141 FERC ¶ 61,035

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 154

[Docket No. RM12-14-000]

Annual Charge Filing Procedures for Natural Gas Pipelines

(Issued October 18, 2012)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of Proposed Rulemaking.

SUMMARY: The Federal Energy Regulatory Commission (Commission or FERC) is

proposing to amend its regulations at 18 C.F.R. 154.402 to revise the filing requirements 

for natural gas pipelines that choose to recover Commission-assessed annual charges 

through an annual charge adjustment (ACA) clause. Currently, natural gas pipelines 

utilizing an ACA clause must make a tariff filing to reflect a revised ACA unit charge 

authorized by the Commission for that fiscal year. In order to reduce the regulatory 

burden on these pipelines, the Commission proposes to eliminate this annual filing 

requirement. In its place, the Commission proposes to require natural gas pipelines 

utilizing an ACA clause to incorporate the Commission-authorized annual charge unit 

rate by reference to that rate, as published on the Commission’s website located at 

http://www.ferc.gov. 
Docket No. RM12-14-000 ii

DATES: Comments are due [insert date 30 days after publication in the FEDERAL 

REGISTER]

ADDRESSES: Comments, identified by docket number, may be filed in the following 

ways: 

 Electronic Filing through http://www.ferc.gov. Documents created electronically 

using word processing software should be filed in native applications or print-toPDF format and not in a scanned format.

 Mail/Hand Delivery: Those unable to file electronically may mail or hand-deliver 

comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street, NE, Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

Adam Bednarczyk (Technical Issues)

888 First Street, NE

Washington, DC 20426 

(202) 502- 6444

Adam.Bednarczyk@ferc.gov

Michelle A. Davis (Legal Issues)

888 First Street, NE

Washington, DC 20426

(202) 502-8687

Michelle.Davis2@ferc.gov
141 FERC ¶ 61,035

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Annual Charge Filing Procedures for Natural

 Gas Pipelines

Docket No. RM12-14-000

NOTICE OF PROPOSED RULEMAKING

(Issued October 18, 2012)

1. The Federal Energy Regulatory Commission (Commission or FERC) is proposing 

to amend its regulations at 18 C.F.R. 154.402 to revise the filing requirements for natural 

gas pipelines that choose to recover Commission-assessed annual charges through an

annual charge adjustment (ACA) clause. Currently, natural gas pipelines utilizing an 

ACA clause must make a tariff filing to reflect a revised ACA unit charge authorized by 

the Commission for that fiscal year. In order to reduce the regulatory burden on these 

pipelines, the Commission proposes to eliminate this annual filing requirement. In its 

place, the Commission proposes to require natural gas pipelines utilizing an ACA clause 

to incorporate the Commission-authorized annual charge unit rate by reference to that 

rate, as published on the Commission’s website located at http://www.ferc.gov. 

I. Background

2. The Commission is required to “assess and collect fees and annual charges in any 

fiscal year in amounts equal to all of the costs incurred by the Commission in that fiscal 
Docket No. RM12-14-000 - 2 -

year.”1 To accomplish this, the Commission created the annual charges program, which 

is designed to recover the costs of administering the natural gas, oil, and electric 

programs by calculating the costs of each program, net of filing fees, and properly 

allocating them among the three programs.2 This proceeding applies only to the recovery 

of annual charges assessed to entities in the natural gas program.

3. The provisions governing the assessment of annual charges are codified in 

Part 382 of the Commission’s regulations.3 In brief, after the Commission calculates the 

costs of administering the natural gas regulatory program,4it assesses those costs to

natural gas pipeline companies (Pipelines).5 Each Pipeline is assessed a proportional 

 

1

See Omnibus Budget Reconciliation Act, Pub. L. No. 99-509, Title III, Subtitle E, 

§ 3401, 1986 U.S. Code Cong. & Ad. News (100 Stat.) 1874, 1890-91 (codified at 

42 U.S.C. 7178 (2012)). 

2

Annual Charges Under the Omnibus Budget Reconciliation Act of 1986, Order 

No. 472, FERC Stats & Regs. ¶ 30,746, clarified by, Order No. 472-A, FERC Stats. & 

Regs. ¶ 30,750, order on reh’g, Order No. 472-B, FERC Stats. & Regs. ¶ 30,767 (1987), 

order on reh’g, Order No. 472-C, 42 FERC ¶ 61,013 (1988).

3

18 C.F.R. 382 (2012). 

4

Id. at 382.102(d) (defining the “natural gas regulatory program” as the 

Commission’s regulation of the natural gas industry under the Natural Gas Act; Natural 

Gas Policy Act of 1978; Alaska Natural Gas Transportation Act; Public Utility 

Regulatory Policies Act; Department of Energy Organization Act; Outer Continental 

Shelf Lands Act; Energy Security Act; Regulatory Flexibility Act; Crude Oil Windfall 

Profit Tax Act; National Environmental Policy Act; National Historic Preservation Act).

5

For the purposes of this proceeding, we use the term natural gas pipeline 

company (Pipeline) as it is defined in 18 C.F.R. 382.101(a) (2012): “any person: 

(1) Engaged in natural gas sales for resale or natural gas transportation subject to the 

jurisdiction of the Commission under the Natural Gas Act whose sales for resale and 

(continued...)
Docket No. RM12-14-000 - 3 -

share of the Commission’s costs of administering the natural gas program. That 

proportional share is based on the following:

the proportion of the total gas subject to Commission 

regulation which was sold and transported by each company 

in the immediately preceding calendar year to the sum of the 

gas subject to the Commission regulation which was sold and 

transported in the immediately preceding calendar year by all 

natural gas pipeline companies being assessed annual 

charges.

6

 

For example, if a Pipeline sold and transported 10 percent of the total gas subject to the 

Commission’s regulations, that Pipeline would be assessed 10 percent of the costs of the 

natural gas regulatory program in the form of an annual charge. 

4. Pipelines are entitled to recover these annual charges from their customers, and 

they have two options for doing so. First, upon Commission approval, a Pipeline may 

adjust its rates annually to recover the annual charges through an ACA clause.7 Second, 

a Pipeline may seek to recover its annual charges through its general transportation rates.

8

 

 

transportation exceed 200,000 Mcf at 14.73 psi (60oF) in any of the three calendar years 

immediately preceding the fiscal year for which the Commission is assessing annual 

charges; and (2) Not engaged solely in “first sales” of natural gas as that term is defined 

in section 2(21) of the Natural Gas Policy Act of 1978; and (3) To whom the Commission 

has not issued a Natural Gas Act Section 7(f) declaration; and (4) Not holding a limited 

jurisdiction certificate.” 

6

18 C.F.R. 382.202 (2012).

7

Id. at 154.402.

8 Order No. 472, FERC Stats. & Regs. ¶ 30,746 at 30,629.
Docket No. RM12-14-000 - 4 -

This proceeding proposes to modify only the first method, i.e., recovery of annual 

charges through an ACA clause, as it is widely used among Pipelines. 

5. Order No. 472 recognized that although the Commission generally disfavors the 

use of tracking mechanisms, it is appropriate that Pipelines be permitted to pass through 

these annual charges directly to customers.9 Accordingly, the Commission provided 

Pipelines an option of passing along the annual charges to customers through a surcharge 

to their transportation rates reflected in the ACA clause.10 The Commission’s 

requirements for Pipelines that choose to utilize an ACA clause are codified in section 

154.402 of the Commission’s regulations.

11

The ACA clause must be filed with the Commission and 

indicate the amount of annual charges to be flowed through 

per unit of energy sold or transported (ACA unit charge). 

The ACA unit charge will be specified by the Commission at 

the time the Commission calculates the annual charge bills. 

A company must reflect the ACA unit charge in each of its 

rate schedules applicable to sales or transportation deliveries. 

The company must apply the ACA unit charge to the usage 

component of rate schedules with two-part rates. A company 

may recover annual charges through an ACA unit charge only 

if its rates do not otherwise reflect the costs of annual charges 

assessed by the Commission under § 382.106(a) of this 

chapter. The applicable annual charge, required by § 382.103 

of this chapter, must be paid before the company applies the 

ACA unit charge.12

 

9

Id.

10 Id.

11 18 C.F.R. 154.402 (2012).

12 Id. at 154.402(a).
Docket No. RM12-14-000 - 5 -

6. Pipelines that seek to recover annual charges through an ACA clause must file a

tariff record containing the following:

(1) A statement that the company is collecting an ACA per 

unit charge, as approved by the Commission, applicable to all 

the pipeline’s sales and transportation rate schedules, (2) The 

per unit charge of the ACA, (3) The proposed effective date 

of the tariff change (30 days after the filing of the tariff sheet 

or section, unless a shorter period is specifically requested in 

a waiver petition and approved), and (4) A statement that the 

pipeline will not recover any annual charges recorded in 

FERC Account 928 in a proceeding under subpart D of [part 

154 of the Commission’s regulations].

13

Additionally, the Commission requires these Pipelines to file revised tariff records to 

reflect changes to the ACA unit charge authorized by the Commission each fiscal year.

14

7. Each year the Commission sets the ACA unit charge for the natural gas program in 

July.15 Pipelines that wish to begin collecting the ACA unit charge on the first day of the 

fiscal year are required to file revised tariff records reflecting changes in the ACA unit 

charge by September 1 of each year, to be effective October 1 of that year.16 So long as 

 

13 Id. at 154.402(b).

14 Id. at 154.402(c).

15 The Commission publishes this change via a notice entitled, “FY [Year] Gas 

Annual Charges Correction for Annual Charges Unit Charge,” which is available on the 

Commission’s website, located at http://www.ferc.gov.

16 See id. at 382.102(i) (defining “fiscal year” as the twelve-month period that 

begins on the first day of October and ends on the last day of September); see also id. at 

154.402(b)(3) (requiring the proposed effective date of the tariff change revising the 

ACA unit charge to be 30 days after the date the change is filed, unless a shorter period is 

specifically requested in a waiver petition and approved).
Docket No. RM12-14-000 - 6 -

the Pipeline has paid its annual charge to the Commission, the Commission will accept 

the tariff records, and they will go into effect on October 1. To the extent that the ACA 

unit charge remains the same from one year to the next, existing Pipelines that already 

reflect that ACA unit charge in their tariffs need not make a filing for that year. This 

annual process is designed to ensure that Pipelines collect charges for the entire fiscal 

year, as defined in Part 382 of the Commission’s regulations.

8. In 2011, the Commission received 134 filings to reflect the annual change in the 

ACA unit charge. In years in which the ACA unit charge does not change, there are 

fewer filings. However, some Pipelines, such as those that have recently gone into 

service and have been billed an annual charge, are still permitted to submit a filing to the 

Commission in order to pass along the annual charge to their customers.

II. Discussion

9. In an effort to reduce the regulatory burden associated with annual tariff filings to 

reflect the current year’s ACA unit charge, the Commission proposes to eliminate the 

annual filing requirement for Pipelines utilizing an ACA clause. In its place, the 

Commission proposes to require Pipelines utilizing an ACA clause to incorporate the 

Commission-authorized ACA unit rate by reference to that rate, as published on the 

Commission’s website. Accordingly, Pipelines that wish to continue utilizing an 

ACA clause would be required to make a one-time tariff revision that incorporates the 
Docket No. RM12-14-000 - 7 -

ACA unit charge published on the Commission’s website into the Pipeline’s tariff as the 

ACA unit charge for the relevant fiscal year.17

10. In proposing this change, the Commission is aware that in addition to the basic 

statutory requirement that all rates and charges be on file with the Commission,18 the 

filing requirements associated with the annual revisions to the ACA unit charge serve 

important practical functions. First, the annual tariff filing (and the Commission’s 

acceptance of that filing) establishes an effective date upon which the Pipeline is entitled 

to begin collecting that fiscal year’s ACA unit charge. Second, the annual filing provides 

the Commission with an opportunity to ensure that the Pipeline has actually paid the 

annual charge that it seeks to recover from customers.19 

11. Because the annual filing requirement would be eliminated under the proposed 

reform and no longer serve these functions, the Commission’s proposal is designed to 

replicate them. Accordingly, the Commission proposes to require Pipelines utilizing an 

ACA clause to incorporate by reference into their tariffs the ACA unit charge specified in 

the annual notice issued by the Commission entitled “FY [Year] Gas Annual Charges 

Correction for Annual Charges Unit Charge.” This ACA unit charge shall be effective on 

 

17 See id. at 382.102(i) (defining “fiscal year” as the twelve-month period that 

begins on the first day of October and ends on the last day of September).

18 15 U.S.C. 717c (2006).

19 Order No. 472, FERC Stats. & Regs. ¶ 30,746 at 30,629-30 (explaining that 

Pipelines may only collect those annual charges that they have already paid to the 

Commission).
Docket No. RM12-14-000 - 8 -

the first day of October following issuance of this notice and shall extend to the last day 

of September the following year (i.e., the duration of the fiscal year). However, the 

ACA unit charge shall only be incorporated by reference into the Pipeline’s tariff, and 

thereby assessed to shippers, if the Pipeline has paid its annual assessment, as reflected 

on a new notice, entitled “Payment Status of Pipeline Billings – FY [Year],” that the 

Commission will issue each year. This notice will identify the Pipelines that have been 

assessed annual charges for a fiscal year and indicate whether they have paid their bills 

and are, therefore, authorized to recover the ACA unit charge from shippers. The 

Commission will issue the “Payment Status of Pipeline Billings – FY [Year]” notice on 

the last business day of the fiscal year, and provide updates as necessary. All of the 

documents can be found on the Annual Charges page of the Natural Gas section of the 

Commission’s website, located at http://www.ferc.gov.

12. We emphasize that the only thing changed by this Proposed Rule is the filing 

requirement for those Pipelines that utilize an ACA clause. This Proposed Rule does not 

prevent Pipelines from continuing to recover annual charges assessed by the Commission 

through their transportation rates, as established in a general rate case. Nor does this 

Proposed Rule modify how the Commission calculates the costs of the natural gas 

regulatory program or how the ACA unit charge is calculated or assessed. 

13. We are taking this action as part of our commitment to continually review our 

regulations and eliminate those requirements that impose an unnecessary burden on 

regulated entities. We find that our proposal to have Pipelines incorporate the ACA unit 

charge by reference to the notices published on the Commission’s website will retain all 
Docket No. RM12-14-000 - 9 -

of the transparency and consumer safeguards embodied in the Commission’s existing 

regulations. However, it will eliminate approximately 145 filings each year, thereby 

reducing the regulatory burden on the Pipelines and the Commission.

III. Compliance 

14. The Commission proposes that Pipelines be required to implement the proposed 

changes in time for the 2014 fiscal year. Accordingly, the Commission proposes to 

require Pipelines utilizing an ACA clause to make a one-time compliance filing revising 

their tariffs to incorporate by reference the ACA unit charge published on the 

Commission’s website, as discussed above. In order to give Pipelines subject to these 

proposed modifications adequate time to implement these changes, this compliance filing 

will be due 30 days after the Final Rule is published in the Federal Register. Pipelines 

will be required to seek an effective date of October 1, 2013, for these compliance filings. 

IV. Information Collection Statement

15. The following collections of information contained in this proposed rule are being 

submitted to the Office of Management and Budget (OMB) for review under 

section 507(d) of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d). The 

Commission solicits comments on the Commission’s need for this information, whether 

the information will have practical utility, the accuracy of the provided burden estimates, 

ways to enhance the quality, utility, and clarity of the information to be collected, and any 

suggested methods for minimizing respondents’ burden, including the use of automated 

information techniques. The following burden estimates reflect the time necessary for 

respondents to update their tariffs according to this proposed rule, as well as the avoided 
Docket No. RM12-14-000 - 10 -

burden as respondents will no longer have to file ACA charge tariff adjustments. The 

Commission estimates it will require eight hours per company to make the one time tariff 

changes proposed in this rule. In each year, including the first, the Commission estimates 

that filers will see a two hour per year reduction in burden from no longer filing ACA 

charge tariff adjustments. The following shows the burden hour impact of the proposed 

rule. 

Number 

of 

Respon

dents

(A)

Number of 

Responses Per 

Respondent

(B)

Total Number 

of Responses

(A)*(B)=(C)

Average 

Burden 

Hours per 

Response

(D)

Estimated 

Total 

Annual 

Burden

(C)*(D)

Year 1 Onetime tariff 

changes and 

burden 

reduction

145 1 145

6 870

Year 2 

burden 

reduction 2 290

Year 3 

burden 

reduction 2 290

The average annual burden associated with this rule over three years is 97 hours 

(870 hours – 290 hours – 290 hours = 290 hours; 290 hours / 3 years = 96.67 hours/year). 

Accordingly, the Commission estimates that each respondent, on average, should 

experience a net reduction in burden (2 hours per year) starting with the fifth year and in 

each year thereafter.
Docket No. RM12-14-000 - 11 -

Information Collection Costs: The Commission seeks comments on the costs to comply 

with these requirements. It has projected the average cost for all respondents to be the 

following:20

 One-time total cost of $51,330 (870 hours * $59/hour)

 Avoided cost per year of $17,110 (290 hours * $59/hour)

Title: FERC-542, Gas Pipeline Rates: Rate Tracking

Action: One-time filing and reduced future filings

OMB Control Number: 1902-0070

Respondents: Natural Gas Pipelines

Frequency of Responses: One-time implementation and future reduction in number of 

responses. Responses are mandatory

Necessity of Information: The proposals in this Proposed Rule would, if implemented,

reduce the burden of interstate natural gas pipelines resulting from compliance with the 

Commission’s regulations. 

Internal Review: The Commission has reviewed the requirements pertaining to proposed 

modification of the Commission’s regulations and made a preliminary determination that 

the proposed revisions are necessary to reduce the burden imposed by the Commission on 

 

20 The cost figures are derived by multiplying the total hours to prepare a response 

(hours) by an hourly wage estimate of $59 (a composite estimate that includes legal, 

technical and support staff wages and benefits obtained from the Bureau of Labor 

Statistic data at http://bls.gov/oes/current/naics3_221000.htm and 

http://www.bls.gov/news.release/ecec.nr0.htm rates). 
Docket No. RM12-14-000 - 12 -

the natural gas industry. The Commission has assured itself, by means of its internal 

review, that there is specific, objective support for the burden estimates associated with 

the information requirements.

16. Interested persons may obtain information on the reporting requirements by 

contacting the following: Federal Energy Regulatory Commission, 888 First Street, NE, 

Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director, 

e-mail: DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].

17. Comments concerning the collection of information and the associated burden 

estimate, should be sent to the Commission in this docket and to the Office of 

Management and Budget, Office of Information and Regulatory Affairs, Washington, DC 

20503 [Attention: Desk Officer for the Federal Energy Regulatory Commission, 

telephone: (202) 395-4638, fax: (202) 395-4718].

V. Environmental Analysis

18. 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.21 The Commission has categorically excluded certain actions

from these requirements as not having a significant effect on the human environment.22 

The actions proposed here fall within categorical exclusions in the Commission’s 

 

21 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, FERC Stats. & Regs. ¶ 30,783 (1987).

22 18 C.F.R. 380.4.
Docket No. RM12-14-000 - 13 -

regulations for rules that are clarifying, corrective, or procedural, for information 

gathering, analysis, and dissemination, and for sales, exchange, and transportation of 

natural gas that requires no construction of facilities.23 Therefore, an environmental 

assessment is unnecessary and has not been prepared as part of this NOPR.

VI. Regulatory Flexibility Act

19. The Regulatory Flexibility Act of 1980 (RFA)24 generally requires a description 

and analysis of final rules that will have significant economic impact on a substantial 

number of small entities. The RFA mandates consideration of regulatory alternatives that 

accomplish the stated objectives of a proposed rule and that minimize any significant 

economic impact on a substantial number of small entities. The Small Business 

Administration’s (SBA) Office of Size Standards develops the numerical definition of a 

small business.25 The SBA has established a size standard for pipelines transporting 

natural gas, stating that a firm is small if its annual receipts are less than $25.5 million.

26

 

20. The regulations proposed here impose requirements only on interstate pipelines, 

the majority of which are not small businesses. Most companies regulated by the 

Commission do not fall within the RFA’s definition of a small entity. Approximately 

145 entities would be potential respondents subject to data collection FERC-545 

 

23 See 18 C.F.R. 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).

24 5 U.S.C. 601-612.

25 13 C.F.R. 121.101.

26 13 C.F.R. 121.201, subsection 486. 
Docket No. RM12-14-000 - 14 -

reporting requirements. Nearly all of these entities are large entities. For the year 2011 

(the most recent year for which information is available), only 15 companies not 

affiliated with larger companies had annual revenues of less than $25.5 million. 

Moreover, these requirements are designed to benefit all customers, including small 

businesses. The Commission estimates that the one-time cost per small entity is $354.27 

In the future, small entities should see a cost savings related to avoiding an annual ACA 

charge adjustment filing. The Commission does not consider the estimated $354 impact 

per entity to be significant. Accordingly, pursuant to § 605(b) of the RFA, the 

Commission certifies that this proposed rule should not have a significant economic

impact on a substantial number of small entities.

VII. Comment Procedures

21. The Commission invites interested persons to submit written comments on the 

proposed regulation modifications promulgated in this NOPR, as well as any related 

matters or alternative proposals that commenters may wish to discuss. Comments are due 

[insert date 30 days from publication in the FEDERAL REGISTER]. Comments must 

refer to Docket No. RM12-14-000, and must include the commenter’s name, the 

organization they represent, if applicable, and their address. Comments may be filed 

either in electronic or paper format.

 

27 This number is derived by multiplying the hourly figure (6) by the cost per hour 

($59). 6 hrs * $59/hr = $354
Docket No. RM12-14-000 - 15 -

22. The Commission encourages comments to be filed electronically via the eFiling 

link on the Commission's web site at http://www.ferc.gov. The Commission accepts 

most standard word processing formats. Documents created electronically using word 

processing software should be filed in native applications or print-to-PDF format and not 

in a scanned format. Commenters filing electronically do not need to make a paper 

filing.

23. Commenters that are not able to file comments electronically must send an 

original of their comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street NE, Washington, DC 20426.

24. All comments will be placed in the Commission’s public files and may be viewed, 

printed, or downloaded remotely as described in the Document Availability section 

below. Commenters on this proposal are not required to serve copies of their comments 

on other commenters.

VIII. Document Availability

25. In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through the Commission’s Home Page 

(http://www.ferc.gov) and in the Commission’s Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE, Room 2A, 

Washington DC 20426.

26. From the Commission’s Home Page on the Internet, this information is available 

on eLibrary. The full text of this document is available on eLibrary in PDF and 
Docket No. RM12-14-000 - 16 -

Microsoft Word format for viewing, printing, and/or downloading. To access this 

document in eLibrary, type the docket number excluding the last three digits of this 

document in the docket number field.

27. User assistance is available for eLibrary and the Commission’s website during 

normal business hours from the Commission’s Online Support at (202) 502-6652 (toll 

free at 1-866-208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference 

Room at (202) 502-8371, TTY (202) 502-8659. E-mail the Public Reference Room at 

public.referenceroom@ferc.gov.

List of subjects in 18 CFR Part 154

Natural gas, Pipelines, Reporting and recordkeeping requirements

By direction of the Commission.

( S E A L )

Nathaniel J. Davis, Sr.,

Deputy Secretary.
Docket No. RM12-14-000 - 17 -

In consideration of the foregoing, the Commission proposes to amend Part 154.402, 

Chapter I, Title 18, Code of Federal Regulations, as follows:

PART 154-RATE SCHEDULES AND TARIFFS 

1. The authority citation for part 154 continues to read as follows: 

Authority: 15 U.S.C. 717-717w; 31 U.S.C. 9701; 42 U.S.C. 7102-7352.

2. Revise section 154.402 to read as follows:

§ 154.402 ACA expenditures.

(a) Requirements. Upon approval by the Commission, a natural gas pipeline 

company may adjust its rates, annually, to recover from its customers annual charges 

assessed by the Commission under part 382 of this chapter pursuant to an annual charge 

adjustment clause (ACA clause). Prior to the start of each fiscal year, the Commission 

will post on its website the amount of annual charges to be flowed through per unit of 

energy sold or transported (ACA unit charge) for that fiscal year. A company’s ACA 

clause must be filed with the Commission and must incorporate by reference the ACA 

unit charge for the upcoming fiscal year as posted on the Commission’s website. A 

company must incorporate by reference the ACA unit charge posted on the 

Commission’s website in each of its rate schedules applicable to sales or transportation 

deliveries. The company must apply the ACA unit charge posted on the Commission’s 

website to the usage component of rate schedules with two-part rates. A company may 

recover annual charges through an ACA unit charge only if its rates do not otherwise 

reflect the costs of annual charges assessed by the Commission under §382.106(a) of this 

chapter. The applicable annual charge, required by §382.103 of this chapter, must be 
Docket No. RM12-14-000 - 18 -

paid before the company applies the ACA unit charge. Upon payment to the 

Commission of its annual charges, the ACA unit charge for that fiscal year will be 

incorporated by reference into the company’s tariff, effective throughout that fiscal year. 

(b) Application for Rate Treatment Authorization. A company seeking 

authorization to use an ACA unit charge must file with the Commission a separate ACA 

tariff record containing:

(1) A statement that the company is collecting an ACA unit charge, as calculated 

by the Commission, applicable to all the pipeline’s sales and transportation rate 

schedules,

(2) A statement that the ACA unit charge, as revised annually and posted on the 

Commission’s website, is incorporated by reference into the company’s tariff,

(3) For companies with existing ACA clauses, a proposed effective date of the 

tariff change of October 1, 2013; for companies seeking to utilize an ACA clause after 

October 1, 2013, a proposed effective date 30 days after the filing of the tariff record, 

unless a shorter period is specifically requested in a waiver petition and approved), and

(4) A statement that the pipeline will not recover any annual charges recorded in 

FERC Account 928 in a proceeding under subpart D of this part

* * * * *