Received,'' into a heading, to add lines 18,
``Imbalances,'' and 19, ``Other'', to make line 48, ``Exchange Gas
Delivered,'' a heading, and to add lines 5, ``Imbalances,'' and 52,
``Other.'' The proposed changes reflect the proposed changes on pages
328 and 329.
System Maps--Page 522
The Commission proposes to clarify the information to be shown on
the maps and to eliminate the requirement that transmission lines be
colored in red, if they are not otherwise clearly indicated.
Index--Pages 1-4
The Commission proposes to revise the index to reflect the above
proposed changes.
B. Revisions to Form No. 2-A
At present, a Nonmajor natural gas company30 must submit Form
No. 2-A. The respondent is required to submit designated pages
reflecting data designed for Nonmajor natural gas companies in the
Uniform Systems of Account. However, if the respondent maintains the
``Major'' designated accounts, it may substitute certain pages from
Form No. 2. The Commission proposes to require Nonmajor respondents to
submit only Form No. 2 type pages as their Form No. 2-A report. In
addition, the Commission proposes to replace Mcf with Dth and to revise
the instructions, including the CPA certification as discussed above. A
sample copy of the proposed revised Form No. 2-A is attached as
Appendix B.
\30\Nonmajor means having total annual gas sales or volume
transactions exceeding 200,000 Mcf at 14.73 psia (60 deg. F) in the
previous calendar year and not classified as ``Major.'' The
Commission proposes to revise the definition of Nonmajor as follows:
``Nonmajor means having annual gas sales or volume transactions
exceeding 200,000 Dth in each of the three previous calendar years
and not classified as `Major'.'' This comports with proposed section
260.2 of the Commission's regulations.
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The proposed Form No. 2-A will consist of instructions,
identification, attestation, and list of schedules (pages i and ii and
1 and 2), the following pages from Form No. 2 as proposed to revised by
this NOPR: 106, 110-115, 117-122, 204-209, 212, 213, 219, 300, 301,
320-325, 327, 520, 521, and the following pages from current Form No.
2-A as renumbered: 26 as 211, 16 as 232, 19 as 250, and 20 as 278.
C. Revisions to Form No. 11
The Commission proposes to modify Form No. 11, attached as Appendix
C.31 The Commission has identified certain portions of Form No. 11
which are no longer necessary. Those portions of the Form No. 11 are
removed or consolidated to reduce the reporting burden on the
pipelines. In addition, much of Form No. 11 was geared towards the
collection of sales related data. In view of the restructuring of the
interstate pipeline industry under Order No. 636, the pipeline's sales
business is declining while the pipeline's transportation and storage
business is increasing in relative importance. Therefore, the
Commission proposes to modify the Form No. 11 to reflect the reduced
emphasis on sales and the greater emphasis on transportation and
storage. Finally, the Commission wishes to ensure that data collected
in the Form No. 11 and the Form No. 2, as revised, is more consistent
and interconnected. This interconnection will improve the usefulness of
the data collected by the Commission. As a result, the proposed rule
modifies Form No. 11 to collect data in the same general format as
proposed in Form No. 2. This is particularly apparent in Part II of the
revised Form No. 11. The specific changes the Commission proposes are
as follows:
\31\Appendix C is not being published in the Federal Register,
but is available from the Commission's Public Reference Room.
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General Information and General Instructions
Currently, the Form No. 11 is filed monthly. The report is
submitted within 40 days of the end of the month being reported. The
Commission proposes to reduce the monthly reporting requirement to a
semi-annual requirement. The proposed rule requires the first report
covering the last six months of the calendar year to be submitted with
the Form No. 2 on April 30 of each year. The second report covering the
first six months of the calendar year will be filed on October 31.
Parts II, III, and V require the data to be filed for each individual
month of the six-month period. The proposed rule requires that the
balances in the required accounts in Part IV be filed as of the end of
each six-month reporting period with the exception of item 42. On line
42, the pipeline will report in the aggregate all projects valued in
excess of $5,000,000 started within the six-month reporting period.
The proposed rule modifies instruction I to require consistency
between the data filed on Form No. 11 and the data filed with Form No.
2. It is the intent of the Commission to be able to compare the
aggregation of twelve months of information submitted on the Form No.
11 with data filed on the Form No. 2. Comparisons with the Form No. 2
data may require aggregation of the Form No. 2 data as well.
In a departure from current requirements, the Commission proposes
that quantities reported on Form No. 11 be in thousands of dekatherms,
rather than in thousands of Mcf. The change to dekatherms is consistent
with the changes proposed to the Form No. 2. Costs and revenues will
continue to be reported in thousands of dollars.
Since there will be a longer lag time between the end of the
reporting period and the date the report is due, the Commission
anticipates actual data will be readily available. Consequently, former
instruction V relating to estimated data is removed. It is replaced
with the instruction regarding the filing of monthly data described
above.
Specific Instructions and Definitions
The instruction for the item ``All'' is modified and the
instructions for items 7 through 12 and 15 through 17 are added to
conform to the instructions contained in Form No. 2 for reporting
transportation and storage services. Instructions for items 15 through
17 are added to clarify the reporting of storage revenues. Since
storage injections and withdrawals are reported separately on Part V,
revenues related to quantities withdrawn or injected should not be
reported here. Existing instructions for items 22, 24, and 27 are
retained and renumbered 30, 32, and 35. The instructions for items 38
and 40 are deleted, since the Commission no longer proposes to collect
details on manufactured gas. An instruction is [[Page 3154]] added to
explain the contents of item 43, Natural Gas Manufactured, Purchased or
Produced.
All existing definitions relate to purchases or sales of natural
gas. The Commission proposes to simplify the reporting of sales and
purchase information; therefore, the definitions are removed as no
longer necessary.
Identification (Part I) and Revenue Data (Part II)
Except for the revision to the period reported, Part I is
unchanged. The proposed rule replaces Part II, which relates primarily
to sales. The Commission proposes to modify Part II to recognize the
de-emphasis of sales and the increased emphasis on transportation and
storage subsequent to the implementation of Order No. 636.
Specifically, Part II is modified to collect information for sales,
transportation, gathering, storage and other revenue categories in the
same way it is proposed to be collected in the Form No. 2, but in
aggregate, rather than in detail.
Income Data (Part III) and Other Selected Data (Part IV)
Part III is unchanged except for the numbering of the line items
and the addition of two items, 37 and 38, which currently appear on
Part IV as items 33 and 35. These items were moved to Part III since
they are related more closely to revenues than to plant information.
The proposed rule modifies the monthly reporting requirement for
Part IV. Instead, the pipeline would report the balances at the end of
the reporting period for each of the indicated accounts. The Commission
proposes to replace the item ``gross additions to construction work in
progress (107) for this month being reported'' with an aggregate value
for major plant additions in excess of $5,000,000 started during the
reporting period. As noted items 33 and 35 will be moved to Part III.
Items 34 and 36 are no longer necessary for regulatory purposes and are
removed.
Operation and Maintenance Expense (Part V)
The Commission proposes to consolidate on one line the items
previously reported on lines 38, 39, 41, 42, 43, 44, 45, 46, 47, 48,
49, 50, 52, 68, 69, and 70. These items are related to the costs of
manufactured petroleum gas, other manufactured gas, liquefied natural
gas, gasified coal and synthetic gas, production and gathering,
products extraction, exploration and development, gas purchased from
producers, intracompany transfers, imports, gas purchased from other
pipelines, and gas produced by the pipeline along with other gas
purchases. The consolidation of these items recognizes the reduced role
that sales of natural gas now play for the interstate pipelines. In
addition, exchange gas-in and exchange gas-out are consolidated into
one line, net exchange gas.
D. Other Revisions
Section 260.1 requires that major natural gas companies, as defined
in part 201 of the Commission's regulations, file with the Commission
an annual report, designated as FERC Form No. 2. The Commission
proposes to modify section 260.1 to remove references to reporting
requirements pre-dating December 30, 1988, and to correct a
typographical error that referenced ``Sec. 385.201'' instead of
``Sec. 385.2011.''
Section 260.2 requires that nonmajor natural gas companies file an
annual report, designated as FERC Form No. 2-A. The Commission proposes
to modify section 260.1 to remove references to reporting requirements
pre-dating December 30, 1988, to correct a typographical error that
referenced ``Sec. 385.201'' instead of ``Sec. 385.2011,'' and to
conform to the format set forth in section 260.1 governing the FERC
Form No. 2.
Section 260.3 requires that natural gas companies file with the
Commission a monthly statement--the FERC Form No. 11--containing
information concerning selected revenues, income statements, and other
items, and details of operation and maintenance expenses. The
Commission proposes to modify section 260.3 to remove references to
dates that have long since passed, and references to reporting
requirements pre-dating November 30, 1988.
Section 260.4 requires that importers and exporters of natural gas
file with the Commission an annual report, Form No. 14. Section 260.11
requires natural gas companies operating an underground natural gas
storage field to file with the Commission a monthly underground gas
storage report, Form No. 8. The Commission is not proposing any
substantive changes to these sections in this NOPR. However, the
Commission is seeking comments on whether the collection of the
information contained in these forms by other governmental or private
sources is currently adequate, making the collection of the same
information in these Commission forms unnecessary. In addition, the
Commission is proposing to modify section 260.4 to remove references to
reporting requirements pre-dating December 30, 1988.
Section 260.9 requires every natural gas pipeline company to report
to the Commission serious interruptions of service to any wholesale
customer involving facilities operated under certificate authorization
from the Commission. The Commission proposes to modify sections
260.9(b) and (e) to include facsimile transmission as an optional
method for reporting interruptions of service. This recognizes advances
in technology and current practice. Further, the Commission proposes to
modify sections 260.9(b) and (c) to require that companies send
telegrams, facsimile transmissions, or supplemental information to the
Director, Division of Environmental and Engineering Review, the
successor to the Director, Division of Engineering, Market and
Environmental Analysis. A correction to the Commission's zipcode in
260.9(b) is also proposed.
Section 260.13 sets forth the requirements for the filing of the
FERC Form No. 549-ST, Form of self-implementing transportation reports.
The initial and subsequent reports currently filed by interstate and
intrastate pipelines, Hinshaw companies, and local distribution
companies undertaking transportation transactions under subparts B, C,
or G of part 284 are required to be made on the FERC Form No. 549-ST.
Because the Commission is proposing in this NOPR to eliminate the
requirements of filing initial and subsequent reports for companies
subject to the requirements of subparts B, C, and G of part 284, as
further described below, the FERC Form No. 549-ST is no longer
necessary. Accordingly, the Commission proposes to remove section
260.13.
Section 260.15 requires that natural gas companies making direct
sales in interstate commerce of natural gas to customers consuming such
gas file a Report of Alternate Fuel Demand Due to Natural Gas
Curtailment, FPC Form No. 69. As noted in the footnote to section
260.15, Form No. 69 was discontinued and replaced with Form No. EIA-50
by order issued June 23, 1978.32 The EIA Form No. 50 was
eliminated in 1984 after the Office of Management and Budget (OMB)
rejected the Energy Information Administration's (EIA) request for an
extension of OMB approval of the data collection. Thus, it now appears
that the footnote to 18 CFR 260.15 references a non-existent EIA form
as a replacement for the Form No. 69. Since neither the Commission nor
EIA has collected this data since 1984, and there has been no
significant [[Page 3155]] curtailment of natural gas in the nation for
more than ten years, the Commission proposes to remove section 260.15.
\32\FERC Statutes and Regulations, Regulations Preambles, 1977-
1981, 30,013 (1978).
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In addition, the Commission proposes to change all references in
Part 260 from the ``FPC'' and the ``Federal Power Commission'' to the
``FERC,'' and ``Federal Energy Regulatory Commission,'' respectively.
VI. Part 284
A. Introduction
Under Part 284, the Commission is proposing revisions to the
reporting requirements, and/or certain non-reporting requirements,
contained in Subparts A, B, C, E, G, J and L. These subparts set forth
general provisions and conditions (Subpart A), and govern the
transportation of natural gas by interstate pipelines under section
311(a)(1) of the NGPA (Subpart B), the transportation of natural gas by
intrastate pipelines under section 311(a)(2) of the NGPA (Subpart C),
the assignment by any intrastate pipeline to any interstate pipeline or
local distribution company of contractual rights to receive surplus
natural gas under section 312 of the NGPA (Subpart E), the
transportation of natural gas by interstate pipelines on behalf of
others, and services by local distribution companies, under blanket
certificates authorized by section 7(c) of the NGA (Subpart G),
(General Provisions and Conditions), as well as the sale of natural gas
under section 7(c) blanket certificates by interstate pipelines
offering transportation service under subparts B or G (Subpart J), and
by non-interstate pipeline sellers (Subpart L).
As further discussed below, many of the simplifying changes being
proposed to the reporting requirements of the interstate pipelines are
attributable to the fact that the Commission's close regulation of the
interstate pipelines has required, in many instances, the reporting of
the same information under several different reporting provisions in
the regulations.
There are six major categories of proposed changes to the Part 284
provisions: (1) The removal of the initial full report, subsequent
reports, annual report, and notification of termination, currently
required under subparts B, G, and/or J; (2) the removal of the initial
full report, subsequent reports, and notification of termination
required under subpart C; (3) the modification of the Commission's
discount reporting requirement; (4) the addition of a new reporting
requirement under subparts B and G, that the pipelines maintain an
electronic index of customers; (5) the elimination as obsolete of
certain non-reporting provisions in subparts A and G, setting forth
interim measures related to the implementation of Order Nos. 436 and
636; and (6) other changes that either are grammatical in nature,
remove references to deadlines that have long since passed or other
outdated requirements, or reflect the use of current, more accurate,
terminology. These revisions are discussed more fully below.
B. Removal of Initial, Subsequent, Annual, and Termination Reports
Under Subparts B, G and J
In light of all of the broad changes that are being proposed in
this NOPR, and the changes to the industry brought about by Order No.
636, it is no longer necessary to require interstate pipelines to
provide the detailed and duplicative reporting set forth under the
initial, subsequent, termination, and annual reports in sections
284.106 and 284.223. Most of the information included in these reports
will be reported in other ways. For example, the Commission proposes to
collect some contract information, including the date the contract
terminates, through an Index of Customers, as discussed below. Under
changes being proposed in the contemporaneous NOPR being issued in
Docket No. RM95-3-000 to section 154.1, contracts will be filed if the
contract differs in a significant manner from the form of service
agreement in the pipeline's tariff. If it does not, the form of service
agreement will provide information relating to the basic terms and
conditions of the contract.
Accordingly, the Commission proposes to remove paragraphs (a), (b),
(c), and (d) of section 284.106, and paragraph (d) of section 284.223,
to delete the requirements that pipelines file the initial full report,
subsequent reports, notification of termination, and annual report.
However, the Commission proposes to retain the requirement in section
284.106(a)(4) that an interstate pipeline file a statement with the
Commission that the pipeline has provided notification of bypass of a
local distribution company (LDC) to the LDC and the LDC's regulatory
agency.33 In addition, the Commission proposes to remove sections
284.106(e) and 284.223(b) relating to the fees accompanying the initial
full report, and sections 284.106(f) and 284.223(c), prescribing the
use of FERC Form No. 549-ST for the initial and subsequent reports,
since they would no longer apply due to the proposed discontinuance of
the associated reporting requirements. Because sections 284.106 and
284.223 will require identical reporting requirements, the Commission
proposes to remove all of the filing requirements from section
284.223(d), and to substitute a statement that all pipelines
transporting gas under section 284.223 of Subpart G must comply with
the reporting requirements specified under section 284.106 of Subpart
B. There is no reason to require an identical report under section
284.223.
\33\The Commission also proposes to retain the semi-annual
storage reports currently required under sections 284.106(g) and
284.223(d)(5).
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The Commission is also proposing to remove the annual report
required under section 284.288 of Subpart J, applicable to pipelines
that engage in sales under a blanket certificate and also offer
interstate transportation under subparts B and G. Most of the sales
information required by this annual report is being reported in the
FERC Form No. 2. Removal of this section will eliminate duplicative
reporting requirements.
C. Removal of Initial, Subsequent, and Termination Reports Under
Subpart C
The Commission proposes to delete certain of the reporting
requirements for intrastate pipelines transporting gas under NGPA
section 311 under Subpart C. The Commission proposes to eliminate the
initial full report, subsequent reports, and notification of
termination currently required under section 284.126. The Commission no
longer finds these reports useful for regulatory review. However, the
Commission invites parties to comment on our proposed removal of these
reports.
The Commission will continue to require intrastate pipelines to
file the annual report and semi-annual storage reports required under
section 284.126, as well as the notification of bypass requirement
currently included in the initial report. However, the Commission is
revising the annual report to reflect the fact that the transportation
transactions are no longer docketed, and to require the specification
of whether the transportation service is firm or interruptible. Until
recently, intrastate pipelines only provided interruptible
transportation service. Since they are now performing firm
transportation service, firm and interruptible transactions must be
separately identified for accurate reporting.
Additionally, as a conforming change to reflect the elimination of
the initial and subsequent reporting requirements under section
284.126, the Commission proposes to remove section 284.227(d),
governing the conversion reports filed by intrastate pipelines
transporting [[Page 3156]] certain gas produced offshore. That section
requires the initial and subsequent reports filed under section 284.126
to state that service is now being provided under section 284.227.
Further, the Commission proposes to revise the filing requirements
under section 284.123(e) to require that the statement filed by an
intrastate pipeline within 30 days after commencement of new service
under subpart C, include the rate election made by the intrastate
pipeline under section 284.123(b).
D. Modification of Discount Reports
In considering revisions to the Commission's marketing affiliate
regulations implemented in Order No. 566,34 the Commission
received comments contending that the discount information that had to
be filed with the Commission under section 284.7(d)(5)(iv) was
duplicative of the information on transportation discounts provided to
affiliate and non-affiliate shippers that pipelines are required to
maintain under section 250.16(d). There are two major differences
between the sections: section 250.16(d) requires maintenance of
information on quantities scheduled under the discount, while section
284.7(d)(5)(iv) does not require filing of quantity information; and
the information required under section 250.16 only has to be maintained
and made available to the Commission upon request, while the
information in section 284.7(d)(5)(iv) must be filed with the
Commission.
\34\Standards of Conduct and Reporting Requirements for
Transportation and Affiliate Transactions, Order No. 566, 59 FR
32885 (June 27, 1994), III FERC Stats. & Regs. Preambles 30,997
(June 17, 1994), Order No. 566-A, 59 FR 52896 (Oct. 20, 1994), III
FERC Stats. & Regs. Preambles 31,002 (Oct. 14, 1994).
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In Order No. 566, the commenters urged the Commission to consider
reconciling the duplicative requirements.35 The Commission
declined to make a piecemeal change at that time, because the Part 284
discount reporting requirements are not identical with the requirements
of section 250.16(d). The Commission, however, noted that it was in the
process of examining its regulations, in light of the changes caused by
Order No. 636, and that revisions to these requirements would be made
at the appropriate time when all the regulations could be considered as
a whole.
\35\Slip op. at 31.
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The Commission is now proposing to eliminate the section 250.16(d)
maintenance requirement and to expand the Part 284 filing requirement
to include the relevant information previously maintained under section
250.16 (proposed section 284.7(c)(6)). The major change from the
existing Part 284 regulations would be the addition of a requirement
for filing information on quantities delivered for interruptible
service and the contract demand for firm service.36 In light of
the Commission's adoption of a capacity release program under Order No.
636, information on quantities shipped and contract demand would enable
the Commission and the market to compare the extent of interruptible
and firm discounting by the pipelines with the extent of capacity
release transactions. Under this proposal, the discount information
would be required to be filed electronically with the Commission.
\36\For interruptible discounts, the Commission is proposing to
include the zone in which the quantities are delivered. Information
on zones is not needed for firm service because the information
would be reported in the index of customers under section 284.106.
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The discount reports would not apply to capacity releases at a
discounted rate, except when the release is permanent. The discount
report is designed to capture discounts granted by the pipelines. In a
temporary capacity release, the releasing shipper is still obligated to
the pipeline under its initial contract. Thus, even if the shipper
obtaining released capacity pays a discounted rate, the pipeline has
not agreed to the discount because the releasing shipper will owe the
pipeline the maximum rate under its contract. In a permanent capacity
release, however, the releasing shipper's contractual obligations end,
and the replacement shipper enters into a new primary contract with the
pipeline. Thus, if the pipeline offers a discount for a permanent
capacity release, the pipeline is providing the discount and would have
to report it.
The Commission is not proposing to require the filing of two items
of information that the pipelines are now required to maintain under
section 250.16(d): the duration of discounts and the delivery points to
which the gas is delivered. Elimination of these items would reduce the
filing burden. Moreover, the filing of this information for every
transaction involving both affiliates and non-affiliates does not
appear necessary for monitoring of affiliate discount transactions
given the Commission's other regulations regarding affiliate discount
transactions. Under Standard H of the Standards of Conduct, section
161.3(h), pipelines are now required to post discount information
concerning affiliate transactions on their EBBs, including the delivery
points to which the discount applies. The proposed elimination of
section 250.16(d), therefore, would have no effect on the ability of
non-affiliates to learn the details of affiliate discounts so they can
assess whether possible undue discrimination has occurred. With respect
to non-affiliate transactions, filing of information on delivery points
for every discount transaction does not appear warranted, since the
Commission only requires this information in specific situations. The
Commission, however, continues to require pipelines to maintain records
of affiliate and non-affiliate discount transactions, including the
delivery points used, in case the Commission requires this information
for specific investigations.
E. Establishment of Electronic Index of Customers
In the Electronic Bulletin Board (EBB) standardization proceeding
in Docket No. RM93-4-000, some groups had proposed to include an
electronic Index of Purchasers to provide the market with information
about capacity rights.\37\ The EBB Industry Working Groups, which
developed the standards implemented by the Commission, failed to reach
consensus on an Index of Purchasers proposal. However, several groups
of participants in the process submitted proposals for consideration.
In Order No. 563-A, the Commission found that one proposal by a group
of 44 participants had significant merit.\38\
\37\Standards For Electronic Bulletin Boards Required Under Part
284 of the Commission's Regulations, Order No. 563, 59 FR 516 (Jan.
5, 1994), III FERC Stats. & Regs. Preambles 30,988 (Dec. 23,
1993), order on reh'g, Order No. 563-A, 59 FR 23624 (May 6, 1994),
III FERC Stats. & Regs. Preambles 30,994 (May 2, 1994), reh'g
denied, Order No. 563-B, 68 FERC 61,002 (1994).
\38\Order No. 563-A, III FERC Stats. & Regs. Preambles at
31,047.
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Under this proposal, the Commission would eliminate some of the
paper reporting requirements relating to firm and interruptible
transportation, specifically, the initial and subsequent reports (but
not the annual reports or the reports on bypasses), and the requirement
in section 154.41 (proposed section 154.111) to include an Index of
Purchasers in a pipeline's tariff. These reports would be replaced by
an electronic index provided in downloadable form consisting of the
following nine data elements for each firm transportation and storage
shipper:\39\ shipper's name, contract identifier, rate schedule,
contract start [[Page 3157]] date, contract end date, contract
quantity, receipt points (and associated maximum daily quantities
(MDQs)), delivery points (and associated MDQs), and conjunctive
restrictions, if any.\40\
\39\Although the initial and subsequent reports had included
interruptible contracts, it is not necessary to require the posting
of interruptible contracts in the Index of Customers.
\40\Conjunctive restrictions are provisions that operate across
multiple points or contracts and may limit a shipper's rights at a
particular receipt or delivery point. For example, a shipper with
stated rights of 2,000 MDQs at three points may but not be able to
ship more than a total of 2,500 MDQ's from all three points on a
single day.
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In Order No. 563-A, the Commission was unclear with respect to some
details in the proposal, and directed the Working Groups, together with
Commission staff, to work on developing a final proposal. In a report
filed on October 3, 1994, in Docket No. RM93-4-005, the Working Group
reported that it was still unable to reach consensus on a final Index
of Purchasers. However, a drafting committee, composed both of
opponents and proponents of the Index of Purchasers, filed on October
4, 1994, a proposal addressing the mechanics for implementing such an
Index of Purchasers, should the Commission decide to proceed with one.
After considering the elements included in the industry proposals
and the Commission's own need for information about shippers'
contracts, the Commission is proposing to require pipelines to provide
an electronic Index of Customers\41\ through a downloadable file that
is updated monthly, and restated in its entirety annually (sections
284.106 and 284.243). The proposed requirement includes many of the
elements proposed during the Working Group process, as well as
independent requirements the Commission deems necessary. The electronic
Index of Customers information would serve two functions. It would
provide the Commission with the information that the Commission
requires for analyzing capacity held on pipelines (which previously was
included in the initial and subsequent reports); and it would provide
capacity information to the market, which will aid the capacity release
system by enabling shippers to locate those holding capacity rights
that the shippers may want to acquire.\42\
\41\The Commission is proposing to term the electronic index an
``Index of Customers'' rather than an ``Index of Purchasers,'' to
reflect the proposed use of that term in the NOPR revising part 154.
``Index of Customers'' more accurately captures the nature of the
current natural gas market.
\42\The Commission also is considering whether other changes to
facilitate the release of capacity are warranted. Any such changes
would be promulgated in another proceeding. The Commission is
proceeding with the proposed electronic index in this proceeding
because, in addition to fostering capacity release, the Commission
finds that such index is necessary to provide the information
previously provided through the initial and subsequent reports.
Moreover, regardless of the changes made to the capacity release
system, information on contractual rights appears to be important to
facilitating the secondary market in capacity.
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The proposed Index of Customers would contain the nine data
elements referenced above. The Commission also is proposing some
additional elements: information on capacity held by rate zones to
permit verification of reservation billing determinants; and additional
elements for storage to capture the additional detail required to
assess storage capacity.\43\ When a pipeline has implemented the
electronic Index of Customers, its obligation to provide for an Index
of Customers in its tariff would cease.
\43\In addition, the Commission is proposing to include a unique
customer identifier to permit the information in the Index of
Customers to be tied to the electronic data interchange information
on capacity release, and an authorization code to delineate whether
the information is for Part 284, Subpart B, Part 284, Subpart G, or
Part 157 service.
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In the EBB proceeding, some commenters objected to the inclusion of
receipt and delivery points, contending that the provision of such
information would be burdensome and might disclose information that
would place firm shippers at a competitive disadvantage with respect to
future gas purchase decisions.\44\ Since pipelines must currently file
receipt and delivery point information for all their shippers in the
initial and subsequent reports, the Commission would not anticipate
that including such information in the Index of Customers would create
undue burdens. Commenters, however, should address the relative burden
or difficulty in including the receipt and delivery point information
under the assumption that all the other information would be required.
\44\Order No. 636-A, III FERC Stats. & Regs. Preambles at
31,047-48.
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Once the Commission decides upon the data elements to be included
in the Index of Customers, the EBB Working Group should work with the
Commission staff to develop the data sets and other procedures
necessary to provide for downloading of the information. For example,
the EBB Working Group and the Commission Staff must determine whether
the data should be reported as a data set suitable for electronic data
interchange or for posting on the pipeline's electronic bulletin board.
Further, instructions for reporting the data elements listed in the
regulations will need to be finalized. In particular, the participants
must determine how the contract end date will be reported, so that the
Commission may know with certainty when a contract has terminated.
The finalization of the Index of Customers by the EBB Working Group
and the Commission Staff will not occur until some time after the
effective date of this rule. The Commission is proposing to require the
pipelines to initially comply with the Index of Customers requirement
within 180 days of the effective date of the final rule. Such deadline
should allow ample time for the EBB Working Group and Staff to conclude
their conferences, and for the pipelines to implement the resulting
electronic elements of the Index of Customers. However, in the
intervening period between the effective date of the rule and the
pipelines' implementation of the electronic Index of Customers under
sections 284.106 and 284.223, the Commission proposes, as an interim
measure, to require pipelines providing transportation service under
sections 284.106 or 284.223 to comply with the non-electronic index of
customer requirements applicable to transportation and sales under Part
157, as set forth in sections 154.111 (b) and (c).
F. Removal of Obsolete Transitional Requirements
Several sections in Part 284 were established by either Order No.
436 or Order No. 636 as interim measures to implement those orders, or
to bridge the transition between the two orders. Some of these
provisions contained action deadlines that have long since passed. The
Commission proposes to remove the following sections because they have
become outdated due to subsequent events, and the current state of the
regulatory environment.
Section 284.7(b) provides for interim rates for part 284
transactions to be charged until new transportation rates are filed
under section 284.7, which had to have been filed by July 1, 1986. This
section has become obsolete, and therefore is no longer necessary.
Section 284.10 provides an interim program for bundled sales
customers to convert to firm transportation services. Since Order No.
636 has unbundled sales service, so that sales and transportation
services are now separate services, there is no need for customers to
convert from one to the other. This section is no longer applicable to
the current regulatory framework.
Section 284.14--Provisions governing pipeline restructuring--was
designed to implement the restructuring of pipelines' services under
Order No. 636, and contains, among other things, the requirements for
the compliance filings pipelines were required to make, and for
[[Page 3158]] the associated restructuring proceedings. The
restructuring process is now complete; therefore this section is no
longer necessary. Any pipeline who proposes to offer transportation
service under subpart B or G of part 284 in the future will simply file
to comply with the requirements of this part and Order No. 636.
Section 284.122 governs transportation by intrastate pipelines
under Section 311(a)(2) of the NGPA. The Commission proposes to delete
paragraph (e) of section 284.122, which sets a January 31, 1992
expiration date for the authorization provided under that section for
certain transportation. This transitional provision is no longer
required. Similarly, section 284.123, governing the rates and charges
for this section 311 transportation service, contains in subparagraph
(e)(2) a transitional filing requirement deadline of February 1, 1985
for certain pre-existing transportation arrangements; thus, the
Commission proposes to remove section 284.123(e)(2).
The Commission also proposes to remove sections 284.223(e)
(Transitional rule for transportation arrangements) and 284.223(f)
(governing the conversion of transportation service under NGPA section
311 to NGA section 7(c) blanket transportation service. Section 284.223
authorizes an interstate pipeline to transport gas under a section 7
blanket certificate of public convenience and necessity for any shipper
for any end use by that shipper or any other person. Section 284.223(e)
was established as a transitional provision to permit transportation
arrangements authorized under section 157.209(a)(1), which commenced
before October 9, 1985, to qualify as transportation under section
284.223. Section 157.209(a)(1) permitted section 7 certificate holders
under section 157.201 to transport natural gas only on behalf of a
high-priority end user for a high-priority end use. Section
157.209(a)(1) was replaced by section 284.223, and was removed from the
regulations effective November 18, 1985.45 Accordingly, the
transitional rule contained section 284.223(e) applicable to
transportation under section 157.209 is obsolete, and no longer
necessary. Similarly, section 284.223(f) is an interim measure that was
designed to implement the addition of blanket transportation services.
This section requires that all conversions be made prior to November 1,
1990. Consequently, sections 284.223(f) is also obsolete, and no longer
necessary.
\45\See 50 FR 42408 (October 18, 1985).
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Finally, section 284.402 of Subpart L, setting forth the
authorization for blanket marketing certificates, provides in paragraph
(c)(1) that the authorization for an ``affiliated marketer'' with
respect to transactions involving affiliated pipelines becomes
effective either when the affiliated pipeline receives its blanket
sales certificate under Subpart J, a transportation-only affiliated
pipeline's Order No. 636 compliance filing is approved, or when the
Commission terminates the affiliated pipelines RS proceeding. The
Commission proposes to delete the latter two conditions, since those
occurrences have passed.
G. Other Revisions
The Commission proposes to delete most of Subpart D, governing
certain sales under section 311 of the NGPA by intrastate pipelines. In
Order No. 547,46 the Commission granted any person who is not an
interstate pipeline a blanket certificate of public convenience and
necessity pursuant to section 7 of the Natural Gas Act, authorizing the
certificate holder to make sales for resale at negotiated rates in
interstate commerce of any category of gas that is subject to the
Commission's Natural Gas Act jurisdiction. The certificate of limited
jurisdiction does not subject the certificate holder to any other
regulation under the Natural Gas Act by virtue of transactions under
the certificate. Although the blanket certificate eliminates the need
for Subpart D, the Commissison will retain the basic authorization and
rate provisions under Subpart D in sections 284.141, 284.142, and
284.144 for those persons who may wish to make sales under the NGPA
instead of the blanket certificate under the Natural Gas Act. However,
in recognition that an intrastate pipeline can also sell natural gas in
an unbundled transaction under the blanket certificate, at negotiated
rates, the Commission proposes to retain a simplified version of
section 284.144 governing rates and charges as part of the
authorization provision set forth in section 284.142. The proposed rate
rule within section 284.142, simplifies the current maximum sales rate
rule to permit the gas commodity price negotiated in the contract, plus
a fair and equitable transportation rate.
\46\61 FERC 61,281 (1992).
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The Commission proposes to delete Subpart E in its entirety,
governing the assignment by any intrastate pipeline to any interstate
pipeline or local distribution company of its contractual right to
receive surplus natural gas at any first sale, without prior Commission
approval. The Natural Gas Wellhead Decontrol Act of 1989 amended the
definition of ``surplus natural gas'' in section 312 of the NGPA to
mean ``any natural gas.'' Moreover, the only filings under Subpart E
were made in 1979. Therefore, Subpart E is no longer necessary.
Further, in light of the proposed elimination of Subpart E, the
Commission proposes to remove all references in section 284.224,
governing certain transportation, sales and assignments by local
distribution companies, to Subpart E, as well as to the word
``assignments'' in the section provisions and in the section heading.
The Commission also proposes to remove the reference to assignment in
section 284.3, which sets forth the NGA jurisdiction. In addition, the
Commission proposes to delete the references in section 284.224(e)(5)
to those reporting requirements that the Commission is proposing to
delete in subparts C and D. The Commission is retaining the blanket
certificate and rate election procedures in section 284.224 that allow
local distribution companies served by an interstate pipeline or
Hinshaw pipeline to engage in sales and transportation of natural gas
to the same extent as intrastate pipelines are authorized to engage in
such activities under subparts C and D.
The Commission proposes to remove sections 284.225 and 284.226
concerning the transportation of gas released under the good faith
negotiation procedures. Order No. 567,47 issued July 28, 1994, in
Docket No. RM94-18-000, removed the good faith negotiation procedures
under Section 270.201 as a result of the repeal of maximum lawful
ceiling prices under the NGPA.
\47\68 FERC 61,135 (1994).
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The Commission proposes to remove section 284.222, regarding
transportation by interstate pipelines on behalf of other interstate
pipelines. Since the Commission deleted the prior notice requirement in
Order No. 537,\48\ which applied to transportation by interstate
pipelines on behalf of shippers other than interstate pipelines under
section 284.223, but did not apply to transactions under section
284.222, there is no longer any reason to distinguish between
transportation under sections 284.222 and 284.223. Thus, the Commission
proposes to delete section 284.222, and apply section 284.223 to
transportation by [[Page 3159]] interstate pipelines on behalf of other
interstate pipelines, as well as transportation by interstate pipelines
on behalf of non-interstate pipeline shippers. Therefore, the
Commission is also proposing to modify the title of section 284.223 to
read ``Transportation by interstate pipelines on behalf of shippers.''
\48\Revisions to Regulations Governing Transportation under
Section 311 of the Natural Gas Policy Act of 1978 and Blanket
Transportation Certificates, 56 FERC 61,415 (1991).
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The Commission proposes to modify paragraph (b) of section 284.221,
setting forth the general rules regarding the transportation by
interstate pipelines on behalf of others under section 7(c) blanket
certificates, to delete reference to an October 31, 1989 date no longer
relevant, and a fee no longer collected.
In section 284.102(e), governing the certifications interstate
pipelines must obtain from shippers to be able to transport gas on
behalf of an intrastate pipeline or local distribution company under
section 311, the Commission proposes to delete reference to a January
3, 1992 deadline for tariff revisions establishing the certification
requirement.
Finally, the Commission proposes to make a grammatical revision in
section 284.8(b)(4)(iii).
VII. Environmental Analysis
The Commission is required to prepare an Environmental Assessment
or an Environmental Impact Statement for any action that may have a
significant adverse effect on the human environment.\49\ The Commission
has categorically excluded certain actions from these requirements as
not having a significant effect on the human environment.\50\ The
action proposed here is procedural in nature and therefore falls within
the categorical exclusions provided in the Commission's
regulations.\51\ Therefore, neither an environmental impact statement,
nor an environmental assessment is necessary, and will not be prepared
in this proposed rulemaking.
\49\Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Statutes
and Regulations, Regulations Preambles 1986-1990 30,783 (1987).
\50\18 CFR 380.4.
\51\See 18 CFR 380.4(a)(2)(ii).
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VIII. Reporting Flexibility Certification
The Regulatory Flexibility Act (RFA)\52\ generally requires the
Commission to describe the impact that a proposed rule would have on
small entities or to certify that the rule will not have a significant
economic impact on a substantial number of small entities. An analysis
is not required if a proposed rule will not have such an impact.\53\
Most gas companies to whom the proposed rule will apply do not fall
within the definition of a ``small entity.''\54\ Consequently, pursuant
to section 605(b) of the RFA, the Commission certifies that the
proposed rule will not have a significant impact on a substantial
number of small entities.
\52\5 U.S.C. 601-612.
\53\5 U.S.C. 605(b).
\54\Section 601(c) of the RFA defines a ``small entity'' as a
small business, a small not-for-profit enterprise, or a small
governmental jurisdiction. A ``small business'' is defined by
reference to section 3 of the Small Business Act as an enterprise
which is ``independently owned and operated and which is not
dominant in its field of operation.'' 15 U.S.C. 632(a).
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IX. Information Collection Statement
The Office of Management and Budget's (OMB) regulations\55\ require
that OMB approve certain information and recordkeeping requirements
imposed by an agency. The information collection requirements in this
proposed rule are contained in the following: FERC Form No. 2 ``Annual
Report of Major Natural Gas Companies'' (1902-0028); FERC Form No. 2-A
``Annual Report of Nonmajor Natural Gas Companies'' (1902-0030); FERC
Form No. 11 ``Natural Gas Pipeline Company Monthly Statement'' (1902-
0032); FERC Form No. 549 ``Gas Pipeline Rates: Natural Gas Policy Act
Title III Transactions'' (1902-0086); FERC Form No. 549B ``Gas Pipeline
Rates: Capacity Release Information'' (1902-0169); FERC Form No. 576
``Reports on Pipeline Systems Service Interruptions'' (1902-0004); FERC
Form No. 8 ``Underground Gas Storage Report'' (1902-0026); and FPC-14
(redesignated herein FERC Form No. 14) ``Annual Report for Importers
and Exporters of Natural Gas'' (1902-0027).
\55\5 CFR 1320.13.
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The Commission in this proposed rule intends to modernize 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 intends to revise the Uniform
System of Accounts to provide financial information that will be of
greater benefit than what is available now, and to create forms and
reports that reflect open-access transportation of natural gas and
unbundled pipeline sales for resale at market-based prices. The
Commission's Office of Chief Accountant uses the data in its audit
program and continuous review of the financial condition of regulated
companies. The Office of Pipeline Regulation uses the data in its
various rate proceedings and supply programs, and the Office of
Economic Policy and Office of General Counsel use the data in their
programs relating to the administration of the Natural Gas Act.
The Commission is submitting to the Office of Management and Budget
a notification of these proposed collections of information. Interested
persons may obtain information on these reporting requirements by
contacting the Federal Energy Regulatory Commission, 941 North Capitol
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, D.C. 20503, (Attention: Desk
Officer for Federal Energy Regulatory Commission).
X. Comment Procedures
The Commission invites all interested persons to submit written
comments on the proposals of this NOPR. To the extent possible, the
comments should be keyed to the topic headings of this NOPR. An
original and 14 copies of the written comments must be filed with the
Commission by April 13, 1995. Comments must refer to Docket No. RM95-4-
000 and be submitted to the Office of the Secretary, Federal Energy
Regulatory Commission, 825 North Capitol Street, N.E., Washington, D.C.
20426.
All written submissions will be placed in the Commission's public
file and will be available for public inspection, during regular
business hours, at the Commission's Public Reference Room, Room 3408,
941 North Capitol Street, N.E., Washington, D.C. 20426.
List of Subjects
18 CFR Part 158
Administrative practice and procedure, Natural gas, Reporting and
recordkeeping requirements, Uniform System of Accounts.
18 CFR Part 201
Natural gas, Reporting and recordkeeping requirements, Uniform
System of Accounts.
18 CFR Part 250
Natural gas, Reporting and recordkeeping requirements.
18 CFR Part 260
Natural gas, Reporting and recordkeeping requirements.
[[Page 3160]]
18 CFR Part 284
Continental shelf, Natural gas, Reporting and recordkeeping
requirements.
By direction of the Commission.
Lois D. Cashell,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
Parts 158, 201, 250, 260, and 284, Chapter I, Title 18, Code of Federal
Regulations, as set forth below.
PART 158--ACCOUNTS, RECORDS, AND MEMORANDA
PART 158--AUTHORITY CITATION [REVISED]
1. The authority citation for Part 158 is revised to read as
follows:
Authority: 42 U.S.C. 7101-7352; 15 U.S.C. 717-717w, 3301-3432.
2. Section 158.10 is revised to read as follows:
Sec. 158.10 Examination of accounts.
All natural gas companies not classified as Class C or Class D
prior to January 1, 1984 shall secure for each year, the services of an
independent certified public accountant, or independent licensed public
accountant (licensed on or before December 31, 1970), certified or
licensed by a regulatory authority of a State or other political
subdivision of the United States, to test compliance in all material
respects of those schedules that are indicated in the General
Instructions set out in the applicable Annual Report, Form No. 2 or
Form No. 2-A, with the Commission's Uniform System of Accounts and
published accounting releases. The Commission expects that
identification of questionable matters by the independent accountant
will facilitate their early resolution and that the independent
accountant will seek advisory rulings by the Commission on such items.
This examination shall be deemed supplementary to periodic Commission
examinations of compliance.
3. Section 158.11 is revised to read as follows:
Sec. 158.11 Report of certification.
Each natural gas company not classified as Class C or Class D prior
to January 1, 1984 shall file with the Commission a letter or report of
the independent accountant certifying approval, together with the
original and each copy of the filing of the applicable Annual Report,
Form No. 2 or Form No. 2-A, covering the subjects and in the format
prescribed in the General Instructions of the applicable Annual Report.
The letter or report shall also set forth which, if any, of the
examined schedules do not conform to the Commission's requirements and
shall describe the discrepancies that exist. The Commission shall not
be bound by the certification of compliance made by an independent
accountant pursuant to this paragraph.
4. In section 158.12, the words ``The Commission will not recognize
any certified public accountant or public accountant through December
31, 1975, who is not in fact independent. Beginning January 1, 1976,
and each year thereafter, the'' are removed and the word ``The'' is
added in their place.
PART 201--UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR NATURAL GAS
COMPANIES SUBJECT TO THE PROVISIONS OF THE NATURAL GAS ACT
5. The authority citation for Part 201 continues to read as
follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352,
7651-7651o.
PART 201--[AMENDED]
6. In Part 201, Definitions, Definitions 13, 15, 16, 32B, 38, and
39 are amended by removing the words ``in the case of Major natural gas
companies,'' and Definition 29 is amended by removing the word ``(Major
natural gas companies).''
7. In Part 201, General Instructions, paragraph 1 is revised to
read as follows:
General Instructions
1. Applicability. Each natural gas company must apply the system
of accounts prescribed by the Commission.
* * * * *
8. In Part 201, General Instructions, paragraphs 8, 12, 14, 15, and
16, the words ``(Major natural gas companies)'' are removed at the end
of each heading, and in the heading for paragraph 21, the words
``(Nonmajor Natural Gas Companies)'' are removed.
9. In Part 201, Gas Plant Instructions, paragraph 1, the words
``Classification of utilities (Major natural gas companies)'' are
removed from the heading and the words ``Classification of gas plant at
effective date of system of accounts'' are added in their place.
10. In Part 201, Gas Plant Instructions, paragraph 3, introductory
text, the words ``For Major natural gas companies'' are removed and the
words ``A. The'' are added in their place, the words ``(Major and
Nonmajor Natural Gas Companies)'' are removed from paragraphs 3A.(17)
and 3A.(19), and paragraph 3B. is removed.
11. In Part 201, Gas Plant Instructions, paragraph 4C., the words
``For Major natural gas companies, the'' are removed and the word
``The'' is added in their place.
12. In Part 201, Gas Plant Instructions, paragraph 6A., the words
``(For Nonmajor companies, account 404, Amortization of Limited-Term
Gas Plant)'' are removed.
13. In Part 201, Gas Plant Instructions, paragraphs 7C. and 7E.,
the words ``or in the case of Major companies,'' are removed.
14. In Part 201, Gas Plant Instructions, paragraph 7D., the words
``In the case of Major companies, a parcel,'' are removed and the words
``A parcel'' are added in their place.
15. In Part 201, Gas Plant Instructions, paragraph 7G., the words
``in the case of Major Companies,'' are removed.
16. In Part 201, Gas Plant Instructions, paragraph 7H., the words
``(For Major companies, see,'' are removed and the word ``(See'' is
added in its place, and the two sentences ``For Nonmajor companies, see
account 403.1, Depreciation and Depletion Expense, and account 110,
Accumulated Provision for Depreciation, Depletion and Amortization of
Gas Utility Plant. See also account 797, Abandoned Leases, for the
accounting for abandonments of natural gas leases which have never been
productive'' are removed and the words ``, and account 797,
Abandonment, leases'' are added in their place.
17. In Part 201, Gas Plant Instructions, paragraph 8G., the words
``(Major natural gas companies)'' are removed at the end of Items 2, 6,
11, 12, 18, 19, 22, 28, 29, 32, 35, 36, 39, 40, 41, 42, 44, 45, 47, 49,
52, 53, 55, 58, 60, 61, 62, 62, 64, 65, 66, and 67.
18. In Part 201, Gas Plant Instructions, paragraph 10E., the words
``or in the case of Major companies,'' immediately following the words
``Gas Plant Held for Future Use'' are removed.
19. In Part 201, Gas Plant Instructions, paragraph 10F., the words
``(account 110, Accumulated Provision for Depreciation, Depletion and
Amortization of Gas Utility Plant, in the case of Nonmajor companies)''
and the words ``(account 110 for Nonmajor companies)'' are removed.
20. In Part 201, Gas Plant Instructions, paragraph 10G., the words
``In the case of Major companies, the accounting for'' are removed and
the words ``The accounting for'' are added in their place.
21. In Part 201, Gas Plant Instructions, paragraph 11C., the words
``In the case of Major companies, each utility'' are
[[Page 3161]] removed and the words ``Each utility'' are added in their
place.
22. In Part 201, Gas Plant Instructions, paragraph 12, the words
``(105.1, Production Properties Held for Future Use, in the case of
Major companies)'' are removed and the words ``105.1, Production
Properties held for Future Use,'' are added in their place, and the
words ``(Major Companies)'' in the note are removed.
23. In Part 201, Gas Plant Instructions, paragraph 14, the words
``(Major natural gas companies)'' are removed at the end of the
heading.
24. In Part 201, Gas Plant Instructions, paragraph 15A., the words
``(account 180, Other Deferred Debits, in the case of Nonmajor
companies)'' are removed from paragraph A.(1), the words ``(the amounts
recorded in account 186 shall be cleared to the appropriate plant
accounts, in the case of Nonmajor companies)'' are removed from
paragraph A.(2), and the words ``(Account 180 in the case of Nonmajor
companies)'' are removed from paragraph A.(3).
25. In Part 201, Gas Plant Instructions, paragraph 16 is removed.
26. In Part 201, Operating Expense Instructions, paragraph 1, the
words ``(Major natural gas companies)'' at the end of the heading are
removed.
27. In Part 201, Balance Sheet Chart of Accounts, and Balance Sheet
Accounts, the words ``(Major only)'' at the end of the headings of
Accounts 103, 105.1, 106, 108, 111, 115, 117, 123, 123.1, 125, 126,
128, 131 through 135, 151 through 153, 155, 156, 163, 164.3, 166, 167,
171 through 173, 183.1, 183.2, 184, 185, 188, 202, 203, 205 through
210, 216.1, 222, 238 through 241 are removed.
28. In Part 201, Balance Sheet Chart of Accounts, Accounts 103.1,
110, 129, 180, and 218, and their respective titles are removed.
29. In Part 201, Balance Sheet Accounts, Accounts 117A, 117D, 117E,
117F, and 117G are removed, Accounts 117B and 117C are redesignated
117.3B and 117.3C, respectively, new Accounts 117.1, 117.2, 117.3A, and
117.4 are added, and redesignated Account 117.3C is revised to read as
follows:
Balance Sheet Accounts
* * * * *
117.1 Gas stored-Base gas.
This account is to include the cost of recoverable gas volumes
that are necessary, in addition to those volumes for which cost are
properly includable in Account 101, Gas plant in service, to
maintain pressure and deliverability requirements for each storage
facility. Subaccounts are to be maintained so that the cost of base
gas applicable to each gas storage facility shall not be changed
from the amount initially recorded except for changes in volumes
designated as base gas.
117.2 System balancing gas.
This account is to be used to record the cost of system gas
designated as available for transmission load balancing (including
no-notice transportation) and other uses associated with maintaining
efficient transmission operations other than gas properly recordable
in Account 117.1 or the plant accounts. The cost initially recorded
herein shall not be changed except for adjustments to volumes
designated as system gas. Detailed records must be kept separately
identifying volumes and unit prices of system gas held in
underground storage facilities and held in pipelines.
117.3 Gas stored in reservoirs and pipelines-noncurrent.
A. This account shall include the cost of stored gas available
for sale.
B. Gas stored during the year shall be priced at cost according
to generally accepted methods of cost determination consistently
applied from year to year. Transmission expenses for facilities of
the utility used in moving the gas to the storage area and expenses
of storage facilities shall not be included in the inventory of gas
except as may be authorized or directed by the Commission.
Note B-1: In general, gas stored from the supply in an
integrated system shall be priced at the average cost of the gas
constituting the common supply of the system, although this general
rule may be departed from where conditions of system operation of
gas supply and utilization permit a valid presumption that the gas
stored may be considered to be from specified sources, as indicated
below.
Note B-2: When in harmony with the over-all system operation of
gas supply and utilization, and the presumption is consistently
observed from year to year, gas stored during the year may be
presumed to be from total gas purchases, or from purchases from
specified sources. When either of these presumptions is proper, the
cost of gas stored shall be priced at the weighted average cost of
all gas purchased, or at the weighted average cost of purchases from
the specified sources, as appropriate. The weighted average cost may
be the average for preceding twelve months, except where a
significant change occurs in the cost of gas, the full effect of
such change shall be reflected for the period after the change is
effective.
Note B-3: When in harmony with the over-all system operation of
gas supply and utilization, and the presumptions are consistently
observed from year to year, gas stored during the year may be
presumed to be from identified sources of the utility's own
production. Such stored gas shall be priced at the weighted average
cost of gas produced from the specified production areas. Where this
presumption is made, or where the stored gas is identified as a
matter of fact under circumstances which do not permit a proper
application of the theory of displacement, the utility shall
maintain separate records of the cost of gas produced from such
areas and the derivation of the cost used for stored gas from such
sources.
Note B-4: Where gas is purchased specifically for storage, or a
price concession received because of the storing of purchased gas,
such gas shall be priced at the net contract price of the gas so
purchased and stored.
Note B-5: The provisions of this instruction and the related
footnotes shall not be construed as permitting or authorizing a
restatement of the amounts at which stored gas inventories are
stated on the utility's books at the effective date of this
instruction, except as may be authorized by the Commission.
C. Withdrawals of gas may be priced according to the first-in-
first-out, last-in-first-out, or weighted average cost method,
provided the method adopted by the utility is used consistently from
year to year and the inventory records are maintained in accordance
therewith. Approval of the Commission must be obtained for any other
pricing method, or change in the pricing method adopted by the
utility.
117.4 Gas owed to system gas.
A. This account shall include credit balances resulting from
withdrawals from system gas of volumes that encroach upon the
volumes designated as base gas (Account 117.1), system balancing gas
(Account 117.2), and gas properly recordable in the plant accounts.
Withdrawals are to be credited to this account and charged to
Account 808.1, Gas Withdrawn From Storage-Debit, at an amount equal
to the current market price of gas available to the utility. Gas
owned by the utility and injected into the system will be deemed to
satisfy the owed to system account first before any other use. The
gas injected is to be priced at the same rate used to price
withdrawals by crediting Account 808.2, Gas Delivered to Storage-
Credit. If the owed to system balance is due to more than one
transaction, the accounting for injections should follow a queue
with the earlier transaction being the first accounted for.
B. Detailed records must be kept for each transaction
identifying volumes and unit prices used for gas owed to system gas.
* * * * *
30. In Part 201, Balance Sheet Accounts, Account 154, the words
``For Nonmajor utilities, this account shall include the cost of fuel
on hand and unapplied materials and supplies (except meters and house
regulators). For both Major and Nonmajor utilities, it shall'' are
removed from the introductory text of paragraph A, paragraph C and Note
B are removed, Note A is redesignated Note, and the words ``they may be
charged to a stores expense clearing account (account 163, Stores
Expenses Undistributed, in the case of Major Utilities), and
distributed therefrom to the appropriate accounts'' in redesignated
Note are removed and the words ``they shall be charged to account 163,
Stores expenses Undistributed'' are added in their place.
[[Page 3162]]
31. In Part 201, Balance Sheet Accounts, Account 164.1 is revised
to read as follows:
Balance Sheet Accounts
* * * * *
164.1 Gas stored-current.
This account shall be debited with such amounts as are credited
to account 117.3, Gas Stored in Reservoirs and Pipelines-Noncurrent,
to reflect classification for balance sheet purposes of such portion
of the inventory of gas stored as represents a current asset
according to conventional rules for classification of current
assets.
Note: It shall not be considered conformity to conventional
rules of current asset classification if the amount included in this
account exceeds an amount equal to the cost of estimated withdrawals
of gas from storage for purposes of sale within the 24-month period
from date of the balance sheet, or if the amount represents a volume
of gas which, in fact, could not be withdrawn from storage without
impairing pressure levels needed for normal operating purposes.
* * * * *
32. In Part 201, Balance Sheet Accounts, Accounts 164.2D. and
164.3D., the words ``Mcf'' and ``Mcf (or Btu),'' respectively, are
removed, and the words ``Dth'' are added in their place.
33. In Part 201, Balance Sheet Accounts, Account 186, the words
``For Major companies, this account shall'' are removed from paragraph
A, and the words ``This account shall'' are added in their place,
paragraph B is removed, paragraph C is redesignated as paragraph B, and
all the words in parenthesis in redesignated paragraph B are removed.
34. In Part 201, Balance Sheet Accounts, Accounts 201 through 204,
Note, the words ``(For Nonmajor companies, account 211, Miscellaneous
Paid-In Capital)'' are removed.
35. In Part 201, Balance Sheet Accounts, Account 211, the words
``(In the case of Nonmajor companies, this account shall be kept so as
to show the source of the credits includible herein) are removed, the
ITEMS section and Note B are removed, Note A is redesignated Note, and
the words ``(Major companies)'' are removed from the heading of
redesignated Note.
36. In Part 201, Balance Sheet Accounts, Account 242, the Items
section is removed.
37. In Part 201, Gas Plant Chart of Accounts and Gas Plant
Accounts, the words ``(Major only)'' at the end of each title of
Accounts 363, 363.1, 363.2, 363.3, 363.4, 364.1, 364.2, 364.3, 364.4,
364.5. 364.6, 364.7 and 364.8 are removed.
38. In Part 201, Gas Plant Accounts, Accounts 302C. and 303B., the
words ``(For Nonmajor Companies; account 110, Accumulated Provisions
for Depreciation, Depletion and Amortization of Gas Utility Plant)''
following the words ``Gas Utility Plant'' are removed.
39. In Part 201, Gas Plant Accounts, the first sentence of Account
352.3B is revised to read as follows:
Gas Plant Accounts
* * * * *
352.3 Nonrecoverable natural gas
* * * * *
B. Such nonrecoverable gas shall be priced at the acquisition
cost of native gas or, when acquired for storage by purchase or
presumed to be supplied from the utility's own production, priced as
outlined in Paragraph B of account 117.3 Gas Stored in Reservoirs
and Pipelines-Noncurrent. * * *
40. In Part 201, Income Chart of Accounts and Income Accounts,
Accounts 403, 404.1, 404.2, 404.3, and 418.1, the words ``(Major
only)'' are removed from the end of the headings.
41. In Part 201, Income Chart of Accounts, Accounts 403.1 and 404
are removed.
42. In Part 201, Income Accounts, Accounts 421.1 and 421.2, the
words ``(Major only)'' are removed.
43. In Part 201, Operating Revenue Chart of Accounts and Operating
Revenue Accounts, Account 482, the words ``(Major only)'' are removed
at the end of the headings.
44. In Part 201, Operating Revenue Accounts, Account 481C, the
words ``(Major companies)'' is removed from the introductory text, and
the word ``Mcf'' is removed and the word ``Dth'' is added in its place.
45. In Part 201, Operating Revenue Accounts, Account 488, Item 3,
the words ``For Major Companies, see,'' are removed and the word
``See'' is added in their place.
46. In Part 201, Operating Revenue Accounts, Account 489 is
deleted, and new Accounts 489.1, 489.2, 489.3, and 489.4 are added read
as follows:
Operating Revenue Accounts
* * * * *
489.1 Revenues from transportation of gas of others through gathering
facilities.
This account shall include revenues from transporting gas for
other companies through the gathering facilities of the utility.
489.2 Revenues from transportation of gas of others through
transmission facilities.
This account shall include revenues from transporting gas for
other companies through the transmission facilities of the utility.
489.3 Revenues from transportation of gas of others through
distribution facilities.
This account shall include revenues from transporting gas for
other companies through the distribution facilities of the utility.
489.4 Revenues from storing gas of others.
This account shall include revenues from storing gas for other
companies.
* * * * *
47. In Part 201, Operating Revenue Accounts, Account 491B is
revised to read as follows:
Operating Revenue Accounts
* * * * *
491 Revenues from natural gas processed by others.
* * * * *
B. The records supporting this account shall be so maintained
that full information concerning determination of the revenues will
be readily available concerning each processor of gas of the
utility, including as applicable (a) the Dth of gas delivered to
such other party for processing, (b) the Dth of gas received back
from the processor, (c) the field, general production area , or
other source of the gas processed, (d) Dth of gas used for
processing fuel, etc., which is chargeable to the utility, (e) total
gallons of each product recovered by the processor and the utility's
share thereof, (f) the revenues accruing to the utility, and (g) the
basis of determination of the revenues accruing to the utility. Such
records shall be maintained even though no revenues are derived from
the processor.
* * * * *
48. In Part 201, Operating Revenue Accounts, Account 495 is revised
to read as follows:
Operating Revenue Accounts
* * * * *
495 Other gas revenues.
This account shall include revenues derived from gas operations
not includible in any of the foregoing accounts.
Items
1. Commission on sale or distribution of gas of others when sold
under rates filed by such others.
2. Compensation for minor or incidental services provided for
others such as customer billing, engineering, etc.
3. Profit or loss on sale of material and supplies not
ordinarily purchased for resale and not handled through
merchandising and jobbing accounts.
4. Sales of steam, water, or electricity, including sales or
transfers to other departments of the utility.
5. Miscellaneous royalties received.
6. Revenues from dehydration and other processing of gas of
others, except products extraction where products are received as
compensation and sales of such are includible in account 490, Sales
of Products Extracted From Natural Gas, and except compression of
gas of others, revenues from which are includible in accounts 489.1,
[[Page 3163]] 489.2, or 489.3, Revenues from Transportation of Gas
of Others.
7. Included in a separate subaccount, revenues in payment for
rights and/or benefits received from others which are realized
through research, development, and demonstration ventures.
8. Gains on settlements of imbalance receivables (See Account
806).
49. In Part 201, Operation and Maintenance Expense Chart of
Accounts and Operation and Maintenance Expense Accounts, the words
``(Major only)'' are removed at the end of each title of Accounts 700
through 708, 711 through 730, 732 through 735, 740 through 742, 751
through 754, 756, 757, 761, 762, 765 through 775, 777 through 791, 800,
801 through 804.1, 806, 809.1, 809.2, 810 through 812, 815 through 822,
824, 830, 831, 833 through 837, 840 through 842, 842.1 through 842.3,
843.1 through 842.3, 843.1 through 843.9, 844.1 through 844.8, 845.1
through 845.6, 846.1, 846.2, 847.1 through 847.8, 851, 853, 854 through
857, 859, 861, 862, 865 through 867, 871 through 873, 875 through 877,
880, 885 through 892, 894, 901, 905, 907 through 913, and 916.
50. In Part 201, Operation and Maintenance Expense Chart of
Accounts, and Operating and Maintenance Expense Accounts, Accounts
724.1, 729.1, 737, 743, 769.1, 792, 799, 812.1, 827, 838, 839, 853.1,
857.1, 868, 880.1, 892.1, 895, 906, 917, and 933 are removed, and
Account 935 is redesignated Account 932.
51. In Part 201, Operation and Maintenance Expense Accounts,
Account 710, the words ``For Major companies, this'' are removed from
paragraph A, and the word ``This'' is added in their place, and
paragraph B and the Items section are removed.
52. In Part 201, Operation and Maintenance Expense Accounts,
Account 731A and 731B, the words ``(for Nonmajor companies, account
154, Plant Materials and Operating Supplies)'' are removed.
53. In Part 201, Operation and Maintenance Expense Accounts,
Account 750, the words ``For Major companies, this'' in paragraph A are
removed and the word ``This'' is added in their place, and paragraph B,
the headings ``Major and Nonmajor'' and ``Nonmajor Only'' under Items,
and Items 5 through 21 are removed.
54. In Part 201, Operation and Maintenance Expense Accounts,
Account 755, the words ``stations (including in the case of Major
companies, applicable amounts of fuel stock expenses)'' in paragraph A
are removed and the words ``stations, including applicable amounts of
fuel stock expenses'' are added in their place, the words ``For Major
companies, respective'' in paragraph B are removed and the word
``Respective'' is added in their place, Note B is removed, Note A is
redesignated Note, and the words ``(Major Companies)'' are removed from
redesignated Note.
55. In Part 201, Operation and Maintenance Expense Accounts,
Account 759, the words ``(Major companies only)'' in the introductory
text are removed, the headings ``(Major only)'' and ``(Nonmajor
companies):'' in the Items section are removed, and Items 1 through 18
are removed.
56. In Part 201, Operation and Maintenance Expense Accounts,
Account 776, the words ``in the case of Major companies,'' the words
``(Major only)'' following the heading ``Items'', and the Note at the
end of the account are removed.
57. In Part 201, Operation and Maintenance Expense Accounts,
Account 795, Note, the words ``(in the case of Nonmajor Companies,
account 105, Gas Plant Held for Future Use)'' are removed.
58. In Part 201, Operation and Maintenance Expense Accounts,
Account 796, Note A, the words ``(in the case of Nonmajor companies,
General Instruction 21, Gas Well Records)'' following the words ``Each
Plant'' are removed.
59. In Part 201, Operation and Maintenance Expense Accounts,
Account 797, paragraph A, the words ``For Major companies, this'' are
removed, the word ``This'' is added in their place, and the sentence
following the word ``productive.'' is removed, and in paragraph B, the
words ``(Major only)'' are removed.
60. In Part 201, Operation and Maintenance Expense Accounts,
Account 798, the words ``for Major companies,'' and the words ``for
``Nonmajor companies, see account 186, Miscellaneous Deferred Debits''
are removed.
61. In Part 201, Operation and Maintenance Expense Accounts,
Account 806 is revised to read as follows:
806 Exchange gas
A. This account shall include debits or credits for the cost of
gas in unbalanced transactions whereby gas is received from or
delivered to another party in exchange, load balancing, or no-notice
transportation transactions. The costs are to be determined from the
current market price of gas at the time gas is tendered for
transportation. Contra entries to those in this account shall be
made to account 174, Miscellaneous Current and Accrued Assets, for
gas receivable and to account 242, Miscellaneous Current and Accrued
Liabilities, for gas deliverable under such transactions. Such
entries shall be reversed and appropriate contra entries made to
this account when gas is received or delivered in satisfaction of
the amounts receivable or deliverable (See Paragraph B of this
account for unbalanced transactions that are satisfied by other than
gas in kind).
B. If revenue is earned or amounts are payable in consideration
of the performance of exchange services, or if consideration for the
amounts receivable or deliverable are satisfied by other than gas,
such as in cash-out provisions, and at different amounts than
originally recorded pursuant to Paragraph A of this account, such
revenue, gain, expense, or loss should be recorded in account 495,
Other Gas Revenues, or in account 813, Other Gas Supply Expenses, as
appropriate. See, however, accounts 489.1, 489.2, and 489.3,
Revenues from Transportation of Gas by Others, for transactions
which, in fact, are for transportation of gas rather than exchange
of gas.
C. Records shall be maintained so that there is readily
available for each party entering gas exchange, load balancing, or
no-notice transportation transactions by point of receipt and
delivery, the quantity of gas delivered and received, the amount of
consideration if other than gas, and the basis for the
consideration.
62. In Part 201, Operation and Maintenance Expense Accounts,
Account 807, paragraph D, the words ``(Major companies'') are removed.
63. In part 201, Operation and Maintenance Expense Accounts,
paragraph A of Accounts 808.1 and 808.2 are revised to read as follows:
808.1 Gas withdrawn from storage-Debit
A. This account shall include debits for the cost of gas
withdrawn from storage during the year. Contra credits for entries
to this account shall be made to accounts 117.3 Gas Stored in
Reservoirs and Pipelines-Noncurrent, or account 117.4, Gas Owed to
System Gas, or account 164.2, Liquefied Natural Gas Stored, as
appropriate. (See instructions to accounts 117.3 and 117.4).
* * * * *
808.2 Gas delivered to storage-Credit
A. This account shall include credits for the cost of gas
delivered to storage during the year. Contra debits for entries to
this account shall be made to accounts 117.3 Gas Stored in
Reservoirs and Pipelines-Noncurrent, account 117.4, Gas Owed to
System Gas, or account 164.2, Liquefied Natural Gas Stored, as
appropriate. (See instructions to accounts 117.3 and 117.4).
* * * * *
64. In Part 201, Operation and Maintenance Expense Accounts,
Account 813, the words ``including, in the case of Major companies,
research and development expenses'' are removed and the words
``including research and development expenses. This account shall
include losses on settlements of imbalance receivables (See Account
806)'' are added in their place. [[Page 3164]]
65. In Part 201, Operation and Maintenance Expense Accounts,
Account 814, paragraph B and the Items (Nonmajor only) section are
removed, and in paragraph A, the designation ``A.'' and the words ``For
Major companies, this'' are removed and the word ``This'' is added in
their place.
66. In Part 201, Operation and Maintenance Expense Accounts,
Account 823, the words ``For Major companies, see'' are removed and the
word ``See'' is added in their place.
67. In Part 201, Operation and Maintenance Expense Accounts,
Account 845.6B, the words ``Mcf or Bth, as appropriate,'' are removed
and the word ``Dth'' is added in their place.
68. In Part 201, Operation and Maintenance Expense Accounts,
Account 850, paragraph B and the Items (Nonmajor only) section are
removed, and in paragraph A, the designation ``A.'' and the words ``For
Major companies, this'' are removed and the word ``This'' is added in
their place.
69. In Part 201, Operation and Maintenance Expense Accounts,
Accounts 853.1B and 854B, the word ``Mcf'' is removed and the word
``Dth'' is added in its place.
70. In Part 201, Operation and Maintenance Expense Accounts,
Account 858B, the word ``Mcf'' is removed in two places and the word
``Dth'' is added in its place.
71. In Part 201, Operation and Maintenance Expense Accounts,
Account 870, the words ``(Major only)'' are removed, and the words
``For Major companies, see'' are removed, and in their place the word
``See'' is added.
72. In Part 201, Operation and Maintenance Expense Accounts,
Account 874, Items, the words ``(Major only)'' in the heading ``Labor''
are removed, the heading ``Labor (Nonmajor only):'' and Items 1 through
3 under that heading are removed, the words ``(Major and Nonmajor):''
in the heading ``Materials and Expenses'' are removed, and the words
``(Major only)'' are removed from Items 2, and 8 through 12 under that
heading.
73. In Part 201, Operation and Maintenance Expense Accounts,
Account 878, Items, the words ``(Major only)'' are removed at the end
of each Item 1 through 12 and 20.
74. In Part 201, Operation and Maintenance Expense Accounts,
Account 879, Items, the words ``(Major only)'' are removed at the end
of Items 1, 2, 4, 5, 6, 9, and 11 through 13.
75. In Part 201, Operation and Maintenance Expense Accounts,
Account 902, Items, Items 13 and 14 are removed, and a new Item 13 is
added to read as follows:
902 Meter reading expenses
* * * * *
13. Transportation, meals and incidental expenses.
76. In Part 201, Operation and Maintenance Expense Accounts,
Account 903, the words ``(Major only)'' at the end of Item 26 are
removed, and Items 31 and 32 are removed.
77. In Part 201, Operation and Maintenance Expense Accounts,
Account 924, the words ``For Major companies, it'' are removed from
paragraph A and the word ``It'' is added in their place, the words
``(stores expenses in the case of Nonmajor companies)'' are removed
from paragraph (1) of Note B, in paragraph (2) of Note B, the words
``For Major companies, transportation'' are removed and the word
``Transportation'' is added in their place, and the words ``For
Nonmajor companies, transportation and garage equipment, to account
933, Transportation expenses.'' are removed, and the words ``(Major
only)'' are removed from the title of Note C.
78. In Part 201, Operation and Maintenance Expense Accounts,
Account 925A, the words ``For Major Companies, it'' are removed and the
word ``It'' is added in their place.
79. In Part 201, Operation and Maintenance Expense Accounts,
Account 926D, the words ``For Major companies, records'' are removed
and the word ``Records'' is added in their place.
80. In Part 201, Operation and Maintenance Expense Accounts,
Account 930.2, Item 4, the words ``For Major Companies, research'' are
removed and the word ``Research'' is added in their place, and the
words ``For Nonmajor companies, experimental and general research work
for the industry.'' are removed.
81. In Part 201, Operation and Maintenance Expense Accounts,
Account 935 is redesignated Account 932, and redesignated Account 932
is amended by removing the words ``For Nonmajor companies, include also
other general equipment accounts (not including transportation
equipment).'' in paragraph A, revising paragraph B after the words
``the following accounts:'' and adding the Note to read as follows:
932 Maintenance of general plant.
* * * * *
B. * * *
Manufactured Gas Production, accounts 708, 742.
Natural Gas Production and Gathering, account 769
Natural Gas Production Extraction, account 791
Underground Storage, account 837
Local Storage, account 846.2
Transmission Expenses, account 867
Distribution Expenses, account 894
Merchandising and Jobbing, account 416
Garage, Shops, etc.--appropriate clearing account, if used.
Note: Maintenance of plant included in other general plant
equipment accounts shall be included herein unless charged to
clearing accounts or to a particular functional maintenance expense
indicated by the use of the equipment.
PART 250--FORMS
82. The authority citation for part 250 continues to read as
follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.
83. Section 250.2 is revised to read as follows:
Sec. 250.2 Form of proposed cancellation of tariff or part thereof
(see Sec. 154.602 of this chapter).
When cancelling an entire tariff or an entire rate schedule, the
notice of cancellation as set forth below must be filed as a revised
tariff sheet superseding the first tariff sheet in the sequence of
tariff sheets containing the tariff or part of the tariff being
cancelled. When cancelling an individual tariff sheet, the tariff sheet
should be designated as reserved for future use.
Cancellation of Entire Tariff
Notice is hereby given that effective ________________(date)
FERC Gas Tariff of ______________ (Name of Company) is to be
cancelled.
Cancellation of Rate Schedule
Notice is hereby given that effective ______________(date) Rate
Schedule ______________ constituting ______________ Sheet(s) No.(s)
____________ of the FERC Gas Tariff of ______________ (Name of
Company) is to be cancelled.
84. Section 250.3 is revised to read as follows:
Sec. 250.3 Form of proposed cancellation or termination of contract or
part thereof (see Sec. 154.602 of this chapter).
Notice is hereby given that effective the ________ day of
____________, __________, the contract with ______________, (Name of
customer or customers) dated ______________ and relating to service
under rate schedules(s) ________________ (Here identify the rate
schedule(s), giving sheet numbers in the Tariff) is to be
________________ (Specify whether it automatically terminates by its
terms or is to be canceled by action of the parties) ______________
(Name of natural-gas company filing notice)
By---------------------------------------------------------------------
----------------------------------------------------------------------
(Title)
Dated------------------------------------------------------------------
[[Page 3165]] 85. Section 250.4 is revised to read as follows:
Sec. 250.4 Form of certificate of adoption (see Sec. 154.603 of this
chapter).
The------------------------------------------------------------------
(Exact name of company or person) ______________________ (Address)
effective ____________ (Effective date of adoption) hereby adopts,
ratifies, and makes its own, in every respect, the Tariff and
contracts listed below, which have heretofore been filed with the
Federal Energy Regulatory Commission by ______________ (Exact name
of predecessor) __________________ (Here identify the Tariff and
contracts adopted.)
----------------------------------------------------------------------
(Name of successor)
By---------------------------------------------------------------------
----------------------------------------------------------------------
(Title)
Dated------------------------------------------------------------------
Sec. 250.16 [Amended]
86. In Sec. 250.16, paragraph (d) is removed, and paragraph (e) is
redesignated as paragraph (d).
Secs. 250.5, 250.7, 250.8, 250.9, 250.10, 250.12, and 250.14 [Removed]
87. Sections 250.5, 250.7, 250.8, 250.9, 250.10, 250.12, and 250.14
are removed and reserved.
PART 260--STATEMENTS AND REPORTS (SCHEDULES)
88. The authority citation for part 260 continues to read as
follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.
89. In Sec. 260.1, paragraph (a) is amended by adding a heading,
and paragraph (b) is revised to read as follows:
Sec. 260.1 FERC Form No. 2, Annual report for Major natural gas
companies.
(a) Prescription. * * *
(b) Filing requirements. Each natural gas company, as defined in
the Natural Gas Act (15 U.S.C. 717, et seq.) which is a major company
(a natural gas company whose combined gas transported or stored for a
fee exceeded 50 million Dth in each of the three previous calendar
years) must prepare and file with the Commission for the calendar year
beginning January 1, 1995, and for each calendar year thereafter, on or
before April 30 following the close of such calendar year, FERC Form
No. 2. Newly established entities must use projected data to determine
whether FERC Form No. 2 must be filed. The form must be filed
electronically as indicated in the general instructions set out in that
form. The format for the electronic filing can be obtained at the
Federal Energy Regulatory Commission, Division of Public Information,
941 North Capitol Street, N.E., Washington, D.C. 20426. One copy of the
report must be retained by the respondent in its files. The conformed
copies may be by any legible means of reproduction.
90. In Sec. 260.2, paragraph (b) is revised to read as follows:
Sec. 260.2 FERC Form No. 2-A, Annual report for nonmajor natural gas
companies.
* * * * *
(b) Filing requirements. Each natural gas company, as defined by
the Natural Gas Act, not meeting the filing threshold for FERC Form No.
2, but having total gas sales or volume transactions exceeding 200,000
Dth in each of the three previous calendar years, must prepare and file
with the Commission for the calendar year beginning January 1, 1995,
and for each calendar year thereafter, on or before March 31 following
the close of such calendar year, FERC Form No. 2-A. Newly established
entities must use projected data to determine whether FERC Form No. 2-A
must be filed. The form must be filed electronically as indicated in
the general instructions set out in that form. The format for the
electronic filing can be obtained at the Federal Energy Regulatory
Commission, Division of Public Information, 941 North Capitol Street,
N.E., Washington, D.C. 20426.
91. In Sec. 260.3, paragraph (b)(1) is revised to read as follows:
Sec. 260.3 FERC Form No. 11, Natural gas pipeline company monthly
statement.
* * * * *
(b)(1) Who must file. Each natural gas company, as defined in the
Natural Gas Act, whose combined gas sold for resale and gas transported
or stored for a fee exceeded 50 million Dth in the previous calendar
year, must prepare and file with the Commission FERC Form No. 11. The
form must be filed electronically. The format for the electronic filing
can be obtained at the Federal Energy Regulatory Commission, Division
of Public Information, 941 North Capitol Street, NE., Washington, DC.
20426.
* * * * *
92. Sec. 260.4 is revised to read as follows:
Sec. 260.4 Form No. 14, Annual report for importers and exporters of
natural gas.
(a) The form of the annual report for importers and exporters of
natural gas is prescribed for the calendar year ending December 31,
1972, and thereafter, and is designated as FERC Form No. 14.
(b) Each person having authorization from the Federal Energy
Regulatory Commission pursuant to section 3 of the Natural Gas Act, to
import or export natural gas must, beginning with the reporting year
1972, and thereafter annually, filed on or before March 31, Form No.
14. The form must be submitted in the manner prescribed in
Sec. 285.2011 of this chapter.
93. In Sec. 260.9, the introductory text of paragraph (b), and
paragraphs (c) and (e) are revised to read as follows:
Sec. 260.9 Report by natural gas pipeline companies on service
interruptions occurring on the pipeline system.
* * * * *
(b) Natural gas pipeline companies must report such interruptions
to service by any electronic means, including facsimile transmission or
telegraph, to the Director, Division of Environmental and Engineering
Review, Office of Pipeline Regulation, Federal Energy Regulatory
Commission, 825 North Capitol Street NE., Washington, DC 20426 (FAX:
(202) 208-2853), at the earliest feasible time following such
interruption to service, and must state briefly:
* * * * *
(c) If so directed by the Commission or the Director, Division of
Environmental and Engineering Review, the company must provide any
supplemental information so as to provide a full report of the
circumstances surrounding the occurrence.
* * * * *
(e) Copies of the telegraphic or facsimile report on interruption
of service must be sent to the State commission in those States where
service has been or might be affected.
94. In Sec. 260.11, paragraph (a) is revised to read as follows:
Sec. 260.11 Form No. 8, Underground gas storage report.
(a) The Form of Underground Gas Storage Report as FERC Form No. 8,
is prescribed.
* * * * *
Secs. 260.13 and 260.15 [Removed]
95. Sections 260.13 and 260.15 are removed and reserved.
PART 284--CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE
NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES
96. The authority citation for part 284 continues to read as
follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7201-7352;
43 U.S.C. 1331-1356. [[Page 3166]]
Subpart A--General Provisions and Conditions
Sec. 284.3 [Amended]
97. In Sec. 284.3(a), the words ``, sale or assignment'' are
removed and the words ``or sale'' are added in their place.
98. In Sec. 284.7, paragraph (b) is removed, paragraphs (c) and (d)
are redesignated (b) and (c), respectively, redesignated paragraph
(c)(5)(iv) is removed, and a new paragraph (c)(6) is added to read as
follows:
Sec. 284.7 Rates.
* * * * *
(c) Rate design. * * *
(6) Discount reports.
(i) A pipeline that provides either firm or interruptible
transportation service at a discounted rate must file within 15 days of
the close of the billing period a report containing the following
information:
(A) The name of the shipper being provided the discount (including
a designation whether the shipper is a local distribution company, an
interstate pipeline, an intrastate pipeline, an end-user, a producer, a
marketer, or a pipeline sales operating unit), and for discounts of
firm transportation, the shipper's contract number;
(B) Any affiliate relationship between the pipeline and the shipper
and the affiliate's role in the transportation transaction (i.e.,
shipper, marketer, supplier, seller);
(C) The maximum rate or fee;
(D) The rate or fee actually charged during the billing period;
(E) For discounted interruptible service, the quantity of gas
delivered during the billing period at the discounted rate and the zone
of delivery; and
(F) For discounted firm service, the contract demand for firm
service provided at the discounted rate.
(ii) The requirements of this section do not apply to discounts
relating to the release of capacity under Sec. 284.243, unless the
release is permanent.
(iii) The discount report information must be provided in
electronic format according to the specifications and format contained
in Form No. ________, which can be obtained at the Federal Energy
Regulatory Commission, Public Reference and Files Maintenance Branch,
941 North Capitol St., N.E., Washington, DC 20426. The discount
information with respect to each transaction, including the delivery
points used, must be maintained for three years from the date the
transaction commences.
99. In Sec. 284.8, paragraph (b)(4)(iii) is revised to read as
follows:
Sec. 284.8 Firm transportation service.
* * * * *
(b) * * *
(4) * * *
(iii) Purging of information on completed transactions from current
files,
* * * * *
Sec. 284.10 [Removed]
100. Section 284.10 is removed and reserved.
Sec. 284.14 [Removed]
101. Section 284.14 is removed and reserved.
Subpart B--Certain Transportation by Interstate Pipelines
102. Section 284.102(e) is revised to read as follows:
Sec. 284.102 Transportation by interstate pipelines.
* * * * *
(e) An interstate pipeline must obtain from its shippers
certifications including sufficient information to verify that their
services qualify under this section. Prior to commencing transportation
service described in paragraph (d)(3) of this section, an interstate
pipeline must receive the certification required from a local
distribution company or an intrastate pipeline pursuant to paragraph
(d)(3) of this section.
103. In Sec. 284.106, paragraph (a) is revised, paragraphs (b)
through (f) are removed, paragraph (g) is redesignated as paragraph
(b), the introductory text of redesignated paragraph (b) is revised,
and a new paragraph (c) is added to read as follows:
Sec. 284.106 Reporting requirements.
(a) Notice of bypass. An interstate pipeline that provides
transportation (except storage) under Sec. 284.102 to a customer that
is located in the service area of a local distribution company and will
not be delivering the customer's gas to that local distribution
company, must file with the Commission, within thirty days after
commencing such transportation, a statement that the interstate
pipeline has notified the local distribution company and the local
distribution company's appropriate regulatory agency in writing of the
proposed transportation prior to commencement.
(b) Semi-annual storage report. Within 30 days of the end of each
complete storage injection and withdrawal season, the interstate
pipeline must file with the Commission a report of storage activity
provided under the authority of either Sec. 284.102 or Sec. 284.223, as
applicable. The report must be signed under oath by a senior official,
consist of an original and five conformed copies, and contain a summary
of storage injection and withdrawal activities to include the
following:
* * * * *
(c) Index of customers. (1) Within 180 days of the effective date
of this paragraph, and each year thereafter on January 15, an
interstate pipeline must provide for electronic dissemination of an
index of all its firm transportation customers under contract as of the
preceding December 31.
(2) Until an interstate pipeline is in compliance with the
reporting requirements of this paragraph, the pipeline must comply with
the index of customer requirements applicable to transportation and
sales under Part 154, set forth under Sec. 154.111(b) and (c) of this
chapter.
(3) For each customer receiving firm transportation service, the
index must include the information listed below in paragraphs (c)(3)(i)
through (x) of this section. For each customer receiving firm storage
service, the index must include the information in paragraphs (c)(3)(i)
through (vi) and (c)(3)(x) through (xiii) of this section.
(i) The legal name of the customer;
(ii) The DUNS number for the customer;
(iii) The unique contract number;
(iv) Rate schedule;
(v) Contract start date;
(vi) Contract end date;
(vii) Contract quantity, or if applicable, the contract quantity
associated with each zone, or other rate subdivision of the pipeline,
created in a proceeding before the Commission;
(viii) Receipt points and associated Maximum Daily Quantities (MDQ)
and any restrictions or limitations on the use of points;
(ix) Delivery points and associated Maximum Daily Quantities (MDQ)
and any restrictions or limitations on the use of points;
(x) Source of authorization (i.e., Subpart B of this part
implementing Section 311 of the NGPA; Subpart G of this part
implementing Section 7(c) of the NGA; or Part 157 of this chapter
implementing section 7(c) of the NGA);
(xi) Maximum Storage Quantity;
(xii) Maximum Daily Injection Quantity;
(xiii) Maximum Daily Withdrawal Quantity.
(4) During the year, between the annual restatements provided on
January 15, the interstate pipeline must provide updates detailing all
changes or [[Page 3167]] additions to the index prepared under
paragraph (c)(1) of this section occurring during a calendar month. The
updates for each month must be provided by the 15th of the next month.
The updates must reflect only the new or modified contracts without
restating the entire index.
(5) The information included in the annual index and each monthly
update must be available until the next year's annual index is
established. The electronic files must be archived for at least three
years.
(6) The requirements of this section do not apply to contracts
which relate solely to the release of capacity under Sec. 284.243,
unless the release is permanent.
(7) The requirements for the electronic index can be obtained at
the Federal Energy Regulatory Commission, Division of Public
Information, 825 North Capitol Street, NE., Washington DC 20426.
Subpart C--Certain Transportation by Intrastate Pipelines
Sec. 284.122 [Amended]
104. In Sec. 284.122, paragraph (e) is removed.
105. In Sec. 284.123, paragraph (e) is revised to read as follows:
Sec. 284.123 Rates and charges.
* * * * *
(e) Filing requirements. Within 30 days of commencement of new
service, any intrastate pipeline that engages in transportation
arrangements under this subpart must file with the Commission a
statement that describes how the pipeline will engage in these
transportation arrangements, including operating conditions, such as,
quality standards and financial viability of the shipper. The statement
must also include the rate election made by the intrastate pipeline
pursuant to paragraph (b) of this section. If the pipeline changes its
operations or rate election under this subpart, it must amend the
statement and file such amendments not later than 30 days after
commencement of the change in operations or the change in rate
election.
106. In Sec. 284.126, paragraph (a) is revised, paragraphs (b),
(e), and (f) are removed, paragraphs (c) and (g) are redesignated (b),
and (c), respectively, and redesignated paragraph (b) is revised to
read as follows:
Sec. 284.126 Reporting Requirements
(a) Notice of bypass. An intrastate pipeline that provides
transportation (except storage) under Sec. 284.122 to a customer that
is located in the service area of a local distribution company and will
not be delivering the customer's gas to that local distribution
company, must file with the Commission within thirty days after
commencing such transportation, a statement that the interstate
pipeline has notified the local distribution and the local distribution
company's appropriate state regulatory agency in writing of the
proposed transportation prior to commencement.
(b) Annual report. Not later than March 1 of each year, each
intrastate pipeline must file an annual report with the Commission and
the appropriate state regulatory agency that contains, for each
transportation service (except storage) provided during the preceding
calendar year under Sec. 284.122, the following information:
(1) The name of the shipper receiving the transportation service;
(2) The type of service performed (i.e. firm or interruptible);
(3) Total volumes transported for the shipper. If it is firm
service, the report should separately state reservation and usage
quantities; and
(4) Total revenues received for the shipper. If it is firm service,
the report should separately state reservation and usage revenues.
* * * * *
Subpart D--Certain Sales by Intrastate Pipelines
107. Section 284.142 is revised to read as follows:
Sec. 284.142 Sales by intrastate pipelines.
Any intrastate pipeline may, without prior Commission approval,
sell natural gas to any interstate pipeline or any local distribution
company served by an interstate pipeline. The rates charged by an
intrastate pipeline pursuant to this subpart may not exceed the price
for gas as negotiated in the contract, plus a fair and equitable
transportation rate as determined in accordance with Sec. 284.123.
Sec. Sec. 284.143 and 284.148 [Removed]
108. Sections 284.143 through 284.148 are removed and reserved.
Subpart E--Assignment of Contractual Rights to Receive Surplus
Natural Gas
Subpart E--[Removed]
109. Subpart E is removed and reserved.
Subpart G--Blanket Certificates Authorizing Certain Transportation
by Interstate Pipelines on Behalf of Others and Services by Local
Distribution Companies
110. In Sec. 284.221, the introductory text of paragraph (b)(1) is
revised to read as follows:
Sec. 284.221 General rule; transportation by interstate pipelines on
behalf of others.
* * * * *
(b) Application procedure. (1) An application for a blanket
certificate under this section must be filed electronically. The format
for the electronic application filing can be obtained at the Federal
Energy Regulatory Commission, Division of Public Information, 941 North
Capitol Street, N.E., Washington, D.C. 20426, and must include:
* * * * *
Sec. 284.222 [Removed]
111. Section 284.222 is removed and reserved.
112. In Sec. 284.223, the section heading is revised, paragraphs
(b) through (f) are removed, and a new paragraph (b) is added to read
as follows:
Sec. 284.223 Transportation by interstate pipelines on behalf of
shippers.
* * * * *
(b) Reporting requirements. Any interstate pipeline transporting
gas under this section must comply with each of the reporting
requirements specified in Sec. 284.106.
113. In Sec. 284.224, the heading, paragraphs (b)(3), (c)
introductory text, (d)(1), (e)(1), and (g) are revised, paragraph
(e)(5)(i) is redesignated as paragraph (e)(5) and paragraph (e)(5)(ii)
is removed to read as follows:
Sec. 284.224 Certain transportation and sales by local distribution
companies.
* * * * *
(b) Blanket certificate-- * * *
(3) The Commission will grant a blanket certificate to such local
distribution company or Hinshaw pipeline under this section, if
required by the present or future public convenience and necessity.
Such certificate will authorize the local distribution company to
engage in the sale or transportation of natural gas that is subject to
the Commission's jurisdiction under the Natural Gas Act, to the same
extent that and in the same manner that intrastate pipelines are
authorized to engage in such activities by subparts C and D of this
part, except as otherwise provided in paragraph (e)(2) of this section.
[[Page 3168]]
(c) Application procedure. Applications for blanket certificates
must be accompanied by the fee prescribed in Sec. 381.207 of this
chapter or a petition for waiver pursuant to Sec. 381.106 of this
chapter, and shall state:
* * * * *
(d) Effect of certificate. (1) Any certificate granted under this
section will authorize the certificate holder to engage in transactions
of the type authorized by subparts C and D of this part.
* * * * *
(e) General conditions. (1) Except as provided in paragraph (e)(2)
of this section, any transaction authorized under a blanket certificate
is subject to the same rates and charges, terms and conditions, and
reporting requirements that apply to a transaction authorized for an
intrastate pipeline under subparts C and D of this part.
* * * * *
(g) Hinshaw pipeline without blanket certificate. A Hinshaw
pipeline that does not obtain a blanket certificate under this section
is not authorized to sell or transport natural gas as an intrastate
pipeline under subparts C and D of this part.
* * * * *
114. Sections 284.225 and 284.226 are removed and reserved.
115. In Sec. 284.227, paragraph (d) is removed, and paragraphs (e),
(f), and (g) are redesignated (d), (e), and (f).
Subpart J--Blanket Certificates Authorizing Certain Natural Gas
Sales by Interstate Pipelines
Sec. 284.288 [Removed]
116. Section 284.288 is removed and reserved.
Subpart L--Certain Sales for Resale by Non-interstate Pipelines
117. In Sec. 284.402, paragraph (c)(1) is revised to read as
follows and in the first sentence of paragraph (c)(2) the word
``criteria'' in paragraph (c)(2) is removed, and the word ``criterion''
is added in its place:
Sec. 284.402 Blanket marketing certificates.
* * * * *
(c)(1) The authorization granted in paragraph (a) of this section
will become effective for an affiliated marketer with respect to
transactions involving affiliated pipelines when an affiliated pipeline
receives its blanket certificate pursuant to Sec. 284.284.
* * * * * *
[FR Doc. 95-653 Filed 1-12-95; 8:45 am]
BILLING CODE 6717-01-P
