120 FERC ¶ 61,256 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Parts 158 and 260 

(Docket No. RM07-9-000) 

Revisions to Forms, Statements, and Reporting 

Requirements for Natural Gas Pipelines 

(September 20, 2007) 

AGENCY: Federal Energy Regulatory Commission 

ACTION: Notice of Proposed Rulemaking 

SUMMARY: In this Notice of Proposed Rulemaking, the Federal Energy Regulatory 

Commission (Commission) proposes to amend its financial forms, statements, and reports 

for natural gas companies, contained in FERC Form Nos. 2, 2-A and 3-Q. The proposed 

revisions reflect the fact that in the present regulatory environment, where interstate 

natural gas pipelines are no longer required to file a triennial restatement of rates, and the 

number of filed rate cases has declined sharply, FERC Form Nos. 2, 2-A, and 3-Q need to 

be expanded and otherwise revised in order for the Commission and the public to have 

sufficient information to assess the justness and reasonableness of pipeline rates. The 

proposed changes will enhance the forms’ usefulness by updating them to reflect current 

market and cost information relevant to interstate natural gas pipelines and their 

customers. In addition, the Commission proposes to eliminate FERC Form No. 11. 

DATES: Comments must be filed on or before [insert date 45 days after publication in 

the Federal Register]. 
Docket No. RM07-9-000 

 

 

2

ADDRESSES: You may submit comments, identified by Docket No. RM07-9-000, by 

one of the following methods: 

• Agency web site: http://www.ferc.gov. Follow the instructions for submitting 

comments via the eFiling link found in the Comment Procedures Section of the preamble. 

• Mail: Commenters unable to file comments electronically must mail or hand deliver 

an original and 14 copies of their comments to: Federal Energy Regulatory Commission, 

Office of the Secretary, 888 First Street, N.E., Washington, D.C. 20426. Please refer to 

the Comment Procedures Section of the preamble for additional information on how to 

file paper comments. 

FOR FURTHER INFORMATION CONTACT: 

Michelle Veloso (Technical Information) 

Forms Administration and Data Branch, Division of Financial Regulation 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, N.E., Washington, D.C. 20426 

Telephone: (202) 502-8363, E-mail: <michelle.veloso@ferc.gov>. 

Scott Molony (Technical Information) 

Regulatory Accounting Branch, Division of Financial Regulation 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, N.E., Washington, D.C. 20426 

Telephone: (202) 502-8919, E-mail: scott.molony@ferc.gov 

Jane E. Stelck (Legal Information) 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, N.E., Washington, D.C. 20426 

Telephone: (202) 502-6648, E-mail: <jane.stelck@ferc.gov> 

SUPPLEMENTARY INFORMATION
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Revisions to Forms, Statements, and Reporting Docket No. RM07-9-000 

Requirements for Natural Gas Pipelines 

NOTICE OF PROPOSED RULEMAKING 

(September 20, 2007) 

I. Introduction

1. The Commission proposes to amend its forms, reports and statements for natural 

gas companies.1

 Specifically, the Commission proposes changes to FERC Form No. 2 

(Form 2), Annual report for major natural gas companies2

, FERC Form No. 2-A (Form 

2-A), Annual report for nonmajor natural gas companies3

, and FERC Form No. 3-Q 

(Form 3-Q), Quarterly financial report of electric utilities, licensees and natural gas 

companies.4

 The Commission is proposing the changes to improve the forms, reports and 

statements to provide, in greater detail, the information the Commission needs to carry 

out its responsibilities under the Natural Gas Act (NGA) to ensure that rates are just and 

reasonable, and to provide pipeline customers, state commissions, and the public the 

 

1

 Section 10 of the NGA, 15 U.S.C. 717g (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. 

2

 18 CFR 260.1. 

3

 18 CFR 260.2. 

4

 18 CFR 260.300. 
Docket No. RM07-9-000 

 

 

2

information they need to assess the justness and reasonableness of pipeline rates. The 

proposed changes would require pipelines to provide additional information regarding 

their sources of revenue and amounts included in rate base, and identify costs related to 

affiliate transactions, incremental facilities, and discounted and negotiated rates. They 

would be effective January 1, 2008. Accordingly, companies subject to the new 

requirements would file their new Form 3-Q beginning with the first quarter of 2009 and 

their new Forms 2 and 2-A in 2009 for calendar year 2008. Finally, the Commission 

proposes to eliminate the requirement to file FERC Form No. 11 (Form 11) and to extend 

the period of time to May 18 of the year following the submittal of annual and quarterly 

forms to file the Report of Certification.5

II. Background

 

A. General 

2. The Commission strives to ensure that its reporting requirements keep pace with 

the evolution of the natural gas industry. Before the advent of Order No. 636 and its 

progeny, interstate natural gas pipeline companies provided both sales and transportation 

 

5

 See 18 CFR 158.11. The Commission is concurrently issuing a Notice of Inquiry 

(NOI) in Docket No. RM07-20-000, titled Fuel Retention Practices of Natural Gas 

Pipelines, seeking comments on several specific proposals for natural gas pipeline rate 

recovery of fuel and lost and unaccounted-for gas. The NOI addresses Commission 

policy regarding the method of cost recovery used by pipelines and seeks comments on 

whether that policy should be changed. While the instant proposed rulemaking in Docket 

RM07-9-000 addresses changes to the Commission’s financial forms, the NOI addresses 

the method of recovery of fuel and seeks comments on whether it should change the 

current policy and prescribe a uniform recovery method for all pipelines. Therefore, 

there is no conflict between the two proposals. 
Docket No. RM07-9-000 

 

 

3

services.6

 Gas costs were entered into a purchased gas adjustment (PGA) account and 

were periodically adjusted and passed through to customers. The quid pro quo for the 

ability to recover the gas costs through a PGA tracker was the requirement that the 

pipelines file to restate their rates every three years. The PGA regulations, and the 

triennial filing requirement therein, were eliminated when the Commission issued a Final 

Rule that changed pipeline filing and reporting requirements in the post-Order No. 636 

environment.7

 

3. In Order No. 636, the Commission restructured pipeline services and required 

pipelines to unbundle their sales and transportation services. Accordingly, shippers were 

able to buy gas at the wellhead or from gas marketers, and purchase pipeline capacity 

from other shippers in the secondary market, as well as from the pipeline. Order No. 636 

authorized pipelines to make unbundled commodity sales at market-based rates at the 

wellhead because it concluded that, after unbundling, sellers of short-term or long-term 

gas supplies (whether pipelines or other sellers) would not have market power over the 

sale of natural gas. 

 

6

 See Pipeline Service Obligations and Revisions to Regulations Governing SelfImplementing Transportation; and Regulation of Natural Gas Pipelines After Partial

Wellhead Decontrol, Order No. 636, FERC Stats. & Regs. ¶ 30,939, order on reh’g, 

Order No. 636-A, FERC Stats. & Regs. ¶ 30,950, order on reh’g, Order No. 636-B, 

61 FERC ¶ 61,272 (1992), order on reh’g, 62 FERC ¶ 61,007 (1993), aff’d in part and 

remanded in part sub nom. United Distribution Cos. v. FERC, 88 F.3d 1105 (D.C. Cir. 

1996), order on remand, Order No. 636-C, 78 FERC ¶ 61,186 (1997). 

7

 Filing and Reporting Requirements for Interstate Natural Gas Company Rate 

Schedules and Tariffs, FERC Stats. & Regs. ¶ 31,025 (1995). 
Docket No. RM07-9-000 

 

 

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4. In 1995, in Order No. 581, the Commission issued a Final Rule revising the filing 

and reporting requirements for interstate natural gas pipeline companies to reflect the 

changed regulatory environment of unbundled pipeline sales for resale at market-based 

prices and open-access transportation of natural gas.8

 The Commission eliminated 

outdated reporting requirements but revised Forms 2 and 2-A to provide financial, rate, 

and statistical information on transactions that it deemed more useful in monitoring the 

restructured industry.9

 

5. In 2000, in Order No. 637, the Commission again amended its regulations in 

response to the growing development of more competitive markets for natural gas and the 

transportation of natural gas.10 The rule revised the Commission’s regulatory approach to 

pipeline pricing by permitting pipelines to propose peak/off-peak and term differentiated 

rate structures. Although the rule did not change the financial forms, it required pipelines 

to provide additional data on their web sites, including: (1) information regarding the 

pipeline’s capacity and released capacity transactions, including names of parties to the 

 

8

 Revisions to Uniform System of Accounts, Forms, Statements, and Reporting 

Requirements for Natural Gas Companies, Order No. 581, FERC Stats. & Regs. ¶ 31,026 

(1995), order on reh’g, Order No. 581-A, FERC Stats. & Regs. ¶ 31,032 (1996). 

9

 Id. 

10 Regulation of Short-Term Natural Gas Transportation Services, and Regulation 

of Interstate Natural Gas Transportation Services, Order No. 637, FERC Stats. & Regs. 

¶ 31,091, clarified, Order No. 637-A, FERC Stats. & Regs. ¶ 31,099, reh’g denied, Order 

No. 637-B, 92 FERC ¶ 61,062 (2000), aff’d in part and remanded in part sub nom. 

Interstate Natural Gas Ass’n of America v. FERC, 285 F.3d 18 (D.C. Cir. 2002), order on

remand, 101 FERC ¶ 61,127(2002), order on reh’g, 106 FERC ¶ 61,088(2004), aff’d sub

nom. American Gas Ass’n v. FERC, 428 F.3d 255 (D.C. Cir. 2005). 
Docket No. RM07-9-000 

 

 

5

contract, rate charged, and receipt and delivery points; and, (2) information concerning 

market affiliates, including an organizational chart showing the structure of the parent 

corporation and the position within that structure of all affiliates. These additional 

reporting requirements were designed to provide more transparent pricing information 

and to permit more effective monitoring for the exercise of market power and undue 

discrimination.11

6. Since the Commission eliminated the triennial restatement of rates filing 

requirement in Order No. 636, there has been a decline in filings under NGA section 4.12 

Of course, the Commission may, on its own motion, institute an investigation under NGA 

section 5 to determine if pipeline rates are just and reasonable.13 The Commission relies 

also on section 5 complaints, which may be filed by state public utility commissions or 

pipeline customers, to review gas rates outside of a section 4 rate proceeding. In a 

section 5 proceeding, the complainant has the burden of proof and must have access to 

the information needed to meet that burden. A section 5 complaint may rely on Forms 2, 

2-A, and 3-Q financial data and that data must be sufficient to support a complaint. 

7. Within the past year, two section 5 complaints were filed with the Commission, 

both relying on data provided in Forms 2 and 2-A to argue that the pipelines’ rates were 

 

11 Id. See also 18 CFR 284.13. 

12 15 U.S.C. 717c. 

13 15 U.S.C. 717d. 
Docket No. RM07-9-000 

 

 

6

unjust and unreasonable.14 In National Fuel, the complainants contended that it had been 

11 years since the Commission had reviewed National Fuel’s rates and that during that 

time the rates had become unjust and unreasonable.15 Relying upon Forms 2 and 3-Q 

data, the complainants prepared an analysis for the most recent three-year period, which 

allegedly demonstrated significant excess revenue and an equity return near 20 percent.16 

National Fuel argued in response to the complaint that the Form 2 data relied upon by the 

complainants was not sufficient and that only a detailed cost and revenue study could 

provide justification for an investigation into a pipeline’s rates under NGA section 5. 

Complainants acknowledged that the lack of certain data in Form 2 hindered the 

performance of a full rate analysis, but argued that the complaint, nonetheless, presented 

evidence sufficient to initiate an investigation of National Fuel’s rates.17 

8. In its order setting the case for hearing, the Commission found that the 

complainants had raised serious questions as to whether the rates established in 1995 

settlements allowed National Fuel to recover revenue substantially in excess of its costs.18 

 

14 Public Service Commission of New York, Pennsylvania Public Utility 

Commission and Pennsylvania Office of Consumer Advocate v. National Fuel Gas

Supply Corp., 115 FERC ¶ 61,299 (2006) (National Fuel), order approving uncontested

settlement, 118 FERC ¶ 61,091 (2007); Panhandle Complainants v. Southwest Gas

Storage Co., 117 FERC ¶ 61,318 (2006) (Southwest Gas). 

15 National Fuel at P 7. 

16 Id. 

17 Motion for Leave to Answer and Answer of the Joint State Agencies to National 

Fuel Gas Supply Corporation’s Answer to Complaint at 6. 

18 National Fuel at P 37. 
Docket No. RM07-9-000 

 

 

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The Commission rejected National Fuel’s contention that a detailed cost and revenue 

study is the sole means of justifying an investigation into a pipeline’s rates under section 

5, and that Form 2 data could provide the starting point for such an investigation.19 

However, the Commission denied complainants’ request for summary disposition, noting 

that data extrapolated from Form 2 was, in some cases, unclear and not adequate to 

support a summary disposition.20 

9. On December 21, 2006, the Commission set for hearing another complaint filed by 

a group of customers that contended that Southwest Gas’ rates had not been reviewed in 

17 years and that during that time, the rates had become unjust and unreasonable.21 

Complainants submitted a cost and revenue study using information from Southwest Gas’ 

Form 2-A, which allegedly demonstrated that the pipeline was earning a return on equity 

as high as 32 percent.22 The complainants sought an immediate rate reduction and a 

hearing. The Commission found that the complainants’ rate study did not support an 

immediate rate reduction, but set the matter for hearing.23

10. Against this backdrop, Commission staff initiated a review of Forms 1, 1-F, 2, 2-

A, and 3-Q data in the fall of 2006. As part of this review, staff met with both filers and 

users of annual and quarterly reports for the purpose of reexamining the breadth of data 

 

19 Id.

20 Id. at P 42. 

21 See Southwest Gas, 117 FERC at P 1. 

22 Id.

23 Id. at P 19. 
Docket No. RM07-9-000 

 

 

8

collected by the forms and to determine the need for additional information, deletions, or 

other clarifications. Thereafter, on February 15, 2007, the Commission issued a Notice 

of Inquiry (NOI).24 

B. Notice of Inquiry

11. In the NOI, the Commission sought comment on the need for changes or additions 

to the financial information reported in the Commission’s quarterly and annual financial 

reports, FERC Form Nos. 1, 1-F, 2, 2-A, 3-Q, 6 and 6-Q applicable to the electric utility, 

natural gas, and oil pipeline industries. Specifically, the Commission asked commenters 

to address the question of whether the Commission’s financial reports provide sufficient 

information to the public to permit an evaluation of the filers’ jurisdictional rates, and 

whether these forms should otherwise be modified. The NOI posed 12 general questions 

and also invited commenters to raise other questions or issues that might aid the 

Commission’s assessment of the forms.25 The 12 questions are listed in Appendix B to 

this order. 

12. On March 28, 2007, the Commission received 35 comments from FERC Form 

Nos. 1, 1-F, 2, 2-A, 3-Q, 6 and 6-Q users and jurisdictional entities that file the reports.26 

On April 27, 2007, 15 reply comments were filed. After reviewing the comments, the 

 

24 Assessment of Information Requirements for FERC Financial Forms, Notice of 

Inquiry, 72 Fed. Reg. 8316 (February 26, 2007), FERC Stats. & Regs. ¶ 35,554 (2007). 

While the outreach meetings addressed only Forms 1 and 2, the NOI invited comments 

from filers and users of Form 6 and 6-Q as well. 

25 NOI at P 16. 

26 Parties who filed comments and reply comments are listed on Appendix C. 
Docket No. RM07-9-000 

 

 

9

Commission has determined that each of the forms merits its own separate review. 

Addressing changes or amendments to all of the forms that serve the electric, gas, and oil 

pipeline industries in a single proceeding, would be an unwieldy task with the potential to 

cause confusion among the industries, which could delay the Commission’s action. 

Accordingly, this Notice of Proposed Rulemaking (NOPR) addresses changes, additions, 

and amendments to the forms applicable to natural gas companies – Forms 2, 2-A, and 3-

Q. Potential changes or amendments to the annual and quarterly forms applicable to 

electric utilities and oil pipelines, Forms 1, 1-F, 6 and 6-Q will be addressed in future 

orders. 

C. Comments to Notice of Inquiry 

13. As noted, the Commission received 35 comments and 15 reply comments in 

response to the NOI. Eleven initial comments and two reply comments specifically 

address Forms 2, 2-A, and 3-Q data.27 Not surprisingly, as a general matter, pipeline 

customers and state commissions support revising the forms and pipelines oppose 

revisions that would require filing additional information. The Industry Coalition urges 

the Commission to revise Form 2 to require additional detail which, in their view, would 

permit a proper evaluation of pipelines’ cost-based rates and ensure that those rates are 

just and reasonable.28 The Industry Coalition asks the Commission to require greater 

 

27 In some instances, comments were filed which addressed more than one 

financial form. 

28 Initial Comments of the Industry Coalition at 4. The Industry Coalition is 

comprised of the American Public Gas Association, the Independent Petroleum 
Docket No. RM07-9-000 

 

 

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detail in several areas: (1) capital structure; (2) deferred taxes; (3) gas purchases and 

sales; (4) state income tax rates; (5) miscellaneous assets; (6) corporate overhead costs; 

(7) volumes and revenues associated with discounted and negotiated rate services; (8) 

revenues and costs associated with at-risk facilities; and (9) calculation of the rate of 

return.29 

14. In addition, the Industry Coalition states that it has attempted to quantify the 

burdens and benefits associated with each proposal and estimates that the burden 

associated with providing the additional material would be low to moderate. The 

Industry Coalition also asks the Commission to require types of information contained in 

Form 2 to be replicated in the quarterly Form 3-Q, to the extent possible. In addition, the 

Coalition suggests changes specific to Form 3-Q, including (1) a separate report of fuel 

used for operation and maintenance; and (2) information that is consistent with page 520 

of Form 2 related to fuel use. 

15. Several state agencies, including the New York State Public Service Commission 

(NYPSC), the Kansas Corporation Commission (KCC), the Missouri Public Service 

Commission (MoPSC), and the Public Utilities Commission of Ohio (PUCO), filed 

comments recommending changes to the forms. The KCC claims that current Form 2 

data is inadequate and advocates the reinstatement of a periodic rate refiling requirement 

 

Association of America, the Natural Gas Supply Association, and the Process Gas 

Consumers Group. 

29 See Industry Coalition Comments at 5-6. 
Docket No. RM07-9-000 

 

 

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in the three to five year range.30 In the absence of such a requirement, the KCC suggests 

specific changes to Form 2 which are similar, in part, to the changes recommended by the 

Industry Coalition. KCC’s proposals include the following: (1) calculation of the 

pipeline’s rate of return; (2) identification of which components of deferred tax and 

regulatory asset and liability balances are included in rate base; (3) detail on 

miscellaneous current and accrued assets; (4) detail concerning gas purchase and sales 

accounts; (5) detail concerning corporate administrative costs; (6) identification of 

revenues associated with negotiated rate contracts and with at-risk facilities; and (7) 

information concerning the pipeline’s capital structure.31 PUCO requests that debt 

accounts balances for Form 2 be shown separately for each debt issuance and asks the 

Commission to make the data available in electronic format that can be compared and 

analyzed electronically.32 

16. The NYPSC asserts that currently the forms contain no information related to 

affiliate transactions and recommends that utilities be required to describe and quantify 

each type of affiliate transaction, similar to the requirements adopted in Form 60 for 

service companies and recommends that a schedule, modeled on Schedule XVI, be added 

to Form 2.33 The NYPSC also recommends that each company report its contributions to 

 

30 KCC Comments at 4. For purposes of this NOPR, the term “at-risk” facilities 

has the same meaning as “incremental” facilities. 

31 Id. at 7. 

32 PUCO Comments at 3. 

33 NYPSC Comments at 6. 
Docket No. RM07-9-000 

 

 

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other post-employment benefits and pension funds.34 As an alternative to a cost and 

revenue study, the NYPSC recommends that the Commission require pipelines to provide 

a more detailed breakdown of Accounts 480-484 Sales, according to revenues and 

quantities of gas that comprise each sale.35 The NYPSC also asks that pipelines provide 

additional detailed information, such as billing determinants for each rate schedule, the 

separate identification of revenues and costs associated with trackers or special 

surcharges, and the amount of deferred taxes included in rate base for cost-of-service 

purposes.36 

17. MoPSC suggests that several accounts in Form 2, not currently required for Form 

2-A filers, be added to Form 2-A, including detail of miscellaneous current accrued 

liabilities; detail of revenues from gathering, transmission, and storage; miscellaneous 

general expense; and charges for outside consultative services.37 For all of these 

accounts, the Form 2 has a threshold reporting requirement of $250,000. MoPSC 

requests that the schedules be included in Form 2-A and that the threshold for reporting 

be lowered to $50,000 or $100,000.38

18. Comments opposing revisions, in part or in whole, to the annual and quarterly 

financial reports were filed by the Interstate Natural Gas Association of America 

 

34 Id. at 7. 

35 Id. at 9. 

36 Id. at 10-11. 

37 Comments of MoPSC at 5-8. 

38 Comments of MoPSC at 7-8. 
Docket No. RM07-9-000 

 

 

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(INGAA), the American Gas Association (AGA), Boardwalk Pipeline Partners, L.P. 

(Boardwalk), Williston Basin Interstate Pipeline Co. (Williston), and Washington Gas 

Light Company (Washington Gas). INGAA urges the Commission to balance the 

amount of information it needs in periodic reports for the purpose of administering 

section 5 against the burden it places on the pipelines. INGAA contends that the 

information now provided in both Forms 2 and 2-A is sufficient for the Commission’s 

responsibilities under the NGA. INGAA notes that in two recent decisions, the 

Commission relied on Forms 2 and 2-A data to initiate an investigation of pipeline rates 

under section 5.39 In addition, INGAA asserts that pipelines file other reports or postings 

that provide information supplemental to Form 2, including posting an index of 

customers and identifying contracts with negotiated rates. INGAA also contends that 

pipeline web sites provide information on pipeline capacity and discounts awarded.40 

INGAA states that the Commission should be careful that an expanded Form 2 does not 

blur the distinction between sections 4 and 5, thus shifting the burden of proof established 

under section 5.41 Finally, INGAA suggests that the Commission should be wary of 

converting Form 2 from a financial reporting document to the equivalent of an annual 

 

39 INGAA Initial Comments at 5; National Fuel, 115 FERC ¶ 61,299, on 

reconsideration, 115 FERC ¶ 61,368 (2006) and Southwest Gas, 117 FERC ¶ 61,318 

(2006). 

40 Id. at 6. 

41 Id. at 6-7, (citing Public Service Comm’n v. FERC, 866 F.2d 487, 490-91 (D.C. 

Cir. 1989)). 
Docket No. RM07-9-000 

 

 

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cost and revenue study.42 INGAA states that any proposal that would require additional 

information not collected in accord with the Uniform System of Accounts, or reported in 

a different format, will result in additional regulatory burdens. 

19. Williston Basin, Boardwalk Pipeline, AGA, and Washington Gas concur with 

INGAA that Form 2 data, as now filed, provides sufficient information to allow users to 

evaluate pipeline rates. The commenters echo INGAA’s concern that the current Form 2 

not be transformed into a cost and revenue study, and that pipelines not be required to file 

an annual mini-rate case, thereby reversing the statutory burden of proof for section 5.43 

Williston Basin suggests several technical revisions and requests that the Commission 

discontinue the Form 11 and incorporate that information in the Form 3-Q.44 Washington 

Gas states that Form 2 should remain as it is, and that if the Commission determines that 

more information is needed to monitor rates, a new form for reporting this ratemaking 

information should be created.45 

20. Only INGAA and Williston Basin filed reply comments. Both commenters 

reiterate the assertion that the information contained in Forms 2 and 3-Q is sufficient to 

allow the Commission and other users to adequately evaluate pipeline rates.46 In 

response to the KCC’s complaint that pipeline rate filings have declined since the end of 

 

42 Id. at 7. 

43 Boardwalk Pipeline Comments at 5. 

44 Williston Basin Comments at 6-7. 

45 Washington Gas Comments at 3. 

46 Williston Basin Reply Comments at 2; INGAA Reply Comments at 2. 
Docket No. RM07-9-000 

 

 

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the triennial rate review, INGAA asserts that pipeline rate filings continue to be made.47 

INGAA further asserts that the elimination of triennial rate review has had beneficial 

effects: (1) customer settlements now dictate the timing of pipeline rate cases; (2) repeal 

of the triennial rate review is an incentive for controlling and reducing pipeline costs; (3) 

pipeline rates have remained stable for the last decade and have actually gone down in 

real (inflation adjusted) dollars; and (4) the quality of pipeline service has improved due 

to the increased flexibility provided by Order No. 637.48

21. INGAA’s reply comments also address specific proposals or requests for 

information made by the Industry Coalition, the NYPSC, the KCC, and MoPSC.49 

INGAA argues that: 

• some requests, e.g., more detailed information on deferred taxes and identification 

of the appropriate capital structure, would require filers to make the sort of 

subjective judgment that is involved in a litigated rate case,50 

• the forms are currently designed to report what has actually occurred, and not to 

make projections based on the data,51 

• requiring a rate of return calculation and the detail requested on gas purchases 

would turn Form 2 into a mini-rate case, 

 

47 Id. at 7. 

48 Id. at 8-9. 

49 Id. at 9. 

50 Id. at 10. 

51 Id. at 1. 
Docket No. RM07-9-000 

 

 

16

• other sources of information are available to the public, e.g., pipelines’ operational 

sales and purchase reports and fuel tracker filings,52 

• if the Commission needs additional information from time to time, that need can 

be met through the Commission’s audit authority on a case-by-case basis,53 

• commenters may review pipelines’ operational sales and purchase reports, cashout 

reconciliation reports and fuel tracker filings, all of which are routinely filed by 

pipelines,54 

• pipelines already provide details of their effective income tax rate, and such details 

are disclosed in the Notes to Financial Statements and include the total dollar 

amount for taxes broken down between current and deferred taxes, and 

• other items, such as the calculation of the income tax of a particular state changing 

from a tax based on net income to a tax based on gross receipts are burdensome to 

calculate and subjective.55 

22. INGAA states that its members have no objection to identifying the entity whose 

capital structure is now reported on page 218a of Form 2, which provides a computation 

of the allowance for funds used during construction (AFUDC), but requiring the pipeline 

to state whether it believes this number is appropriate for a rate case would require the 

 

52 Id. at 4-5. 

53 Id. at 3. 

54 Id. at 13-14. 

55 Id. at 15-16. 
Docket No. RM07-9-000 

 

 

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pipeline to speculate on a potentially contentious issue in a fully litigated rate case.56 

Generally, INGAA contends that the information provided in all of the areas identified by 

the Industry Coalition and others is already burdensome, and that the information sought 

is, in many instances, available elsewhere, e.g., in the pipelines’ index of customers and 

other information posted on pipelines’ web sites.57 INGAA further argues that the 

proposal to require pipelines to identify costs and revenues associated with at-risk 

facilities could essentially impose a cost and revenue study obligation for these facilities 

and should not be required outside of a section 4 or 5 proceeding.58 Similarly, INGAA 

contends that a requirement to include billing determinants for each rate schedule would 

impose a substantial burden because it would effectively require the preparation of a 

schedule equivalent to a Schedule G, required for a section 4 filing.59 

23. Finally, INGAA suggests that certain items required by Form 2 be deleted as 

burdensome or of limited usefulness, including: (1) pages 508-509, Compressor Stations; 

(2) page 357, Charges for Outside Professional and Other Consultative Services; and (3) 

page 261, Reconciliation of Reported Net Income with Taxable Income for Federal 

Income Taxes. 

 

56 Id. at 11-12. 

57 Id. at 20. 

58 Id. at 22. 

59 Id. at 24-25. 
Docket No. RM07-9-000 

 

 

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III. Discussion

A. General

24. The steady decline of section 4 rate filings, the concerns regarding the adequacy of 

data in Forms 2 and 2-A expressed in both the National Fuel and Southwest Gas 

complaints, and the comments received in response to the NOI indicate a need to update 

and supplement Forms 2, 2-A, and 3-Q. While a hiatus in section 4 rate case filings does 

not, in every instance, support a conclusion that the pipeline is earning excess revenues, 

some pipelines have not filed a section 4 rate case in more than a decade, and their costs 

of service and revenues have gone unreviewed as a consequence.60 If shippers cannot 

readily access the data they need to make informed assessments regarding the propriety 

of the rates charged, they are left without any plausible means of assessing the justness 

and reasonableness of those rates and are forced to accept the information provided at 

face value or attempt to initiate expensive and time-consuming section 5 proceedings to 

obtain the data. 

25. The proposed additions or changes to Forms 2, 2-A and 3-Q require a pipeline to 

provide additional, detailed information regarding the pipeline’s costs and revenues, 

including a reconciliation of gas supplied by shippers for compressor fuel and gas losses; 

disaggregation of certain cost data; provision of additional information related to affiliate 

 

60 The records indicate that as many as 15 major and 20 nonmajor gas pipelines 

have not filed a section 4 rate case in more than a decade. Also, although INGAA 

contends that pipeline rate cases are quite common, a review of the cases cited by 

INGAA reveals that most were filed because prior settlement agreements required the 

filing. 
Docket No. RM07-9-000 

 

 

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transactions; and the distinction between services provided at discounted or negotiated 

rates and costs recovered through incremental, as opposed to rolled-in, rates. As noted 

above, we believe that all of the proposed changes will better facilitate the forms users’ 

ability to make a meaningful assessment of the pipeline’s cost of service and current 

rates. We have endeavored, however, to achieve a balance between the benefits these 

changes will facilitate and the imposition of any additional burden on the pipelines. Most 

of the information requested is data that is maintained by the pipeline and can be 

transferred to existing and new schedules. In addition, as discussed below, we are 

proposing the elimination of Form 11, which would lessen pipelines’ filing requirements. 

26. Several schedules are being added to Form 2-A as well as to Form 2. The 

Commission regulates 44 pipelines that are classified as “nonmajor” and required to file 

Form 2-A. It is no less important that customers of pipelines classified as nonmajor be 

provided with the information we propose to add to Form 2. Form 2-A filers now 

provide less data than do Form 2 filers. As with Form 2, the information we are adding 

to Form 2-A is information we deem necessary to enable customers, state commissions, 

and the Commission to assess existing pipeline rates. Complaints regarding the dearth of 

data have been made by customers of both major and nonmajor pipelines and we believe 

all are entitled to the same information.61 

27. We have not adopted many of the commenters’ proposals. For example, we reject 

the KCC’s request that we resurrect the triennial rate restatement requirement for all 

 

61 See, e.g.,Southwest Gas, 117 FERC at P 4 (complaint filed by Form 2-A users). 
Docket No. RM07-9-000 

 

 

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pipelines and AGA’s alternative suggestion that we create a new form to supplement 

Form 2.62 We reject as burdensome the Industry Coalition’s and the MoPSC’s requests 

that pipelines not using the rate of return on equity approved in the pipeline’s last rate 

case provide the calculation and derivation of the return used at present. We reject also 

the Industry Coalition’s request that pipelines provide additional information on capital 

structure used for ratemaking purposes since it would require the pipeline to speculate on 

the pipeline’s preferred capital structure. 

28. We acknowledge INGAA’s concern that an expanded Form 2 could blur the 

distinction between sections 4 and 5, and shift the burden of proof established under 

section 5, and we invite commenters to address this issue. However, the changes 

proposed herein do not affect existing rates nor change any rates on file. The requested 

data is designed to provide the Commission and pipeline customers with information that 

will aid their ability to make a reasonable assessment of a pipeline’s cost of service. 

Along the same lines, the requested data is not the functional equivalent of a cost and 

revenue study. Therefore, the revised Form 2 will not be used to limit an entity’s rights 

under the NGA and our regulations. Nor will the revised Form 2 change our obligation 

to rule on complaints, petitions, or other requests for relief based on a full record and 

substantial evidence. 

 

62 See, e.g., Public Service Commission of New York v. FERC, 866 F.2d 487 

(D.C. Cir. 1989); see also United Distribution Companies v. FERC, 88 F.3d 1105, 1175-6 

(D.C. Cir. 1996). 
Docket No. RM07-9-000 

 

 

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29. At the same time, we find no merit in INGAA’s argument that much of the data 

sought by Form 2 users is available elsewhere, in forms and filings made before state 

agencies, the Commission, other federal agencies, or in the pipeline’s tariff. We do not 

believe that users should have to piece together and interpret from myriad sources 

information that is readily available to the pipeline and can, without a substantial increase 

in burden, be incorporated into Forms 2 and 2-A. Also, much of the information cited by 

INGAA is not coterminous with Form 2 data and cannot be used for purposes of 

comparison. 

30. Additionally, as discussed below, INGAA has requested that the Commission 

eliminate three schedules from Form 2. As discussed below, we reject INGAA’s request 

to eliminate information now reported in Form 2. INGAA first requests that the 

Commission delete pages 508-509 of Form 2 which provide details on compressor 

stations. The schedule shows plant, expenses, amount of gas and usage in total hours 

intended to assist Form 2 users in calculating a depreciation analysis of remaining life for 

compressor plant. In addition, some compressor stations are built as part of expansion 

projects with incremental rates. The separation of costs by compressor station is a key 

element to assist in determining the appropriate allocations of costs to generate 

incremental rates. In addition, in order to provide more clarity regarding fuel use for 

compressor stations, we propose to revise pages 508-509 of Form 2 to require pipelines 

to provide both the amounts used and expenditures made for gas and electric power. 
Docket No. RM07-9-000 

 

 

22

31. INGAA asks that the Commission eliminate Page 357, Charges for Outside 

Professional and Other Consultative Services. As discussed below, the Commission is 

adding a new Page 358 to Forms 2 and 2-A where information currently provided on 

Page 357 would be reported. INGAA asserts that the schedule has no value for 

ratemaking purposes. The information required for Page 357, now proposed to be 

substituted by a new page 358, allows Form 2 users to identify the annual charges for 

outside consulting activities and the identification of associated company charges. The 

Commission believes this information is of value to forms users and the reporting 

requirement will be retained. 

32. Finally, we reject INGAA’s request to eliminate page 261, Reconciliation of 

Reported Net Income With Taxable Income for Federal Income Taxes. The Commission 

believes page 261 should be retained because it can provide information as to book and 

tax timing differences, thereby indicating if costs are included in the revenue requirement 

which may not be deductible for tax purposes. The reconciliation reflects revenues 

reported for book purposes which are not included for income tax purposes. In other 

words, for example, AFUDC equity is isolated and can be used as a means of checking 

the reasonableness of the AFUDC included in the tax calculation. 

 B. Overview of FERC Forms 2, 2-A, 3-Q, and 11.

33. Before describing the proposed changes, the Commission believes that an overview 

of Forms 2, 2-A, and 3-Q, as well as a related form (Form 11) would be helpful. As 

discussed above, these forms are the vehicles the Commission uses to obtain financial 
Docket No. RM07-9-000 

 

 

23

and certain operational information from interstate natural gas companies. The forms 

provide information concerning a company’s past performance and its future prospects, 

information compiled using a standard chart of accounts contained in the Commission’s 

Uniform System of Accounts (USofA).63 The forms contain schedules which include a 

basic set of financial statements: Comparative Balance Sheet, Statement of Income and 

Retained Earnings, Statement of Cash Flows, and the Statement of Comprehensive 

Income and Hedging Activities. Supporting schedules containing supplementary 

information are filed, including revenues and the related quantities of products sold or 

transported; account balances for various operating and maintenance expenses; selected 

plant cost data; and other information. 

34. Currently, there are 74 Form 2 filers, 44 Form 2-A filers and 118 Form 3-Q filers. 

The Form 2 is an annual reporting requirement for “major” natural gas pipeline 

companies, i.e., natural gas companies that transport or store gas in excess of 50 million 

Dth in each of the three previous calendar years. The Form 2-A is an abbreviated version 

of the Form 2 for “non-major” natural gas pipeline companies, i.e., natural gas companies 

that do not meet the filing threshold for Form 2 but have total gas sales or volume 

transactions exceeding 200,000 Dth in each of the three previous calendar years. Form 3-

Q is a quarterly filing requirement for filers of Forms 2 and 2-A, which requires gas 

companies to file certain Form 2 and 2-A information on a quarterly basis. The increased 

frequency of information provided in Form 3-Q allows for more timely evaluations of the 

 

63 See 18 CFR Part 201. 
Docket No. RM07-9-000 

 

 

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adequacy of existing cost-based rates and improves the transparency of financial 

information submitted to the Commission. Finally, Form 11 is a quarterly filing made by 

natural gas companies that transport or store gas in excess of 50 million Dth in each of 

the three previous years. Filers must report quantities shipped or stored and revenues 

received under each rate schedule for each month of the quarter. 

C. Proposed Adjustments to the Annual and Quarterly Reports

35. The proposed revisions fall into three categories of information. The first group, 

“Acquisition and Disposition of Gas,” covers revenue data that is not now included in the 

forms, in particular, reporting revenue from shipper-supplied gas. The second group, 

“New Rate Policies and Affiliate Transactions,” pertains to pipelines’ affiliate 

transactions, discounted or negotiated rates, and incremental facilities. The third group, 

“Rate Base and Other Key Cost-of-Service Components,” involves information regarding 

deferred income tax expense, state income tax, wages and salaries, and pensions. All of 

the proposed changes are reflected in the attached schedules, Appendix D. 

1. Acquisition and Disposition of Gas 

 a. Shipper-Supplied Gas

36. As an initial matter, as noted, the issue of the appropriate rate methodology used 

by natural gas pipelines for compressor fuel and lost and unaccounted-for gas is before 

the Commission in Docket No. RM07-2-000, Notice of Inquiry, Fuel Retention Practices 

of Natural Gas Companies, seeking comments on whether the Commission should 
Docket No. RM07-9-000 

 

 

25

prescribe a uniform method for all pipelines to use in recovering these costs.64 In this 

NOPR, the Commission is not proposing a change to the pipelines’ recovery methods; 

rather, it simply is proposing that pipelines provide forms users with detailed financial 

data of how each pipeline accounts for these costs. Therefore, there should be no conflict 

between what is proposed here with whatever is proposed in the RM07-2-000 

proceeding. 

37. The Commission’s USofA requires that pipelines electing to recognize shipperprovided gas as revenue must also recognize an equal amount of purchased gas expense. 

Pipelines must credit the appropriate transportation revenue account (Accounts 489.1 

through 489.4) and record an equal amount in Account 805, Other Gas Purchases. The 

USofA also requires that all gas consumed in compressor stations or used for other 

operational purposes be recognized in the appropriate expense accounts in accordance 

with the existing USofA requirements. Finally, for those pipelines not electing to 

recognize all shipper provided gas as revenue, the Commission requires that the value of 

gas received from shippers under tariff allowances that is not consumed in operations nor 

returnable to customers through rate tracking mechanisms be credited to Account 495, 

Other Gas Revenues, and charged to Account 805. Despite these accounting and 

reporting requirements for gas used in operations, gas lost, and gas sold, Forms 2 and 2-A 

users cannot readily determine the disposition and value of any shipper-supplied gas that 

 

64 See Fuel Retention Practices of Natural Gas Companies, Notice of Inquiry, 

Docket No. RM07-20-000,120 FERC ¶ 61,255 (2007). 
Docket No. RM07-9-000 

 

 

26

exceeds the pipelines’ operational needs or the source and cost of any gas acquired to 

meet deficiencies in shipper-supplied gas. 

38. The Industry Coalition, NYPSC, and the KCC all request that pipelines be 

required to provide details of gas purchases and sales, including an accounting of gas that 

pipelines retain from shippers.65 The Commission agrees that forms users should have 

access to this information in order to assess the sources of revenue recorded for gas sales 

by pipelines. With escalating gas prices and a declining number of full section 4 rate 

reviews, the disposition of this gas has become an important item in the pipeline’s cost of 

transportation.66 

39. The Commission is proposing to add a new schedule entitled “Shipper-Supplied 

Gas for the Current Quarter” (pages 521-A and 521-B) to Forms 2, 2-A, and 3-Q, which 

would require the pipeline to report: (1) the difference between the volume of gas 

received from shippers and the volume of gas consumed in pipeline operations each 

month; (2) the disposition of any excess and the accounting recognition given to such 

disposition including the basis of valuing the gas and the specific accounts charged or 

credited; and (3) the source of gas used to meet any deficiency and the accounting 

recognition given to the gas used to meet the deficiency, including the accounting basis 

of the gas and the specific account(s) charged or credited. The Commission also 

proposes to add page 520 to Form 3-Q in order to provide more timely reporting of this 

 

65 See Industry Coalition comments at 5; NYPSC Comments at 10; KCC 

Comments at 7. 

66 See National Fuel, 115 FERC at P 21. 
Docket No. RM07-9-000 

 

 

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information. In addition, in order to provide more clarity for gas purchase activity, we 

are proposing to require pipelines to provide in a footnote to page 520, the volumes of 

gas purchased applicable to each of the gas purchase expense accounts.67 Currently, 

pipelines must report the dollar amount of gas purchases by type of purchase on the Gas 

Operation and Maintenance Expenses schedule on page 319 of Forms 2 and 2-A, and 

they are required to report the related volumes only in the aggregate on the Gas Account 

– Natural Gas schedule on page 520. 

b. Other Gas Dispositions

40. The Commission collects information concerning different types of gas operating 

revenue on the schedule entitled Gas Operating Revenue, pages 300-301 of Forms 2 and 

2-A. This schedule currently combines on one line sales data related to residential, 

commercial and industrial, other sales to public authorities, sales for resale and 

interdepartmental sales. The Industry Coalition and the KCC request that pipelines 

provide greater detail concerning these accounts and be required to separately identify 

these costs and provide an accounting for each.68 The Commission agrees that detail 

concerning these accounts would provide important data that would enable users to 

identify the dispositions of gas acquired by or tendered to the pipeline and how those 

transactions may affect the pipeline’s cost of service. Accordingly, the Commission 

proposes to expand the detail provided on pages 300-301 of Forms 2 and 2-A to require 

 

67 18 CFR Part 201, Account Nos. 800-805. 

68 Industry Coalition Comments at 5; KCC Comments at 7. 
Docket No. RM07-9-000 

 

 

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filers to report sales amounts reported in Accounts 480 (Residential Sales); 481 

(Commercial and Industrial Sales); Account 482 (Other Sales to Public Authorities); 

Account 483 (Sales for Resale); and 484 (Interdepartmental Sales). 

41. Both the Industry Coalition and the KCC seek detail concerning the types of 

revenues recorded in Account 495, Other Gas Revenues. Under the Commission’s 

USofA, pipelines record in Account 495 miscellaneous revenues derived from gas 

operations not includible in any of the other gas revenue accounts. Additionally, 

pipelines are required to report these revenues on the schedule entitled Other Revenues 

(Account 495) on page 308 of Form 2. The descriptions and aggregations of amounts 

reported by pipelines on this schedule, however, do not allow users of the data to obtain a 

meaningful understanding of the nature of the business activities from which the revenues 

are derived. It is important for users of the data to understand which customer classes or 

groups may be affected by the miscellaneous revenues. 

42. In order to provide additional information, the Commission proposes to modify the 

schedule for Account 495, Other Gas Revenues, on page 308 of Form 2 and add a new 

schedule to Form 2-A to specify that the following types of revenues must be separately 

reported on the schedule: (a) commissions on sale or distribution of gas of others; (b) 

compensation for minor or incidental services provided for others; (c) profit or loss on 

sale of material and supplies not ordinarily purchased for resale; (d) sales of steam, water, 

or electricity, including sales or transfers to other departments; (e) miscellaneous 

royalties; (f) revenues from dehydration and other processing of gas of others except as 
Docket No. RM07-9-000 

 

 

29

provided for in the instructions to Account 495; (g) revenues for rights and/or benefits 

received from others which are realized through research, development, and 

demonstration ventures; (h) gains on settlements of imbalances receivables and 

payables’; (i) revenues from penalties earned pursuant to tariff provisions, including 

penalties associated with cash-out settlements, and (j) revenues from shipper-supplied 

gas. 

2. New Rate Policies and Affiliate Transactions

 

a. Affiliate Transactions

43. Forms 2 and 2-A filers are required to disclose information regarding any 

significant financial changes, including information regarding sales, transfers or mergers 

of affiliates in the Notes to Financial Statements schedule page 122.1. However, forms 

filers are not required to provide detailed information regarding affiliate transactions. 

The absence of affiliate information makes it impossible for forms users to determine the 

type and extent of all affiliate transactions. In this regard, the NYPSC points out that at 

present, Form 2 does not require any reporting related to affiliate transactions.69 NYPSC 

believes that additional controls and disclosures of affiliate transactions are needed, not 

only to ensure that costs are just and reasonable, but to prevent cross-subsidization 

between regulated and unregulated companies.70 The Commission agrees that 

information concerning the nature and extent of affiliate transactions is important because 

 

69 NYPSC’s Comments at 6. 

70 Id. at 6. 
Docket No. RM07-9-000 

 

 

30

these transactions are not conducted at arms’ length and could provide opportunities for 

inappropriate cross-subsidization. 

44. To ensure that forms users have access to more detailed information regarding 

affiliate transactions, the Commission proposes several revisions. First, the Commission 

proposes to add a new Schedule, page 358, “Transactions with Associated (Affiliated) 

Companies” that would require filers to report associated (affiliated) transactions, which 

include administrative and general costs billed from the parent. The Commission 

believes this proposed new schedule would provide the transparency necessary to 

improve the detection of cross-subsidization. Second, on page 358, we propose to add the 

requirement that filers report the following: (1) a description of the good or service 

transacted; (2) the name of the Associated (Affiliated) Company; (3) the FERC account 

charged or credited; and (4) the amount charged or credited. We propose that where 

amounts billed to or from affiliates are based on an allocation process, filers be required 

to explain the basis of the allocation in a footnote. This would be a new schedule for 

both Forms 2 and 2-A. Finally, we propose to amend the instructions for page 357, 

Charges for Outside Professional and Other Consultative Services, to exclude associated 

(affiliated) transactions, and remove the $250,000 threshold for reporting services. This 

schedule is already in existence in Form 2, but will be a new addition to Form 2-A. 

 b. Incremental Pricing Policy

45. Construction of the interstate natural gas pipeline system began in earnest in the 

1940’s. As consumption increased, pipelines expanded their facilities to meet the 
Docket No. RM07-9-000 

 

 

31

growing demand. The majority of these early expansions involved adding facilities that 

were integrated into the pipeline’s mainline system and provided benefits to all customers 

using the system. For this reason, the cost of those facilities was considered to be a part 

of the pipeline’s cost of serving all customers. This “rolled-in” approach remained the 

predominant rate methodology for new additions to existing pipeline systems through the 

early 1990s. Under a predominantly rolled-in rate regime, financial information reported 

in Forms 2 and 2-A on an aggregate company-wide basis was sufficient for Commission 

oversight of pipeline rates. The Commission’s pricing policy for pipeline capacity 

expansions has evolved, due in part to changes in the industry brought about by Order 

No. 636, and its predecessor, Order No. 436.71 Current Commission policy requires that 

a pipeline be prepared to financially support expansion projects without relying on 

subsidization from existing customers.72 

46. In concert with this changing pricing policy, the Commission has granted an 

increasing number of companies incremental and other rate treatments for facility 

 

71 Regulation of Natural Gas Pipelines After Partial Wellhead Decontrol, Order 

No. 436, FERC Stats. & Regs. ¶ 30,665 (1985), vacated and remanded, Associated Gas 

Distributors v. FERC, 824 F.2d 981 (D.C. Cir. 1987), cert. denied, 485 U.S. 1006 (1998), 

readopted on an interim basis, Order No. 500, FERC Stats. & Regs. ¶ 30,761 (1987), 

remanded, American Gas Ass’n v. FERC, 888 F.2d 136 (D.C. Cir. 1989), readopted on 

an interim basis, Order No. 500-H, FERC Stats. & Regs. ¶ 30,867 (1989), aff’d in part 

and remanded in part, American Gas Ass’n v. FERC, 912 F.2d 1496 (D.C. Cir. 1990), 

cert. denied, 498 U.S. 1084 (1991). 

72 See Certification of New Interstate Natural Gas Pipeline Facilities, Statement of

Policy, 88 FERC ¶ 61,227 (1999), order clarifying policy, 90 FERC ¶ 61,128 (2000), 

order clarifying policy, 92 FERC ¶ 61,094 (2000) (Certificate Policy Statement). 
Docket No. RM07-9-000 

 

 

32

expansions.73 Under these more recent pricing methods, new and existing customers pay 

different rates based on the cost of the different facilities that provide service to them. In 

the individual cases where incremental rates have been approved, the Commission has 

required the pipelines to maintain their accounting records so as to be able to readily 

identify the facilities and related costs used to provide service to the customers that pay 

the incremental rates.74 Until now, the Commission has not required the disaggregation 

of costs and revenues associated with incremental rate treatment in Forms 2 and 2-A. 

The Industry Coalition believes that a proper assessment of rates requires that these 

facilities be considered separately.75 Without this information, they claim that pipeline 

customers cannot evaluate the reasonableness of different rates that are determined from 

distinct and separate facilities.76 

47. The Commission agrees with the Industry Coalition, and proposes to add a new 

schedule to Forms 2 and 2-A which would provide information regarding a company’s 

individual rate treatments for services. The proposed new schedule at page 217, entitled 

“Non-Traditional Rate Treatment Afforded New Projects,” would report: (1) the name of 

the facility; (2) docket number under which the facility was approved; (3) the type of rate 

treatment (e.g., incremental or another rate treatment); (4) the amount of plant in service; 

 

73 See, e.g., Questar Pipeline Co., 93 FERC ¶ 61,279 (2000); Independence 

Pipeline, et. al., 89 FERC ¶ 61,283 (1999); and Transcontinental Gas Pipeline Corp., 

76 FERC ¶ 61,318 (1996). 

74 See 18 CFR 154.309. 

75 Industry Coalition Comments at 6. 

76 Id.
Docket No. RM07-9-000 

 

 

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(5) the amount of accumulated depreciation; (6) amount of accumulated deferred income 

taxes; (7) amount of operating expenses; (8) the amount of maintenance expenses; (9) the 

amount of depreciation expense; (10) incremental revenues; and (11) other expenses. 

Because the Commission already requires the companies to separately account for each 

rate treatment, the Commission believes the burden for the company to identify each 

facility and the associated costs would be minimal. 

c. Discounted Rate Services and Negotiated Rate Services

48. At present, certain pages in Form 2 require filers to report the dollar amounts and 

volumes associated with each type of transportation service provided. These are pages 

300-301, Gas Operating Revenue; pages 302-303, Revenues from Gas Transportation of 

Others Through Gathering Facilities; pages 304-305, Revenues from Gas Transportation 

of Others Through Transmission Facilities; 306-307, Revenues from Storing Gas of 

Others; and page 308, Other Gas Revenues, which require filers to report the dollar 

amounts and volumes associated with each type of transportation service provided. Form 

2 does not, however, require filers to identify the volumes and revenues applicable to 

discounted, negotiated, or recourse rates. Both the Industry Coalition and the KCC 

believe that this information is invaluable to shippers because it would allow for the 

proper assessment and analysis of adequacy of rates.77 

 

77 Industry Coalition comments at 6; see also KCC Comments at 7. 
Docket No. RM07-9-000 

 

 

34

49. The Commission permits pipelines to negotiate individualized rates78 which, 

unlike discounted rates,79 are not constrained by the maximum and minimum rates in the 

pipeline's tariff.80 However, pipelines must permit shippers the option of paying the 

traditional cost-of-service recourse rates in their tariffs, instead of requiring them to 

negotiate rates for any particular service.81 The Commission relies on the availability of 

recourse rates to prevent pipelines from exercising market power by assuring that the 

customer can revert to the just and reasonable tariff rate if the pipeline unilaterally 

demands excessive prices or withholds service.82 At present, individual pipelines may 

provide services from the same facilities using different rates – negotiated, discounted, or 

recourse rates. In these circumstances, the Commission agrees with the Industry 

Coalition and the KCC that it is important for the customer and the Commission to know 

the level of services provided under each rate structure in order to protect against cross-

 

78 Alternatives to Traditional Cost of Service Ratemaking for Natural Gas

Pipelines, 74 FERC ¶ 61,076, reh'g denied, 75 FERC ¶ 61,024 (1996), petitions for

review denied sub nom. Burlington Resources Oil & Gas Co. v. FERC, 172 F.3d 918 

(D.C. Cir. 1998) (Alternative Rate Policy Statement); Natural Gas Pipelines Negotiated

Rate Policies and Practices; Modification of Negotiated Rate Policy, 104 FERC ¶ 61,134 

(2003), order on reh’g and clarification,114 FERC ¶ 61,042 (2006), dismissing reh’g and

denying clarification, 114 FERC ¶ 61,304 (2006). 

79 See 18 CFR 284.10(c)(5). 

80 See Northern Natural Gas Co., 105 FERC ¶ 61,299 (2003) (clarifying the 

distinction between discounted and negotiated rates). 

81 A recourse rate is a cost of service based rate for natural gas pipeline service 

that is on file in a pipeline’s tariff and available to customers who do not negotiate a rate 

with the pipeline company. 

82 Negotiated Rate Policy Statement at 61,238-42. 
Docket No. RM07-9-000 

 

 

35

subsidization and to ensure that the rate for recourse service remains just and reasonable. 

Therefore, we propose to add a new schedule, page 313, Discounted Services and 

Negotiated Services, which would require pipeline filers to report the revenues and 

volumes applicable to discount and negotiated rate services provided during the period. 

3. Rate Base And Other Key Cost-of-Service Components

a. Deferred Income Taxes 

50. The Industry Coalition and the KCC request that the Commission require pipelines 

to identify the components of deferred taxes that are included in the pipeline’s rate base.83 

Both suggest that the information would provide Form 2 users with an essential element 

needed to calculate the pipeline’s current rates. At present, Form 2 filers are required to 

report only a single line of data for the total deferred income tax balances related to gas 

operations on the schedules titled Accumulated Deferred Income Taxes (Account 190) 

pages 234-235, Accumulated Deferred Income Taxes – Other Property (Account 282) 

pages 274-275, and Accumulated Deferred Income Taxes – Other (Account 283) pages 

276-277. Although Form 2 filers also must identify and report on these pages the 

deferred income taxes related to other income and deductions as well as classification of 

the total deferred income tax amounts between federal, state and local income tax, this 

information does not provide any significant insight into the source of the deferred 

income taxes related to gas operations. Form 2-A filers report even less information 

concerning their deferred income tax amounts. Form 2-A filers report only the total 

 

83 Industry Coalition Comments at 4; KCC Comments at 7. 
Docket No. RM07-9-000 

 

 

36

amount of deferred income taxes (by applicable deferred income tax account) on their 

balance sheet and income statement. Unlike Form 2, no additional supporting 

information for these amounts is presently required in Form 2-A. 

51. The Commission agrees that deferred income tax balances are an important factor 

in determining rate base and evaluating a pipeline’s earned rate of return. Customers 

need to know the amount of deferred tax balances related to gas operations that would be 

included in the pipeline’s cost of service in order to assess the reasonableness of the rates 

currently paid. At present, the level of detail required for deferred income taxes related 

to gas operations in both Forms 2 and 2-A does not provide this information.84 

Accordingly, the Commission is proposing to add an instruction to each of the deferred 

income tax schedules noted above to require pipelines to provide, in a footnote to those 

schedules, a summary of the type and amount of deferred income taxes reported in the 

beginning-of-year and end-of-year balances for deferred income taxes used to develop 

jurisdictional recourse rates. These revisions meet the concerns of the Industry Coalition 

that users be provided additional information to enable them to calculate the pipeline’s 

rate base and evaluate the pipeline’s current rates. 

52. The Commission also proposes to add those deferred tax reporting schedules to 

Form 2-A so that all pipeline customers, not just those of larger pipelines, would have 

 

84 In contrast to the single line reported in Form 2, the deferred income balances 

are comprised of numerous book and income tax timing differences, many of which are 

not used in formulating jurisdictional rates. See, e.g., Transcontinental Gas Pipe Line 

Corporation’s general section 4 rate filing in Docket No. RP06-569-000, Schedule B-1, 

pages 1-16 (reflecting approximately 120 timing differences generating deferred income 

taxes, with only approximately 15 used in the rate base calculation). 
Docket No. RM07-9-000 

 

 

37

this key piece of information which the Commission believes is essential to an 

assessment of the reasonableness of the rates for pipeline service. Also, we propose a 

technical correction to each of the deferred income tax reporting schedules to delete one 

of the lines for reporting “other” deferred income taxes. This will eliminate the 

confusion caused by providing two lines for reporting this information. 

 b. State Income Tax Expense

53. The KCC and MoPSC ask that filers be required to provide the pipeline’s current 

effective overall state income tax rate.85 Both argue that the information now provided in 

Forms 2 and 2-A is inadequate. Currently, in Form 2, the amount of state income tax 

paid or payable for the current year is reported by state on the schedule titled Taxes 

Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged, pages 262-3. 

The aggregate state deferred income tax for the entire reporting entity is reported in Form 

2 schedules for accumulated deferred income taxes, as noted above. However, this 

information does not readily permit the Commission or the pipeline’s customers to 

determine the amount of state income tax expense (both current and deferred) that should 

be associated with the before-tax net income generated from the sales of transportation 

services under more than one rate structure (e.g., where the pipeline provides 

transportation services for some customers on a rolled-in basis and others on an 

incremental basis). Since state income taxes are a valid component of the cost of 

providing service, the Commission and the pipeline’s customers must be able to 

 

85 KCC Comments at 7; MoPSC Comments at 4. 
Docket No. RM07-9-000 

 

 

38

determine the amount of state income tax expense applicable to each of these rate 

structures in order to evaluate the reasonableness of the return earned from providing the 

disparate services on an after-tax basis. For that purpose, we propose to add a column Q 

to the Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged 

schedule on pages 262-3 of Form 2 and to add the same schedule to Form 2-A to require 

pipelines to report state and local income tax rates. 

c. Regulatory Assets and Liabilities

54. The KCC requests that pipelines identify regulatory asset and liability balances 

included in rate base.86 Currently, Forms 2 and 2-A filers are required to report a breakout of regulatory assets and liabilities on page 232, Other Regulatory Assets, and page 

278, Other Regulatory Liabilities. Commission regulations require companies to 

establish regulatory assets and liabilities where future recovery from rate payers or refund 

to rate payers is probable. However, during a rate case the validity of any regulatory 

asset or regulatory liability can be challenged. In order to enable Form 2 and 2-A users to 

determine which regulatory assets are recovered and which regulatory liabilities are 

refunded, the Commission proposes to revise the regulatory asset schedule by adding 

footnote citations for each regulatory asset to identify the regulatory approval to record 

the item and adding a column to identify amounts written off during the period as nonrecoverable. In addition, we propose to revise the regulatory liability schedule by adding 

footnote citations for each regulatory liability to identify the regulatory approval to 

 

86 KCC Comments at 7. 
Docket No. RM07-9-000 

 

 

39

refund the item and adding a column to identify amounts written off during the period as 

non-refundable. 

d. Distribution of Salaries and Wages

55. The Distribution of Salaries and Wages schedule of Form 2, pages 354-355, 

requires natural gas companies to report the distribution of total salaries and wages for 

the year, segregated according to particular operating functions of the company. The 

schedule allows users of the forms to review and analyze the payroll distribution of the 

company. However, the schedule does not provide for the recording of payroll costs 

billed to the company by affiliated companies. Both the KCC and the Industry Coalition 

request that the Commission require pipeline companies to provide more information on 

pipeline overhead and shared service costs.87 Based on our experience in section 4 rate 

cases, natural gas company affiliates have become a larger cost of operations for many 

natural gas companies as these affiliated companies are increasingly providing the 

workforce for the natural gas company’s operations. The salary and wage expenses that 

affiliated companies charge to the natural gas companies are not currently reported in the 

Distribution of Salaries and Wages schedule by all filers of Form 2. As a consequence, 

an important tool used for evaluating the reasonableness of the level of salaries and 

wages charged to pipeline operations, and thus included in the cost of service, is 

compromised. 

 

87 Industry Coalition Comments at 6; KCC Comments at 7. 
Docket No. RM07-9-000 

 

 

40

56. To enhance the usability of the Distribution of Salaries and Wages schedule, the 

Commission proposes to add an instruction and a new column that would require all filers 

of Form 2 to report salaries and wages billed by affiliates or affiliated service companies 

separately from other salary and wage distributions. The new column to pages 354-355 

would be titled “Payroll Billed by Affiliated Companies.” Requiring natural gas 

companies to file this payroll distribution information would allow the forms user to 

determine the level of salaries and wages included in the natural gas company’s 

operations and maintenance expenses, make valid comparisons of the amounts between 

entities and periods, and better assess the reasonableness of the levels for cost of service 

purposes. 

e. Employee Pensions and Benefits

57. NYPSC requests that pipelines be required to report information concerning 

pension and other post-employment benefits.88 NYPSC states that presently, Form 2 

does not require any reporting related to these expenses, and believes that these expense 

components are material to a rate assessment.89 Presently, the USofA requires pipelines 

to record the cost of pension and other employee benefits in Account 926, Employee 

Pensions and Benefits. Instruction 3 to page 122.1, Notes to Financial Statements, 

requires filers to furnish details on their pension plans, post-retirement benefits other than 

pensions (PBOPS), and post-employment benefit plans, including the current year’s cash 

 

88 NYPSC Comments at 7. 

89 Id.
Docket No. RM07-9-000 

 

 

41

contribution to each plan. Despite these accounting and disclosure requirements, 

information about the costs of the various employee benefit plans charged to expense 

each period is not readily available in Forms 2 and 2-A. This is due to the complexity of 

the disclosure requirements for defined PBOP’s, the participation by pipelines in multiemployer benefits plans in which they are assigned a portion of the cost of the total plan, 

and the flexibility in how information is displayed and described in a footnote disclosure. 

58. We agree that it is important that forms users be able to identify the types and 

costs of employee benefits. Therefore, we propose to amend Instruction 3 to page 122.1 

to require filers that participate in multi-employer post-retirement benefit plans to 

disclose the amount of cost recognized in the filer’s financial statements for each plan for 

the period presented and the basis for determining the filer’s share of the total plan costs. 

In addition, we are proposing to add a schedule entitled Employee Pensions and Benefits, 

page 352, to both Forms 2 and 2-A, to provide additional details about the types and costs 

of benefits provided to employees. The Commission believes that requiring pipelines to 

provide this level of detail would permit forms users to assess the cost of employee 

benefits and better compare this information between periods and entities. 

f. Asset Retirement Obligation (ARO) 

59. The Commission amended its regulations in Order No. 631 to update the 

accounting and financial reporting requirements for asset retirement obligations (ARO) 

under its USofA for public utilities and licensees, natural gas and oil pipeline 
Docket No. RM07-9-000 

 

 

42

companies.90 An asset retirement obligation is a liability resulting from a legal obligation 

to retire or decommission a plant asset. Recently, some pipelines have sought to recover 

ARO costs in their overall cost of service.91 As a result of this increasing trend, the 

Commission believes that it has become increasingly important to make the accounting 

for AROs more transparent to the users of the financial statements as the statements 

currently do not provide the level of detail required to perform a thorough analysis of a 

company’s asset retirement obligations. 

60. The Commission is proposing to add a new instruction to the Notes to the 

Financial Statements schedule, page 122.1. The new instruction would require natural 

gas companies to disclose: (1) details on the initial accounting for asset retirement 

obligations; (2) any subsequent changes in the measurement or method of accounting for 

the obligations; and (3) the final accounting for the settlement of the obligations, 

including recognition of any gains or losses on the settlement. In addition, it would 

require identification of ARO costs that are recovered through rates and placed into 

funding mechanisms or deposit accounts, (e.g., trust funds, insurance policies, surety 

bonds). 

61. Account No. 824 of the USofA requires pipelines to maintain records of costs 

incurred in operating underground storage plant and other underground storage expenses, 

 90 Accounting, Financial Reporting, and Rate Filing Requirements for Asset 

Retirement Obligations, Order No. 631, 68 Fed. Reg. 19610 (April 21, 2003), FERC 

Stats. & Regs. ¶ 31,142, order on reh’g, Order No. 631-A, 104 FERC ¶ 61,183 (2003).

91 See, e.g., Transcontinental Pipe Line Corporation, 116 FERC ¶ 61,314 (2006); 

Dominion Cove Point LNG, LP, 116 FERC ¶ 61,110 (2006). 
Docket No. RM07-9-000 

 

 

43

not includable in other accounts, including research and development expenses. Account 

No. 859 requires that pipelines maintain records of the costs of labor, material used and 

expenses incurred in operating transmission system equipment and transmission system 

expenses not includable in other accounts, including research and development expenses. 

This information is currently not provided in Form 2. We invite comments on whether 

research and development expenditures included in Account Nos. 824 and 859 should be 

reported in Form 2. 

 D. Proposed Elimination of Form 11

62. Williston Basin suggested that Form 11, Natural Gas Pipeline Company Quarterly 

Statement of Monthly Data be eliminated and that the information required by Form 11 

be reported in Form 3-Q.92 Form 11 is a quarterly filing made by natural gas companies 

whose gas transported or stored for a fee exceeded 50 million Dth in each of the three 

previous years.93 The form collects information concerning selected revenues and 

associated quantities for each month by applicable rate schedule. The data is submitted 

electronically on a quarterly basis. The Commission requests that Form 11 users advise 

whether the information reported in the form is relied upon by pipeline shippers, and, 

specifically, how the data is used. In addition, both filers and users of Form 11 are asked 

to respond whether the information reported in Form 11 could, alternatively, be 

incorporated into Form 3-Q. 

 

92 Williston Basin Comments at 7. 

93 See 18 CFR 260.3. 
Docket No. RM07-9-000 

 

 

44

E. Proposed Adjustments to the CPA Certification Statement 

63. Each natural gas company not classified as Class C or D prior to January 1, 1984, 

is required to file with the Commission a letter or report of an independent accountant 

certifying approval, together with the filing of the applicable Form 2 or 2-A.94 The 

Commission’s regulations require that an independent certified public accountant test for 

compliance in all material respects with the USofA and published accounting releases for 

those schedules listed in the General Instructions of the applicable Form 2 or 2-A.95 

Natural gas companies that file a Form 2 or 2-A are required to file the Certified Public 

Accountant’s (CPA) Certification Statement on April 18 of the following calendar year. 

64. The Commission proposes to extend the filing date for the CPA Certification 

Statement until May 18 of the following calendar year for natural gas companies. This 

proposal would reduce the filing and administrative burden by allowing more time for the 

company and the certified public accountant to identify and resolve issues that may arise 

during the course of the examination. 

F. Miscellaneous Issues

65. The NOPR posed two questions that are not directly related to the forms. The 

first is whether interstate pipelines should be required to notify the Commission when 

their total sales or transactions fall below the minimum thresholds established in the 

 

94 See 18 CFR 158.11. The C and D classifications refer to pipelines now defined 

as Nonmajor. See 18 CFR Part 201 General Instructions. 

95 See 18 CFR 158.10. 
Docket No. RM07-9-000 

 

 

45

Commission’s regulations such that the pipeline believes that it is no longer subject to the 

filing requirements.96 The KCC and MoPSC responded that the Commission should 

require such notification.97 MoPSC observes that this requirement would allow the 

Commission and the public to determine if a report is late or no longer required.98 

INGAA and Williston Basin stated that they did not object to this requirement. The 

Commission agrees that notification of non-filing status would be helpful to the 

Commission and users of Forms 2 and 2-A. Accordingly, at such time as a pipeline now 

subject to the reporting requirements in either Form 2 or 2-A has, in three consecutive 

years, experienced volumes and transactions below the threshold levels specified in the 

Commission’s regulations and believes that they are no longer required to file a Form 2 

or 2-A, must notify the Commission of this change. The pipeline must file the 

notification on the date that the form would otherwise be due. 

66. The Commission also asked commenters whether the Commission should require 

a showing of good cause before granting an extension of time in which to file the 

required reports. Both MoPSC and the KCC support such a requirement.99 The 

Commission agrees that any request for an extension of time in which to comply with 

Commission regulations or a Commission order must show good cause. Without such a 

 

96 See 18 CFR 260.1 and 260.2. 

97 KCC Comments at 8; MoPSC Comments at 10. 

98 MoPSC Comments at 10. 

99 Id. See KCC Comments at 8. 
Docket No. RM07-9-000 

 

 

46

showing, the request may not be granted. The Commission staff is monitoring filers’ 

timely compliance with the reporting requirements and will continue to do so. 

IV. Information Collection Statement

67. The following collections of information contained in this proposed rule have been 

submitted to the Office of Management and Budget for review under Section 3507(d) of 

the Paperwork Reduction Act of 1995.100 The Commission solicits comments on the 

Commission’s need for this information, whether the information will have practical 

utility, the accuracy of the burden estimates, ways to enhance the quality, utility and 

clarity of the information to be collected or retained, and any suggested methods for 

minimizing respondents’ burden, including the use of automated information techniques. 

Estimated Annual Burden: 

The Commission estimates that on average it will take respondents from fifty-nine to one 

hundred and fifty-six hours to comply with the proposed requirements. Most of the 

additional information required to be reported is already compiled and maintained by the 

pipelines, and will not substantially increase the existing reporting burden. This will 

result in total hours for the following collections of information: 

Data Collection 

Form 

Number of 

Respondents 

Change in the 

Number of 

Hours per 

Respondent 

Filing 

Periods 

Change in the Total 

Annual Hours 

 (a) (b) (c) (d) (e)=(b)x(c)x(d) 

FERC Form 2 74 50 1 3700 

FERC Form 2-A 44 135 1 5940 

 

100 44 U.S.C. 3507(d). 
Docket No. RM07-9-000 

 

 

47

FERC Form 3-Q 118 

(74m, 44nm) 

 7 3 2478 

(1554m,924nm) 

FERC Form 11 74 -3 4 (-888) 

Relevant Totals 59m, 156nm 11,230 

(4366m,6864nm) 

nm= nonmajor company m=major company 

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

with these requirements. As most of the required data is already maintained by the 

pipelines, the Commission estimates that the collection costs will not be overly 

burdensome. 

Title: FERC Form No. 2, “Annual Report of Major Natural Gas Companies”; FERC 

Form No. 2-A, “Annual report for Nonmajor public utilities and licensees”; FERC Form 

No. 3-Q, “Quarterly financial report of electric utilities, licensees, and natural gas 

companies.” 

Action: Proposed information collection. 

OMB Control Nos. 1902-0028 (Form 2); 1902-0030 (Form 2-A); 1902-0205 (Form 3-

Q), and 1902-0032 (Form 11). 

Respondents: Businesses or other for profit. 

Frequency of responses: Annually and quarterly. 

Necessity of the information: The information maintained and collected under the 

requirements of Part 141 is essential to the Commission’s oversight duties. The data now 

reported in the forms does not provide sufficient information to the Commission and the 

public to permit an evaluation of the filers’ jurisdictional rates. Since the triennial 

restatement of rates requirement was abolished and pipelines are no longer required to 
Docket No. RM07-9-000 

 

 

48

submit this information, the need for current and relevant data is greater than in the past. 

The information collection proposed in the NOPR will increase the forms’ usefulness to 

both the public and the Commission. Without this information, it is difficult for the 

Commission and the public to perform an assessment of pipeline costs, and thereby help 

to ensure that rates are just and reasonable. 

Internal Review: The Commission has reviewed the proposed changes and has 

determined that the changes are necessary. These requirements conform to the 

Commission’s need for efficient information collection, communication, and 

management within the energy industry. The Commission has assured itself, by means of 

internal review, that there is specific, objective support associated with the information 

requirements. 

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

contacting: Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, 

D.C. 20426 [Attention: Michael Miller, Office of the Chief Information Officer, phone 

(202) 502-8415, fax: (202) 273-0873, email: Michael.miller@ferc.gov] 

V. Environmental Analysis 

69. 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.101 No environmental consideration is necessary for the 

promulgation of a rule that addresses information gathering, analysis, and 

 

101 See Regulations Implementing the National Environmental Policy Act, Order 

No. 486, 52 FR 47897 (Dec. 17, 1987) FERC Stats. & Regs. ¶ 30,783 (1987). 
Docket No. RM07-9-000 

 

 

49

dissemination,102 and, also, addresses accounting.103 No environmental consideration is 

raised by the promulgation of a rule that is procedural or does not substantially change 

the effect if legislation or regulations being amended, and therefore, fall under these 

exclusions.104 These proposed rules, if finalized, involve information gathering, analysis, 

and dissemination. Consequently, neither an Environmental Impact Statement nor an 

Environmental Assessment is required. 

VI. Regulatory Flexibility Act 

70. The Regulatory Flexibility Act of 1980 (RFA)105 requires rulemakings to contain 

either a description and analysis that the rule will have on small entities or a certification 

that the rule will not have a significant economic impact on a substantial number of small 

entities.106 Under the industry standards used for purposes of the RFA, a natural gas 

company qualifies as a “small entity” if it has annual revenues of $6.5 million or less. 

Most companies regulated by the Commission do not fall within the RFA’s definition of 

a small entity.107 Thus, most interstate natural gas companies to which the rules proposed 

herein, if finalized, would not fall within the RFA’s definition of small entities. 

 

102 See 18 CFR 380.4(a)(5). 

103 See 18 CFR 380.4(a)(16). 

104 See 18 CFR 380.4(a)(2)(ii). 

105 5 U.S.C. 601-612. 

106 Id.

107 5 U.S.C. 601(3). 
Docket No. RM07-9-000 

 

 

50

Consequently, the rules proposed herein, if finalized, will not have a significant economic 

effect on a substantial number of small entities.

VII. Comment Procedures

71. The Commission invites interested persons to submit comments on the matters and 

issues proposed in this notice to be adopted, including any related matters or alternative 

proposals that commenters may wish to discuss. Comments are due on or before [Insert 

Date 45 days from publication in the FEDERAL REGISTER]. Comments must refer 

to Docket No. RM07-9-000 , and must include the commenter's name, the organization 

he or she represents, if applicable, and his or her address. 

72. 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, and commenters may attach additional files with 

supporting information in certain other file formats. Commenters filing electronically do 

not need to make a paper filing. 

73. Commenters who are not able to file comments electronically must send an 

original and 14 copies of their comments to: Federal Energy Regulatory Commission, 

Office of the Secretary, 888 First Street N.E., Washington, DC, 20426. 

74. 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 notice of proposed rulemaking are not required to serve 

copies of their comments on other commenters. 
Docket No. RM07-9-000 

 

 

51

VIII. Document Availability

75. 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, N.E., Room 2A, 

Washington D.C. 20426. 

76. From the Commission’s home page on the Internet, this information is available in 

the Commission’s document management system, eLibrary. The full text of this 

document is available on eLibrary in PDF and 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. 

77. User assistance is available for eLibrary and the Commission’s web site during 

normal business hours. For assistance, please contact FERC Online Support at 1-866-

208-3676 (toll free) or 202-502-6652 or email at ferconlinesupport@ferc.gov, or the 

Public Reference Room at (202) 502-8371, TTY (202)502-8659. E-mail at 
Docket No. RM07-9-000 

 

 

52

public.referencerom@ferc.gov. 

List of subjects in 18 CFR Part 158 and 260

18 CFR Part 158 

 Natural gas, Reporting requirements. 

18 CFR Part 260 

 Natural gas, Reporting requirements 

 

By direction of the Commission. Commissioner Wellinghoff concurring 

 with a separate statement attached. 

 

 Kimberly D. Bose, 

 Secretary. 
Docket No. RM07-9-000 

 

 

53

In consideration of the foregoing, the Commission proposes to amend parts 158 

and 260 of Title 18 of the Code of Federal Regulations, as set forth below: 

PART 158 - ACCOUNTS, RECORDS, MEMORANDA AND DISPOSITION OF 

CONTESTED AUDIT FINDINGS AND PROPOSED REMEDIES 

1. The authority citation for part 158 continues to read as follows: 

Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7102-7352. 

2. Section 158.11 is revised to read as follows: 

§ 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 by May 18 of the following calendar year, a letter or 

report of the independent accountant certifying approval, covering the subjects and in the 

format prescribed in the General Instructions of the applicable Form No. 2 or Form No. 

2-A. 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. 

PART 260-STATEMENTS AND REPORTS (SCHEDULES) 

1. 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. 

2. Section 260.3 is removed. 
 UNITED STATES OF AMERICA 

 FEDERAL ENERGY REGULATORY COMMISSION 

Revisions to Forms, Statements, and Reporting Docket No. RM07-9-000 

Requirements For Natural Gas Pipelines 

 

 (Issued September 20, 2007) 

WELLINGHOFF, Commissioner, concurring: 

The adequacy of data reported in Forms 2, 2-A and 3-Q has been questioned for 

years. Based on the comments received in response to the NOI in this proceeding, the 

need to update and supplement these forms is clear. Today, we propose modifications 

that should correct many deficiencies in these forms. 

We have endeavored to make the changes necessary to provide the data needed by 

the Commission to carry out our responsibility, and for the form users to effectively 

exercise their rights, under NGA Section 5. Most of the information requested is data 

that is maintained by the pipeline and can readily be transferred to existing and new 

schedules. Conversely, I do not believe that we have blurred the distinction between 

NGA sections 4 and 5, a concern expressed by some commenters. I urge parties in their 

comments to focus on whether our proposed modifications have struck the proper 

balance. 

 I also have a specific request for comment. As noted, these forms are the vehicles 

the Commission uses to obtain financial and certain operational information from 

pipelines. The forms provide information concerning a pipeline’s past performance and 

its future prospects. For example, a pipeline is currently required to provide a statement 

and system map identifying and detailing all important changes in the facilities it 

operates.1

 I propose that pipelines submit an Energy Efficiency Statement as well. I 

believe advancement of energy efficient infrastructure is critical to help address the 

energy crisis our country faces. The Energy Efficiency Statement would describe how 

the pipeline has incorporated efficiency in the facility changes it reports. Such 

transparency will be useful in encouraging energy efficiency improvements by pipelines 

and more broadly disseminating the best practices throughout the industry. 

For this reason, I respectfully concur. 

_______________________________ 

Jon Wellinghoff 

Commissioner 

 

1

 General Corporate Information and Financial Statements, Important Changes 

during the Year and Gas Plant Statistical Data, System Map. 
Docket No. RM07-9-000 

 

 

1

Note: Appendix A will not be published in the Code of Federal Regulations. 

Appendix A- Summary Table of Proposed Changes to Schedules for FERC Form 

Nos. 2, 2-A, and 3-Q. 

 

Page 

Numbers Schedule Form 2 Form 2-A 

Form 3-

Q, major 

Form 3-Q, 

non-major 

1 122.1 Notes to Financial Statements rev rev rev rev 

2 217 Rate Treatment new new 

3 232 Other Regulatory Assets rev rev rev rev 

4 234-235 

Accumulated Deferred Income 

Taxes rev new 

5 262-263 

Taxes Accrued, Prepaid and 

Charged During Year, Distribution of 

Taxes Charged rev new 

6 274-275 

Accumulated Deferred Income 

Taxes-Other Property rev new 

7 276-277 

Accumulated Deferred Income 

Taxes-Other rev new 

8 278 Other Regulatory Liabilities rev rev rev rev 

9 300-301 Gas Operating Revenues rev rev 

10 308 Other Gas Revenues rev new 

11 313 

Discounted Services and Negotiated 

Services new new 

12 352 Employee Pensions and Benefits new new 

13 354-355 Distribution of Salaries and Wages rev 

14 357 

Charges for Outside Professional 

and Other Consultative Services rev new 

15 358 Transactions with Associated new new 

16 508-509 Compressor Station rev 

17 520 Gas Account – Natural Gas rev rev new new 

18 521 

Shipper Supplied Gas for the 

Current Quarter new new new new 

 

Total 

Changes 18 16 5 5 

 

Total 

New 5 11 2 2 

 KEY: 

 new = new 

 revised = rev 

 existing = ext 
Docket No. RM07-9-000 

 

 

2

Note: Appendix B will not be published in the Code of Federal Regulations. 

Appendix B - List of Questions posed in the Notice of Inquiry (RM07-9-000). 

(1) Do the annual and quarterly Financial Forms provide sufficient data for the public to 

permit an evaluation of the filers’ jurisdictional rates? 

(2) If not, what additional data is needed to conduct such an evaluation? Please specify 

the form (or forms) to which your suggestions pertain. 

(3) Do the financial reports provide sufficient data to the public to determine revenues 

attributable to the sale of excess fuel retention? If not, what additional data is needed to 

conduct such an evaluation? 

(4) Is the information included in the financial reports sufficient to audit formulaic rates? 

(5) Should the Commission require reporting of information on demand response 

initiatives (interruptible, load control, etc.), including demand and peak demand impacts, 

associated costs and savings, and the number of advanced meters installed? 

(6) Please explain how this additional data will be useful to users of the Financial Forms. 

(7) How burdensome would any requirement for additional information be to filers of 

Financial Forms? 

(8) Are there specific reporting requirements that are no longer necessary or unduly 

burdensome that should be deleted? 

(9) What technical revisions, if any, need to be made to the Financial Forms? For 

example, identify any suggested changes in instructions, desirable software upgrades, and 

whether there are errors embedded in the forms which need to be corrected. 

(10) Should the Commission require electric utilities, licensees and interstate natural gas 

and oil pipeline companies to provide notification when their total sales or transactions 

fall below the minimum thresholds established in the Commission’s regulations such that 

they are no longer subject to these filing requirements? 

(11) Should the Commission require a showing of good cause before granting an 

extension of time in which to file the required forms? 

(12) Are these concerns of sufficient importance to warrant a rulemaking and, if so, what 

rules should the Commission promulgate? Commenters are encouraged to be as specific 

as possible. 
Docket No. RM07-9-000 

 

 

3

NOTE: Appendix C will not be published in the Code of Federal Regulations. 

Appendix C: List of Commenters 

 Company Name Abbreviation 

 

1 American Gas Association AGA 

2 Bureau of Economic Analysis BEA 

3 Boardwalk Pipeline Partners, LP Boardwalk 

4 Interstate Natural Gas Association of America INGAA 

5 Missouri Public Service Commission MoPSC 

6 Natural Gas Industry Coalition NGIC 

 

7 New York State Public Service Commission NYPSC 

8 Public Utilities Commission of Ohio PUCO 

9 The Kansas Corporation Commission KCC 

10 Washington Gas Light Company Washington Gas 

11 Williston Basin Interstate Pipeline Company Williston Basin 

Reply Comments 

Interstate Natural Gas Association of America 

Williston Basin Interstate Pipeline Company 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 1

FERC FORM NO. 2 (REVISED) 122.1 

FERC FORM NO. 2-A (REVISED) 

FERC FORM NO. 3-Q MAJOR (REVISED) 

FERC FORM NO. 3-Q NON-MAJOR (REVISED) 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr 

Notes to Financial Statements 

 1. Provide important disclosures regarding the Balance Sheet, Statement of Income for the Year, Statement of Retained Earnings for the Year, and Statement of 

Cash Flow, or any account thereof. Classify the disclosures according to each financial statement, providing a subheading for each statement except where a 

disclosure is applicable to more than one statement. The disclosures must be on the same subject matters and in the same level of detail that would be required if 

the respondent issued general purpose financial statements to the public or shareholders. 

 2. Furnish details as to any significant contingent assets or liabilities existing at year end, and briefly explain any action initiated by the Internal Revenue Service 

involving possible assessment of additional income taxes of material amount, or a claim for refund of income taxes of a material amount initiated by the utility. 

Also, briefly explain any dividends in arrears on cumulative preferred stock. 

 3. Furnish details on the respondent's pension plans, post-retirement benefits other than pensions (PBOP) plans, and post-employment benefit plans as required by 

instruction no. 1 and, in addition, disclose for each individual plan the current year's cash contributions. Furnish details on the accounting for the plans and any 

changes in the method of accounting for them. Include details on the accounting for transition obligations or assets, gains or losses, the amounts deferred and the 

expected recovery periods. Also, disclose any current year's plan or trust curtailments, terminations, transfers, or reversions of assets. Entities that participate in 

multiemployer postretirement benefit plans (e.g. parent company sponsored pension plans) disclose in addition to the required disclosures for the consolidated plan, 

(1) the amount of cost recognized in the respondent’s financial statements for each plan for the period presented, and (2) the basis for determining the respondent’s 

share of the total plan costs. 

 4. Furnish details on the respondent’s asset retirement obligations (ARO) as required by instruction no. 1 and, in addition, disclose the amounts recovered 

through rates to settle such obligations. Identify any mechanism or account in which recovered funds are being placed (i.e. trust funds, insurance policies, surety 

bonds). Furnish details on the accounting for the asset retirement obligations and any changes in the measurement or method of accounting for the obligations. 

Include details on the accounting for settlement of the obligations and any gains or losses expected or incurred on the settlement. 

 5. Where Account 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an explanation, providing the 

rate treatment given these items. See General Instruction 17 of the Uniform System of Accounts. 

 6. Explain concisely any retained earnings restrictions and state the amount of retained earnings affected by such restrictions. 

 7. Disclose details on any significant financial changes during the reporting year to the respondent or the respondent's consolidated group that directly affect the 

respondent's gas pipeline operations, including: sales, transfers or mergers of affiliates, investments in new partnerships, sales of gas pipeline facilities or the sale of 

ownership interests in the gas pipeline to limited partnerships, investments in related industries (i.e., production, gathering), major pipeline investments, 

acquisitions by the parent corporation(s), and distributions of capital. 

 8. Explain concisely unsettled rate proceedings where a contingency exists such that the company may need to refund a material amount to the utility's customers 

or that the utility may receive a material refund with respect to power or gas purchases. State for each year affected the gross revenues or costs to which the 

contingency relates and the tax effects and explain the major factors that affect the rights of the utility to retain such revenues or to recover amounts paid with 

respect to power and gas purchases. 

 9. Explain concisely significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding affecting revenues 

received or costs incurred for power or gas purchases, and summarize the adjustments made to balance sheet, income, and expense accounts. 

 10. Explain concisely only those significant changes in accounting methods made during the year which had an effect on net income, including the basis of 

allocations and apportionments from those used in the preceding year. Also give the approximate dollar effect of such changes.

 11. For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading. Disclosures which 

would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omitted. 

 12. For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which have a material 

effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in such items as: accounting principles 

and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts; capitalization including significant new borrowings or 

modifications of existing financing agreements; and changes resulting from business combinations or dispositions. However were material contingencies exist, the 

disclosure of such matters shall be provided even though a significant change since year end may not have occurred. 

 13. Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable and furnish the data 

required by the above instructions, such notes may be included herein. 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 2

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Non-Traditional Rate Treatment Afforded New Projects 

1. The Commission’s Certificate Policy Statement provides a threshold requirement for existing pipelines proposing new projects is that the pipeline must be prepared to 

financially support the project without relying on subsidization from its existing customers. See Certification of New Interstate Natural Gas Pipeline Facilities, 88 FERC 

P61,227 (1999); order clarifying policy, 90 FERC P61,128 (2000); order clarifying policy, 92 FERC P61,094 (2000) (Policy Statement). In column a, list the name of the 

facility granted non-traditional rate treatment. 

2. In column b, list the CP Docket Number where the Commission authorized the facility. 

3. In column c, indicate the type of rate treatment approved by the Commission (e.g. incremental, at risk) 

4. In column d, list the amount in Account 101, Gas Plant in Service, associated with the facility. 

5. In column e, list the amount in Account 108, Accumulated Provision for Depreciation of Gas Utility Plant, associated with the facility. 

6. In column f, list the amount in Account 190, Accumulated Deferred Income Tax; Account 281, Accumulated Deferred Income Taxes – Accelerated Amortization 

Property; Account 282, Accumulated Deferred Income Taxes – Other Property; Account 283, Accumulated Deferred Income Taxes – Other, associated with the facility. 

7. In column g, report the total amount included in the gas operations expense accounts during the year related to the facility (Account 401, Operation Expense). 

8. In column h, report the total amount included in the gas maintenance expense accounts during the year related to the facility. 

9. In column i, report the amount of depreciation expense accrued on the facility during the year. 

10. In column j, report the incremental revenues associated with the facility. 

11. In column k, list any other expenses allocated to the facility. 

12. .Provide the total amounts for each column. 

Line 

No. 

Name of 

Facility 

(a) 

CP 

Docket 

No. 

(b) 

Type of 

Rate 

Treatment 

(c) 

Gas 

Plant In 

Service 

(d) 

Accumulated 

Depreciation 

(e) 

Accumulated Deferred 

Income 

Taxes 

(f) 

Operating 

Expense 

(g) 

Maintenance Expense 

(h) 

Depreciation 

Expense 

(i) 

Incremental 

Revenues 

(j) 

Other 

Expenses 

(k) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

Total 

FERC FORM NO. 2 (NEW) Page 217 

FERC FORM NO. 2-A (NEW) 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 3

Name of Respondent This Report Is: 

(1) ⁭ An Original 

(2) ⁭ A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Other Regulatory Assets (Account 182.3) 

1. Report below the details called for concerning other regulatory assets which are created through the ratemaking actions of regulatory agencies (and not includable in 

other accounts). 

2. For regulatory assets being amortized, show the period of amortization in column (a). 

3. Minor items (5% of the Balance at the End of the Year for Account 182.3 or amounts less than $250,000, whichever is less) may be grouped by classes. 

4. Report separately any “Deferred Regulatory Commission Expenses” that are also reported on pages 350-351, Regulatory Commission Expenses. 

5. Provide in a footnote, for each line item, the regulatory citation where authorization for the regulatory asset has been granted (e.g. Commission Order, state 

commission order, court decision). 

Line No. Description and Purpose 

of Other Regulatory 

Assets 

(a) 

Balance at 

Beginning 

Current 

Quarter/Year 

(b) 

Debits 

(c) 

Written off 

During 

Quarter/Year 

Account 

Charged 

(d) 

Written off During the Period Balance at End 

of Current 

Quarter/Year 

(g) 

 Amount Recovered 

(e) 

Amount deemed 

Unrecoverable 

(f) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

Total 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (REVISED) 

FERC FORM NO. 3-Q MAJOR (REVISED) 

FERC FORM NO. 3-Q NON-MAJOR (REVISED) Page 232 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 4

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Accumulated Deferred Income Taxes (Account 190)

1. Report the information called for below concerning the respondent's accounting for deferred income taxes. 

2. At Other (Specify), include deferrals relating to other income and deductions. 

Line 

No. 

Account Subdivisions

(a) 

Balance at 

Beginning 

of Year 

(b) 

Changes During 

Year 

Amounts Debited 

to Account 410.1 

(c) 

Changes During 

Year 

Amounts Credited 

to Account 411.1 

(d) 

1 Account 190 

2 Electric 

3 Gas 

4 

5 

6 Other (Specify) (Footnote Details) 

7 TOTAL Account 190 (Enter TOTAL of Lines 1 thru 6 

8 Classification of TOTAL 

9 Federal Income Taxes 

10 State Income Taxes 

11 Local Income Taxes 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

50 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 234 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 5

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Accumulated Deferred Income Taxes (Account 190) (continued)

3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income 

taxes that the respondent estimates could be included in the development of jurisdictional recourse rates. 

Line 

No. 

Changes During 

Year 

Amounts Debited 

to Account 410.2 

(e) 

Changes During 

Year 

Amounts Credited 

to Account 411.2 

(f) 

Adjustments 

Debits 

Account No. 

(g) 

Adjustments 

Debits 

Amount 

(h) 

Adjustments 

Credits 

Account No. 

(i) 

Adjustments 

Credits 

Amount 

(j) 

Balance at 

End of Year 

(k) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 235 

 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 6

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility department where applicable and account charged) 

1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include 

gasoline other sales taxes which have been charged to the accounts to which taxed materials was charged. If the actual or estimated amounts of such taxes are 

known, show the amounts in a footnote and designate whether estimated or actual amounts. 

2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes). Enter the amounts in both 

columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes. 

3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts other than accrued and prepaid tax accounts.4. List the 

aggregate of each kind of tax in such a manner that the total tax for each State and subdivision can be readily ascertained. 

Line 

No. 

Kind of Tax 

(a) 

Balance at 

Beginning of Year 

Taxes Accrued 

(b) 

Balance at 

Beginning of Year 

Prepaid Taxes 

(c) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 TOTAL 

 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 262a 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 7

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr 

Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility department where applicable and account charged) 

(Continued) 

5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in 

column (a). 

6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a footnote. Designate debit adjustments by 

parentheses. 

7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such 

taxes to the taxing authority. 

8. Show in columns (i) thru (p) how tax accounts were distributed. Show both the utility department and the number of account charged. For taxes charged to 

utility plant, show the number of the appropriate balance sheet plant account or sub account. 

9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax. 

10. Items under $250,000 may be grouped. 

11. Report in column (q) the applicable effective state income tax rate. 

Line 

No. 

Taxes Charged 

During Year 

 

(d) 

Taxes Paid 

During Year 

(e) 

Adjustments 

 

(f) 

Balance at 

End of Year 

Taxes Accrued 

(Account 236) 

(g) 

Balance at 

End of Year 

Prepaid Taxes 

(Included in Account 165) 

(h) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 TOTAL 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 262b 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 8

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 263a 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility department where applicable and account charged) 

(Continued) 

1. Give details of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include 

gasoline other sales taxes which have been charged to the accounts to which taxed materials was charged. If the actual or estimated amounts of such taxes are 

known, show the amounts in a footnote and designate whether estimated or actual amounts. 

2. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes). Enter the amounts in both 

columns (d) and (e). The balancing of this page is not affected by the inclusion of these taxes. 

3. Include in column (d) taxes charged during the year, taxes charged to operations and other accounts other than accrued and prepaid tax accounts. 

4. List the aggregate of each kind of tax in such a manner that the total tax for each State and subdivision can be readily be ascertained. 

DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged) 

Line 

No. 

Electric 

(Account 408.1, 409.1) 

(i) 

Gas 

(Account 408.1, 409.1) 

(j) 

Other Utility Department 

(Account 408.1, 409.1) 

(k) 

Other Income and 

Deductions 

(Account 408.2, 409.2) 

(l) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 9

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Taxes Accrued, Prepaid and Charged During Year, Distribution of Taxes Charged (Show utility department where applicable and account charged) 

(Continued) 

5. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in 

column (a). 

6. Enter all adjustments of the accrued and prepaid tax accounts in column (f) and explain each adjustment in a footnote. Designate debit adjustments by 

parentheses. 

7. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such 

taxes to the taxing authority. 

8. Show in columns (i) thru (p) how tax accounts were distributed. Show both the utility department and the number of account charged. For taxes charged to 

utility plant, show the number of the appropriate balance sheet plant account or sub account. 

9. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax. 

10. Items under $250,000 may be grouped. 

11. Report in column (q) the applicable effective state income tax rate. 

DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged) 

Line 

No. 

Extraordinary Items 

(Account 409.3) 

(m) 

Other Utility Operating Income 

(Account 408.1 and Account 409.1) 

(n) 

Adjustments to Retained 

Earnings 

(Account 439) 

(o) 

Other 

(p) 

State/Local Income 

Tax Rate 

(q) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 263b 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 10

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 274 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Accumulated Deferred Income Taxes-Other Property (Account 282)

1. Report the information called for below concerning the respondent's accounting for deferred income taxes relating to property not subject to accelerated 

amortization. 

2. At Other (Specify), include deferrals relating to other income and deductions. 

Line 

No. 

Account Subdivisions

(a) 

Balance at 

Beginning 

of Year 

(b) 

Changes During 

Year 

Amounts Debited 

to Account 410.1 

(c) 

Changes During 

Year 

Amounts Credited 

to Account 411.1 

(d) 

1 Account 282 

2 Electric 

3 Gas 

4 

5 

6 Other (Specify) (Footnote Details) 

7 TOTAL Account 282 (Enter TOTAL of Lines 1 thru 6 

8 Classification of TOTAL 

9 Federal Income Taxes 

10 State Income Taxes 

11 Local Income Taxes 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

50 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 11

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Accumulated Deferred Income Taxes-Other Property (Account 282) (continued)

3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income 

taxes that the respondent estimates could be included in the development of jurisdictional recourse rates. 

Line 

No. 

Changes During 

Year 

Amounts Debited 

to Account 410.2 

(e) 

Changes During 

Year 

Amounts Credited 

to Account 411.2 

(f) 

Adjustments 

Debits 

Account No. 

(g) 

Adjustments 

Debits 

Amount 

(h) 

Adjustments 

Credits 

Account No. 

(i) 

Adjustments 

Credits 

Amount 

(j) 

Balance at 

End of Year 

(k) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 275 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 12

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 276 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Accumulated Deferred Income Taxes-Other (Account 283)

1. Report the information called for below concerning the respondent's accounting for deferred income taxes relating to amounts recorded in Account 283. 

2. At Other (Specify), include deferrals relating to other income and deductions. 

Line 

No. 

Account Subdivisions

(a) 

Balance at 

Beginning 

of Year 

(b) 

Changes During 

Year 

Amounts Debited 

to Account 410.1 

(c) 

Changes During 

Year 

Amounts Credited 

to Account 411.1 

(d) 

1 Account 283 

2 Electric 

3 Gas 

4 

5 

6 Other (Specify) (Footnote Details) 

7 TOTAL Account 283 (Enter TOTAL of Lines 1 thru 6 

8 Classification of TOTAL 

9 Federal Income Taxes 

10 State Income Taxes 

11 Local Income Taxes 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

50 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 13

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Accumulated Deferred Income Taxes-Other (Account 283) (continued)

3. Provide in a footnote a summary of the type and amount of deferred income taxes reported in the beginning-of-year and end-of-year balances for deferred income 

taxes that the respondent estimates could be included in the development of jurisdictional recourse rates. 

Line 

No. 

Changes During 

Year 

Amounts Debited 

to Account 410.2 

(e) 

Changes During 

Year 

Amounts Credited 

to Account 411.2 

(f) 

Adjustments 

Debits 

Account No. 

(g) 

Adjustments 

Debits 

Amount 

(h) 

Adjustments 

Credits 

Account No. 

(i) 

Adjustments 

Credits 

Amount 

(j) 

Balance at 

End of Year 

(k) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 277 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 14

Name of Respondent This Report Is: 

(1) ⁭ An Original 

(2) ⁭ A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Other Regulatory Liabilities (Account 254) 

1. Report below the details called for concerning other regulatory liabilities which are created through the ratemaking actions of regulatory agencies (and not includable 

in other accounts). 

2. For regulatory assets being amortized, show the period of amortization in column (a). 

3. Minor items (5% of the Balance at the End of the Year for Account 182.3 or amounts less than $250,000, whichever is less) may be grouped by classes. 

4. Provide in a footnote, for each line item, the regulatory citation where the respondent was directed to refund the regulatory liability (e.g. Commission Order, state 

commission order, court decision). 

Line No. Description and Purpose 

of Other Regulatory 

Assets 

(a) 

Balance at 

Beginning 

Current 

Quarter/Year 

(b) 

Debits 

(c) 

Written off 

During 

Quarter/Year 

Account 

Charged 

(d) 

Written off During the Period Amount Balance at End 

of Current 

Quarter/Year 

(g) 

 Amount Refunded 

(e) 

Amount deemed 

non-refundable 

(f) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

Total 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (REVISED) 

FERC FORM NO. 3-Q MAJOR (REVISED) 

FERC FORM NO. 3-Q NON-MAJOR (REVISED) Page 278 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 15

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Gas Operating Revenues

1. Report below natural gas operating revenues for each prescribed account total. The amounts must be consistent with the detailed data on succeeding pages. 

2. Revenues in columns (b) and (c) include transition costs from upstream pipelines. 

3. Other Revenues in columns (f) and (g) include reservation charges received by the pipeline plus usage charges, less revenues reflected in columns (b) through (e). 

Include in columns (f) and (g) revenues for Accounts 480-495. 

Line 

No. 

Title of Account 

(a) 

Revenues for Transition 

Costs and Take-or-Pay 

Amount for 

Current Year 

(b) 

Revenues for Transition 

Costs and Take-or-Pay 

Amount for 

Previous Year 

(c) 

Revenues for 

GRI and ACA 

Amount for 

Current Year 

(d) 

Revenues for 

GRI and ACA 

Amount for 

Previous Year 

(e) 

1 480 Residential Sales 

2 481 Commercial and Industrial Sales 

3 482 Other Sales to Public Authorities 

4 483 Sales for Resale 

5 484Interdepartmental Sales 

6 485 Intracompany Transfers 

7 487 Forfeited Discounts 

8 488 Miscellaneous Service Revenues 

9 489.1 Revenues from Transportation of Gas 

of Others Through Gathering Facilities 

 

10 489.2 Revenues from Transportation of Gas 

of Others Through Transmission Facilities 

11 489.3 Revenues from Transportation of Gas 

of Others Through Distribution Facilities 

12 489.4 Revenues from Storing Gas of Others 

13 490 Sales of Prod. Ext. from Natural Gas 

14 491 Revenues from Natural Gas Proc. by 

Others 

 

15 492 Incidental Gasoline and Oil Sales 

16 493 Rent from Gas Property 

17 494 Interdepartmental Rents 

18 495 Other Gas Revenues 

19 Subtotal: 

20 496 (Less) Provision for Rate Refunds 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 TOTAL: 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (REVISED) Page 300 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 16

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Gas Operating Revenues (Continued)

4. If increases or decreases from previous year are not derived from previously reported figures, explain any inconsistencies in a footnote. 

5. On Page 108, include information on major changes during the year, new service, and important rate increases or decreases. 

6. Report the revenue from transportation services that are bundled with storage services as transportation service revenue. 

Line 

No. 

Other Revenues 

Amount for 

Current Year 

(f) 

Other 

Revenues 

Amount for 

Previous Year 

(g) 

Total 

Operating 

Revenues 

Amount for 

Current Year 

(h) 

Total 

Operating 

Revenues 

Amount for 

Previous Year 

(i) 

Dekatherm of 

Natural Gas 

Amount for 

Current Year 

(j) 

Dekatherm of 

Natural Gas 

Amount for 

Previous Year 

(k) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (REVISED) Page 301 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 17

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Other Gas Revenues (Account 495) 

Report below transactions included in Account 495, Other Gas Revenues. 

Line 

No. 

Description of Transaction 

(a) 

Amount(b) 

1 Commissions on Sale or Distribution of Gas of Others 

2 Compensation for Minor or Incidental Services Provided for Others 

3 Profit or Loss on Sale of Material and Supplies not Ordinarily Purchased for Resale 

4 Sales of Stream, Water, or Electricity, including Sales or Transfers to Other Departments 

5 Miscellaneous Royalties 

6 Revenues from Dehydration and Other Processing of Gas of Others except as provided for in the Instructions to Account 495. 

7 Revenues for Right and/or Benefits Received from Others which are Realized Through Research, Development, and Demonstration Ventures 

8 Gains on Settlements of Imbalance Receivables and Payables 

9 Revenues from Penalties earned Pursuant to Tariff Provisions, including Penalties Associated with Cash-out Settlements 

10 Revenues from Shipper Supplied Gas 

11 Other revenues (Specify): 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

50 

51 

52 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 308 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 18

Name of Respondent This Report Is: 

(1) ⁭ An Original 

(2) ⁭ A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Discounted Services and Negotiated Services 

1. In column b, report the revenues from discounted services. 

2. In column c, report the volumes of discounted services. 

3. In column d, report the revenues from negotiated services. 

4. In column e, report the volumes of negotiated services. 

Line 

No. 

Account 

(a) 

Discounted Services Negotiated Services 

Revenue 

(b) 

Volumes 

(c) 

Revenue 

(d) 

Volumes 

(e) 

1 Account 489.1, Revenues from 

transportation of gas of others through 

gathering facilities. 

 

2 Account 489.2, Revenues from 

transportation of gas of others through 

transmission facilities. 

3 Account 489.4, Revenues from storing gas 

of others. 

4 Account 495, Other gas revenues. 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

Total 

FERC FORM NO. 2 (NEW) 

FERC FORM NO. 2-A (NEW) Page 313 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 19

Name of Respondent This Report Is: 

(1) ⁭ An Original 

(2) ⁭ A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Employee Pensions and Benefits (Account 926) 

1. Report below the items contained in Account 926, Employee Pensions and Benefits. 

 

Line No. Expense Amount 

1 Pensions – defined benefit plans 

2 Pensions – other 

3 Post-retirement benefits other than pensions (PBOP) 

4 Post- employment benefit plans 

5 Other (Specify) 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

Total 

FERC FORM NO. 2 (NEW) 

FERC FORM NO. 2-A (NEW) Page 352 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 20

FERC FORM NO. 2 (REVISED) Page 354 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Distribution of Salaries and Wages 

 Report below the distribution of total salaries and wages for the year. Segregate amounts originally charged to clearing accounts to Utility Departments, 

Construction, Plant Removals and Other Accounts, and enter such amounts in the appropriate lines and columns provided. Salaries and wages billed to the 

Respondent by an affiliated company must be assigned to the particular operating function(s) relating to the expenses. 

 In determining this segregation of salaries and wages originally charged to clearing accounts, a method of approximation giving substantially correct results may 

be used. When reporting detail of other accounts, enter as many rows as necessary numbered sequentially starting with 75.01, 75.02, etc. 

Line 

No. 

Classification 

(a) 

Direct Payroll 

Distribution 

(b) 

Payroll Billed 

by Affiliated 

Companies 

(c) 

Allocation of 

Payroll Charged 

for Clearing 

Accounts 

(d) 

Total 

(e) 

1 Electric 

2 Operation 

3 Production 

4 Transmission 

5 Distribution 

6 Customer Accounts 

7 Customer Service and Informational 

8 Sales 

9 Administrative and General 

10 TOTAL Operation (Total of lines 3 thru 9) 

11 Maintenance 

12 Production 

13 Transmission 

14 Distribution 

15 Administrative and General 

16 TOTAL Maintenance (Total of lines 12 thru 15) 

17 Total Operation and Maintenance 

18 Production (Total of lines 3 and 12) 

19 Transmission (Total of lines 4 and 13) 

20 Distribution (Total of lines 5 and 14) 

21 Customer Accounts (line 6) 

22 Customer Service and Informational (line 7) 

23 Sales (line 8) 

24 Administrative and General (Total of lines 9 and 15) 

25 TOTAL Operation and Maintenance (Total of lines 18 thru 24) 

26 Gas 

27 Operation 

28 Production – Manufactured Gas 

29 Production – Natural Gas(Including Exploration and Development) 

30 Other Gas Supply 

31 Storage, LNG Terminaling and Processing 

32 Transmission 

33 Distribution 

34 Customer Accounts 

35 Customer Service and Informational 

36 Sales 

37 Administration and General 

38 TOTAL Operation (Total of lines 28 thru 37) 

39 Maintenance 

40 Production – Manufactured Gas 

41 Production – Natural Gas(Including Exploration and Development) 

42 Other Gas Supply 

43 Storage, LNG Terminaling and Processing 

44 Transmission 

45 Distribution 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 21

FERC FORM NO. 2 (REVISED) Page 355 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Distribution of Salaries and Wages (continued) 

Line 

No. 

Classification 

(a) 

Direct Payroll 

Distribution 

(b) 

Payroll Billed 

by Affiliated 

Companies 

(c) 

Allocation of 

Payroll Charged 

for Clearing 

Accounts 

(d) 

Total 

(e) 

46 Administrative and General 

47 TOTAL Maintenance (Total of lines 40 thru 46) 

48 Gas (Continued) 

49 Total Operation and Maintenance 

50 Production – Manufactured Gas (Total of lines 28 and 40) 

51 Production – Natural Gas (Including Expl. And Dev.)(ll. 29 and 41) 

52 Other Gas Supply (Total of lines 30 and 42) 

53 Storage, LNG Terminaling and Processing (Total of ll. 31 and 43) 

54 Transmission (Total of lines 32 and 44) 

55 Distribution (Total of lines 33 and 45) 

56 Customer Accounts (Total of line 34) 

57 Customer Service and Informational (Total of line 35) 

58 Sales (Total of line 36) 

59 Administrative and General (Total of lines 37 and 46) 

60 Total Operation and Maintenance (Total of lines 50 thru 59) 

61 Other Utility Departments 

62 Operation and Maintenance 

63 TOTAL ALL Utility Dept. (Total of lines 25, 60, and 62) 

64 Utility Plant 

65 Construction (By Utility Departments) 

66 Electric Plant 

67 Gas Plant 

68 Other 

69 TOTAL Construction (Total of lines 66 thru 68) 

70 Plant Removal (By Utility Departments) 

71 Electric Plant 

72 Gas Plant 

73 Other 

74 TOTAL Plant Removal (Total of lines 71 thru 73) 

75 Other Accounts (Specify) (footnote details) 

76 TOTAL Other Accounts 

77 TOTAL SALARIES AND WAGES 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 22

Charges for Outside Professional and Other Consultative Services

1. Report the information specified below for all charges made during the year included in any account (including plant accounts) for outside consultative and other professional services. 

These services include rate, management, construction, engineering, research, financial, valuation, legal, accounting, purchasing, advertising, labor relations, and public relations, 

rendered for the respondent under written or oral arrangement, for which aggregate payments were made during the year to any corporation partnership, organization of any kind, or 

individual (other than for services as an employee or for payments made for medical and related services) including payments for legislative services, except those which should be 

reported in Account 426.4 Expenditures for Certain Civic, Political and Related Activities. 

(a) Name of person or organization rendering services. 

(b) Total charges for the year. 

2. Charges for outside professional and other consultative services provided by associated (affiliated) companies should be excluded from this schedule and be reported on Page 358, 

according to the instructions for that schedule.

Line 

No. 

Description 

(a)

Amount 

(in dollars) 

(b)

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

FERC FORM NO. 2 (REVISED) 

FERC FORM NO. 2-A (NEW) Page 357 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 23

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Transactions with Associated (Affiliated) Companies 

1. Report below the information called for concerning all goods or services received from or provided to associated (affiliated) companies. 

2. Where amounts billed to or received from the associated (affiliated) company are based on an allocation process, explain in a footnote the basis of the allocation. 

Line 

No. 

Description of the Good or Service 

(a) 

Name of Associated/Affiliated Company 

(b) 

Account Charged 

or Credited 

(c) 

Amount 

Charged or 

Credited 

(d) 

1 Goods or Services Provided by Affiliated Company 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 Goods or Services Provided for Affiliated Company 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

FERC FORM NO. 2 (NEW) 

FERC FORM NO. 2-A (NEW) Page 358 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 24

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Compressor Stations 

1. Report below details concerning compressor stations. Use the following subheadings: field compressor stations, products extraction compressor stations, underground 

storage compressor stations, transmission compressor stations, distribution compressor stations, and other compressor stations.

2. For column (a), indicate the production areas where such stations are used. Group relatively small field compressor stations by production areas. Show the number of 

stations grouped. Identify any station held under a title other than full ownership. State in a footnote the name of owner or co-owner, the nature of respondent's title, and 

percent of ownership if jointly owned. 

 

Line 

No. 

Name of Station and Location

 

(a) 

Number of 

Units at 

Station

 

(b) 

Certificated 

Horsepower for 

Each Station

 

(c) 

Plant Cost

 

(d) 

Expenses(except 

depreciation and taxes) 

Fuel 

 (e) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

Total 

FERC FORM NO. 2 (REVISED) Page 508 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 25

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Compressor Stations 

Designate any station that was not operated during the past year. State in a footnote whether the book cost of such station has been retired in the books of account, or 

what disposition of the station and its book cost are contemplated. Designate any compressor units in transmission compressor stations installed and put into operation 

during the year and show in a footnote each unit's size and the date the unit was placed in operation. 

3. For column (e), include the type of fuel or power, if other than natural gas. If two types of fuel or power are used, show separate entries for natural gas and the other 

fuel or power. 

Line 

No. 

Expenses(except 

depreciation and 

taxes) 

Power 

(f) 

Expenses(except 

depreciation and 

taxes) 

Other 

(g) 

Gas for Compressor 

Fuel in Dth 

(h) 

Electricity for 

Compressor Station in 

kWh 

(i) 

Operational Data 

Total Compressor 

Hours of Operation 

During Year 

(j) 

Operational Data 

Number of 

Compressors 

Operated at Time of 

Station Peak 

(k) 

Date of 

Station Peak 

(l) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

Total 

FERC FORM NO. 2 (REVISED) Page 509 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 26 

FERC FORM NO. 2 (REVISED) Page 520 

FERC FORM NO. 2-A (REVISED) 

FERC FORM NO. 3-Q MAJOR (NEW) 

FERC FORM NO. 3-Q NON-MAJOR (NEW) 

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Gas Account – Natural Gas 

1. The purpose of this schedule is to account for the quantity of natural gas received and delivered by the respondent. 

2. Natural gas means either natural gas unmixed or any mixture of natural and manufactured gas. 

3. Enter in column (c) the year to date Dth as reported in the schedules indicated for the items of receipts and deliveries. 

4. Enter in column (d) the respective quarter’s Dth as reported in the schedules indicated for the items of receipts and deliveries. 

5. Indicate in a footnote the quantities of bundled sales and transportation gas and specify the line on which such quantities are listed. 

6. If the respondent operates two or more systems which are not interconnected, submit separate pages for this purpose. 

7. Indicate by footnote the quantities of gas not subject to Commission regulation which did not incur FERC regulatory costs by showing (1) the local distribution 

volumes another jurisdictional pipeline delivered to the local distribution company portion of the reporting pipeline (2) the quantities that the reporting pipeline 

transported or sold through its local distribution facilities or intrastate facilities and which the reporting pipeline received through gathering facilities or intrastate 

facilities, but not through any of the interstate portion of the reporting pipeline, and (3) the gathering line quantities that were not destined for interstate market or 

that were not transported through any interstate portion of the reporting pipeline. 

8. Indicate in a footnote the specific gas purchase expense account(s) and related to which the aggregate volumes reported on line No. 3 relate. 

9. Indicate in a footnote (1) the system supply quantities of gas that are stored by the reporting pipeline, during the reporting year and also reported as sales, 

transportation and compression volumes by the reporting pipeline during the same reporting year, (2) the system supply quantities of gas that are stored by the 

reporting pipeline during the reporting year which the reporting pipeline intends to sell or transport in a future reporting year, and (3) contract storage quantities. 

10. Also indicate the volumes of pipeline production field sales that are included in both the company's total sales figure and the company's total transportation 

figure. Add additional information as necessary to the footnotes. 

11. Report on pages 520 A and B (1) shipper supplied gas for the current quarter and gas consumed in pipeline operations, (2) the disposition of any excess, the 

accounting recognition given to such disposition and the specific account(s) charged or credited, and (3) the source of gas used to meet any deficiency, the 

accounting recognition given to the gas used to meet the deficiency, including the accounting basis of the gas and the specific account(s) charged or credited. Also, 

indicate in a footnote the basis for valuing the gas. 

 

Line 

No. 

Item 

(a) 

Ref. Page No. of 

 (FERC Form Nos. 2/2-A)

(b) 

Total 

Amount of Dth 

Year to Date 

(c) 

Current Three Months 

Ended Amount of Dth 

Quarterly Only 

 (d) 

1 Name of System: 

2 GAS RECEIVED 

3 Gas Purchases (Accounts 800-805) 

4 Gas of Others Received for Gathering (Account 489.1) 303 

5 Gas of Others Received for Transmission (Account 489.2) 305 

6 Gas of Others Received for Distribution (Account 489.3) 301 

7 Gas of Others Received for Contract Storage (Account 489.4) 307 

8 Exchange Gas Received from Others (Account 806) 328 

9 Gas Received as Imbalances (Account 806) 328 

10 Receipts of Respondent’s Gas Transported by Others (Account 858) 332 

11 Other Gas Withdrawn from Storage (Explain) 

12 Gas Received from Shippers as Compressor Station Fuel 

13 Gas Received from Shippers as Lost and Unaccounted for 

14 Other Receipts (Specify) (footnote details) 

15 Total Receipts (Total of lines 3 thru 14) 

16 GAS DELIVERED 

17 Gas Sales (Accounts 480-484) 

18 Deliveries of Gas Gathered for Others (Account 489.1) 303 

19 Deliveries of Gas Transported for Others (Account 489.2) 305 

20 Deliveries of Gas Distributed for Others (Account 489.3) 301 

21 Deliveries of Contract Storage Gas (Account 489.4) 307 

22 Exchange Gas Delivered to Others (Account 806) 328 

23 Gas Delivered as Imbalances (Account 806) 328 

24 Deliveries of Gas to Others for Transportation (Account 858) 332 

25 Other Gas Delivered to Storage (Explain) 

26 Gas Used for Compressor Station Fuel 509 

27 Other Deliveries (Specify)(footnote details) 

28 Total Deliveries (Total of lines 17 thru 27) 

29 GAS UNACCOUNTED FOR 

30 Production System Losses 

31 Gathering System Losses 

32 Transmission System Losses 

33 Distribution System Losses 

34 Storage System Losses 

35 Other Losses (Specify) (footnote details) 

36 Total Unaccounted For (Total of lines 30 thru 35) 

37 Total Deliveries & Unaccounted For (Total of lines 28 and 36) 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 27

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Shipper Supplied Gas For The Current Quarter 

1. On lines 1 through 4 report only the dekatherms of gas provided by shippers under tariff terms and conditions for transportation service and the use of that gas for 

compressor fuel, other operational purposes and lost and unaccounted for. 

2. On line 6 report the dekatherms and dollar value of the excess or deficiency in shipper supplied gas. 

3. On lines 10 through 17 report the dekatherms, the dollar amount and the account credited for the dispositions of gas listed in column (a). 

4. On lines 19 through 27 report the dekatherms, the dollar amount and the account debited for the sources of gas reported in column (a). 

 First Month of Current Quarter 

Line 

No. 

 

(a) 

Dths 

(b) 

Amount 

(c) 

Account 

Debited 

(d) 

Account 

Credited 

(e) 

1 Shipper Supplied Gas (Lines 12 and 13 page 520) 

2 Less gas used in compressors 

3 Less gas used for other operational purposes (footnote) 

4 Less gas lost and unaccounted for 

5 

6 Net excess or (deficiency) 

7 

8 

9 Disposition of excess gas: 

10 Gas sold to others 

11 Gas used to meet imbalances 

12 Gas added to system gas 

13 Gas returned to shippers 

14 Other (list) 

15 

16 

17 Total disposition of excess gas 

18 

19 Gas acquired to meet deficiency: 

20 System gas 

21 Purchased gas 

22 Other (list) 

23 

24 

25 

26 

27 Total acquired to meet deficiency 

 

FERC FORM NO. 2 (NEW) Page 521a 

FERC FORM NO. 2-A (NEW) 

FERC FORM NO. 3-Q MAJOR (NEW) 

FERC FORM NO. 3-Q NON-MAJOR (NEW) 
 Appendix D Revised Schedules for FERC Forms 2, 2-A, and 3-Q 28

Name of Respondent This Report is: 

(1) ⁫ An Original 

(2)  A Resubmission 

Date of Report 

(Mo, Da, Yr) 

 / / 

Year/Period of Report 

End of Year/Qtr

Shipper Supplied Gas For The Current Quarter 

1. On lines 1 through 4 report only the dekatherms of gas provided by shippers under tariff terms and conditions for transportation service and the use of that gas for 

compressor fuel, other operational purposes and lost and unaccounted for. 

2. On line 6 report the dekatherms and dollar value of the excess or deficiency in shipper supplied gas. 

3. On lines 10 through 17 report the dekatherms, the dollar amount and the account credited for the dispositions of gas listed in column (a). 

4. On lines 19 through 27 report the dekatherms, the dollar amount and the account debited for the sources of gas reported in column (a). 

 Second Month of Current Quarter Third Month of Current Quarter 

Line 

No. 

Dths 

(b) 

Amount 

(c) 

Account 

Debited 

(d) 

Account 

Credited 

(e) 

Dths 

(b) 

 

Amount 

(c) 

Account 

Debited 

(d) 

Account 

Credited 

(e) 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

FERC FORM NO. 2 (NEW) Page 521b 

FERC FORM NO. 2-A (NEW) 

FERC FORM NO. 3-Q MAJOR (NEW) 

FERC FORM NO. 3-Q NON-MAJOR (NEW)