UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Before Commissioners: Elizabeth Anne Moler, Chair;

Vicky A. Bailey, James J. Hoecker,

William L. Massey, and Donald F. Santa, Jr.

Revisions to Uniform System of

Accounts, Forms, Statements,

and Reporting Requirements

for Natural Gas Companies

)

) Docket No. RM95-4-000

)

)

ORDER NO. 581

FINAL RULE

(Issued September 28, 1995)

I. INTRODUCTION

The Federal Energy Regulatory Commission (Commission) hereby

amends its Uniform System of Accounts, ~1 its forms, and its

reports and statements for natural gas companies. +2 This

Final Rule is a companion to the Commission's Final Rule "Filing

Requirements for Interstate Natural Gas Company Rate Schedules

+I Section 8 of the Natural Gas Act (NGA), 15 U.S.C.

717g (1988), authorizes the Commission to prescribe rules

and regulations concerning accounts, records and memoranda

as necessary or appropriate for purposes of administering

the NGA. The Commission may prescribe a system of accounts

for jurisdictional companies and, after notice and

opportunity for hearing, may determine the accounts in which

particular outlays and receipts will be entered, charged, or

credited.

+2 Section 10 of the NGA, 15 U.S.C. 717i (1988), authorizes the

Commission to prescribe rules and regulations concerning

annual and other periodic or special reports, as necessary

or appropriate for purposes of administering the NGA. The

Commission may prescribe the manner and form in which such

reports are to be made, and require from natural gas

companies specific answers to all questions on which the

Commission may need information. The reports must be made

under oath unless the Commission otherwise specifies.

g g ) 00 30 155

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Docket No. RM95-4-000

and Tariffs", which amends Part 154 of the Commission's

regulations and is issued contemporaneously with this rule. The

Commission has received 41 comments on the Notice of Proposed

Rulemaking (NOPR) +3 in this docket from the commenters listed

in Appendix A. Q4

In brief, the Commission, in this rule, addresses the

Uniform System of Accounts'reatment of gas in underground

storage reservoirs and in pipelines, +5 revenues Q6 and gas

supply expenses, ~7 eliminates all accounts for Nonmajor

respondents and redesignates accounts used only by Major

respondents for use by all respondents. The Commission also

changes or eliminates various forms, reports, and statements.

This includes changes to, and deletions from, FERC Form No. 2

(Form No. 2), Annual report of Major natural gas companies, and

FERC Form No. 2-A (Form No. 2-A), Annual report of Nonmajor

natural gas companies, and FERC Form No. 11 (Form No. 11),

+3 Revisions to Uniform System of Accounts, Forms, Statements,

and Reporting Requirements for Natural Gas Pipelines, 60 FR

3141 (January 13, 1995), IV FERC Stats. & Regs. Proposed

Regulations 5 32,512 (December 16, 1994).

~4 Appendix A also sets forth the names by which the commenters

are referred to herein.

+5 The Commission amends Account 117, Account 164.1, and

other accounts that refer to Account 117.

+6 The Commission amends Account 489 and Account 495.

~7 The Commission amends Account 806, Account 813, and

Account 823.

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Docket No. RM95-4-000

Natural gas pipeline company monthly statement. ~8

The Commission is making the changes in order to create

forms, reports, and statements that reflect the current

regulatory environment of unbundled pipeline sales for resale at

market-based prices and open-access transportation of natural

gas. In doing that, the Commission seeks to simplify and

streamline its requirements to reduce the burden on respondents.

Hence, the Commission is eliminating reporting requirements (as

well as a few non-reporting requirements) that are outdated or

nonessential in light of current regulation, or are duplicative

of other reporting requirements. At the same time, the

revisions, especially of Form No. 2, will provide financial,

rate, and statistical information on transactions that is more

useful than what is currently available to regulatory agencies

and other users of the financial statements and reports of

natural gas companies. The Commission believes the changes to

Form No. 2 are needed because the characteristics of certain

balance sheet and income statement items for the restructured

industry are different from what they were when the current

+8 Form No. 2 consists of approximately 162 non-consecutively

numbered pages and a four-page index. See 18 CFR 260.1.

The current version bears OMB approval No. 1902-0028. Form

No. 2-A consists of approximately 22 consecutively numbered

pages, 1-22, and 32 non-consecutively numbered substitute

pages from the Form No. 2 that may be used in lieu of the

comparable pages in the first section. See 18 CFR 260.2.

The current version bears OMB approval No. 1902-0030. Form

No. 11 consists of approximately 4 consecutively numbered

pages, 1-4. See 18 CFR 260.3. The current version bears

OMB approval No. 1902-0032.

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Docket No. RM95-4-000

accounting regulations were adopted. In addition, the Commission

has significantly increased the thresholds for the reporting of

various information.

In Part III-A of this rule, the Commission will address the

changes to the Uniform System of Accounts with respect to

storage gas. In Part III-B the Commission will address other

revisions to the Uniform System of Accounts. In Part IV, the

Commission will discuss the changes to Part 158 of the

Commission's regulations with respect to the certification of

compliance with the accounting regulations. In Part V, the

Commission will discuss the changes to Part 250 of the

Commission's regulations, "Approved Forms, Natural Gas Act." In

Part VI, the Commission will discuss the changes to Part 260 of

the Commission's regulations, "Statements and Reports

(Schedules)." That discussion will include the changes to Forms

No. 2, Q9 No. 2-A, ~10 and Form No. 11. ~11 In Part VII,

the Commission will discuss the changes to Part 284 of the

Commission's regulations, "Certain Sales and Transportation of

Q9 Appendix B consists of the revised Form No. 2.

Appendix B is not being published in the Federal

Reaister, but is available from the Commission's Public

Reference Room.

~10 Appendix C consists of the revised Form No. 2-A.

Appendix C is not being published in the Federal

Reaister, but is available from the Commission's Public

Reference Room.

~11 Appendix D consists of the revised Form No. 11.

Appendix D is not being published in the Federal

Reaister, but is available from the Commission's Public

Reference Room.

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Docket No. RM95-4-000

Natural Gas Under the Natural Gas Policy Act of 1978 and Related

Authorities."

In the NOPR, the Commission stated that the changes to these

regulations and forms and to the regulations in the companion

rule titled, "Filing Requirements for Interstate Natural Gas

Company Rate Schedules and Tariffs," will necessitate

modifications to the electronic formats for the affected filings

and forms. The Commission will discuss electronic filings in

Part IX below.

The changes to the Uniform System of Accounts and Form

Nos. 2, 2-A, and 11 in this rule will be effective January 1,

1996. ~12 The remainder of the rule will be effective 30

days after publication in the Federal Register.

II. PUBLIC REPORTING BURDEN

The subject final rule establishes new reporting

requirements, modifies existing reporting requirements, and

eliminates those requirements that are now obsolete. In

addition, the final rule reflects many of the changes suggested

by industry comments filed in response to Commission's Notice of

Proposed Rulemaking. This simplification and streamlining of

Commission reporting requirements has reduced the burden on

pipelines. The collective reduction in reporting burden is

estimated to be 61,824 hours annually.

~12 That is, the pipelines must comply with the revised Uniform

System of Accounts starting January 1, 1996, and they must

report 1996 information on the FERC Form Nos. 2 and 2-A

filed in 1997. The Form No. 2 filed in 1996 will be the

current Form No. 2 and will report for the year 1995.

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Docket No. RM95-4-000

The final rule will affect eight of the Commission's

existing data collections. It is expected to reduce or eliminate

the current reporting burden associated with the following six

information collections:

FERC Form No. 2 "Annual Report of Major Natural Gas

Companies" (1902-0028) (FERC-2);

FERC Form No. 11, "Natural Gas Pipeline Company Monthly

Statement (1902-0032) (FERC-11);

FERC-549, "Gas Pipeline Rates: Natural Gas Policy Act Title

III Transactions" (1902-0086) (FERC-549);

FERC-576, »Reports on Pipeline Systems Service

Interruptions' (1902-0004) (FERC-576);

FERC Form No. 8, »Underground Gas Storage Report'

(1902-0026) (FERC-8); and

FERC Form No. 14, »Annual Report for Importers and Exporters

of Natural Gas» (1902-0027) (FERC-14)

The FERC Form Nos. 8 and 14 will be eliminated entirely as a

result of this rule. One of the affected data collections

FERC Form No. 2-A, »Annual Report of Nonmajor Natural Gas

Companies" (1902-0030) (FERC-2A) -- will have no substantive

change in its current reporting burden. ~13 Only one of the

data collections will have a slight increase in burden. The

burden associated with FERC-549B, »Gas Pipeline Rates: Capacity

Release Information» (1902-0169) (FERC-549B) will increase as a

~13 No net change in the reporting burden is expected because of

offsetting increases and decreases within the data

collection.

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result of the institution of the Index of Customers.

The aggregate annual reporting burden as a result of the

final rule for all affected data collections is estimated to

total 437,835 hours based on an expected 981 filings per year.

The summary table below shows the impact/reduction on each

affected data collection. The Commission's estimates of public

reporting burden for the data collections include the time for

reviewing instructions, searching existing data sources,

gathering and maintaining the data needed, and completing and

reviewing the collection of information.

AFFECTED

DATA

COLIECTION

(RM95-4-

000)

ESTIMATE

D

ANNUAL

BURDEN

HRS

(RULE)

ESTIMATE

D ANNUAL

BURDENHR

S

(CURRENT

)

NET ESTIMATED

CHANGE NUMBER OF

IN FILINGS/Y

ANNUAL R (RULE)

BURDENH

RS

D

BURDEN

HRS

PER

FILING

(RULE)

FERC-2

PERC-549 795

~14

14,045 -13~250 90 ~15

68i310 113,850 -45,540 46 1i485. 0

PERC549(B)

PERC-576

FERC-11

PERC-2A

12

600

2,610

36

3,420

2,610

350,308 349,060 li248 546

~17

-24 12

-2i820 200

0 87

641.6

1 ~ 0

3.0

30.0

~14 Comprised of 750 hours for transportation filings and 45

hours for sales filings.

~15 Comprised of 75 transportation filings and 15 sales filings.

~16 The weighted average of 10.0 hours per transportation filing

and 3.0 hours per sales filing.

~17 Includes 468 Index of Customer filings.

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Docket. No. RM95-4-000

AFFECTED

DATA

COLLECTION

(RM95-4-

000)

ESTIMATE

D

ANNUAL

BURDEN

HR8

(RULE)

ESTIMATE

D ANNUAL

BURDENHR

S

( CURRENT

)

NET

CHANGE

IN

ANNUAL

BURDENH

RS

ESTIMATED

NUMBER OF

FILINGS/Y

R (RULE)

ESTIMATE

D

BURDEN

HRS

PER

FILING

(RULE)

FERC-8

~18

FERC-14

~18

1,296

142

-1i296 0

-142 0

TOTAL 422,635 484,459 -61,824 981 430.8

With respect to the gas companies filing FERC Form No. 2,

the Commission believes that there will be a total reporting

burden decrease of 45,540 hours, or approximately 990 hours per

respondent each year due to the elimination of about 34 schedules

and significant increases in the thresholds for the reporting of

information on other schedules. There will be some additional

information required, but there should be a minimal burden

increase as a result, because much of the information is already

collected by the industry in other contexts.

The Commission estimates that the existing public reporting

burden for the other filing requirements under the rule will also

be decreased. With respect to FERC Form No. 11, the quarterly

Form No. 11 will contain monthly details of data required

annually on an aggregate basis in FERC Form No. 2. The filing of

FERC Form No. 11, quarterly rather than monthly, will reduce the

number of reports from 600 to 200. In addition, data are

~18 This data collection is discontinued by the subject rule.

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Docket No. RM95-4-000

primarily required by rate schedule or Uniform System of Accounts

entries. These consistencies in reporting will simplify the

filing burden. The revised reporting schedule will reduce the

existing reporting burden by a total of 2820 hours, or

approximately 56 hours per respondent each year.

The elimination of initial, subsequent, termination, and

annual reports, FERC-549, for interstate pipelines, and the

retention of only the annual transportation reports for

intrastate pipelines and the annual sales reports for interstate

pipelines, will reduce the reporting burden by a total of 13,250

hours. The Commission estimates that the annual report for the

75 remaining intrastate respondents will require an average of 10

hours to complete. The annual sales report for the 15 interstate

respondents requires an average of 3 hours to complete.

The Index of Customers requirement will add approximately

J. 248- hour. s to the total burden under FERC-549B. In its Notice

of Proposed Rulemaking, the Commission estimated that this

requirement would add 11,700 hours to the reporting burden for

FERC-549B. However, the Commission has deleted the paper filing

requirement, and required that the index be filed electronically

with the Commission and be available through a pipeline's

electronic bulletin board. It is now estimated that the Index of

Customers will take approximately 4 hours for each quarterly

update for the 7s pipeline respondents.

Allowing reporting of service interruptions in FERC-576 by

any electronic means, including facsimile or telegraph, will

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Docket No. RM95-4-000 10

expedite the notice process, and reduce the burden to one hour

per response from three hours. This report is required only in

the event of an interruption to normal service lasting three

hours or longer.

The elimination of the FERC Form Nos. 8 and 14 will reduce

industry reporting burden by 1,296 and 142 hours, respectively.

A copy of this rule is being provided to OMB. Interested

persons may send comments regarding these burden estimates, or

any other aspect of these collections of information, including

suggestions for further reductions of burden, to the Federal

Energy Regulatory Commission, Washington, D.C. 20426 [Attention:

Michael Miller, Information Services Division, (202) 208-1415,

FAX: (202) 208-2425]. Comments on the requirements of this final

rule may also be sent to the Office of Information and Regulatory

Affairs of OMB, Washington, D.C. 20503 [Attention: Desk Officer

for Federal Energy Regulatory Commission, (202) 395-3087,

FAX: (202) 395-5167].

III. REVISIONS TO UNIFORM SYSTEM OF ACCOUNTS (PART 201I

A. Storage Accountina

1. The NOPR

In the NOPR, the Commission proposed to require that the

maximum designated gas volumes maintained for system balancing

purposes, ~19 including those needed for no-notice

~19 System balancing, as used here, refers to those

situations where the pipeline provides gas from its own

source of supply in order to meet deficiencies caused

by a shipper tendering less volumes to the pipeline at

(continued...)

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Docket No. RM95-4-000

transportation service, and recoverable base gas volumes be

accounted for as a fixed asset rather than as inventory held for

sale, which is the current practice. ~20 Collectively these

volumes are referred to as "system gas".

Under the fixed asset model, system gas would be accounted

for as a noncurrent asset or permanent investment. In contrast,

under the inventory model, system gas would be accounted for as

inventory. The two models differ in how the pipeline's

investment in gas is valued and in how gains and losses on

balancing transactions are measured and recognized. ~21

To implement the fixed asset accounting model for system

gas, the NOPR proposed that Account 117, Gas Stored Underground

Noncurrent, be replaced by new accounts Account 117.1, Gas Stored

Base Gas, Account 117.2, System Balancing Gas, Account 117.3,

Gas Stored in Reservoirs and Pipelines-Noncurrent, and Account

117.4, Gas Owed to System Gas.

~19 (...continued)

the receipt point than it takes from the system at the

delivery point. The term can also be used to refer to

situations where the shipper tenders more volumes than it takes from the system.

~20 The Commission is not changing the accounting

requirements for initial line pack, LNG heel, and nonrecoverable base gas. The cost of this gas will

continue to be recorded in the utility plant accounts.

~21 See the NOPR at pps. 32,999 — 33,001 for a full

discussion of the differences between the fixed asset

and inventory models.

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Docket No. RM95-4-000 12

2. Comments on Mandatina the Fixed Asset Model

The fixed asset approach is supported in whole or in part by

Columbia, ANR, Enron, Tennessee, Texas Gas, KN, NGSA, and NI-Gas.

It is opposed by Panhandle, Transco, and AGD.

INGAA and other commenters ~22 maintain that the

pipelines should be able to choose either the fixed asset or

inventory model. INGAA submits that this flexibility is

justified for two reasons. First, it argues that adoption of the

fixed asset model will not ensure uniformity in accounting for

storage because that model is not uniform among non-pipeline

storage owners and operators, such as independent storage

operators and local distribution companies. Second, INGAA

contends that flexibility would prevent a number of distortions

which will arise from pipelines converting from the inventory

method to the fixed asset model. Third, INGAA asserts that the

change from the inventory to the fixed asset model could increase

state ad valorem taxes and could be considered a change in

accounting by the IRS, causing it to rescind permission to use

the LIFO inventory method for income tax purposes.

3. The Treatment of Svstem Gas

As stated above, there is support for both the fixed asset

model and the inventory model as the appropriate approach for

accounting for investments in system gas. Upon review of the

comments, the Commission concludes that valid arguments can be

~22 ANR, Kern River, Transco, Enron, Tennessee, KN,

Williston, and Consumers Power.

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Docket No. RM95-4-000 13

made in support of either approach. Accordingly, the Commission

will permit pipelines to adopt either the fixed asset model or

the inventory model to account for system gas. ~23

Each pipeline must inform the Commission of the method it

adopts for accounting for system gaswhen it files its Form No. 2

in 1997. The method adopted by each pipeline must be used

consistently from year to year and appropriate records must be

maintained. The pipeline must obtain Commission approval for any

change in method. The Commission will not permit a pipeline to

adopt one method for determining its rates and another method for

accounting purposes. For example, if a pipeline elects the fixed

asset model for accounting purposes, it must derive its rates via

that model in its first full rate proceeding subsequent to its

accounting decision. Similarly, if a pipeline uses the fixed

asset model in developing its rates, it must use the same method

for accounting purposes.

4. The Rule

a. Investment in Svstem Gas

To implement this rule, the Commission is revising its

accounting regulations to allow pipelines two alternative methods

of accounting for all pipeline investment in system gas. Under

those regulations, pipelines may continue to account for their

gas using a consistently applied inventory method, or pipelines

may adopt the "fixed asset" method. As noted above, the

~23 The Commission is not setting forth the arguments for and

against the models in light of the decision not to mandate a

particular model.

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Docket No. RM95-4-000 14

Commission is not changing the accounting requirements for

initial line pack, LNG heel, and non-recoverable base gas. The

cost of this gas will continue to be recorded in the utility

plant accounts. The Commission is replacing Account 117, Gas

Stored Underground-Noncurrent with four new accounts: Account

117.1, Gas Stored — Base Gas, Account 117.2, System Balancing

Gas, Account 117.3, Gas Stored in Reservoirs and PipelinesNoncurrent, and Account 117.4, Gas Owed to System Gas.

Account 117.1will include the cost of recoverable gas

volumes that are necessary to maintain pressure and

deliverability requirements for the storage facility.

Nonrecoverable gas volumes used for this purpose will continue to

be recorded in Account 352.3, Nonrecoverable Natural Gas.

Account 117.2 will be used to record a pipeline's investment

in any additional system gas volumes, including gas stored in

pipelines above initial line pack, designated as maximum system

gas needed for load balancing, no notice transportation, and

other operational purposes. Account 117.3 will be used to record

the cost of noncurrent company-owned stored gas not includable in

Accounts 117.1 or 117.2.

Account 117.4 will primarily be used by pipelines that

account for system gas using the fixed asset model. Account

117.4 will reflect encroachments upon system gas that result from

transportation imbalances, no-notice transportation, and other

operational needs. It may also be used to reflect encroachments

on volumes recorded in Account 117.1 for pipelines using an

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Docket No. RM95-4-000 15

inventory method.

The initial investment cost to be recorded in Account 117.1

and 117.2 is to be determined from the book balances in Account

117 on the date of adoption of the new accounts. If there is no

Commission approved method to the contrary, volumes in Account

117.1 and Account 117.2 are to be priced at their historical cost

consistent with the inventory method previously in use. ~24

If at the date of adoption, a pipeline's volumes in storage are

less than the maximum volume authorized by the Commission for

operational purposes, the deficient volumes are to be priced at

the then current market price ~25 with an equal amount being

credited to Account 117.4.

b. Use of Svstem Gas

(I) Fixed Asset Method

Under the fixed asset method the Commission is adopting in

this rule, future encroachments upon system gas are to be

credited to Account 117.4 at the then current market price of gas

with a corresponding charge to Account 808.1, Gas Withdrawn From

Storage- Debit. If the volumes are used to meet transportation

~24 The cost of any volumes of base or system gas actually in

storage that has previously been charged to expense should

be carried in the accounts at zero cost.

+25 Current market price is the delivered spot price of gas as

published in a recognized industry journal. The publication

used must be the same one identified in the pipeline's tariff for use in its cash-out provision, if it has one. If

the pipeline does not have a cash-out provision, the

pipeline must use a publication representative of the cost

of gas in its supply area, use the same publication

consistently, and identify the publication in its records.

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Docket No. RM95-4-000 16

imbalances, Account 806, Exchange Gas, will be credited and

Account 174, Miscellaneous Current and Accrued Assets, will be

debited for the same amount and simultaneously with the entries

to system gas.

Pipelines will be required to maintain records supporting

Account 117.4 of monthly encroachment volumes and unit prices

unless the pipeline revalues its total encroachment balance

monthly. If a pipeline revalues the balance in Account 117.4, it

should charge or credit a separate subaccount of Account 813,

Other Gas Supply Expenses, with the amount of the revaluation.

To the extent that there are corresponding changes in the value

of imbalance receivables or payables, the pipeline should make an

appropriate adjustment to Account 174, Miscellaneous Current and

Accrued Assets or Account 242, Miscellaneous Current and Accrued

Liabilities, with contra-entries to Account 813.

If a customer responsible for an owed-to-system gas balance

meets his responsibility for repayment by delivering gas in-kind,

the recorded balance for such customer in Account 174 will be

reversed and Account 806 will be debited. The amount recorded in

Account 117.4 for such volumes must be cleared and Account 808.2,

Gas Delivered to Storage — Credit, credited.

If the customer responsible for an owed-to-system gas

balance meets his responsibility through a cash-out provision,

similar accounting will be followed. To recognize settlement of

the receivable, the pipeline will reverse the recorded amount in

Account 174. Any difference between the cash-out settlement

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Docket No. RM95-4-000 17

amount and the recorded receivable will be recognized as a gain

in Account 495 or a loss in Account 813, as appropriate.

When the pipeline replaces the gas, any difference between

the cost of the gas and the amount cleared from Account 117.4

will result in a gain or loss. The pipeline should record the

gain or loss in Account 495, Other Gas Revenues, or Account 813

as appropriate with contra entries to Account 808.2.

In instances in which a pipeline's tariff requires that

gains and losses on system balancing transactions are to be

passed along to customers, pipelines should record the gains or

losses directly in Account 254, Other Regulatory Liabilities, or

Account 182.3, Other Regulatory Assets, as appropriate.

(2) Inventorv Method

Under the inventory method, withdrawals of system gas are to

be credited to Account 117.2, at the inventory cost of gas ~26

with a corresponding charge to Account 808.1, Gas Withdrawn From

Storage- Debit. If the volumes are used to meet transportation

imbalances, Account 806, Exchange Gas, will be credited and

Account 174, Miscellaneous Current and Accrued Assets, will be

debited for the same amount and simultaneously with the entries

to system gas.

The pipeline must also account for withdrawals of gas from

~26 Withdrawals of gas may be priced according to the first-infirst-out, last-in-first-out, or weighted average cost

method, in connection with which "the fixed asset method"

may be employed provided the method adopted by the utility

is used consistently from year to year and the inventory

records are maintained in accordance therewith.

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Docket No. RM95-4-000 18

Account 117.1 under the inventory method. However, if

encroachments upon Account 117.1 volumes are to be replaced

within 12 months, the pipeline may, at its option, account for

such withdrawals in accordance with the requirements for

encroachments of system gas under the fixed asset method. The

method chosen should be applied consistently from year to year

and not changed without express approval of the Commission.

5. Fixed Asset Accountina Imolementation Issues

A number of commenters requested clarification of certain

aspects of the proposed fixed asset model and noted various

implementation difficulties with the Commission's approach. The

following discussion is the Commission's response to the concerns

expressed by commenters.

As stated above, the Commission is replacing Account 117,

Gas Stored Underground-Noncurrent, with four new accounts:

Account 117.1, Gas Stored-Base Gas and Account 117.2, System

Balancing Gas, 117.3, Gas Stored in Reservoirs and Pipelines

Noncurrent, and 117.4, Gas Owed to System Gas. The Comments

address those accounts.

a. Accounts 117.1 and 117.2

Williston asks for clarification that gas previously

capitalized in Account 101 [utility plant] is not to be

reclassified as Account 117.1 gas. The Commission clarifies that

the cost of gas volumes properly includable in Account 101 is not

to be reclassified to Account 117.1. The rule is making no

change to the requirements of the existing Uniform System of

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Docket No. RM95-4-000 19

Accounts that the cost of non-recoverable gas in underground

reservoirs used for the storage of gas, and the first cost of gas

introduced into the utility's system necessary to bring the

pipeline system up to its designed operating capacity or

increases therein, are to be included in the plant accounts.

Enron maintains that Accounts 117.1 and 117.2 should be

combined into a single account titled "System Gas," because there

is no clear line between volumes serving a pressure maintenance

function and volumes used for system balancing.

The Commission will not adopt Enron's suggestion. The

Commission recognizes that a bright line separating the volumes

necessary for maintaining storage pressure and deliverability

requirements from those necessary for efficient transmission

operation (i.e. system balancing gas) does not exist for most if

not allatorage facilities. However, base gas volumes in storage

reservoirs are used to maintain pressure and deliverability

requirements for both customer storage and pipeline storage of

system gas. Because storage rates are often separate from

transmission only rates, it is necessary to separately identify

the cost of base gas so that proper allocations of base storage

costs can be made between storage and transmission services.

Commingling base storage with system balancing gas would make

cost and rate determinations more difficult.

CNG urges the Commission to delete the requirement to report

line pack in Account 117.2 because CNG includes line pack in

plant accounts or has expensed it already and its line pack

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 20

fluctuations are immaterial from month to month.

The final rule does not require the cost of line pack gas

previously charged to expense to be included in Account 117.2.

However, pipelines must account for volumes stored in the

pipeline above line pack volumes consistent with the rule. That

is, the cost of such additional volumes must be recorded in

Account 117.2 or 117.3, as appropriate. If the pipeline has

previously charged the cost of any such additional volumes on its

system to expense such volumes must be included in the accounts

at zero cost.

NGSA would create a number of new accounts to deal with

system gas. NGSA states that although both Accounts 117 and

164.1, Gas Stored Underground — Current, should be maintained as

fixed assets, Account 164 also should be used for system

balancing transactions because it is NGSA's belief that working

gas, not base gas, is cycled. It would amend the accounts

instructions to require pipelines to record both volumes and

dollars and would establish specific subaccounts in Account 164,

rather than Account 117, to match the pipeline's accounting of

imbalances by service type and rate schedule (~e , no-notice,

exchange, gathering, FT and IT). Gas Owed to System Gas would be

reflected in Account 174.4 and a separate asset account would be

established for line pack.

The Commission will not adopt NGSA's proposal because the

Commission believes it is unnecessary to establish a separate

account for line pack or to prescribe numerous subaccounts of

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 21

storage gas by service type and rate schedule. The proposed new

Accounts 117.1 through 117.4 should be adequate for accounting

for all system gas. In this regard, the Commission will modify

instruction A of the proposed Account 117.3 to include the cost

of all stored gas in excess of system, whether or not it is

available for sale. Although the Commission declines to require

specific subaccounts for system gas, pipelines may

establishwhatever subaccounts they deem necessary to facilitate

the needs of their individual pipelines.

Panhandle interprets the NOPR's proposal to price volumes

includible in Account 117.2 "at the inventory price that would be

applicable to the last volumes that would be withdrawn from

storage before encroachment upon base gas" (NOPR at p. 33,002),

as requiring restatement of all system gas that had previously

been accounted for using a LIFO or FIFO inventory method.

Panhandle maintains this is improper.

Panhandle's interpretation is incorrect. The proposed rule

was not intended to require or permit pipelines to restate the

carrying value of system gas in storage upon implementation of

the new accounting. The proposed rule clearly states that the

initial investment cost to be recorded in Accounts 117.1 and

117.2 is to be determined from the book balances on the date of

adoption of the new accounts. The statement cited by Panhandle

was intended to address potential situations where the initial

volumes of gas in storage exceeded the volumes designated as

system gas. In these situations, the cost to be assigned to

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Docket No. RM95-4-000 22

Account 117.2 should be determined based on historical inventory

price layers starting with the pricing layer applicable to the

last volumes that would be withdrawn from storage before

encroachment upon base gas and continuing until all of the

volumes of system gas have been priced.

b. Account 117.4

(1) Nature of the Account

The Commission proposed Account 117.4 as an account that

would reflect the obligation to replace volumes that encroached

on system supply.

Panhandle contends that the Commission has not explained

whether Account 117.4 is designed as a liability or a valuation

account and that, in any event, the proposed approach is not in

accordance with Generally Accepted Accounting Principles (GAAP).

It asserts that there is no liability on the pipeline's part to

restore system gas. It then argues that, like a valuation

account, Account 117.4 reduces the carrying value of the system

gas asset, but it "reduces system gas to a value that is neither

cost-based nor market-based, but a varying hybrid which does not

qualify as an asset account." ~27

Williston maintains that the characteristics of Account

117.4 gas (encroachments) "do not satisfy the characteristics of

a fixed asset for Balance Sheet presentation." ~28 Similarly,

Enron submits that the gas owed to system gas account is a

~27 Comments at 16.

~28 Comments at 4.

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Docket No. RM95-4-000 23

temporary valuation adjustment to the system gas accounts and

should not be a part of the fixed asset accounts. Enron further

maintains that "working capital would be misstated if the gas

owed to system gas account is a fixed asset account, with the

companion imbalance recorded as a receivable." ~29 It

suggests that "gas owed to system gas should be established as a

current asset/liability account rather than a fixed asset

account." ~30 Texas Gas also argues that encroachments should

be presented in a current asset/liability account to avoid large

non-cash fluctuations in fixed assets and working capital. It

submits this would be in accordance with gas receivables/payables

recorded in Accounts 174/242 as proposed in the NOPR.

Enron and Texas Gas believe that Account 117.4 is a

temporary valuation account that is more in the nature of a

current asset. Treating it as a fixed asset will misstate

working capital because the companion imbalance would be recorded

as a receivable.

Account 117.4 has characteristics of both a liability

account and a valuation account. A pipeline has a constructive

requirement to replace encroachments of system gas if it is to

remain in the business as a transporter. Accordingly, the

amounts that are to be recorded in Account 117.4 represent, in

significant respects, probable future sacrifices of economic

resources resulting from past transactions (the encroachments).

~29 Comments at 4.

~30 Id.

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Thus, the amounts seem to generally fit the conceptual definition

of a liability. Yet, as Panhandle points out, the pipeline does

not have a legal obligation to one or more entities to purchase

replacement gas and therefore the amounts would not constitute a

recognizable liability under generally accepted accounting

principles.

The amount to be recorded in Account 117.4 is an estimate of

the cost to be incurred by the pipeline to replace the

encroachments to system gas that have occurred. As such, the

Commission believes Account 117.4 is more in the nature of a

valuation account than a liability. Although different from the

example cited in Concepts Statement No. 6, the owed to system gas

account is consistent with the following more general discussion

of "valuation accounts" contained in the Statement: ~31

A separate item that reduces or increases the carrying

amount of an asset sometimes found in financial statements.

Those "valuation" accounts are part of the related assets

and are neither assets in their own right nor liabilities.

Since the Commission views Account 117.4 to be more in the nature

of a valuation account, it has decided to retain its

classification within the Account 117 grouping of accounts. This

is consistent with the usual financial statement display of

valuation accounts as reductions of the accounts to which they

relate. As the Commission stated in the NOPR, however, the

~31 See paragraph 34 of FASB Statement of Financial Accounting

Concepts No. 6, "Elements of Financial Statements", FASB

Original Pronouncements, Vol. II (1995).

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Docket No. RM95-4-000 25

amounts recorded in account 117.4 and the companion imbalance

receivable and payable accounts can be taken into consideration

in determining cash working capital requirements.

2. Valuation/Pricincr

In the NOPR the Commission proposed that encroachments on

system gas would be valued at the current market price. When a

customer responsible for an owed-to-system gas balance met his

responsibility for repayment by delivering gas in kind, the NOPR

proposed that Account 117.4 be cleared at the same price

originally used to record the encroachment. If the balance in

Account 117.4 was due to more than one transaction, the NOPR

proposed that the accounting would follow a queue with the

earliest transaction first, until the credit balance in Account

117.4 was eliminated.

El Paso objects to the "aging of imbalances by contract and

month and the tracking of all shipper over/under performance in

and out of storage accounts using a queue." ~32 It does so

because "[w]hile there in fact may be some relationship between

changes in storage and changes in imbalances, the two events

cannot be tied together on a shipper by shipper, contract by

contract basis." ~33 It adds that such reporting "would serve

no purpose and would lead to arbitrary results." ~34 It

recommends, as an alternative, that "[c]hanges in storage should

~32 Comments at 5.

~33 Id.

~34 Id.

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Docket No. RM95-4-000 26

be treated in the aggregate and not tied to any individual

shipper or contracts." ~35

Columbia concurs with valuing Account 117.4 gas at the

current market price. Texas Gas recommends that the pipelines

have discretion to determine the value of encroachment gas. It

further maintains that "accounting for storage activity on a

transaction-by-transaction basis by following 'a queue'ould be

impractical and an administrative burden which would, in Texas

Gas's situation, be of no value, as all system activity is

tracked and Texas Gas incurs no gains/losses resulting from

pricing differentials. It also submits that "obligations to

repay gas in-kind to or from a pipeline should be presented in

the financial statements at an established value at a point in

time (i.e., the date of the balance sheet) not at the current

market price in effect on the date each transaction took

place." ~36 It asserts that "since the obligation is to

replace the gas in-kind, the 'market price'n the date it was

borrowed is irrelevant." ~7

Kern River opposes valuing imbalance quantities at current

market prices. It submits that for it such a current market

valuation of Account 117.4 gas is unnecessary and unduly

burdensome. It states that it never, since its initial line pack

purchases, bought gas for fuel, imbalances, or to replenish line

~35 Id.

~36 Id.

~37 Comments at 4.

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Docket No. RM95-4-000 27

pack. Hence, it asserts that it is justified in recording all

imbalances at its historical average unit cost of line pack.

Panhandle maintains that the layered pricing as proposed in

the NOPR would be burdensome by increasing the annual recorded

transactions of its pipeline group from 48 to approximately

17,300.

Panhandle also claims that it will have to create and

maintain two sets of calculations to the extent gains/losses are

calculated differently from the relevant tariff method. And it

claims a significant burden increase of from 8,010 hours to

16,050 hours due to the procedures in the proposed rule.

Columbia, Enron, and Tennessee urge the Commission to

simplify the accounting and recordkeeping requirements by

allowing pipelines to net all transactions and record one monthly

entry with one month-end price for valuation purposes, as well as

monthly repricing of the cumulative net imbalances.

After considering the comments, the Commission has decided

not to adopt suggestions that would allow alternatives for

valuing encroachments under the fixed asset model. Instead, the

Commission will require all pipelines to value encroachments at

current market price as originally proposed. For purposes of

valuing the encroachments, current market price means the

delivered spot price of gas as published in a recognized industry

journal. The publication used must be the same one identified in

the pipeline's tariff for use in its cash-out provision, if it

has one. If the pipeline does not have a cash-out provision, the

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Docket No. RN95-4-000 28

pipeline must use a publication representative of the cost of gas

in its supply area, use the same publication consistently, and

identify the publication in its records.

The Commission recognizes that for in-kind transactions

pipelines do not separately purchase replacement gas and

therefore do not recognize a gain or loss on the use and

replacement of system gas. However, the accounting event to be

recognized is the encroachment, and the prospect of obtaining

replacement gas in kind from a customer should not produce a

measurement different from what would be obtained in a cash

transaction.

Upon consideration of the comments, the Commission will

simplify the proposed recordkeeping for encroachments and

replacements of system gas under the fixed asset method. The

NOPR proposed that different price layers be maintained for

monthly encroachments on system gas and that replacements of

system gas be priced following a queue. The Commission now

believes that this approach is unnecessarily complex. Instead,

the Commission will adopt the suggestions of INGAA and others to

allow pipelines to revalue cumulative net imbalances, net all

transactions and record one monthly entry with one month-end

price for valuation purposes. The Commission believes that this

modification will reduce the recordkeeping burden associated with

the fixed asset model without materially affecting the validity

or reliability of the accounting measurements.

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Docket No. RM95-4-000 29

3. Losses on Settlement of Imbalances

CNG submits that the Commission's proposal to revise Account

813, Other Gas Supply Expenses, so that it will include losses on

settlements of imbalance receivables would have an adverse impact

on its record keeping. It states that in order to calculate

gains and/or losses on imbalance settlements, historical

imbalance data, including gas prices, would need to be tracked.

There will be no need to track gas prices or use historical

imbalance data for calculating gain or loss. The Commission's

simplification of the recordkeeping requirements for storage

imbalances under the fixed asset method should substantially

mitigate CNG's concern over the record keeping requirements

necessary to calculate gains or losses of imbalances. For

imbalances in which the pipeline has delivered more than the

shipper injected at the receipt point, gains (or losses) will be

the difference between the cash-out price and the pipeline's

purchase cost of replacement gas volumes. For cashed-out

imbalances in which the pipeline has delivered less than the

shipper has tendered into the pipeline, the gain (or loss) will

be the difference between the cash-out price paid by the

pipeline and the current price of volumes recorded in Account

117.4. For system gas accounted for under the inventory method,

gain or loss will be the difference between the cash-out price

and the inventory price of the gas imbalance.

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4. Storaae Losses

The NOPR did not explicitly address the accounting for

storage losses.

CNG maintains that Account 117.4 needs to be revised to

address encroachments due to storage losses and suggests specific

instructions for losses.

The Commission agrees that the Uniform System of Accounts

should contain explicit instructions for gas losses. The

Commission has therefore added instructions to require: (1)

losses of gas stored in underground reservoirs be charged to

Account 823, Gas Losses. The Commission did not adopt CNG's

specific language changes related to storage losses. However,

the Commission agrees that under the fixed asset model, losses of

system gas should be priced at the same rate used to price

withdrawals in the month in which the loss is recognized (i.e.

the current market price of gas available to the utility).

Storage losses under the inventory model will continue to be

priced at inventory cost.

5. Other Item

Columbia requests clarification of the requirements for

Account 117.4, Gas Owed to System Gas. Columbia apparently seeks

confirmation that Account 117.4 is to be used to record

imbalances only after Columbia has exhausted other options for

resolving imbalances. In other words, the pipeline could use

customer-owned storage quantities to the extent permitted by its

tariff prior to using its own gas.This recognizes that the gas

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 31

borrowed from storage to meet imbalances belongs to the storage

customers. Columbia is permitted to borrow the gas from storage

because of an arrangement between Columbia and its customers

that, consistent with Columbia's tariff, allows Columbia to use

its customer's gas for balancing purposes. Thus, Columbia and

any other similarly situated pipeline would record amounts in

Account 117.4 only after customer gas available to the utility

for system balancing purposes has been exhausted. This

accounting is appropriate because the pipeline is using its

customers'as to meet imbalances on its transportation system.

If however, it is necessary for the pipeline to use its own gas

for system balancing purposes and if such use results in an

encroachment upon the system gas volumes amounts would be

required to be entered in Account 117.4 under the fixed asset

model. Under the inventory model, use of the pipeline's gas for

balancing would require entries directly to the system gas

accounts.

d. EBB reoortina

AGD maintains that the estimated volumes in Accounts 117.1

through 117.4 and particularly 117.4 should be calculated by the

pipeline and provided to shippers daily through the EBB.

The Commission concludes that no purpose is served by

posting this information in the EBB. In addition, the

maintenance of this data would be burdensome by being timeconsuming and labor intensive. Hence, the Commission is not

requiring posting of this data on the EBB.

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Docket No. RM95-4-000 32

B. Shinoer Sunnlied Gas

1. The NOPR

In the NOPR, the Commission addressed the issue of the

appropriate accounting treatment of gas furnished to the

pipelines by their shippers for compressor fuel and other

pipeline system use. ~38 The Commission concluded that the

pipelines must include the value of that gas in their reported

revenues and in their reported expenses.

The Commission also invited comments from the industry about

whether a price index should be used to account for the value of

gas furnished by customers; and, if so, asked what would be the

appropriate price index, and how that price should be applied.

The Commission concluded that no changes were needed to the

USofA to effect its proposal. However, the Commission stated

that the records supporting the purchased gas accounts for

retained gas must be so maintained that there will be readily

available for each shipper and point of receipt, the quantity of

gas tendered, and the values assigned.

2. Comments on Accountina Treatment

INGAA suggests that the Commission not mandate the procedure

for accounting and valuation of customer-provided compressor fuel

as revenue because the Commission's proposal contradicts a

majority of the pipelines'ariff provisions and mechanisms. ANR

also maintains that each company should be able to use its

~38 For example, gas furnished by shippers to cover line

losses incurred as part of the transportation service.

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Docket No. RM95-4-000 33

current method.

Columbia and AGD support the NOPR's proposal. However,

Panhandle, ANR, MRT, Great Lakes, Williams, Transco, Enron, Texas

Gas, National Fuel, and Kern River oppose the NOPR's proposal.

3. The Rule

Upon consideration of the comments, the Commission concludes

that it is not appropriate to mandate revenue recognition for gas

provided by shippers for compressor fuel and other pipeline

system use and used to provide transportation services. ~39

Instead, each pipeline will have the discretion to determine

whether it will recognize revenue for these transactions in its

accounting records.

The Commission is taking this approach because of the

apparent divergence between relevant accounting standards. In

one view, as in the NOPR, these volumes represent an inflow of

assets to the pipeline from delivery or producing goods,

rendering services or other activities that constitute the

pipeline's ongoing major or central operations. Recognition of

an economic value for these volumes therefore meets the

conceptual definition of revenues set forth in Statement of

Financial Accounting Concepts No. 6, paragraph 78. ~40

~39 The Commission is not setting forth the arguments of the

commenters in light of the decision not to mandate a

particular approach.

~40 Contrary to Panhandle's assertion, the fact that most of the

gas may be used in pipeline operations simultaneously upon its receipt does not mean that it is not an asset. It means

only that it is an asset momentarily — as the pipeline

(continued...)

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Docket No. RM95-4-000 34

Therefore, it is conceptually appropriate to recognize gas

received from shippers in exchange for transportation services as

revenue. However, based on the filed comments, it is less than

clear that current accounting standards for enterprises in

general require such recognition. Hence, to avoid potential

differences between pipeline financial statements filed with the

Commission and financial statements issued to the public, the

Commission will not mandate that pipelines recognize shipper

provided gas as revenue.

4. Entries -- Revenue Recoanition

Pipelines electing to recognize shipper provided gas as

revenue must also recognize an equal amount of purchased gas

expense. Pipelines would credit the appropriate transportation

revenue account (Accounts 489.1 through 489.4) ~41 and record

an equal amount in Account 805, Other Gas Purchases.

5. Entries -- Non Revenue Recoanition

Although the Commission is not requiring revenue recognition

for the volumes received from shippers, pipelines must recognize

all gas consumed in compressor stations or used for other

operational purposes in the appropriate expense accounts in

~40 (...continued)

receives and uses it. See SFAC No. 6 paragraph 31 for a

discussion of this phenomenon.

~41 New revenue accounts 489.1, Revenues from Transportation of

Gas of Others Through Gathering Facilities, 489.2, Revenues

from Transportation of Gas of Others Through Transmission

Facilities, 489.3, Transportation of Gas of Others Through

Distribution Facilities, and 489.4, Revenues from Storing

Gas of Others.

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accordance with existing Uniform System of Accounts requirements.

~42 Contra-credits for these amounts are to be recorded in

Account 810, Gas Used for Compressor Station Fuel — Credit,

Account 811, Gas Used for Products Extraction — Credit, and

Account 812, Gas Used for Other Utility Operations — Credit, as

appropriate. This will result in comparability of transmission

operating expenses among pipelines and will avoid the statistical

anomalies that exist under current practices. ~43 Further,

the value of gas received from shippers under tariff allowances

that is not consumed in operations nor returnable to customers

through rate tracking mechanisms shall be credited to Account

495, Other Gas Revenues and charged to Account 805. Pipelines

must simultaneously charge Accounts 117.3 or 117.4 as

appropriate, with contra credits to Account 808.2, Gas Delivered

to Storage — Credit.

~42 For example, the cost of gas used for transmission

compressor stations is to be recorded in Account 854,

Gas for Compressor Station Fuel, and gas used for

underground storage compressor stations is to be recorded in

Account 819, Compressor Station Fuel and Power.

~43 For example, in 1994 Panhandle and Columbia moved 1.2

billion mcf and 1.3 billion mcf of gas respectively on their

systems. While the volumes moved were approximately the

same, the two pipelines reported widely disparate amounts

for the cost of gas used in transmission compressor stations

$2.7 million for Panhandle and $28.7 million for

Columbia. While the two pipeline systems are obviously

different and therefore fuel usage can not be expected to

necessarily correlate precisely with throughput, the figures

adequately demonstrate the statistical anomalies and lack of

comparability that results from different accounting and

reporting practices.

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Docket No. RM95-4-000

6. Pricina

36

Since all pipelines must recognize the cost of shippersupplied gas, it is necessary to determine the appropriate

measure of such cost. In the NOPR the Commission stated that an

appropriate measure of the revenues and cost of gas furnished by

a customer for compressor fuel should be the cost that would have

been incurred had the pipeline been required to purchase the gas

itself. The Commission invited comments from the industry about

whether a price index should be used, and if so, what would be

the appropriate price index and how should it be applied.

INGAA maintains that there should not be a mandatory index

for all pipelines, because of their different operations,

locations, and contractual arrangements.

Panhandle supports an index that is reasonable for each

pipeline and is applicable to all points on the pipeline. It

argues that indices for different points would complicate the

calculations and increase burden.

National Fuel submits that a pipeline should able to use the

index described in its tariff or an average if it uses different

indices for cash-out purchases and sales.

CNG maintains that the "Appalachian CNG Spot" price as

quoted in Natural Gas Intelligence is the best representation of

the price of gas received onto its system. It submits that this

price should be used for CNG and similarly situated pipelines in

valuing fuel retained, gas used in company operations, storage

encroachment, and transport and exchange imbalances.

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Docket No. RM95-4-000 37

Transco suggests that an industry-wide price index not be

used. It proposes to use the same spot prices that it uses for

its fuel tracker.

Columbia supports use of an index specific and applicable to

the pipeline's primary supply area to value the fuel usage and

retainage quantities supplied by customers.

Enron maintains that in calculating the expense

reimbursement, pipelines should use existing tariff indices.

ANR stated that it was unreasonable to apply an arbitrary

price to shipper supplied gas. Great Lakes stated that pipelines

do not know the price shippers paid for the gas, and that indices

do not necessarily reflect prices paid under different contracts.

MRT and National Fuel opposed the assignment of arbitrary values

to gas received for compressor fuel. INGAA stated that there

should not be a mandatory index for all volumes as no one price

index can reflect every pipeline's operations, geographic

location or contractual arrangements.

Pipelines recognizing revenue and purchased gas expense for

shipper provided gas should value such amounts at current market

value. Values to be assigned to fuel consumed in compressor

stations or used for other operational purposes should be

similarly determined. The Commission agrees with commenters that

use of a single index applied to all pipelines would not

adequately recognize differences in gas prices between

geographical regions. Instead, the Commission believes that the

current market value must be determined by reference to the

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Docket No. RM95-4-000 38

delivered spot price of gas as published in a recognized industry

journal. The publication used must be the same one identified in

the pipeline's tariff for use in its cash-out provision, if it

has one. If the pipeline does not have a cash-out provision, the

pipeline must use a publication representative of the cost of gas

in its primary supply area, use the same publication

consistently, and identify the publication in its records. Use

of such values would allay any concerns as to whether the values

recorded by a company on its books relate to the operations of

that company.

7. Recordkeeoinc

Although the Commission did not propose any changes to the

Uniform System of Accounts to account for shipper supplied gas,

the Commission made it clear that the purchased gas accounts for

retained gas must be so maintained that there will be readily

available for each shipper and point of receipt, the quantity of

gas tendered and the values assigned.

INGAA maintains that receipt point allocation of fuel to

specific shippers will result in a significant increase in burden

because pipelines do not track compressor fuel in that fashion.

It states that many pipelines'ariffs state that fuel needs are

calculated and collected on a zone or service basis. Great Lakes

opposes the accounting for compressor fuel by shipper by receipt

point when many pipelines operate under a mechanism where fuel is

allocated by zones or service categories. It submits that such a

calculation would involve burdensome assumptions and allocations,

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Docket No. RM95-4-000 39

serve no useful purpose, and would be inconsistent with tariffs.

KN maintains that the supporting information requirement will

result in a significant administrative burden. It refers to its

numerous receipt and delivery points within a contract for

several shippers. ANR submits that the calculation of fuel by

shipper and receipt point would involve a number of assumptions

and allocations that would be arbitrary, inaccurate, and

burdensome and, therefore, would not serve any valid statistical

basis. This is so, it says, because many pipelines calculate

fuel by zone or service category. AGD requests that pipelines

record both actual fuel consumed and fuel retained or paid for,

on a rate schedule and rate zone basis.

The Commission concludes that it would be unduly burdensome

for pipelines to maintain supporting information by receipt and

delivery points within a contract for each shippers. Therefore,

the Commission will revise the recordkeeping to require records

to be maintained and readily available for shipper supplied gas

on a rate schedule and zone basis.

8. Accounts -- Revenue -- Exoense Account

In the NOPR the Commission stated that the expense account

to be charged with the gas provided by shippers is the same

purchased gas account that would have been charged if the gas was

separately purchased in a cash transaction.

INGAA states that the choice of purchased gas account may

become unnecessarily complex if the proposal is adopted, because

the appropriate account will apparently be determined by the

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Docket No. RM95-4-000 40

location of the receipt point for the compressor fuel. INGAA

next asserts that if the Commission determines that pipelines

must separately account for volumes received for fuel, it must

establish appropriate accounts as a credit to expense.

Columbia recommends the use of one gas purchase account and

one market rate rather than the multiple gas purchase Accounts

800 through 805. It would delete Accounts 800 through 804.

Based on the comments, the Commission concludes it would be

an undue burden to require pipelines to classify these amounts

according to the receipt point of the gas. Therefore, we are

adopting Columbia's recommendation to permit the use of Account

805, Other Gas Purchases, to record such amounts.

C. Revenues

At present, a pipeline includes in Account 489, Revenues

from Transportation of Gas of Others, "revenues from transporting

gas for other companies through the production, transmission, and

distribution lines, or compressor stations of the utility."

Service charges for the storage of gas of others are included in

Account 495, Other Gas Revenues. (See Item No. 5 of Account

495). The Commission is deleting Account 489 in its entirety and

Item No. 5 of Account 495 and replacing it with four new

accounts. These are: Account 489.1, in which the pipeline would

include revenues from transportation of gas through gathering

facilities; Account 489.2, in which the pipeline would include

revenues from transportation of gas through transmission

facilities; Account 489.3, in which the pipeline would include

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Docket No. RM95-4-000 41

revenues from transportation of gas through distribution

facilities; and Account 489.4, in which the pipeline would

include revenues from storing gas of others. In addition, the

Commission is adding two new items to the list of items in

Account 495 to (1) address recognition of gains on settlements of

imbalances and (2) provide for the recording of penalty revenues.

The above changes are supported in whole or in part by

INGAA, KN, Columbia, Panhandle, NGSA, and AGD. The Commission is

adopting the above changes in order to appropriately record

revenues from unbundled services. The Commission will address

below specific concerns of some commenters and requests for

clarification.

1. Accounts

Panhandle suggests that the Commission create a new Account

489.5 to cover other operating revenues. The Commission believes

that there is no need to establish a fifth account in which to

record other revenues since current Account 495, Other Gas

Revenues, already adequately provides for revenues not includible

in other gas revenue accounts. In this regard, the Commission is

adding Item 9 to the list of items included in Account 495 to

explicitly provide for the recording of penalties earned pursuant

to tariff provisions, including cash-out penalties. This change

codifies existing practice in the industry.

NGSA recommends that Account 495 be broken into subaccounts

that represent the list of items proposed by the NOPR, including

subdividing proposed new item 8, "Gains on Imbalance

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Settlements," into five subaccounts, "495.81 No-Notice," "495.82,

Exchange," "495.83, Gathering", "495.84, Transportation," and

"495.85, Other (specify)." AGD requests that the Commission

direct the companies to keep separate sub-accounts in Account 495

for shipper imbalances, so that these amounts can be properly

scrutinized in rate cases. The Commission will not adopt NGSA's

or AGD's recommendations. This level of subaccount detail is

unduly burdensome. ~44 However the Commission will require

pipelines to maintain a separate subaccount within Account 495

for gains from settlement of imbalances. The Commission's

decision not to require additional subaccounts does not relieve

the pipeline of its burden to keep its books and records so as to

be able to furnish readily full information for any item included

in any account. ~45

KN asks for clarification on how to account for no-notice

service revenues because no-notice service combines storing gas

and transporting gas. The new accounts require classification of

revenues according to the type of service or services provided.

For example, revenues from no-notice service that is

predominantly transportation should be recorded in Account 489.2,

Revenue from Transportation of Gas of Others through Transmission

~44 Similarly the Commission concludes

burdensome to require pipelines to

subaccounts for administrative and

involving affiliates merely to aid

requested by AGD.

it would be unduly

establish separate

general expenses

rate case proceedings as

~45 See 18 CFR Part 201, General Instruction No. 2, Records.

(1995)

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Facilities, whereas revenues from no-notice service that is

billed under a separate storage rate schedule should be recorded

in Account 489.4, Revenues From Storing Gas of Others. Revenues

from no-notice services which combine transportation and storage

services, such as KN's Rate Schedule NNS, should be recorded in

Account 489.2. ~46

2. Accountina for Gains and Losses

In the NOPR, the Commission proposed to include gains on

settlements of imbalance receivables in Account 495, Other Gas

Revenues. Losses were to be included in Account 813, Other Gas

Supply Expenses. Additionally, the Commission proposed that

gains recorded in Account 495 that are to be passed along to

customers in future periods were to be offset by charging Account

407.3, Regulatory Debits, and crediting Account 254, Other

Regulatory Liabilities. In a similar fashion, losses that are to

be passed along to customers in future periods were to be offset

by crediting Account 407.4, Regulatory Credits, and charging

Account 182.3, Other Regulatory Assets.

Panhandle objects to the recording of gains on imbalance

transactions that are to be passed through to customers in

Account 495, Other Gas Revenues, because it could create

additional state gross receipts tax expense due to the increase

in reported revenues. It adds that the Commission would need to

~46 Form 2 page 305 footnote 6 specifies that revenues from

bundled transportation and storage services should be

reported in Account 489.2.

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provide a gross-up factor to allow pipelines appropriate cost

recovery.

Williston opposes new item 8 of Account 495 as part of its

opposition to the Commission's treatment of gains and losses on

the settlement of imbalance receivables in Accounts 495, 806,

Exchange Gas, and 813 (see infra). It states that settlements of

imbalances and exchange transactions flow through the company's

imbalance tracking mechanism and no gains or losses are

recognized. It requests the Commission to allow pipelines that

account for such gas through an imbalance mechanism the

flexibility to continue accounting for settlement units of

imbalance receivables pursuant to their current procedures.

The Commission will modify its proposed accounting for gains

and losses on imbalance transaction in instances in which a

pipeline's tariff requires that such gains and losses be passed

along to customers. Rather than initially recording a gain or

loss (in Account 495 and Account 813, respectively and separately

deferring the gain or loss as a regulatory asset or liability (by

charging Account 407.3, Regulatory Debits, or crediting Account

407.4, Regulatory Credits, respectively), the Commission will

require pipelines to record the gain or cross on imbalances

directly in Account 254, Other Regulatory Liabilities, or

Account 182.3, Other Regulatory Assets, as appropriate consistent

with Order No. 552. ~47 This modification should satisfy both

Panhandle's and Williston's concerns.

~47 III FERC Stats. & Regs. 5 34 967 (1993).

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D. Gas Suoclv Exoenses

The Commission is revising Account 806, Exchange Gas, so

that it will include debits or credits for the cost of gas in

unbalanced transactions and not just unbalanced exchange

transactions. Such unbalanced transactions would be those

whereby gas is delivered to another party in exchange, load

balancing, or no-notice transportation transactions. The cost of

exchanged gas is to be determined from the current market price

of gas at the time the gas is tendered for transportation.

Contra entries to those in Account 806 will be made to Account

174, Miscellaneous Current and Accrued Assets, and Account 242,

Miscellaneous Current and Accrued Liabilities.

As recommended by commenters, the Commission is modifying

its proposed rule to require that records be maintained only by

customer, quantity and cost of gas delivered and received, rather

than by point of receipt and delivery. Additionally, the

Commission is moving the requirements for the recording of gains

and losses on settlement of receivables and payables to the text

of Accounts 174 and 242. The comments are discussed below.

1. Recordkeecina

INGAA recommends that imbalance data be kept by category or

on a contract basis. CNG maintains that the level of detail and

tracking by customer is too burdensome. Williams contends that

tracking transportation balances on a transaction-by-transaction

basis is administratively very burdensome and not required for

regulatory purposes. MRT maintains that data on load-balancing

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or no-notice transportation is maintained by quantity (not value

of gas) and not broken down to the specific receipt point level.

The Commission concludes that it is appropriate to require

information by customer of the quantity and cost of gas delivered

and received. This information would be that typically

maintained by pipelines in any event to support their receivable

and payable balances, and should not result in an additional

burden. Conversely, since the Commission does not have a

regulatory need for information by point of receipt and delivery,

it will not adopt the NOPR proposal to require pipelines to

maintain such information. In response to MRT's assertion, the

Commission is not proposing a new requirement to maintain the

cost of exchange transactions; it has always required pipelines

to record the cost, as well as the quantity of exchanges. Cost

information is essential in determining the pipeline's expenses

as well as its exchange receivables and payables. Therefore, the

Commission will continue to require the recording of the cost of

imbalance transactions.

Panhandle generally agrees with the proposal but maintains

that the Account 806 instructions create needless difficulties.

It asserts, "While Account 806 records only imbalance activity

settled by receipt or delivery of gas, paragraph C of the account

description includes a burdensome record-keeping procedure that

requires records to be maintained for quantities and

consideration, by receipt and delivery point, for all imbalance

activity, including imbalances settled in cash." It also

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"believes the procedures should not be included in the

instructions to Account 806. The detail requested in the

instructions will not track the entries made to Account 806 if

cash-out transactions are excluded from this account." It

"suggests the required record keeping be dropped due to the

excessive burden or, if there is some demonstrated need for this

activity, the requirement should be moved elsewhere in the

Uniform System of Accounts to avoid confusion about the makeup of

Account 806."

The Commission agrees with Panhandle that the proposed

instructions to Account 806 require pipelines to maintain

detailed information on all exchange transactions, including nongas exchanges, e.cC,, exchanges settled in cash. Panhandle

correctly maintains that because cash-out transactions would not

be included in Account 806, the proposed detailed records would

not track the entries to Account 806. Therefore, the Commission

will adopt Panhandle's suggestion to move the detailed

recordkeeping requirements for cash-out transactions to other

accounts. Those recordkeeping requirements will be moved from

Account 806 to Accounts 174 and 242. Accounts 174 and 242 are

the accounts used to record all exchanges, including non-gas

transactions.

2. Valuation

In the NOPR the Commission proposed that Account 806

include the cost of gas in unbalanced transactions determined

from the current market price of gas at the time gas is tendered

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for transportation.

Columbia agrees with the proposed Account 806 but maintains

that gas should be priced at its value and not its cost because

it incurs no cost.

The Commission concludes that the amounts recorded in

Account 806 should be based on the measurement attribute of the

gas received or delivered in the exchange. If gas delivered in

an exchange has been priced on a historical cost basis (which

would include gas withdrawals from storage priced on an inventory

method), the amounts to be recorded in Account 806 should be

based on the historical cost of the gas. If gas delivered in an

exchange is priced at current market value (which would be the

case for gas withdrawals from storage priced on a fixed asset

method), the amount to be recorded in Account 806 would be the

current market value. Exchange gas received that is not a

satisfaction of an existing exchange gas receivable should be

recorded in Account 806 at current market value.

3. Accountina Recoanition of Exchanaes

The NOPR did not address the appropriate accounting

recognition for exchanges involving customer-owned gas.

Williams states that under FERC Order No. 636, it retained

storage canacitv for system balancing purposes, but did not

retain an investment in its working gas in storage. Williams

argues that because it does not take title to gas flowing on its

system, it need not price [record] transportation imbalances.

Williams recognizes that it has an operational obligation to

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redeliver gas to the owner; however it submits that it has no

recordable liability under GAAP. Williams also maintains that

it should not record a positive customer imbalance just as it

does not record gas injected into storage because both represent

inventory on consignment.

Williams'rguments for not recording transportation

imbalances appears similar to Columbia's request for

clarification of the use of Account 117.4 . Both companies

address the situation in which a pipeline uses customer supplied

gas to meet imbalances. As with Columbia, it appears that

Williams has an arrangement with its customers which allows

Williams to use its customers'as for balancing purposes.

Accordingly, Williams (and any other similarly situated pipeline)

must record amounts in Account 117.4 only after customer gas

ckvar?ale to %he utility for system balancing purposes has been

exhausted. Williams (and any other similarly situated pipeline)

should record a receivable and payable for all customer gas that

is used to meet exchange imbalances to reflect its right to

receive gas from one shipper and its obligation to provide gas to

another shipper.

4. Imbalance Sub-Accounts

The Commission proposed revisions to Account 806 to include

the cost of gas in all unbalanced transactions, but did not

propose any new subaccounts of Account 806.

AGD states its concern that the Commission's changes might

result in higher rates by claims for excessive amounts associated

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with imbalance issues. It requests separate subaccounts to

Accounts 813, 806, and 495 to permit proper scrutiny in rate

cases.

NGSA suggests renaming Account 806 as "System Gas" because

exchanges are only one specific component of this account. It

also suggests subaccounts for Account 806 for no-notice (806.1),

Exchange (806.2), Gathering (806.3), Transportation (806.4), and

806.5. (other specify) ~48 It states that these should be

reported by rate schedule.

The Commission will not rename Account 806 as suggested by

NGSA because the only amounts to be reflected in Account 806 are

for exchange imbalances. Neither will the Commission prescribe

separate subaccounts of Account 806 as proposed by AGD and NGSA,

as this level of subaccount detail appears unduly burdensome.

However, as required by General Instruction No. 2 of the Uniform

System of Accounts, pipelines must maintain their books and

records so as to be able to readily furnish full information as

to any item included in Account 806. This information should be

adequate to allow the Commission to address claims by pipelines

associated with imbalance issues and thereby satisfy AGD's

concerns.

5. Gas Losses

The Commission did not propose new accounts for the

recording of gas losses other than those related to storage.

~48 See also Accounts 164, 174, and 808.10, 808.20, and 813

for similar subaccount proposals.

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NGSA suggests the Commission include a separate transmission

expense account for gas losses. KN maintains that an account is

needed for gas losses for transmission, gathering, and

distribution similar to Account 823 for storage. The Commission

agrees that it is necessary to designate an account for nonstorage gas losses. Therefore, the Commission is revising the

text of Account 813, Other Gas Supply Expenses, to provide for

the recording of losses of system gas not associated with

underground storage.

6. Rates

The Commission did not address potential ratemaking issues

in this rulemaking.

Some commenters expressed ratemaking concerns. NI-Gas

submits that any change to existing tariff mechanisms must be

handled through an appropriate tariff filing. AGD asks for

clarification that the Commission's accounting standards are not

determinative of the rate treatment of the recorded amounts.

This rule is establishing accounting that is intended to

measure and recognize the economic effects of transactions,

events and circumstances affecting pipelines. While the final

rule is expected to provide information useful for ratemaking

purposes, the Commission's financial accounting requirements do

not necessarily dictate how costs related to the transactions,

events or circumstances should enter into the determination of

rates. Ultimately the manner in which costs are considered for

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ratemaking purposes is a matter to be resolved in a rate

proceeding.

7. Other Issue

Several commenters requested clarification as what type of

imbalances are to be included Accounts 806 and 813.

Account 806 will include all imbalances, including those

arising from unbalanced transactions whereby gas is delivered to

another party in exchange, load balancing, or no-notice

transportation transactions. As stated in Footnote 12 of the

NOPR, system balancing refers to those situations where the

pipeline provides gas from its own source of supply in order to

meet deficiencies caused by a shipper tendering less volumes to

the pipeline at the receipt point than it takes from the systems

at the delivery point. The term can also be used to refer to

situations where the shipper tenders more volumes than it takes

from the system. Account 813 will include losses on settlement

of imbalance transactions.

E. Maior/Nonmaior Accounts

The Commission is eliminating all Nonmajor accounts in the

Uniform System of Accounts and is requiring all natural gas

companies to use the same accounts. The Commission is, thus,

also changing the Major accounts to eliminate their application

to Major natural gas companies only and is revising the

instructions, notes, and items accordingly. In addition, as

discussed below, the Commission is revising Form No. 2-A to

require Nonmajor respondents to file certain Form No. 2 pages as

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their Form No. 2-A report. The Commission is revising part 158

of the regulations to delete the references to Major and

Nonmajor in sections 158.10 and 158.11.

INGAA and KN support the elimination of Nonmajor accounts in

the Uniform System of Accounts. No commenter opposes it.

F. Mcf to Dth

At present, the Uniform System of Accounts requires

reporting volumes by Mcf. The Commission is amending the Uniform

System of Accounts where applicable to measure gas by dekatherms

rather than by Mcf to reflect the current measurement of gas by

heat content rather than by volume.

INGAA and others ~49 support the change from Mcf to Dth

in gas measurement. Kern River, however, maintains that its

measurement standards should not be changed from volumetric to

thermal. A significant majority of pipelines state their rates

on the basis of either MMBtu or Dth. Only a few pipelines

continue to state their rates in Mcf. The Commission earlier

adopted in section 284.4 of its regulations MMBtu measurement

base for all reports submitted under Part 284. The change to the

regulations in this rulemaking is intended to expand on the

Commission's earlier action and reflect the prevalent practice in

the industry. However, some of the remaining companies may

perceive a hardship in switching from Mcf to Dth or MMBtu. Those

companies may seek waiver of this provision. The Commission will

consider any arguments set forth by those companies at that time.

~49 KN, Columbia, NGSA, and Panhandle.

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Transok agrees with the change from Mcf to Dth, but it

suggests that the Commission "require uniform measurement of

dekatherms at a specific pressure base, i.e. 14.65 psia, a

specific temperature base, i.e. sixty degrees Fahrenheit (60'F),

and specific Btu water content measurement, i.e., dry or

saturated." ~50 It submits that this will provide uniform

reporting so that precise comparisons can be made between

pipelines. Even though pressure, temperature, and water content

affect the heating value of gas, the Commission will not require

uniform reporting because pipeline tariffs do not contain a

standard definition of heating value.

G. Merchant Accounts

Several commenters point out that state public utility

commissions have required utilities under their jurisdiction to

adopt this Commission's Uniform System of Accounts and Form 2.

Missouri requests that the Commission retain the requirements

related to the purchase and sale of natural gas, at least during

a 2-3 year transition period. PG&E maintains that the revised

Uniform System of Accounts is inconsistent with the role and

needs of LDCs. It submits that it is not adequate in some

instances (~e , no accommodation for bundled sales) and onerous

in others (e.cC,, tracking the cost of gas used for imbalance

transactions for each customer each month on a FIFO inventory

basis). It suggests that the Commission either establish

separate accounts that support the accounting and reporting

~50 Comments at 5.

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functions of transport-only and non-transport-only pipeline

companies respectively or retain accounts that support the

continuing merchant functions of LDCs. Last, PG&E suggests

convening a technical conference to explore maintaining uniform

accounting practices in the natural gas industry. Columbia

Distribution suggests the Commission consult with the National

Association of Regulatory Utility Commissioners and use an

extended transition period. Consumers Power also maintains that

elimination of the sales accounts would result in regulatory

confusion because LDCs would have to use accounts that were not

intended to reflect the sales function. It believes the

Commission should retain the account numbers that relate to the

merchant function.

Missouri also submits that pipelines are not prohibited from

acting as merchants and, therefore, the existing gas purchase and

sale accounts and reporting requirements should be retained. It

states that a pipeline can indicate that those requirements are

not applicable to its circumstances. AGA maintains that certain

LDCs and pipelines still provide a merchant function and hence

none of the sales accounts should be eliminated.

The Commission's reason for deleting the Form No. 2

schedules reporting merchant activities is to recognize that

pipelines for the most part are now engaged in transportation

activities and not sales. Hence there is no longer a need for

such schedules. While it is true that two pipelines and many

LDCs engage in merchant activities, they may continue to retain

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the deleted schedules if needed for reporting to other

jurisdictions. None of the merchant accounts have been

eliminated from the Uniform System of Accounts and so they may

still be used for this purpose. However, for the Commission to

retain these Form No. 2 schedules implies they are still needed

for the Commission's regulatory activities, which is not the

case. Therefore, the Commission will delete these schedules as

proposed in the NOPR. Last, the Commission sees no need to

convene a technical conference.

H. Index

MRT requests that the Commission consider developing a

subject matter index to Parts 201 and 216 as an aid to pipelines

in complying with these regulations.

The Commission believes that the current Charts of Accounts

and headings are adequate.

IV. PART 158 (CPA CERTIFICATION STATEMENT)

The Commission is to removing the designations "Major and

Nonmajor" from sections 158.10(a) and 158.11. In addition, the

Commission is requiring independent licensed public accountants

to be licensed on or before December 30, 1970, as is the case in

current section 158.10(b). Moreover, the Commission is deleting

present section 158.10(b). Further, the Commission is revising

section 158.11 to require the filing of the independent

accountant's letter or report of certification with the original

and each copy of the Form No. 2 or Form No. 2-A rather than

having the option to file it with the original or within 30 days

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after the filing of the Annual Reports as is the case now. Last,

the Commission is revising section 158.12 to remove an outdated

provision.

Columbia objects to the revised Part 158 as potentially

broad in scope and views it as unclear whether the intent is to

modify the current scope or report of the independent certified

public accountant in issuing its opinion on the Form No. 2. It

argues that the proposed revisions to section 158.10 with respect

to the independent accountant identifying questionable matters

and to section 158.11 with respect to the independent

accountant's letter or report certifying approval make no mention

of the significance or materiality of the issues to be

identified. It next maintains that the statements could be

interpreted as requiring the independent accountant to, in

effect, perform a compliance audit. It argues that it is

entirely inappropriate for the Commission to modify the scope of

the work at present performed by the independent accountant or to

require a report inconsistent with Generally Accepted Accounting

Standards. It asserts that the accounting firm should be

required only to opine that the Form 2 pages are, in its opinion,

fairly stated and, if not, explain the deviation in an

explanatory paragraph, if it is significant or material with

respect to the Uniform System of Accounts.

Columbia also objects to Part 158's statement "that the

independent accountant will seek advisory rulings by the

Commission on such [questionable] items." It maintains that it

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is the responsibility of management to resolve questionable

accounting and reporting issues. It is not the function of the

independent accountant to do that without management's

authorization or to perform compliance audits with the

Commission.

The changes to Sections 158.10 and 158.11 of our regulations

do not modify the current scope of work of the independent

certified public accountant in issuing its opinion on the Form 2.

In addition, the Commission is not requiring a report

inconsistent with Generally Accepted Auditing Standards. To the

contrary, these changes, together with other Form-2 reporting

changes discussed infra, will permit our certification

requirements to be met in a manner consistent with the reporting

requirement standards under Generally Accepted Auditing

Standards.

The Commission has addressed the issue of significance or

materiality in Instruction No. III(c)(i) of the revised Form No.

2, which requires that a letter or report be submitted which will

contain a paragraph attesting to the conformity, in all

material aspects, of the below listed schedules.

With respect to identifying questionable matters and seeking

advisory rulings, those provisions are unchanged and relate to

the early resolution of questionable matters to aid the

certification process. Whether an independent accountant will

seek such a ruling on any item is for it to determine in

appropriate consultation with the respondent.

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V. PART 250

Part 250 of the Commission's regulations specifies the use

of certain forms for accomplishing specific actions. As further

described below, the Commission generally is simplifying,

updating, or eliminating certain sections of Part 250 to reflect

current regulatory practice, and the deregulation of the wellhead

gas market.

However, in the NOPR, the most significant change that the

Commission proposed to Part 250 was the removal in section 250.16

(Format of compliance plan for transportation services and

affiliate transactions) of the transportation discount

information that a pipeline transporting gas under subparts B or

G of Part 284 and conducting discounted transportation

transactions with a marketing or brokering affiliate must

maintain for each billing period. The Commission proposed to

eliminate the discount reporting requirements from section

250.16(d) because they replicate to some extent the information

required by the discount reports under section 284.7(d)(5)(iv).

The Commission had proposed to modify section 284.7(d)(5)(iv)

(proposed section 284.7(c)(6)) to include, among other things,

most of those requirements currently required under section

250.16(d) that are not already duplicated in section

284.7(d) (5) (iv) . Thus, the Commission proposed to delete section

250.16(d) as unnecessary.

As discussed in greater detail infra, the Commission is not

adopting the proposal to expand section 284.7 to include the

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requirements of 250.16(d). Consequently, the Commission must

retain section 250 .16 (d) . Therefore, the Commission is not

adopting the proposal to delete that section. The Commission

will continue to rely on the two, separate requirements -- one

reporting and one records maintenance -- to ensure

nondiscriminatory discounting of firm and interruptible

transportation.

However, the Commission is deleting two items of

transportation discount information from section 250.16(d). We

do not need to require pipelines to include in the discount

report the shipper's designation, such as local distribution

company, intrastate pipeline, end-user, etc., or the affiliate

relationship between the pipeline and the shipper. This

information can be determined from other, public sources, and

therefore, its exclusion will not affect the Commission's ability

to effectively monitor affiliate discounts.

Most commenters responded to the proposed changes to the

discounting reporting requirements with comments addressing the

new, proposed reporting requirement, section 284.7(c)(6). The

commenters that express support for the deletion of section

250.16(d), such as SoCal and APGA, also support the proposed

changes to section 284.7. In other words, no party argues for

the deletion of section 250.16(d) even if section 284.7 is

retained in its present form. ~51

~51 Columbia notes its support for the deletion of section

250.16(d), but is silent with respect to the proposed

modifications to section 284.7.

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However, NGSA objects to the removal of 250. 16(d) . NGSA

fears that the submergence of information on affiliated deals

within information on all discounted transportation programs will

provide pipelines a greater degree of obscurity within which

grants of affiliate preference may go unnoticed. Our retention

of section 250.16(d) satisfies these concerns.

Finally, in paragraphs (c)(3) and (d)(2) of section 250.16,

the Commission is deleting reference to the Commission's street

address.

The Commission is modifying the following other sections of

Part 250, as described below. Essentially, these modifications

either update the forms to conform to current regulatory

practice, or eliminate the forms related to the regulation of

producers and gatherers, since the wellhead gas market has been

finally deregulated and such forms are required by regulations

that have been removed in Parts 154 and 157.

Section 250.2 sets forth the forms required under section

154.64 (new section 154.602) for notification to the Commission

of a cancellation of a filed tariff or part thereof, or a

termination of the tariff by its own terms, when no new tariff or

part thereof is to be filed in its place. The Commission is

simplifying and clarifying section 250.2 by stating that the

notices of cancellation to be used when canceling an entire

tariff or an entire rate schedule should be filed as a tariff

sheet. Currently, the existing forms themselves include the

header and footer information normally associated with a tariff

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sheet, which is unnecessary and confusing.

In addition, the Commission is modifying section 250.2 by

eliminating the requirement that a specific form be used when

providing notice of the cancellation of individual tariff sheets.

Rather, section 250.2 will provide that when a single sheet is

canceled, it should be reserved for future use. This does not

represent a substantive change, but more accurately represents

the current practice in canceling a tariff sheet, and will allow

the sheet to conform better to the Commission's electronic tariff

sheet filing requirements.

Section 250.3 specifies the form required under section

154.64 (new section 154.602) for notification to the Commission

of a cancellation or termination of a contract, or executed

service agreement. The Commission is changing the current

instruction in the form to indicate the "name of purchaser or

purchasers" to an instruction to indicate the "name of customer

or customers." The use of "customer" rather than "purchaser"

better reflects the shift in today's gas market from sales to

transportation service.

The Commission is modifying the headings of sections 250.2,

250.3, and 250.4 (governing the form of the certificate of

adoption required under existing section 154.65 (new section

154.603) to be used when the tariff or contracts of a natural gas

company are to be adopted by a successor entity) to refer to the

new section numbers of the regulations from which their authority

stems, since the Commission, in the companion rulemaking, is

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redesignating the referenced sections of Part 154. Thus, the

reference in sections 250.2 and 250.3 to section 154.64 is

changed to section 154.602, and the reference in section 250.4 to

section 154.65 is changed to section 154.603. In section 250.4,

the Commission is also modifying the line indicating the date of

the form of certificate of adoption by removing the year

indicator of "194

Many of the forms set forth in Part 250 relate to the filing

requirements of natural gas producers and gatherers under Parts

154 and 157 of the Commission's regulations. Specifically,

section 250.5 specifies the form of contract summary required to

be filed under section 154.24(a) by independent producers

applying for a certificate of public convenience and necessity

under section 7 of the NGA for the transportation, or sale for

resale, of natural gas in interstate commerce. Section 250.7

specifies the form of contract summary required to be filed under

section 157.30(b) by independent producers seeking abandonment

authorization. Section 250.8 specifies the form for the summary

of contract information required by section 154.92(d) to be filed

by independent producers seeking authority to provide natural gas

service, previously authorized by the Commission, as a successorin-interest. Section 250.9 specifies the form of notice required

under section 154.97(a) to be filed by an independent producer

when a rate schedule is proposed to be cancelled, or will

terminate by its own terms, and no new schedule is to be filed in

its place. Section 250.10 specifies the form required to be

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filed under section 157.40(b)(4) by independent producers

applying for a small producer exemption from certain filing

requirements. Section 250.14 specifies the form of the initial

billing statement required under section 154.92 to be filed with

the filing of a rate schedule by every independent producer, and

the form required under section 154.94(f) to be used by an

independent producer seeking a change in its rate schedule.

All of the above-referenced sections of Parts 154 and 157

have been removed from the Commission's regulations by Order No.

567, issued July 28, 1994, in Docket No. RM94-18-000. ~52

Order No. 567 deleted certain regulations related to natural gas

producer rate regulation that were either obsolete or

nonessential in light of the deregulation of wellhead gas prices

under the Natural Gas Wellhead Decontrol Act of 1989, ~53 that

finally occurred on January 1, 1993. Since the regulations

requiring that independent producers make certain filings, and in

specific forms, have been deleted, sections 250.5, 250.7, 250.8,

250.9, 250.10, and 250.14 of part 250, setting forth the actual

forms, will also be deleted. Thus, the Commission is removing

these sections.

The Commission is also removing section 250.12, governing

the form of escrow agreements. This regulation was originally

promulgated by Order No. 400, issued April 28, 1970, in Docket

No. R-376. It is rarely used. In the instances in which

~52 68 FERC $ 61, 135 (1994) .

~53 Pub. L. No. 101-60; 103 Stat. 157 (1989).

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companies are required to place funds in escrow, the Commission

will determine in the proceeding establishing the escrow

requirement, the form of the escrow agreement, and whether the

form should be filed with the Commission.

In the NOPR, the Commission invited comments from parties

who believe it would be useful to retain a form of escrow

agreement, or suggestions as to how this regulation could be

modified to become more useful, rather than eliminated.

Only two parties commented in response to the Commission's

inquiry. Missouri states that it has no concerns with the

removal of this section as long as the Commission will still

require the placement of funds in escrow when it deems such a

remedy appropriate. Missouri believes that establishing the

requirements for such an escrow arrangement in the proceeding

where it is found appropriate is acceptable. The Industrials,

however, object to the elimination of the form of escrow

agreement in its present form from the regulations. They urge

the retention of the escrow agreement due to its value in

preserving ratepayers'efunds. They argue that if a case arises

in which a modification to the form may be appropriate, the

changes to the agreement may be addressed at the time it arises

in the individual proceedings.

The intent of the Commission's inquiry in the NOPR was to

determine whether there was support for retention of the escrow

agreement in its present form, or for adoption of a different

form of escrow agreement, instead. None of the comments

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suggested a more appropriate form of escrow agreement. Rather,

the parties'omments reflected concern that the Commission was

proposing to eliminate altogether the use of escrow agreements

to preserve ratepayers'efunds. The Commission's inquiry was

not intended as a referendum on the utility of escrow agreements.

The removal of section 250.12 does not prejudge the usefulness of

an escrow agreement in a particular proceeding. The decision

whether an escrow agreement should be imposed in a particular

proceeding will have to be made in that proceeding, whether

section 250.12 is retained or not. The elimination of the form

of the escrow agreement should not impact the availability of

escrow agreements or degree to which they are utilized.

Therefore, since no comments were received suggesting why the

current form of escrow agreement should be retained, or any

improvements to the form of escrow agreement, the Commission will

remove this section of the regulations.

Finally, the Commission is changing all references in Part

2s0 from the "Fpc" and the "Federal Power Commission" to the

"FERC," and to the "Federal Energy Regulatory Commission,"

respectively.

VI. PART 260

The provisions of Part 260 require that pipelines file

certain forms and reports with the Commission, such as the FERC

Form Nos. 2, 2-A, 11, and 549-ST. As further discussed below,

the Commission is modifying the actual Form Nos. 2, 2-A, and 11,

and various sections of Part 260. The changes to Part 260 are

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designed to update these reporting requirements to reflect

current regulatory practice, and to conform these prescriptive

requirements to the changes to the other parts of the

Commission's regulations in this rule.

A. Revisions to Form No. 2

The Commission is revising Form No. 2 for a variety of

reasons. First, it is desirable to update Form No. 2 by deleting

unneeded schedules, or individual data elements, by clarifying

and modernizing schedules and instructions, and by increasing the

thresholds for the reporting of certain information. Second, it

is vital to revise Form No. 2 to accurately present the

restructured nature of the natural gas pipeline industry, which

is primarily focused on the transportation of gas rather than the

sale of gas. Only then will the Form No. 2 provide more useful

and relevant information to the Commission and to pipeline

customers for the assessment of pipeline operations. A sample

copy of the revised Form No. 2 is attached as Appendix B.

The specific changes the Commission is making are:

General Information — oaaes i and ii

The Commission is requiring Form No. 2 to be filed by each

major interstate natural gas company having combined gas

transported or stored for a fee exceeding 50 million dekatherms

(Dth) in each of the three previous calendar years. This will

replace the present requirement that Form No. 2 must be filed by

major companies which are those having combined gas sold for

resale and gas transported or stored for a fee exceeding 50

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million Mcf at 14.70 psia (60'F) in each of the three previous

calendar years. The elimination of "gas sold for resale"

reflects the current nature of the pipeline industry, in which

pipelines are primarily transporters of gas and make sales for

resale on an unbundled basis in the supply area. The replacement

of Mcf with Dth reflects the current measurement of gas by heat

content rather than by volume.

The Commission also is revising the first two sentences of

Instruction 1 on page i to eliminate as not needed the statement

that Form 2 is a regulatory support requirement. The last

sentence in Instruction 1 is being revised to eliminate the

reference to the Energy Information Administration's statistical

publication (Financial Statistics of Interstate Natural Gas

Pipeline Companies). The first sentence in Instruction II on

page i is being revised to read "Each major natural gas company

that meets the requirements of 18 CFR 260.1 must submit this

form." The Commission is revising Instruction III (a) to include

the present requirement for filing on an electronic medium.

The Commission is changing Instruction III(c) to replace the

present Certified Public Accountant (CPA) certification statement

with a flexible format that will enable the respondent's CPA firm

to prepare its certification statement in accordance with current

standards of reporting and still attest as to the conformity of

listed FERC Form No. 2 schedules with the Commission's Uniform

System of Accounts and the Chief Accountant's published

accounting releases. In addition, the Commission is requiring

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that the letter or report required by Instruction III(c) for the

CPA certification be submitted with each copy as well as with the

original submission and be submitted with that submission rather

than alternatively within 30 days after the filing date for Form

No. 2.

INGAA supports the above-described revisions. AGD maintains

that the schedule on page 108, "Important Changes During the

Year" should be covered by the audit report by including this

page on page (i) in the list of schedules to which the

independent auditor attests.

AGD also suggests that, once the Commission updates its

electronic filing capabilities, pipelines be required to file

their Form No. 2 electronically and that this filing include all

backup data that supports and elucidates the Form No. 2

information. It believes this monthly data is critical to detect

trends, spot nonrecurring items, test the reasonableness of base

period actuals, and determine the need for a Section 5 complaint.

It also suggests that pipelines post their Form No. 2 filing on

their electronic bulletin boards. Last, AGD submits that the

Commission should establish new accounts to track computer system

expenses.

The Commission does not agree that page 108 should be

covered by the independent auditor's attestation. The purpose of

the CPA certification requirement is to obtain an independent

verification that the basic financial statements in the Form No.

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2 and 2-A were prepared in conformity in all material respects

with the Commission's Uniform System of Accounts and published

accounting releases. Page 108 requires the reporting of

information that is not required to be disclosed on the face of

the financial statements or the accompanying notes. To include

this page as part of a CPA certification would require expanding

the scope of the work conducted by the CPA beyond what was

necessary to attest to the conformity of the financial statements

to UniformmSystem of Accounts'equirements. Therefore the

Commission will not adopt AGD's request. In addition, the

Commission believes the additional burden that would be imposed

would be greater than the benefit to be realized from it. The

Commission therefore rejects the inclusion of page 108 as part of

the independent auditor's attestation.

The Commission concludes that AGD's electronic filing

suggestions would be too burdensome. Therefore, although the

Commission requires pipelines to file Form No. 2 on electronic

media, it will notexpand the scope of the electronic filing

requirements to include all supporting data or to require posting

on an electronic bulletin board. In addition, the Commission

will not establish new accounts to track computer system expenses

because existing accounts are adequate for this purpose.

KN would eliminate all paper copies where electronic filings

are required. Paper copies are still needed because not all

respondents have electronic capability this time.

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General Instructions — oaae iii

The Commission is replacing Mcf with Dth in General

Instruction II on page (ii) and "14.73 psia and a temperature

base of 60'F" with "in Btu and Dth," in General Instruction XII

on page (iii). The Commission also is deleting General

Instruction V with respect to the means of completing the report

as outdated and unnecessary.

INGAA supports the above described revisions.

Definitions — oaae iv

The Commission is defining dekatherm as a unit of heating

value equivalent to 10 therms or 1,000,000 Btu. ~54

INGAA supports the above-described definition.

Excents From the Law — naae iv

The Commission is correcting the quoted language of the

Natural Gas Act.

INGAA supports this correction.

List of Schedules (Natural Gas Comnanv) — naaes 2-3

The Commission is revising the list of schedules to conform

with the changes to the schedules adopted by this NOPR.

No comments were filed.

Control Over Resnondent — naae 102

The Commission is revising the instructions and providing a

format for information required with respect to entities

controlling the respondent natural gas company to provide better

~54 Btu refers to British Thermal Unit — the quantity of

heat required to raise the temperature of one pound of

water by one degree Fahrenheit.

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reporting of the vertical integration of the respondent and its

parents.

The Commission is deleting referencing the SEC 10-K Report

Form because most respondents are included in consolidated

reports and do not prepare separate SEC 10-K reports.

INGAA would allow referencing the SEC 10-K report. It would

clarify that the instruction refers to a direct link between the

holding company and the respondent. Missouri submits that the

pipelines should report information about affiliate relations of

other companies controlled by the pipeline's parent. It suggests

including the name, manner of control, extent of control and a

brief description of the business purpose.

Panhandle maintains that this schedule should be deleted

because material matters will be described in financial

footnotes.

The Commission is removing the ability of pipelines to

reference the SEC 10-K reports for information because such

references in the past have been inadequate for regulatory

purposes. The Commission's experience has shown that the

information contained in a respondent's parent's SEC 10-K

generally has not provided the detail on the respondent that is

needed by the Commission. Therefore, the Commission is rejecting

the arguments that it not adopt the NOPR's proposed deletion of

the respondent's ability to reference the SEC 10-K reports for

information. Further, based on past filings, the Commission

believes that the information to be required on page 102 will not

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be included in sufficient detail (if at all) in the footnotes to

the financial statements for Commission regulatory purposes. The

Commission will therefore require the information to be reported

on page 102. On the other hand, requiring the respondents to

report information about affiliates of other companies controlled

by the pipeline's parent appears to be beyond what is needed for

regulatory purposes at this time. Therefore, the Commission

will not adopt Missouri's suggestion to require the reporting of

such information.

Coroorations Controlled Bv Resoondent — oaoe 103

The Commission is deleting instruction 4, which permits

referencing the SEC 10-K Report Form filing for the reason stated

above. The Commission also is adding a new instruction 4 and new

column (b) for designation of the type of control held by the

respondent. The Commission is relettering columns (b) —(d) as

(c) —(e) .

INGAA would allow referencing the SEC 10-K report.

Panhandle would delete this schedule because material matters

will be disclosed in financial statements.

The Commission is adopting the changes proposed in the NOPR

for page 103 for the reasons given for adopting the proposals for

page 102.

Officers — oaae 104

The Commission is deleting this page because it is not

needed for Commission regulatory purposes.

INGAA supports deletion of this schedule.

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Directors — naae 105

74

The Commission is deleting this page because it is no longer

needed for Commission regulatory purposes.

INGAA supports deletion of this page.

Securitv Holders and Votina Powers — oaae 106 (now 1071

Panhandle would delete this page because material matters

will be disclosed in financial footnotes.

Based on past filings, the Commission believes that

information sought by the instructions to page 106 will not be

presented in the notes to the financial statements in the detail

needed for Commission regulatory purposes. Therefore, this page

will be retained.

Securitv Holders and Votina Powers (continuedl — oaae 107

The Commission is deleting this continuation page because it

is not needed with electronic reporting since supplemental pages

can be added if more space is needed.

INGAA supports deletion of this page.

Imoortant Chances Durina the Year — oaae 108

The Commission is deleting item 12, which allows the

respondent to substitute notes from the annual report to

stockholders for required data becausethe Commission's experience

shows those notes to be inadequate or unresponsive due in part to

the fact that many respondents are included in consolidated

reports to stockholders and do not prepare separate annual

reports.

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INGAA suggests deleting page 108 because the information is

reported in the Notes to Financial Statement. Panhandle would

also delete this page because material matters will be disclosed

in financial statements. Williston asserts that the information

required in item 8 is proprietary and that item 11 should be

deleted because it is misleading due to the timing of final

Commission rate orders and the impact on reserves for refund

purposes.

The Commission does not agree with INGAA or Panhandle that

the information reported in the Notes to Financial Statements

duplicates that required on page 108. In fact, to prevent

duplication, the instructions on page 108 direct the respondent

to reference the schedule in which information required by Page

108 appears, rather than report the same information in both

places.

As to Williston's comments, the Commission does not agree

that the information required in item 8 is proprietary because an

adequate response to the requirement to report the estimated

annual effect and nature of any important wage scale changes may

be prepared so as to not reveal proprietary information. The

Commission also does not agree with Williston that information on

the estimated increase or decrease in annual revenues due to

important rate changes required by item 11 is misleading. The

respondent can and should provide explanations to prevent

wrongful interpretations of the data.

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Imoortant Chances Durina the Year — oaae 109

The Commission is deleting this continuation page because it

is not needed with electronic reporting.

No comments were filed.

Comoarative Balance Sheet (Assets and Other Debits) — oaae 110

The Commission is modifying column (c) by deleting "Balance

at Beginning of Year" and inserting "Balance at End of Current

Year (in dollars)" and is modifying column (d) by deleting

"Balance at End of Year (in dollars)" and inserting "Balance at

End of Previous Year (in dollars)." The Commission also is

deleting "Gas Stored Underground Noncurrent (117)" at Line 12 and

replacing it with four new accounts -- Gas Stored — Base Gas

(117.1), System Balancing Gas (117.2), Gas Stored in Reservoirs

and Pipelines — Noncurrent (117.3), and Gas Owed to System Gas

(117.4). The Commission further is changing the title on Line 16

from "Other" to "Other Property and Investments."

The comments addressing the proposed storage accounting are

discussed above.

Comoarative Balance Sheet (Assets and Other Debits)

(Continued) — oaae 111

The Commission is modifying column (c) by deleting "Balance

at Beginning of Year" and inserting "Balance at End of Current

Year (in dollars)" and is modifying column (d) by deleting

"Balance at End of Year" and inserting "Balance at End of

Previous Year (in dollars)."

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No comments were filed.

Comoarative Balance Sheet (Liabilities and Other Credits)

oaae 112

The Commission is modifying column (c) by deleting "Balance

at Beginning of Year" and inserting "Balance at End of Current

Year (in dollars)" and is Modifying Column (d) by deleting

"Balance at End of Year" and inserting "Balance at End of

Previous Year (in dollars)." The Commission also is adding the

language "(Less) Current Portion of Long-Term Debt" to Line 22.

INGAA supports the above-described revisions.

Comoarative Balance Sheet (Liabilities and Other Credits)

(Continuedl — oaae 113

The Commission is modifying column (c) by deleting "Balance

at Beginning of Year" and inserting "Balance at End of Current

Year (in dollars)" and modifying column (d) by deleting "Balance

at End of Year" and inserting "Balance at End of Previous Year

(in dollars)."

INGAA supports the above-described revisions. The

Commission is adding the language "Current Portion of Long — Term

Debt" as line No. 33.

Statement of Income For the Year — oaaes 114 — 116

The Commission is moving instructions 5 and 6 from this

schedule to Notes to Financial Statements on page 122.

INGAA would clarify that the proper accounts for lines 9 and

10 are 407.1 and 407.2 to be consistent with the Uniform System

of Accounts.

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The Commission agrees and is changing the account numbers on

lines 9 and 10 to 407.1 and 407.2 respectively.

The Commission is deleting instruction 7, which

permits the attaching at page 122 of any notes appearing in the

report to stockholders that are applicable to this Statement of

Income, and is moving instruction 8 from this schedule to Notes

to Financial Statements on page 122.

INGAA supports the above-described revisions.

The Commission is adding the words "(in dollars)" to column

headings (c) through (j).

Statement of Retained Earninas For the Year -- oaae 118

The Commission is modifying column (c) by deleting "Amount"

and inserting "Current Year Amount (in dollars)" and by adding

column (d) "Previous Year Amount (in dollars)." The Commission

also is deleting instruction 8, which requires the attaching at

page 122 of applicable notes in the annual report to

stockholders.

INGAA supports the above-described revisions. Consistent

with discussion of the revisions to page 118 of Form No. 2-A, the

Commission will revise line 36 to read "Balance — End of Year

(Total of lines 1, 9, 15, 16, 22, 28, 34, and 35)".

Statement of Retained Earninos For the Year (Continued)

naae 119

The Commission is modifying column (c) by deleting "Amount"

and inserting "Current Year Amount (in dollars)" and is adding

column (d) "Previous Year Amount (in dollars)."

INGAA supports the above-described revisions.

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Statement of Cash Flows — oaaes 120 and 121

The Commission is deleting the first sentence of instruction

1, which requires the attachment at page 122 of applicable notes

in the annual report to stockholders.

The Commission is modifying column (b) by deleting "Amounts"

and inserting "Current Year Amount" and by adding Column (c)

"Previous Year Amount."

INGAA supports the above-described revisions.

Notes to Financial Statements — oaae 122

The Commission is changing instruction 1 to require at least

the same level of detail for disclosures that would be given in

shareholder annual reports and is adding new instructions to

provide significant details on: the respondent's pension and

other benefit plans and disclosure of financial changes either to

the respondent or the respondent's consolidated group that will

directly affect the respondent's gas pipeline operations. The

Commission also is deleting instructions 3 ("For Account 116,

Utility Plant Adjustments" ) and 6 (permitting the attaching of

notes to financial statements in the annual report to

stockholders). In addition, as stated above, the Commission is

moving three instructions from pages 114 and 115 to page 122.

As discussed below, the Commission is not adopting proposed

instructions 4 (income taxes) or 7 (differences between financial

statements to stockholders/public and Form No. 2).

INGAA recommends changes to improve the focus of information

to be provided on this page. It would allow a reference to SEC

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10-K reporting or reliance on GAAP for information on pensions,

benefits, deferred taxes, etc. It suggests removing the

requirement in Instruction 1 that notes be grouped under

subheadings for each financial statement because most notes apply

to more than one financial statement. It submits that this

requirement could increase the number of notes and the

duplication of information. It adds that GAAP does not require

grouping of notes by financial statement and that this

requirement creates a difference between GAAP and FERC reporting

that is not needed or useful to the reader. It would delete

instructions 2, 4, and 5. It would revise Instruction 3 to

exclude the disclosure of cash contributions to pension, PBOP and

other post-employment benefit plans since, it asserts, GAAP

disclosures for those plans are adequate for Form 2. It would

revise Instruction 7 because this should not be a regulatory

requirement, except in limited instances where differences are

not consistent with the Uniform System of Accounts or FERC

Orders. It further states that the general purpose financial

statements issued to shareholders or the public generally refer

to the respondent's financial statements, and not those of the

respondent's parent or ultimate parent. It states that

instruction 11 requires explanations of changes in accounting

methods made during the year which had an effect on net income.

It maintains that instruction 11 should be revised to limit the

requirement to significant changes.

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AGD would include any differences in accounting

classifications between Form No. 2 and the latest NGA section 4

rate filing with more than a $ 3-4 million impact.

Columbia maintains it would be an undue burden to list

pursuant to proposed instruction 7 the differences in the way

transactions are presented in the stockholders annual report

versus the Form No. 2. It argues that the proposed requirement

to disclose financial changes that will directly affect pipeline

operations is unnecessarily duplicative of information that is

reported on page 108.

National Fuel submits that disclosures should be in

accordance with GAAP as reflected in general purpose financial

statements to the public or to shareholders, so that pipelines

would not be forced to rewrite their Notes for the version of

their financial statements incorporated in the Form No. 2. It

also suggests that, because Form No. 2 will include a complete

set of Notes to Financial Statements, any accompanying notes

filed on an interim basis in other contexts (e.cC,, a new rate

case) be deemed sufficient if they make the financial statements

not misleading. It states that it assumes the reader has read

the most recent Form No. 2.

The Commission concurs with the commenters who question the

regulatory applicability and the burden that will be caused by

proposed instruction 7 and is deleting it. The Commission

concurs with the comment that GAAP is sufficient for information

on income taxes and is deleting proposed instruction 4. The

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Commission also agrees that instruction 11 should only require

information on significant changes in accounting methods made

during the year that had an effect on net income and is revising

the wording in that instruction to read: "...significant changes

in accounting methods..."

The Commission does not agree that a reference to the SEC

10-K is sufficient and therefore will not allow referencing the

SEC 10-K. As explained above, the Commission has found that such

references in the past were inadequate for regulatory purposes.

The Commission does not agree that instruction 1 should be

revised as proposed by National Fuel because no rewriting is

needed of the disclosures in general purpose financial

statements. Rather, respondent merely will supplement those

disclosures with information needed for Commission regulatory

purposes.

The Commission also does not agree with the comment that the

requirement in instruction 1 to group notes by financial

statement subheadinge will result dn dunlication= The

instruction is flexible in allowing separate disclosure of items

that are applicable to more than one financial statement.

In answer to the commenter who wants to exclude from

proposed instruction 3 the cash contributions to pension, PBOP

and other post-employment benefit plans, the reporting of cash

contributions is necessary to aid the Commission staff in their

determination of the level of these costs includible in a

pipeline's rates. Likewise, the retention of instructions 2 and

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5 is essential in the Commission's ongoing analysis of the effect

on rates of certain actions taken by a company. The Commission

will not adopt AGD's recommendation to require reporting of

significant differences between Form 2 accounting classifications

and those used for rate filings because the accounting required

for Form No. 2 must be consistent with that used for ratemaking

purposes. Last, the Commission rejects National Fuel's

suggestion that Form No. 2 notes may be filed in other contexts,

because the Commission does not believe that filing updated notes

will be unduly burdensome.

Notes to Financial Statement (Continued) — oaae 123

The Commission is deleting this continuation page because it

is not needed with electronic reporting.

No comments were received.

Summarv of Utilitv Plant and Accumulated Provisions for

Deoreciation. Amortization and Deoletion (Continued) — oaae 201

The Commission is deleting columns (f) and (g) both entitled

"other (specify)" as unneeded because electronic reporting

permits additional columns to be added as necessary.

INGAA supports the above-described revision. ~55

Gas Plant In Service (Accounts 101. 102. 103. and 106) — oaaes

204-209

The Commission proposed no changes to these pages. However,

consistent with the Commission discussion below of revisions to

these pages of Form No. 2-A, the Commission will modify these

~55 In this schedule's pages, the Commission is also deleting

duplicative columns of account numbers.

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Docket No. RM95-4-000 84

Form No. 2 pages to indicate which lines are used for totals.

Gas Prooertv and Caoacitv Leased From Others — oaae 212

The Commission is adding a new schedule to provide

information about gas property and capacity leased from others.

The Commission is requiring only the reporting of property leases

in which the average annual lease payment under the initial term

of the lease exceeds $500,000.

INGAA responds that information requested by the NOPR is at

a level of detail that is not needed. It asks for clarification

that reporting is for gas property and capacity leased from

others pertaining to gas operations. INGAA and Panhandle comment

that pipelines should disclose only names of lessor, description

of leases, and lease payments. Panhandle would raise the

threshold to $ 1,000,000.

The Commission clarifies that reporting is for gas property

and capacity leased from others pertaining to gas operations and

agrees that pipelines need to disclose only the name of the

lessor, description of lease, and lease payments. The

instructions will so indicate. The Commission will not raise the

threshold to $ 1,000,000 because that level is too high for the

reporting of meaningful information.

Gas Pronertv and Caoacitv Leased To Others — naae 213

The Commission is revising the schedule on page 213 entitled

"Gas Plant Leased to Others (Account 104)" by changing the

schedule and instructions about gas property and capacity leased

to others. The changes are necessary to provide information that

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 85

would allow the Commission to determine whether ratepayers are

paying for facilities not used in the respondent's utility

operations. The Commission is requiring only the reporting of

property leases in which the average annual lease income over the

initial term of the lease exceeds $ 500,000.

INGAA asks for clarification that reporting is for gas

property and capacity leased to others pertaining to gas

operations. It comments that columns (c) and (e) are missing on

the form.

The Commission so clarifies and has corrected the columns.

Gas Plant Held For Future Use (Account 105) — naae 214

The Commission is raising the reporting threshold of

$250,000 to $ 1,000,000 as suggested by INGAA, rather than to

$ 500,000 as proposed in the NOPR. The Commission is also

deleting the language in Line No. 1 which refers to pages 500-01,

which are proposed to be deleted.

Production Pronerties Held For Future Use (Account No. 105.1)

naae 215

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports deletionof this schedule.

Construction Work In Proaress — Gas (Account 107) — oaae 216

The Commission is raising the threshold from $500,000 to

$ 1,000,000 as suggested by INGAA and Panhandle. The NOPR had

proposed no change to the $ 500,000 threshold.

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 86

Construction Overheads — Gas — caae 217

The Commission, as suggested by INGAA, is deleting this page

because page 218 reports adequate information.

Gas Stored (Accounts 117.1. 117.2. 117.3. 117.4. 164.1. 164.2,

and 164.3l — oace 220

The Commission is deleting Account 117 and replacing it with

four new accounts as discussed above. The Commission also is

changing Mcf to Dth in instruction 1 and lines 6 and 7, is

redesignating the column letters, eliminating instructions 2

through 5 as no longer necessary, and adding a new instruction on

encroachments on base gas, system balancing gas, and gas properly

recordable in the plant accounts.

INGAA suggests that additional changes may be required on

this page to accommodate the actual use of storage inventories.

NGSA states this page should match page 513 and page 513 should

have reporting by account.

The Commission believes this schedule is adequate as

proposed and will make no further changes to it. The Commission

does not agree with the comment that this page should match page

513; the two schedules serve different purposes. Page 220 is a

supplement to the Balance Sheet and page 513 is meant only for

operational data.

Nonutilitv Pronertv (Account No. 1211 and Accumulated Provision

For Deureciation and Amortization of Nonutilitv Pronertv (Account

122l — oaae 221

The Commission is deleting these schedules because they are

not needed for Commission regulatory purposes.

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Docket No. RM95-4-000 87

INGAA supports this deletion. The APGA opposes deletion

because this page has vestigial value about changes is a

pipeline's business.

The Commission does not believe that vestigial value

supports the burden of reporting this information.

Investments (Accounts 123. 124. 136) — oaaes 222-225 and

Investments in Subsidiarv Comoanies (Account 123.1i — oaaes 224

and 225

The Commission did not propose any changes to these pages.

INGAA and Panhandle would delete these pages. INGAA states

the information has no regulatory purpose. Panhandle states that

material matters will be described in financial footnotes.

The Commission will retain these pages because the required

data provides the Commission with relevant information that is

useful in determining the respondent's affiliations and in

analyzing financing arrangements that may affect regulated

pipeline operations. In addition, the Commission, based on past

filings, concludes that the data will not be presented in the

notes to the financial statements in the detail needed for

Commission regulatory purposes.

Gas Preoavments Under Purchase Aareements — oaaes 226 and 227

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports this deletion. But the APGA opposes it

because this page has vestigial value about changes in a

pipeline's business.

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Docket No. RM95-4-000 88

The Commission does not believe that vestigial value

supports the burden of reporting this information.

Advances For Gas Prior to Initial Deliveries or Commission

Certification (Accounts 124. 166, and 167) — oaae 229

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports deleting this schedule.

Prenavments (Account 165) — naae 230

The Commission is eliminating the instruction requiring the

reporting of all payments for undelivered gas and the completion

of pages 226 to 227, along with Line 5, Gas Prepayments (pages

226-227). Pages 226 and 227 are also eliminated.

INGAA supports the revisions in order to make this page

consistent with pages 226 and 227. The Commission is also adding

a column entitled "Balance at Beginning of year." ~56

Preliminarv Survev and Investicration Charaes (Account 183)

oaae 231

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports deleting this schedule.

Other Reaulatorv Assets (Account 182.3) — oaae 232

The Commission is raising the reporting threshold for minor

items from $ 50,000 to $250,000 rather than to $ 100,000 as

proposed in the NOPR. The Commission is adding new instruction 4

~56 This column is also being added to the schedules,

"Extraordinary Property Losses (Account 182.1)" and

"Unrecovered Plant and Regulating Study Costs (Account

182.2)."

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Docket No. RM95-4-000 89

"Report separately any 'deferred regulatory Commission

expenses'hat are also reported on pages 350-351, Regulatory

Commission Expenses".

INGAA agrees with the proposed revisions and, along with

Columbia, suggests the addition of a beginning balance field.

Transco would raise the threshold to $ 500,000 and Panhandle would

raise it to $ 1,000,000.

The Commission will add a beginning balance field and, as

stated, will raise the threshold to $250,000, consistent with the

threshold we are adopting for other asset and liability

schedules. This threshold will mitigate the reporting burden on

pipelines while providing the Commission with useful information

for small as well as large pipelines.

Miscellaneous Deferred Debits (Account 186) — naae 233

The Commission is raising the reporting threshold for minor

items from $ 100,000 to $250,000 and is deleting Line No. 48

"Deferred Regulatory Commission Expenses (see pages 350-351).

INGAA and Columbia support this revision, but would also

delete "Account charged" col.(d) . Transco would raise the

threshold to $500,000. Panhandle would raise it to $ 1,000,000.

The Commission believes that column (d) should be retained

as it provides useful information and that the $250,000 threshold

is the appropriate threshold level for this information.

Accumulated Deferred Income Taxes (Account 190) — oaaes 234-235

The Commission did not propose any changes to these pages.

INGAA would delete the "Notes" section and follow the pages

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Docket No. RM95-4-000 90

274 and 275 format, which it says is more consistent and better

organized.

The Commission will make the format of pages 234-235

consistent with that of pages 274-275. However, the Commission

will retain the "Notes" section.

Canital Stock (Accounts 201 and 2041 — naaes 250 and 251

The Commission is deleting part of instruction 1, which

permits referencing the SEC 10-K Report Form filing. The

Commission is making this deletion because many respondents are

included in consolidated reports that do not provide the required

information about the respondent. The Commission discusses below

the arguments to delete this schedule.

Caoital Stock subscribed. Canital Stock Liabilitv For Conversion.

Premium on Caoital Stock. and Installments Received on Canital

Stock (Accounts 202 and 205. 203 and 206. 207. 217'I — naae 252

The Commission below discusses the arguments to delete this

schedule.

Other Paid-in Caoital (Accounts 208-211. inc.l — oa 253

The Commission discusses below the arguments to delete this

schedule.

Discount on Canital Stock (Account 213) — oa 254

The Commission discusses below the arguments to delete this

schedule.

Caoital Stock Exnense (Account 214) — naae 254

The Commission discusses below the arguments to delete this

schedule.

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Docket No. RM95-4-000 91

Securities Issued or Assumed and Securities Refunded or Retired

Durina the vear — 1992 — oa 255

The Commission discusses below the arguments to delete this

schedule.

Lona-Term Debt (Accounts 221. 222. 223. and 2241 — oaae 256

The Commission is deleting part of instruction 1, which

permits referencing the SEC 10-K report Form filing for the

reason stated above.

The Commission discusses below the arguments to delete this

schedule.

Unamortized Debt Exoense. Premium and Discount on Lona-term Debt

(Accounts 181. 225. and 2261 — oaaes 258 and 259

The Commission discussion below the arguments to delete this

schedule.

Unamortized Loss and Gain on Reacauired Debt (Accounts 189. 257'(

— oaae 260

INGAA and Panhandle maintain that the above pages (250-260)

should be deleted because material matters will be in the

Footnotes to the Financial Statements or there is no regulatory

purpose for the information.

The Commission disagrees with INGAA and Panhandle. The

information required to be reported on pages 250-260 is not

detailed in the footnotes to the Financial Statements. This

information allows the Commission and the public to determine the

cost and changes in the levels of the respondent's debt,

preferred and common stock. Such information is directly

relevant to the pipeline's cost of providing service. Therefore,

the Commission will not delete these pages.

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Docket No. RM95-4-000 92

Reconciliation of Renort Net Income With Taxable Income for

Federal Income Taxes — oaae 261

The Commission did not propose any changes to this page.

INGAA would delete this schedule because there is no

regulatory purpose for this information.

The Commission disagrees. The information on this page is

useful in analyzing the pipeline's Federal income tax component

of its cost of service, including its deferred taxes. Therefore,

this page will be retained.

Taxes Accrued. Prenaid and Charaed Durina Year — oaaes 262 and

263

The Commission proposed no change to this schedule.

INGAA suggests the grouping of minor items under $250,000

and the reporting by type rather then by state and year.

Panhandle would revise the instructions to report taxes

prepaid and charged by type only and eliminate the excessive

detail of reporting by type of tax, by state, and by year.

The Commission does not agree that reporting by type of tax,

by state and by year is excessive detail. Rather, it is

essential to the Commission in determining the yearly effects of

federal and local taxes on the costs of pipeline operations. To

only report the type of tax without any breakdown by year or

local jurisdiction would render the information practically

useless for analysis or analytical purposes. The Commission will

permit the grouping of items under $250,000.

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Docket No. RM95-4-000 93

Investment Tax Credits Generated and Utilized — naaes 264 and 265

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports this deletion. But the APGA would retain

this schedule because the information has vestigial value about

changes in a pipeline's business. The Commission does not

believe that vestigial value supports the burden of reporting

this information.

Accumulated Deferred Investment Tax Credits (Account 253) — naaes

266 and 267

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports deleting this schedule. But the APGA would

retain this schedules because the information has vestigial value

about changes in a pipeline's business. The Commission does not

believe that vestigial value supports the burden of reporting

this information.

Miscellaneous Current and Accrued Liabilities (Account 2421

naae 268

The Commission is raising the reporting threshold for minor

items from $ 100,000 to $250,000.

INGAA supports this revision. Transco, however, would raise

the threshold to $500,000. The Commission believes that $250,000

is the appropriate threshold level for this information.

Other Deferred Credits (Account 253I — naae 269

The Commission is raising the reporting threshold for minor

items from $100,000 to $250,000 and is deleting instruction 4 as

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Docket No. RM95-4-000 94

not needed for Commission regulatory purposes in that it refers

to undelivered gas obligations to customers under take-or-pay

clauses in sales agreements.

INGAA supports above-described revisions and would delete

"Contra account," col. (c), as would Columbia. Panhandle would

raise the threshold to $ 1,000,000. Transco would raise it to

$500,000.

The Commission will not delete column (d) because it

provides useful information and the Commission believes that

$250,000 is the appropriate threshold level for this information.

Undelivered Gas Obliaations Under Sales Aareements — Daces 270

and 271

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports deleting this schedule. But the APGA would

retain it because it has vestigial value about changes in a

pipeline's business. The Commission does not believe that

vestigial value supports the burden of reporting this

information.

Accumulated Deferred Income Taxes — Accelerated Amortization

Pronertv (Account 281) — naaes 272 and 273

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports deleting this schedule. But the APGA would

retain it because it has vestigial value about changes in a

pipeline's business. The Commission does not believe that

vestigial value supports the burden of reporting this

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000

information.

95

Accumulated Deferred Income Taxes — Other Prooertv (Account 283)

oaaes 276 and 277

The Commission proposed no change to this schedule.

INGAA would make the format consistent with pages 274 and

275. In the Form No. 2 appendix in the final rule, the two

schedules will be consistent.

Other Reaulatorv Liabilities (Account 254) — oaae 278

The Commission is raising the reporting threshold for minor

items from $50,000 to $250,000 as suggested INGAA, rather than to

$ 100,000 as proposed in the NOPR. The Commission is correcting a

typographical error and, as suggested by INGAA and Columbia, is

adding a beginning balance field.

INGAA would delete "Contra account" col. (b). Panhandle

would raise the threshold to $ 1,000,000. Transco would raise it

to $500,000. The Commission will not delete column (b) ((now

(c)) because it provides useful information needed for regulatory

purposes. In addition, the Commission believes the $ 250,000

threshold is the appropriate threshold for this information.

Gas Oneratina Revenues (Account 400) — naaes 300 and 301

The Commission is adopting substantial and significant

changes to this schedule. The changes are: (1) the elimination

of instruction 1's reference to manufactured gas revenues;

(2) the deletion of instruction 2 defining natural gas; (3) the

deletion of instruction 3 and present columns (f) and (g)

concerning average number of natural gas customers per month;

(4) the deletion of instruction 4 with respect to Mcf and therms;

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(5) the revision of instruction 5 to eliminate the reference to

columns (c), (e), and (g); (6) the deletion of instruction 6

concerning commercial and industrial sales; (7) the revision of

instruction 7 to read, on page 108, include information on major

changes during year, new service, and important rate increases or

decreases;" (8) the addition of new instruction 2 to provide that

revenues for transition costs include transition costs from

upstream pipelines; ~57 (9) the addition of new instruction 3

to provide that 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); ~58 (10)

the addition of a new instruction 6 with respect to reporting the

revenue of bundled transportation and storage service as

transportation service revenue; (11) the revising of operating

revenues in columns (b) and (c) to revenues for transition costs

and take-or-pay costs, (12) the deletion of lines 2-12 and 28-32,

which provide for the reporting of sales revenues; (13) the

addition of lines to show separately gas sales revenues, ~59

and transportation revenues associated with gathering,

transmission, and distribution facilities, and revenues from

storage services; and (14) added columns for GRI and ACA

revenues, other revenues, and total operating revenues and

~57 For example, Order No. 636 transition costs.

~58 The respondent must include in columns (f) and (g)

revenues for Accounts 480-495.

~59 The proposed new sales line includes Accounts 480-84

which are now reported on lines 2-12.

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Docket No. RM95-4-000 97

dekatherms of natural gas, each for the current reporting year

and the previous year. ~60

The Commission's main reason for adopting these changes is

to recognize that pipelines now receive most of their revenues

from transportation and not sales. Hence, the breakout of

information by types of sales is not needed. The Commission is

breaking out Account 489 into four new accounts (Accounts 489.1

489.5) as discussed above.

INGAA maintains that gathering quantities should not be

included in total throughput columns (1) and (m), because they

may also be reported as transmission. It seeks clarification

whether dekatherms are to be reported in millions. It seeks

clarification that "other" revenues includes only the pipeline's

transition or take or pay costs and not those of upstream

pipelines. It seeks clarification that GSR costs included in

interruptible rates need not be reported separately.

Commission response:

The Commission has not provided for totals in the dekatherm

columns to avoid double counting. Dekatherms are to be reported

in units rather than in millions. As stated above, upstream

pipeline transition and take-or-pay costs are to be included in

revenues in columns (b) and (c). Last the allocated portion of

GSR costs for interruptible rates should be included in columns

(b) and (c) and not separately reported.

~60 Penalty revenues are to be reported on page 308, Other Gas

Revenues.

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Docket No. RM95-4-000 98

AGD maintains that the Commission should require pipelines

to show revenues by month to avoid standard data requests in rate

cases for that information. The Commission concludes that such

reporting would be unduly burdensome because it is too detailed

for reporting purposes.

Revenues from Transportation of Gas of Others Throuah Gatherina Facilities (Account 489.1) and Dth Gathered — oaaes 302 and 303

The Commission is replacing the schedule "Distribution Type

Sales by States" with several new schedules. The current

schedule, which reflects residential, commercial, and industrial

revenues and volumes by state is no longer needed for Commission

regulatory purposes because with unbundling those sales are now

unbundled and occur in the production area rather than in the

market area.

In response to the comments, ~61 the Commission is

combining into a single schedule the NOPR's proposed schedules on

pages 302-304 and 312(b) and 313(b) to eliminate redundant

reporting. However, the Commission is not, as suggested by some

commenters, ~62 combining these proposed schedules and the

schedule on pages 300-301 into a single schedule. The Commission

believes it convenient for gathering, transportation, and storage

data to be reported on their own schedules.

~61 E.g., Columbia.

~62 E.g., INGAA.

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Docket No. RM95-4-000 99

The Commission does not agree with Panhandle and ANR

that these should only be one schedule with only summary totals.

~63 Such limited information is not adequate for regulatory

purposes.

In the new Revenues from Transportation of Gas of Others

Through Gathering Facilities Schedule, the pipeline will have to

report its revenues by zone of receipt and by rate schedule.

~64 The pipeline would have to report for both the current

and previous year its revenues for transition costs and take-orpay costs, revenues for GRI and ACA, other revenues, ~65 and

total operating revenues, and its Dth of gas delivered. ~66

The Commission believes that this schedule will provide the

information needed with respect to gathering to obtain a good

description of the pipeline's activities in the unbundled

environment.

The Commission has deviated from the NOPR by requiring

reporting by zone of receipt and by rate schedule rather than by

state of delivery, by customer, by rate as in the NOPR's proposed

~63 CNG maintains that dekatherm does not equal throughput.

Dekatherms is an appropriate and recognized way to

measure deliveries even though it does not measure

volumes. Most pipelines'ates are based on

dekatherms.

~64 If a pipeline has no rate schedule, it should report by

rate.

~65 Other revenues include reservation charges received by the

pipelines plus usage charges, less revenues reflected in

columns (b) through (e).

~66 As suggested by INGAA, the Commission has eliminated

duplicative column (a).

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Docket No. RM95-4-000 100

gathering schedules. The Commission believes that reporting by

zone of receipt and by rate schedule will provide the appropriate

information needed for regulatory purposes without undue burden

on the pipeline industry. The Commission does not believe that

such customer information is necessary outside of the context of

a rate proceeding. The Commission believes that it has thus

addressed INGAA's concernabout providing customer data and its

concern that pipelines may not know the exact delivery point from

a multi-point contract, and will have to make an arbitrary

allocation to a state.

The Commission will discuss further here only those comments

specific to gathering. Comments applicable to gathering and also

to other services will be addressed below in the discussion of

the transportation schedule.

Columbia maintains that gathering revenues should be

reported by state of receipt into the system. As stated above,

the Commission is requiring reporting by zone of receipt into the

pipeline's system.

Revenues from Transoortation of Gas of Others Throuah

Transmission Facilities (Account 489.2l — oaaes 304 and 305

In the new Revenues from Transportation of Gas of Others

Through Transmission Facilities and Dth Transported Schedule, the

pipeline would have to report its revenues by zone of delivery

and by rate schedule. The pipeline would have to report for both

the current and previous year its revenues for transition costs,

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 101

and take-or-pay costs, revenues for GRI and ACA, other revenues,

~67 and total operating revenues, and its Dth of gas

delivered. The Commission believes that this reporting reflects

the current unbundled environment's emphasis on transportation

for others.

The Commission has deviated from the NOPR by requiring

reporting by zone of delivery and by rate schedule rather than by

state of delivery by customer and by rate schedule as in the

NOPR's proposed transportation schedules. The Commission

believes that reporting by zone of delivery and by rate schedule

will provide the appropriate information needed for regulatory

purposes without undue burden on the pipeline industry. The

Commission does not believe that such customer information is

necessary outside of the context of a rate proceeding. The

Commission believes that it has thus addressed INGAA's concern

about providing customer data, including its concern about the

difficulty of complying with the NOPR's customer-data requirement

for some pipelines. The Commission also observes, as did INGAA,

that Form EIA-176 collects state information which, in any event,

is not of use to the Commission. The Commission further observes

that both the NGSA and AGD support reporting by zones. ~68

INGAA also submits that transportation quantities appear to

~67 Other revenues include reservation charges received by the

pipeline plus usage charges, less revenues reflected in

columns (b) through (e).

~68 As suggested by Transco, the Commission has deleted the

requirement that revenues be reported in millions.

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Docket No. RM95-4-000 102

require gathering quantities to be included in transportation

totals and since gathering system quantities will already be

included in transmission deliveries, gathering should not be

added to other quantities. CNG also maintains that gathering is

included in transportation. As clarified with respect to pages

300 and 301, these quantities are not totalled to avoid double

counting.

The Commission has not expanded the coverage of the

schedules as proposed by some commenters. NGSA maintains that

reporting should be by customer type, with MDQ levels, demand and

commodity volumes, discount information, and base and surcharge

revenues. AGD submits that revenues and volumes reporting should

be reported by rate schedule by zone of delivery (not state), and

should include with short-term firm transportation. APGA

enthusiastically supports pages 312 and 313, especially

transportation throughput as solely needed. It would add details

on contracts of less than one year as well as contracts of one

year and longer (revenues and volumes).

DOE maintains that the Commission should require the

pipelines to provide a menu of service categories; ~69 an

additional field to denote type of customer, along with

standardized customer numbers; mileage information; and totals by

state and by type of service.

The Commission believes the above suggestions would be

~69 E.g., short-term firm transportation and released firm

transportation.

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Docket No. RM95-4-000 103

unduly burdensome in light of the limited use of the information

for regulatory purposes.

Revenues from Storina of Gas of Others (Account 489.4) — naaes

306 and 307

In the new Revenues from Storing of Gas of Others schedule,

the pipeline would have to report its revenues and Dth of gas

withdrawn from storage by rate schedule. The pipeline would have

to report for both the current and previous year its revenues

from transition costs and take-or-pay costs, revenues from GRI

and ACA, other revenues, ~70 and total operating revenues, and

the Dth withdrawn from storage.

The Commission believes that this schedule will provide the

information needed with respect to unbundled storage to obtain a

good description of the pipeline's activities in the unbundled

environment.

The Commission has deviated from the NOPR by requiring

reporting by rate schedule rather than by rate schedule by

customer as on the NOPR's proposed schedules. The Commission

believes that reporting by rate schedule will provide the

appropriate information needed for regulatory purposes without

undue burden. INGAA contends that storage revenues are not tied

to withdrawals and Columbia asks why storage injections as well

as storage withdrawals are not included. The Commission is not

tying the reporting of storage revenues by withdrawals. Rather,

j70 Other revenues include reservation charges deliverability

charges, injection and withdrawal charges, less revenues

reflected in columns (b) through (e).

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Docket No. RM95-4-000 104

all revenues received for storage during the reporting year must

be reported. The Commission has required Dth reporting by

withdrawals because withdrawal completes the storage cycle and

such information should be adequate for regulatory purposes. The

Commission rejects Columbia's contention that small customers

(less than 1 million Dth) should be combinedbecause this would

limit the reporting of meaningful information.

Residential and Commercial Soace Heatina Customers and

Interruotible. Off-Peak. and Firm Sales to Distribution Svstem

Industrial Customers — oaae 305

The Commission is deleting this page because it is not

needed for Commission regulatory purposes.

INGAA supports deleting this page. But the APGA would

retain it because it has vestigial value about changes in a

pipeline's business. The Commission does not believe that

vestigial value supports the burden of reporting this

information.

Other Gas Revenues (Account 495) — oaae 308

The Commission is adopting new schedule "Other Gas Revenues

(Account 495)" for the reporting of a variety of other gas

revenues, such as revenues from dehydration and gains on

settlements of imbalances. The Commission is not requiring the

reporting of revenues fromassociated companies as proposed in the

NOPR. The Commission is requiring the reporting of penalty

revenues on the schedule and is requiring the separate reporting

of revenues from cash-out penalties.

The Commission has adopted a threshold of $250,000 for each

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Docket No. RM95-4-000 105

transaction. This is lieu of the $ 1,000,000 threshold suggested

by Columbia, which will exclude meaningful data. As suggested by

INGAA and by Columbia, the pipelines need not report the customer

names with respect to the transactions.

NGSA maintains that base and surcharge revenues should be

separately stated. The Commission sees no need for base and

surcharge revenues for these transactions to be separately

reported, and so will not adopt NGSA's suggestion.

Sales of Natural Gas — oaaes 306 throuah 309

The Commission is deleting this schedule, entitled "Field

and Main Line Industrial Sales of Natural Gas," and is not

adopting the sales of natural gas schedule proposed in the NOPR.

The Commission is so acting because the proposed schedule

would have released proprietary information (customer names as

maintained by INGAA).

Sales for Resale — Natural Gas (Account 4831 — oaaes 310 and 311

The Commission is deleting this schedule because the level

of detail reported is not needed for Commission regulatory

purposes.

INGAA supports the deletion of these pages.

Sales of Products Extracted From Natural Gas (Account 490) — oaae

315

The Commission is deleting this schedule because the level

of detail reported is not needed for Commission regulatory

purposes.

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Revenues From Natural Gas Processed bv Others (Account 491 — oaae

315

The Commission is deleting this page, as suggested by INGAA,

because the level of detail reported is not needed for Commission

regulatory purposes.

Gas Ooerations an Maintenance Exoenses — naaes 317-325

No changes were proposed to this schedule. However, the

Commission is adding instruction 2 that require respondents

provide in footnotes the source of the index used to determine

the price of gas supplied by shippers as reflected on line 75 on

page 319. In addition, the Commission is inserting on line 66

the heading "D — Other Gas Supply Expense." Further, consistent

with our discussion of the revision of page 322 of Form No. 2-A,

the Commission will revise line 145 to read "Total Maintenance

(Total of lines 136 through 144)".

Last, the Commission, as suggested by Panhandle, is deleting

the section entitled "Number of Gas Department Employees",

because it is irrelevant to the reporting of the distribution of

salaries and wages.

Exoloration and Develooment Exnenses (Accounts 795. 796. 7981

(Excent Abandoned Leases. Account 7971 — oaae 326

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports deletion of this schedule.

Abandoned Leases (Account 7971 — oaae 326

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

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INGAA supports deletion of this schedule.

Gas Purchases (Accounts 800. 800.1. 803. 804. 804.1 805. 805.1

oaae 327

The Commission is deleting this schedule and is not adopting

the NOPR's proposed Gas Receipts schedule. Those schedules are

not needed for Commission regulatory purposes and needed

information is reported elsewhere in Form No. 2 (pages 317 and

520 and 521).

Exchanae and ImbalanceTransactions — mace 328

The Commission is revising this schedule differently from

the revision proposed in the NOPR. This schedule (on one page

only) will require details concerning gas quantities and related

dollar amounts of net annual imbalances by zone and rate

schedule.

Unlike the NOPR proposal, the Commission is not requiring

reporting by customer or transaction or by point of receipt or

delivery. This will ease the burden on the pipelines and the

schedule will still garner useful data. However, the Commission

is retaining the threshold of 100,000 Dth for the grouping of

minor transactions, rather than increasing the threshold to

1,000,000 Dth as proposed by INGAA, because the 100,000 Dth level

provides more meaningful information.

Gas Used In Utilitv Ooerations —oaae 331

The Commission is striking "Credit (Accounts 810, 811, 812)"

from the title, is replacing Mcf with Dth, and deleting part of

Instruction 1 and all of instructions 2, 3 and 5 concerning the

definition of natural gas and Mcf reporting.

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INGAA supports the above-described revisions.

Transmission and Comoression of Gas Bv Others (Account 858)

oaaes 332 and 333

The Commission is replacing Mcf with Dth, deleting current

columns (b) — (f), and requiring the reporting of Dth of gas

delivered in new column (b). This will eliminate the reporting

of the distance gas is transported and revenue information. The

continuation page 333 is deleted.

INGAA supports the above-describe revisions.

Other Gas Suoolv Exoenses (Account 813) — oaae 334

The Commission is requiring that respondents report

maintenance expenses, the revaluation of monthly encroachments

recorded in Accounts 117.4, losses on settlements of imbalances

and gas losses not associated with storage, separately. In

addition, individual itemsof $250,000 or more are to be listed

separately. The NOPR proposed a threshold of $25,000, but, as

INGAA maintains, this would lead to the unnecessary reporting of

detail.

Miscellaneous General Exoenses (Account 930.2)(Gas) — oace 335

The Commission is dividing Line No. 2 (Experimental and

general research expenses) into (a) Gas Research Institute (GRI)

expenses and (b) other expenses. In addition, the Commission is

raising the thresholds from $5, 000 to $250, 000, rather than the

$25,000 threshold proposed by the NOPR.

INGAA supports the above-described changes, but would delete

the requirement that the number of items grouped be shown because

this instruction adds no value to the report.

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The Commission disagrees with the comment that reporting the

number of items grouped adds no value to the report. This number

puts the grouped item into perspective and facilitates analysis.

Therefore, the instruction to report the number of items grouped

will remain as part of line 4.

Deoreciation. Deoletion. and Amortization of Gas Plant (Accounts

403. 404.1. 404.2. 404.3. 405)(Exceot Amortization of Acauisition

Addustment) — oaaes 336 and 337

The Commission is deleting instruction 2 to report

information called for in Section B every fifth year after 1974

and is inserting the words " and amortizable" in the first line

of new instruction 2 after the word "depreciable."

INGAA supports the above-described revisions. It states

that instruction No. 2 should be corrected by inserting "Section

B." The Commission has made that correction.

Deoreciation. Deoletion. and Amortization of Gas Plant

(continued) — oaae 338

The Commission is revising the headings to column (b) to

read "Plant Base (thousands)" and column (c) to read "Applied

Depreciation or Amortization Rates (Percent)."

INGAA supports this revision.

Income From Utilitv Plant Leased to Others (Account 412 and 413)

oaae 339

The Commission is deleting this schedule because the

information will be reported on page 213.

INGAA supports the deletion of this schedule.

Particulars Concernina Certain Income Reductions and Interest

Charaes Accounts —oaae 340

The Commission is raising the threshold for the grouping of

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items from $ 10,000 to $ 250,000, as opposed to the $ 25,000

threshold proposed by the NOPR.

Reaulatorv Commission Exoenses (Account 428) — naaes 350 and 351

The Commission is changing the account number reference in

the headings to columns (e), (i) and (1) from 186 to 182.3, and

replacing instruction 4 on page 351, which references Account No.

186, with "4. Identify separately all annual charge adjustments

(ACA)." In addition, the Commission is raising the threshold for

minor items from $25,000 to $ 250,000, as opposed to the $ 50,000

threshold proposed by the NOPR.

Columbia would delete columns (e) through (1) because they

contain redundant information that offer little benefit or useful

information.

The Commission disagrees with Columbia. The information

reported in these columns enables the Commission staff to obtain

a more complete picture of the amounts and types of regulatory

expenses that have been incurred during the year, as well as

information on the amounts amortized from prior years.

Research. Develooment. and Demonstration Activities — oaaes 352

and 353

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports the deletion of this schedule.

Distribution of Salaries and Waaes — oaae 354

The Commission proposed no change to this schedule.

INGAA and Columbia maintain that his schedule should be

deleted because the information reported is required only for NGA

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section (4) rate filings.

The Commission is retaining this schedule because it

provides useful information for regulatory purposes, including

use in evaluating rate filings under NGA section 4(e) .

Charaes for Outside Professional and Consultative Services -oaaes

357

The Commission is raising the threshold from $25,000 to

$250,000, as suggested by INGAA and Panhandle, as opposed to the

$50,000 threshold proposed by the NOPR, is deleting the

requirement for the consultant's address, and is deleting other

details about charges and contracts. The Commission is also

adding columns (a) "Description" and (b) "Amount (in dollars)."

INGAA would require only the consultant's name and related

payment. Columbia would eliminate much of the information as it

is in an NGA section 4(e) filing. The Commission believes it

relevant for regulatory purposes to obtain the required

information. If a respondent does not make such a filing, the

Commission would not have this information.

The APGA would retain the $25,000 threshold. The Commission

believes the current threshold is too low in today's environment.

Natural Gas Reserves and Land Acreaae — oaaes 500 and 501

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports the deletion of this schedule.

Chances in Estimated Gas Reserves — naae 503

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

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INGAA supports the deletion of this schedule.

Chances in Estimated Hvdrocarbon Reserves and Costs. and Net

Realizable Value — oaae 504 and 505

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports the deletion of this schedule.

Natural Gas Production and Gatherina Statistics — oaae 506

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports the deletion of this schedule.

Products Extraction Onerations — Natural Gas — nace 507

The Commission is deleting this schedule because, as INGAA

observes, this information is similar to deleted pages 500-506.

Comnressor Stations — nacres 508 and 509

The Commission is replacing the reporting of number of

employees in column (b) with a report of the number of compressor

stations and the horsepower of each station and is redesignating

the remaining columns. In addition, gas for compressor fuel

would be reported by Dth rather than by Mcf. The Commission

agrees with INGAA that reporting will be less burdensome and data

will be more useful if pipelines report horsepower by compressor

station, rather than by unit as proposed by the NOPR.

AGD would require reporting certificated horsepower and

available horsepower at the end of the period, if different.

The Commission has not previously required the reporting of

available horsepower in Form No. 2. If a pipeline cannot operate

at its certificated horsepower, it should file to amend its

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certificated horsepower to whatever level it has currently

available.

Gas and Oil Wells — oaae 510

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports the deletion of this schedule.

Field and Storaae Lines — naae 511

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports the deletion of this schedule.

Gas Storaae Projects — naaes 512 and 513

The Commission is not deleting page 512 or substantially

revising page 513 as proposed in the NOPR because the Commission

is deleting Form No. 8 with respect to storage. The Commission

is retaining the information required by this schedule about

storage operations for gas delivered to storage, gas withdrawn

from storage with regard to respondent's gas, and gas belonging

to others, as well as information about particular operations

(page 513).

INGAA supports the above-described revisions. AGD would

require reporting by field, not in the aggregate, with a showing

of actual withdrawal capacity when full and when top gas is

depleted (first and last day of deliveries) and corresponding

injection capability at the same points. The Commission believes

that by retaining this schedule in most part, the industry will

be provided with adequate information. The reporting requirement

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on this page has always been in the aggregate and not by field or

by account and is not a new requirement. AGD's suggestions would

require the company to report in such detail that it would be

extremely labor-intensive. Therefore, the Commission will not

adopt the suggestion.

Transmission Lines — naae 514

DOE suggests standardizing the method for describing or

identifying the various transmission lines so that shippers will

be able to reconcile information from various sources to arrange

more efficiently for transportation service. DOE also suggests

that each line should agree with the Form No. 567 map

information.

The Commission concludes that DOE's proposals would be

unduly burdensome for Form No. 2 reporting in that they serve no

regulatory purpose.

Liauefied Petroleum Gas Onerations — uaaes 516 and 517

The Commission is deleting this schedule because it is not

needed for Commission regulatory purposes.

INGAA supports the deletion of this schedule.

Transmission Svstem Peak Deliveries — naae 518

The Commission is replacing Mcf with Dth and is requiring

the reporting of deliveries of gas to interstate pipelines,

deliveries to others, and of total deliveries. The Commission

also is deleting the information with respect to the second and

third highest peak day deliveries and the section, Highest

Month's System Deliveries. Single peak day and consecutive

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three-day peak deliveries will be reported by various services

and activities. The differentiation between jurisdictional and

non-jurisdictional deliveries will be eliminated as no longer

pertinent with unbundling. The Commission is adding lines with

respect to no-notice transportation and storage services.

INGAA maintains that this amount of detail on peak day

deliveries proposed by the NOPR is not justified. It submits

that pipelines should report only single peak and consecutive

3-day peak for total system deliveries. The Commission has

reduced the reporting to firm, interruptible, and other to reduce

the burden and retain adequate information for regulatory

purposes.

DOE proposes that short-term firm transportation and

released firm transportation be reported because they merit

monitoring as important alternatives to interruptible service.

The Commission does not currently require this information

to be reported in Form No. 2, and to do so would unduly increase

the reporting burden on pipelines. In addition, the deliveries

on peak days may not be representative of released and short-term

transportation service on a pipeline.

Auxiliarv Peakina Facilities — oaae 519

The Commission is replacing Mcf with Dth.

INGAA supports this revision.

Gas Account-Natural Gas — oaae 520

The Commission is revising this schedule differently from

the schedule proposed in the NOPR. The salient changes are the

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reporting of gas purchases and gas sales on single lines and the

reporting of gas received and delivered according to the

revisions to the Uniform System of Accounts adopted in this rule

(e.cC,, Accounts 489.1-489.4). The revised schedule no longer

requires the reporting of the information required by NOPR lines

7-13, as suggested by INGAA and Columbia.

The Commission also is revising instruction 1 to exclude the

reference to consideration of pressure bases in measuring Mcf of

natural gas and is replacing Mcf with Dth in instruction 3 and

column (c) on pages 520 and 521.

INGAA recommends the inclusion of definitions for exchange

gas received and delivered, and clarification that gathering

sales and purchased volumes are not to be added to the totals.

Columbia seeks clarification of the relationship between

imbalances and other to pages 328 and 329.

Exchange gas received or delivered should be reported in

light of the Exchange Gas Transactions schedule, page 328.

Gathering sales and purchased volumes should be added to totals

because this is a balance sheet item for the year of activity and

those volumes are needed to balance the gas account. Last, the

lines for imbalances and other have been deleted.

Svstem Mans — oaae 522

The Commission is clarifying the information to be shown on

the maps and is eliminating the requirement that transmission

lines be colored in red, if they are not otherwise clearly

indicated.

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INGAA supports the above-described clarification and

elimination. Panhandle would incorporate the System Flow Map

from Form 567into page 522 and eliminate Form 567 because the

system flow Map provides a more detailed map. Columbia asks for

clarification about incremental facilities.

The Commission rejects Panhandle's request to substitute the

System Flow Map because the Form No. 2 map provides useful

information, such as geographical information, that is not shown

on the System Flow Map. The Commission clarifies that only

major incremental facilities should be shown on this map.

Index — oaaes 1-4

The Commission is revising the index to reflect the above

changes.

B. Revisions to Form No. 2-A

At present, a Nonmajor natural gas company must submit Form

No. 2-A. The respondent is required to submit designated pages

reflecting data designed for Nonmajor natural gas companies in

the Uniform Systems of Account. However, if the respondent

maintains the "Major" designated accounts, it may substitute

certain pages from Form No. 2. The Commission is requiring

Nonmajor respondents to submit only Form No. 2 pages as their

Form No. 2-A report. In addition, the Commission is replacing

Mcf with Dth and revising the instructions, including CPA

certification as discussed above for Form No. 2. A sample copy

of the revised Form No. 2-A is attached as Appendix C.

The revised Form No. 2-A will consist of instructions,

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identification, attestation, and list of schedules (pages i and

ii and 1 and 2), the following pages from Form No. 2: 107, 110-

122, 204-209, 212, 213, 219, 300, 301, 317-325, 520, 551, and the

following pages from current Form No. 2-A as renumbered: 26 as

211, 16 as 232, 19 as 250, and 20 as 278.

In addition, the Commission is revising the definition of

Nonmajor as follows: "Nonmajor means having annual gas sales or

volume transactions exceeding 200,000 Dth in each of the three

previous calendar years and not classified as 'Major'." This

comports with the changes to section 260.2 of the Commission's

regulations to include the minimum filing threshold for filing

Form No. 2-A and to state the minimum filing threshold on a

dekatherm basis.

INGAA supports the Commission's proposal to adopt, for Form

No. 2-A reporting purposes, the use of Form No. 2 pages as

proposed in the NOPR and the renumbering of Form No. 2-A pages.

Freeport also agrees with the proposed change to 18 C.F.R.

section 260.2 on who must file Form No. 2-A.

INGAA submitted specific comments on the proposed Form No.

2-A pages. INGAA's comments for the proposed Form No. 2-A pages

110-111, 112-113/ 114/ 115-116/ 120-121, 122-123, 212, 213, 300-

301, 327 and 520-521 are identical to the comments it submitted

for the proposed changes to the same Form No. 2 pages; therefore,

there is no reason to repeat them here. For the reasons

discussed in the changes to Form No. 2, the Commission will

adopt, for those Form No. 2-A pages, the same changes that the

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Commission adopted in this final rule for Form No. 2.

INGAA suggested the following revisions to the following

proposed Form No. 2-A pages:

Statement of Retained Earninas for the Year -- oaaes 118-119

INGAA agrees with the proposal to require reporting of

current year and previous year data and to delete instruction 8.

It suggests that, on NOPR page 118-a, line 38 (now 36) be

corrected to read "Balance — End of year (Enter total of lines 1,

9, 15, 16, 22, 29, 36 and 37)".

The Commission agrees with INGAA's suggested change and will

adopt it as modified, for line 36 page 118 of the Form No. 2-A.

Gas Plant in Service -- oaaes 204-209

No changes were proposed to these pages. INGAA suggests

that the pages be revised to indicate which lines are used for

totals and that lines 114, 115 and 116 on page 209-a should be on

page 209.

The Commission agrees with INGAA's suggested change to

indicate which lines are used for totals and will adopt the

following modifications: (1) line 5 will read "TOTAL Intangible

Plant "; (2) line 26 will read "TOTAL Production and Gathering

Plant "; (3) line 36 will read "TOTAL Products Extraction Plant

(4) line 37 will read "TOTAL Natural Gas Production Plant

(5) line 39 will read "TOTAL Production Plant "; line 54 will

read "TOTAL Underground Storage Plant "; (6) line 65 will read

"TOTAL Other Storage Plant "; (7) line 75 will read "TOTAL Base

Load Liquefied Natural Gas, Terminating and Processing Plant

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(8) line 76 will read "TOTAL Natural Gas Storage and Processing

Plant "; (9) line 86 will read "TOTAL Transmission Plant" "; (10)

line 102 will read "TOTAL Distribution Plant "; (11) line 114

will read "Subtotal "; (12) line 116 will read "TOTAL General

Plant "; (13) line 117 will read "Total (Accounts 101 and 106)

(14) line 121 will read "TOTAL Gas Plant in Service ," and (15)

various existing lines will be renumbered.

With regard to INGAA's suggestion that lines 114-116 be

moved to page 209, this problem will be solved when the Form No.

2-A is type-set for printing; accordingly these lines will

actually appear on page 209 when the Form No. 2-A is printed for

distribution.

Gas Ooeration and Maintenance Exnenses -- oaaes 320-325

No changes were proposed to these pages. INGAA suggests

that the page 322 be revised to correct line 145 to read "Total

Maintenance (Enter Total of lines 136 through 144)."

The Commission agrees with INGAA's suggested change and will

adopt it except for the Word "Enter."

In addition, the Commission has revised the instructions to

the following pages.

General Information on Plant and Ooerations — oaae 211

The Commission has deleted instruction 3 which required the

reporting of information related to the local distribution of

natural or mixed gas at the retail level.

Canital Stock Data —naae 250

The Commission has added a descriptive instruction and

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revised stylistically the existing instruction for this page.

C. Revisions to Form No. 11

Natural gas pipelines are required to file with the

Commission the FERC Form No. 11, which is a monthly statement

setting forth certain volume, revenue, and expense data. The

Commission is modifying Form No. 11 to accomplish three different

purposes. First, the Commission is modifying Form No. 11 to

reduce the reporting burden on the pipelines, since certain

existing portions are no longer necessary. Second, Form No. 11

is being modified to reflect the reduced emphasis on sales

service, and the greater emphasis on transportation and storage

services. As explained in the NOPR, as a result of the

restructuring of the interstate pipeline industry under Order No.

636, the pipeline's sales business is declining while the

pipeline's transportation and storage business is increasing in

relative importance. Much of Form No. 11 was geared towards the

collection of sales-related data. Third, the Commission is

modifying Form No. 11 to ensure that the data collected in the

Form No. 11 and the Form No. 2, as revised, is more consistent.

This consistency will improve the usefulness of the data

collected by the Commission.

In the NOPR, the Commission essentially proposed to:

(a) reduce the monthly reporting requirement to a semi-annual

reporting of monthly data; (b) remove or consolidate certain

portions of the Form No. 11; (c) collect the Form No. 11 data in

the same general format as proposed in Form No. 2; and (d) make

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certain other miscellaneous changes throughout many parts of the

Form. After reviewing the comments received on the Form No. 11

proposal, set forth below, the Commission is adopting a Form No.

11 that is significantly less burdensome in detail than that

proposed in the NOPR. ~71 As discussed infra, the Commission

is requiring that the simplified Form No. 11 monthly data be

submitted quarterly, rather than semi-annually as proposed, or

monthly, as it is currently filed. Thus, throughout the Form No.

11, we are changing the title of the Form No. 11 to "Natural Gas

Pipeline Company Quarterly Statement of Monthly Data." The

Commission is also modifying Form No. 11 to substantially reduce

the data collected by the form. For example, Form No. 11 will

collect only data on volumes and revenues; we are eliminating the

reporting of all expense data in the Form No. 11.

1. Comments

KN suggests combining Form No. 11 with Form No. 2, while

INGAA and CNG recommend eliminating Form No. 11. In support,

INGAA and CNG argue the information is already collected in Form

No. 2. Further, they argue that consolidating the monthly

reports into two semi-annual reports does not reduce the

reporting burden. INGAA states the annual industry reporting

burden for a semi-annual Form No. 11 would be 6,600 hours,

compared to the Commission's estimate of 920 hours. Finally,

~71 Revised Form No. 11 is attached as Appendix D. Appendix D

is not being published in the Federal Reaister, but is

available from the Commission's Public Reference Room and on

the Commission's Gas Pipeline Data Bulletin Board System.

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INGAA states that the semi-annual data would be filed too late to

be used as industry indicators, and too incomplete to provide an

adequate picture of pipeline operations or financial performance.

Several commenters support the continuation of Form No. 11,

but suggest changes to the proposed Form No. 11. Panhandle

believes that the required level of preparatory effort would be

reduced, without sacrificing the usefulness of the information,

if the second semi-annual report was incorporated as part of the

Form No. 2, and the information was compiled quarterly, rather

than monthly. The Industrials oppose semi-annual filings, and

urge the Commission to require monthly filing. They argue

availability of this information on a monthly basis helps

customers and others determine when and whether settlements on

throughput or for interim rates are appropriate. NI-Gas, on the

other hand, does not object to semi-annual filing, but urges

continued reporting of monthly data (which is, in fact, what was

proposed by the NOPR).

NGSA recommends that the Form No. 11 reflect volumes and

revenues by rate category used by the pipeline. Further, it

would like revenues to be reported by rate schedule, month, and

rate category, separately showing base rate revenue and revenue

from each surcharge. DOE uses Form No. 11 data in several

publications. It suggests that rate schedule information be

enhanced with a description to indicate the different elements of

service that are included. DOE suggests the following

classifications:

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No-notice transportation

Balancing

Firm transportation

Storage and transportation (firm)

Storage and transportation (interruptible)

Incremental

Interruptible transportation

Short-term transportation

Released firm transportation

Other

The Industrials suggest a breakout by at least long-term firm

(one-year or more), short-term firm (less than a year), and

interruptible transportation; it states that the proposed

requirement for reporting by rate schedule fails to capture

short-term firm service.

DOE also asserts the value of Form No. 11 data could be

enhanced by the inclusion of common codes and standardization.

The data in Form No. 11 should be easily accessible (and

downloadable) on a friendly bulletin board system which provides

access to the general user community. INGAA makes the following

specific suggestions if the Commission chooses to retain Form No.

Make the reporting in Form No. 11 consistent with Form

No. 2 by changing instructions to indicate that all

storage service revenues should be reported on lines

15-17 and that withdrawal quantities related to those

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storage services also be included on those lines.

Remove language that indicates that injection and

withdrawal revenues should be reported on lines 46 and

47.

Eliminate requirements to provide breakouts of revenue

and quantities for services to interstate pipelines.

Correct the instruction for line 32 to refer to lines

30 and 31, not 22 and 23.

Add an instruction for line 42 to require the reporting

of the estimated total project cost of all of the

projects that started construction during the reporting

period that are estimated to individually cost at least

$5,000,000.

2. Commission Rulina

The Commission is sensitive to the concerns of the

commenters that the proposed Form No. 11 filing requirement

places a burden on the pipeline companies. Therefore, we have

carefully reconsidered the need for the data in the Form No. 11.

We will not accede to the pipelines'ish that the Form No. 11 be

eliminated. We are adopting a requirement to file monthly data

quarterly. However, we are substantially reducing the monthly

data required by this form from the previous requirements and the

requirements proposed in the NOPR.

Proposed Parts III Income Data, IV Other Selected Data, and

V Operation and Maintenance Expense, will be deleted. Part II

Revenue Data is being retained. The information collected in

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Part II, Revenue Data, is the most fundamental information about

the pipeline industry -- the amount of gas sold, transported, and

stored. The Commission continues to need, and will make use of,

this basic information to fulfill its responsibility to oversee

the gas pipeline industry. Contrary to INGAA's assertion, the

Form No. 11 and Form No. 2 data do differ. The Form No. 11

collects monthly data allowing aggregation of data for any 12-

month period, while Form No. 2 collects data aggregated for a

calendar year. The collection of monthly data will allow the

Commission to follow developing trends on a pipeline's system.

It will also permit observation of seasonal variation in

throughput, something the Commission cannot do with the data

filed in Form No. 2. This fundamental data makes it possible for

the Commission to determine more accurately the effects of its

policies and decisions on the pipeline industry.

To make the data more timely, we will require the form to be

submitted quarterly, rather than semi-annually, as proposed, and

the data to be submitted within 45 days of the end of the

calendar quarter. However, as noted, we will retain the

requirement that monthly data be reported. In other words,

monthly data will be reported quarterly. The request that data

be filed monthly will be denied. The quarterly filing

requirement ensures more accuracy in the data filed. It also

balances the need for timely data against the burden of filing.

Since the monthly character of the data is being retained, we

will not combine Form No. 11 with Form No. 2.

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Several commenters ask that the data be reported under

additional classifications or in more detail. The Commission

will continue to require the data in Form No. 11 be reported on

the same basis as in Form No. 2 to maintain consistency. DOE

requests that we require the pipelines to list the nature of the

service provided, e.cC., no-notice transportation, firm

transportation, balancing, etc. Many of the classifications

requested can be determined by the rate schedule specified. The

nature of the service provided under each rate schedule is

reported in the tariff. The tariffs are available for

downloading, together with the appropriate software, from the

Commission's bulletin board system.

The Commission will adopt the detailed revenue reporting

requested by NGSA. The Form No. 2 separates revenues into a

column for transition costs and take-or-pay, a column for GRI and

ACA surcharges, and a column for other revenues (See Account No.

489). We adopt this structure for revenue reporting in Form

No. 11.

DOE's suggestion that the data be standardized has merit.

The Commission wants the data from various sources to be

interrelational. That is, the data from one source should be

capable of being linked with data from another source. By

providing for the linkage of data from different sources, the

Commission can avoid duplicative reporting requirements. To

enhance this capability, the instructions in the forms and

reports will direct the respondent to report the rate schedule

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numbers the same way they are reported in all other submittals to

the Commission.

DOE also suggests the data be accessible and downloadable on

a bulletin board system which provides access to the general user

community. Since June 8, 1995, the Commission has made data

filed electronically in the Form No. 11 available on its Gas

Pipeline Data bulletin board (GPD) for download. The Commission

will continue to disseminate the electronic Form No. 11 data in

this manner.

The specific changes in each section of the Form No. 11 are

as follows:

General Information and General Instructions

General Information section I (Purpose) is revised to

reflect the elimination of the collection of expense data as a

purpose. General Information section II (Who Must Submit) is

modified to exclude gas sold for resale from the calculation for

determining which gas companies must submit the Form No. 11. It

is also modified to change the requirement to comply to those gas

companies whose gas transported or stored for a fee exceeded 50

million Dth in each of the three previous calendar years, rather

than in only the previous calendar year, as the current Form No.

11 requires. General Information section III (When to Submit) is

changed to require that the Form No. 11 be filed quarterly. This

section also sets forth a reporting schedule. Each quarterly

report is due 45 days after the end of the three-month period

being reported. Currently, the monthly reports are due 40 days

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after the end of each month being reported. Finally, General

Information section IV (What and Where to Submit) is changed to

delete reference to the Commission's street address for the

filing of the Form No. 11.

General Instruction I is revised to require consistency

between the data filed on Form No. 11, and the data filed with

Form No. 2. It is the intent of the Commission to be able to

compare the aggregation of twelve months of information submitted

on the Form No. 11 with data filed on the Form No. 2.

Comparisons with the Form No. 2 data may require aggregation of

the Form No. 2 data as well.

There is no change to General Instruction II, specifying the

use of parentheses to indicate negative amounts.

The Commission is adding a requirement to Instruction III to

require that quantities in the Form No. 11 be reported in

thousands of dekatherms. The change to dekatherms is consistent

with the changes proposed to the Form No. 2. Revenues will

continue to be reported in thousands of dollars, as currently

required by instruction III.

General Instruction IV, allowing for the use of footnotes in

the Form No. 11, is modified to change the reference to the part

number where the footnotes are listed from Part VI to Part III.

General Instruction V, regarding estimated data, is removed.

Since the average lag time between the month reported and the

date the filing is made will be longer, the Commission

anticipates that actual data will be readily available. Thus,

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estimated data will not be necessary. General Instruction V is

replaced with an instruction specifying that one Part II form

must be reported for each month.

Snecific Instructions and Definitions

The instruction for the item "All" is modified to specify

that quantities must not be adjusted for discounts. We are

adding specific instructions for items 7 through 12 and 15

through 17, to conform to the instructions contained in Form No.

2 for reporting transportation and storage services, and to

clarify the reporting of storage revenues. In the NOPR, we

proposed to make separate, specific instructions for items 15

through 17 for the reporting of storage revenues, which indicated

that certain storage revenues were to be reported at those items,

and other storage revenues were to be reported at items 46 and

47. In accordance with INGAA's suggestion, we are eliminating

those specific instructions for items 15 through 17, and

requiring all storage service revenues be reported at items 15

through 17, including the withdrawal quantities related to those

storage services.

In the NOPR, we proposed specific instructions for items 7

through 12 that required, among other things, that transportation

delivered to a pipeline under a rate schedule be reported

separately from transportation delivered to others under that

rate schedule. INGAA asks us to eliminate this requirement to

provide breakouts of revenue and quantities for services to

interstate pipelines. A similar provision proposed in Form No. 2

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is not being adopted. To retain consistency between the

reporting of revenues in Form No. 2 and Form No. 11, we will not

adopt the proposal in the NOPR. This action satisfies INGAA's

request.

Existing specific instructions for items 22, 24, 27 and 38

through 40 are deleted, since the Commission no longer proposes

to collect information on these items, which are contained in

Parts III and V, that are now being deleted. The remainder of

INGAA's suggestions, regarding the Commission's proposed specific

instruction for item 32, and the addition of an instruction for

item 42 are no longer relevant given the elimination of the Form

No. 11 reporting requirements in Parts III, IV, and V.

All existing definitions in the Form relate to purchases or

sales of natural gas. The Commission is simplifying the

reporting of sales and purchase information; therefore, the

definitions are removed as no longer necessary.

Identification (Part I) and Revenue Data (Part Ill

Except for revising the instruction to read "Period

Reported" instead of "Month Being Reported," the Commission is

leaving Part I intact. The Commission is modifying Part II,

which relates primarily to sales service, to reflect the

decreased emphasis on sales service, and increased emphasis on

transportation and storage services subsequent to the

implementation of Order No. 636. Specifically, Part II is

modified to collect information for sales, transportation,

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gathering, storage and other revenue categories in the same way

it is proposed to be collected in the Form No. 2, but on a

monthly basis rather than annually.

Income Data (Part III). Other Selected Data (Part IVl. and

Ooeration and Maintenance Exoense (Part V)

The Commission is eliminating Parts III, IV, and V of the

Form No. 11. The information required to be reported under these

Parts is no longer necessary for the commission's regulatory

review purposes.

D. Other Revisions

Section 260.1 requires that major natural gas companies, as

defined in part 201 of the Commission's regulations, file with

the Commission an annual report, designated as FERC Form No. 2.

The Commission is modifying section 260.1 to reflect in the text

of the regulations the new definition of "major company" (a

natural gas company whose combined gas transported or stored for

a fee exceeded 50 million Dth in each of the three previous

calendar years). The Commission is also specifying in section

260.1 that newly established entities must use projected data to

determine whether the Form No. 2 must be filed, and that the Form

No. 2 must be filed electronically. In addition, the Commission

is revising section 260.1 to delete reference to an effective

date, and to remove references to reporting requirements predating December 30, 1988.

Section 260.2 requires that nonmajor natural gas companies

file an annual report, designated as FERC Form No. 2-A. The

Commission is modifying section 260.2 to specifically define who

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must file the Form No. 2-A. Section 260.2 is revised to state

that those natural gas companies required to file the Form

No. 2-A are companies not meeting the filing threshold for Form

No. 2, but having total gas sales or volume transactions

exceeding 200,000 Dth in each of the three previous calendar

years. The Commission is also specifying in section 260.2 that

newly established entities must use projected data to determine

whether the Form No. 2-A must be filed, and that the Form No. 2-A

must be filed electronically. In addition, the Commission is

revising section 260.2 to delete reference to an effective date,

and to remove references to reporting requirements pre-dating

December 30, 1988. These latter changes mirror the changes set

forth in section 260.1 governing the FERC Form No. 2.

Section 260.3 requires that natural gas companies file with

the Commission a monthly statement -- the FERC Form No. 11

containing information concerning selected revenues, income

statements, and other items, and details of operation and

maintenance expenses. The Commission is modifying the title and

paragraph (a) of section 260.3 to reflect the change of the Form

No. 11 to a quarterly statement of monthly data, that no longer

collects expense data. In paragraph (b), the Commission is

redefining who must file the Form No. 11 (natural gas companies

whose gas transported or stored for a fee exceeded 50 million Dth

in the previous three calendar years), and is specifying that the

form be filed electronically. Further, the Commission is

revising paragraph (c) prescribing when to file the Form No. 11

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to reflect the quarterly filing schedule set forth in the Form

No. 11 itself. In addition, the Commission is removing

references to dates that have long since passed, and references

to reporting requirements pre-dating November 30, 1988.

Section 260.4 requires that importers and exporters of

natural gas file with the Commission an annual report, FPC Form

No. 14. Section 260.11 requires natural gas companies operating

an underground natural gas storage field to file with the

Commission a monthly underground gas storage report, Form No. 8.

In the NOPR, the Commission did not propose any substantive

changes to these sections. Instead, the Commission sought

comments on whether the collection of the information contained

in these forms by other governmental or private sources is

currently adequate, making the collection of the same information

in these Commission forms unnecessary.

INGAA, American Forest, KN, and ANR/CIG recommend the

elimination of FPC Form No. 14. American Forest and INGAA note

that DOE's Office of Fossil Energy collects periodic reports on

export and import activity as part of its oversight

responsibility. They state that these reports collect

substantially the same information as required by Form No. 14.

According to INGAA, the elimination of this form would reduce the

burden on respondents by about 1,100 hours per year. ANR/CIG

concurs that this data is collected elsewhere.

The Commission will eliminate the requirement for filing FPC

Form No. 14 from its regulations. The Commission's primary need

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for natural gas import and export information is related to its

administration of Presidential Permits for import and export

facilities under Executive Order No. 10485. While we need

certain capacity and usage information to authorize facilities

and verify the approved capacity of such natural gas import and

export facilities, the Commission does not generally need

information on the purchasers or prices of imported and exported

natural gas and LNG.

Thus, the Commission expects that it will have adequate data

on natural gas imports and exports through any continuing

collection of import-export data that DOE/EIA may pursue,

DOE/Fossil Energy's (FE) Quarterly Reports, or data requests in

specific case processing or litigation. ~72 Although the

DOE/FE Quarterly Reports and Form No. 14 have different data

items, it is true, as INGAA and American Forest state, that most

of the substantive information is duplicative.

The Commission's Staff will consult in more detail with

DOE/EIA and DOE/FE on maintaining an ongoing, non-duplicative

collection of import-export data by DOE, such as peak-day usage,

differentiation of multiple operators at singularly named importexport points, and the BTU content of natural gas and LNG.

Section 260.4, prescribing the Form No. 14, is deleted from the

regulations.

~72 To the extent DOE/EIA continues to require the Annual Report

for Importers and Exporters it will have to pursue separate

OMB clearance for this data collection on its own.

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With respect to the Form No. 8, ANR/CIG, INGAA, KN, DOE, and

El Paso support its elimination. They argue this information is

collected elsewhere. Specifically, DOE notes that it collects

monthly injection and withdrawal data from all companies

operating storage fields, including those who file Form No. 8, in

its "Underground Gas Storage Report," Form EIA-191. DOE states

that the Form EIA-191 is a more comprehensive form than the Form

No. 8, and collects the data that the Commission requires to

monitor jurisdictional companies. Thus, DOE maintains that the

Commission would no longer need Form No. 8 if it used the data

from Form EIA-191. However, DOE points out that, currently, the

data submitted in Form EIA-191 are considered confidential. If

the Commission agrees with DOE's proposal to use Form EIA-191,

DOE states that it will submit Form EIA-191 to the Office of

Management and Budget for clearance to remove the confidentiality

requirements. DOE notes that a recent attempt to do so in 1991

did not succeed. However, DOE believes that pipelines'oncerns

voiced at the time may have since decreased with the

implementation of Order No. 636, as many companies have provided

copies of their Form EIA-191 filings to the trade press. DOE

states that upon OMB's approval for the removal of the

confidentiality requirements, EIA will continue to process the

EIA-191, and will make the data available to the Commission on a

timely basis.

INGAA concurs that there is no regulatory reason for both

DOE and the Commission to spend taxpayer dollars for duplicate

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reporting. INGAA states that gas storage data is reported in the

monthly Form EIA-191 and the semi-annual storage reports under

existing sections 284.106(g) and 284.223(d)(5), and that weekly

estimates of working gas in storage are available by region

through the "American Gas Storage Survey" five days after the end

of the reporting week. INGAA notes that elimination of Form No. 8

would reduce the industry reporting burden by 1,440 hours per

year.

El Paso also supports elimination of this form or, at least,

elimination for those pipelines with facilities that are not

operated as traditional underground storage facilities. For

example, El Paso's Washington Ranch Storage Facility is operated

exclusively as an adjunct to El Paso's transmission system for

load balancing, line pack, and pressure control. El Paso argues

that the Form No. 8 reporting requirements should not apply to

this facility.

The Commission will eliminate the requirement to file Form

No. 8. One of the objectives of this rulemaking is to eliminate

duplicative or unnecessary reporting requirements. DOE's

proposal that the Commission use the information from Form EIA191 furthers this goal. As a result of pipeline restructuring,

the data from Form EIA-191 can typically be used to meet the

Commission's requirements for storage data in lieu of the Form

No. 8 information. Although we do not seek removal of the nondisclosure provisions from the Form EIA-191 data collection as a

pre-condition to elimination of the Form No. 8, we endorse DOE's

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efforts to reach consensus with the Form EIA-191 respondent

population on this issue.

In the event that OMB does not approve DOE's request to

remove the confidentiality provision from the Form EIA-191 data

collection, we will not reinstate Form No. 8. For most purposes,

aggregated data derived from Form EIA-191 should suffice. In the

event specific pipeline storage data is required for a project or

proceeding, and the Form EIA-191 data continues to be

confidential, the Commission could obtain the company-specific

Form EIA-191 data from DOE pursuant to the confidentiality

provisions of this data collection. The Commission also reserves

the right to seek whatever information is required through a data

request in individual proceedings. Section 260.11, prescribing

the Form No. 8, is deleted from the regulations.

Section 260.9 requires every natural gas pipeline company to

report to the Commission serious interruptions of service to any

wholesale customer involving facilities operated under

certificate authorization from the Commission. The Commission is

modifying sections 260.9(b) and (e) to include facsimile

transmission as an optional method for reporting interruptions of

service. This recognizes advances in technology and current

practice. Further, the Commission is modifying sections 260.9(b)

and (c) to require that companies send telegrams, facsimile

transmissions, or supplemental information to the Director,

Division of Environmental and Engineering Review, Office of

Pipeline Regulation, the successor to the Director, Division of

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Engineering, Market and Environmental Analysis, Office of

Pipeline and Producer Regulation. The Commission is also

deleting reference to the Commission's street address, and

correcting the Commission's zipcode in section 260.9(b).

Section 260.13 sets forth the requirements for the filing of

the FERC Form No. 549-ST, Form of self-implementing

transportation reports. The initial and subsequent reports

currently filed by interstate and intrastate pipelines, Hinshaw

companies, and local distribution companies undertaking

transportation transactions under subparts B, C, or G of part 284

are required to be made on the FERC Form No. 549-ST. Because the

Commission is eliminating the requirements of filing initial and

subsequent reports for companies subject to the requirements of

subparts B, C, and G of part 284, as further described below, the

FERC Form No. 549-ST is no longer necessary. Accordingly, the

Commission is removing section 260.13.

Section 260.15 requires that natural gas companies making

direct sales in interstate commerce of natural gas to customers

consuming such gas file a Report of Alternate Fuel Demand Due to

Natural Gas Curtailment, FPC Form No. 69. As noted in the

footnote to section 260.15, Form No. 69 was discontinued and

replaced with Form No. EIA-50 by order issued

June 23, 1978. ~73 The EIA Form No. 50 was eliminated in 1984

after the Office of Management and Budget (OMB) rejected the

~73 FERC Statutes and Regulations, Regulations Preambles, 1977

1981g $ 30'13 (1978)

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Energy Information Administration's (EIA) request for an

extension of 0MB approval of the data collection. Thus, it now

appears that the footnote to 18 CFR 260.15 references a nonexistent EIA form as a replacement for the Form No. 69. Since

neither the Commission nor EIA has collected this data since

1984, and there has been no significant curtailment of natural

gas in the nation for more than ten years, the Commission is

removing section 260.15.

In addition, the Commission is changing all references in

Part 260 from the "FPC" and the "Federal Power Commission" to the

"FERC," and "Federal Energy Regulatory Commission," respectively.

VII. PART 284

A. Introduction

Under Part 284, the Commission is revising the reporting

requirements, and/or certain non-reporting requirements,

contained in Subparts A, B, C, E, G, J, and L. These subparts

set forth general provisions and conditions (Subpart A), and

govern the transportation of natural gas by interstate pipelines

under section 311(a)(1) of the NGPA (Subpart B), the

transportation of natural gas by intrastate pipelines under

section 311(a)(2) of the NGPA (Subpart C), the assignment by any

intrastate pipeline to any interstate pipeline or local

distribution company of contractual rights to receive surplus

natural gas under section 312 of the NGPA (Subpart E), the

transportation of natural gas by interstate pipelines on behalf

of others, and services by local distribution companies, under

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blanket certificates authorized by section 7(c) of the NGA

(Subpart G), (General Provisions and Conditions), as well as the

sale of natural gas under section 7(c) blanket certificates by

interstate pipelines offering transportation service under

subparts B or G (Subpart J), and by non-interstate pipeline

sellers (Subpart L)

There are six major categories of changes to the Part 284

provisions: (1) the removal of the initial full report,

subsequent reports, annual report, and notification of

termination, currently required under subparts B, G, and/or J;

(2) the removal of the initial full report, subsequent reports,

and notification of termination required under subpart C; (3) the

refinement of the Commission's discount reporting requirement;

(4) the addition of a new reporting requirement under subparts B

and G, an electronic Index of Customers; (5) the elimination as

obsolete of certain non-reporting provisions in subparts A, B, C,

and G, setting forth interim measures related to the

implementation of Order Nos. 436 and 636; and (6) other changes

that either are grammatical in nature, remove references to

deadlines that have long since passed or other outdated

requirements, or reflect the use of current, more accurate,

terminology. These revisions are discussed more fully below.

B. Removal of Initial. Subseauent. Annual. and Termination

Renorts Under Suboarts B. G. and J

In light of all of the broad changes that are being required

in this rule, and the changes to the industry brought about by

Order No. 636, it is no longer necessary to require interstate

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pipelines to provide the detailed reporting set forth under the

initial, subsequent, termination, and annual reports in sections

284.106 and 284.223. We have determined that the information

included in these reports is no longer required for our

regulatory review of the natural gas industry.

Accordingly, the Commission is removing paragraphs (a), (b),

(c), and (d) of section 284.106, and paragraph (d) of section

284.223, to delete the requirements that interstate pipelines

file the initial full report, subsequent reports, notification of

termination, and annual report. The Commission is also removing

sections 284.106(e) and 284.223(b) relating to the fees

accompanying the initial full report, and sections 284. 106(f) and

284.223(c), prescribing the use of FERC Form No. 549-ST for the

initial and subsequent reports, since they would no longer apply

due to the discontinuance of the associated reporting

requirements.

However, the Commission will retain the requirement in

section 284.106(a)(4) that an interstate pipeline file a

statement with the Commission that the pipeline has provided

notification of bypass of a local distribution company (LDC) to

the LDC and the LDC's regulatory agency. The Commission will

also retain the semi-annual storage reports currently required

under sections 284.106(g) and 284.223(d)(5).

Because sections 284.106 and 284.223 will require identical

reporting requirements, the Commission is removing all of the

filing requirements from section 284.223(d), and substituting a

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statement that all pipelines transporting gas under section

284.223 of Subpart G must comply with the reporting requirements

specified under section 284.106 of Subpart B. There is no reason

to specify the same exact reporting requirements twice in the

regulations.

In the NOPR, the Commission proposed to remove the annual

sales report required under section 284.288 of Subpart J,

applicable to pipelines that engage in sales under a blanket

certificate and also offer interstate transportation under

subparts B and G. The Commission proposed to remove this

reporting requirement to eliminate duplicative reporting

requirements, because most of the information was also being

collected under the proposed Form No. 2. However, the Form No. 2

that is being adopted in this final rule no longer captures

transaction-specific volume and revenue data that the section

284.288 sales report collects. Therefore, the Commission is

retaining this sales report. ~74

These changes are the same changes proposed in the NOPR.

Our proposed deletion of these reporting requirements received

strong support by the commenters. INGAA, Texas Gas, KN,

Columbia, and NI-Gas support the elimination of the initial,

~74 See Pipeline Service Obligations and Revisions to

Regulations Governing Self-Implementing Transportation; and

Regulation of Natural Gas Pipelines After Partial Wellhead

Decontrol, III FERC Stats. & Regs. Preambles 5 30,939 at p.

30,443 (April 8, 1992) (Order No. 636), order on reh'a, III Stats. 6 Regs. Preambles f 30,950 at p. 30,624 (August 3,

1992) (Order No. 636-A), for the Commission's rationale for

collecting this information.

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subsequent, termination, and annual reports under subparts B, G,

and J without reservation.

Other parties offered conditional support. American Paper

supports the proposed modifications to subparts B and G in light

of the other proposals made by the Commission in the NOPR,

including the requirement that pipelines maintain and update an

Index of Customers and file discount rate reports. Similarly,

APGA supports the elimination of these reports provided that the

Commission adopts section 154.1 requiring pipelines to file

contracts with the Commission when they differ from the form of

service agreement. Columbia and SoCal express support for the

removal of related section 260.13 requiring the initial and

subsequent reports to be reported on the FERC Form No. 549-ST.

SoCal's support is contingent upon the Commission's adoption of

the proposed discount rate report.

APGA, SoCal, and NI-Gas support the retention of the

requirement that a pipeline file a statement with the Commission

that it has provided notification of bypass of an LDC to the LDC

and the regulatory agency.

Only our proposal to retain the two semi-annual storage

reports required under sections 284 .106 (g) and 284 .223 (d) (5)

generated requests for a different treatment. Texas Gas

recommends the elimination of the semi-annual storage reports in

light of the requirement to include information concerning firm

storage service in the Index of Customers. INGAA suggests that

the two semi-annual storage reports be combined into one annual

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storage report. INGAA states that this would provide the

Commission with the data it needs while reducing the burden on

the pipelines.

As noted above, the Commission is retaining the semi-annual

storage reporting requirement. We will not adopt Texas

Gas'equest for elimination. The Index of Customers adopted in this

rule will collect very limited information concerning firm

storage service, and will not collect many of the data elements

required by the semi-annual storage report. Nor will we adopt

INGAA's proposal that the storage report be filed annually rather

than semi-annually. The semi-annual nature of the reports

derives from the timing of the reports. The reports are

submitted so that the withdrawal season is reported separately

from the injection season. This is an important distinction

which the Commission does not wish to eliminate.

The Commission recognizes that some parties may withdraw

their support for the elimination of the initial, subsequent,

termination and annual reports, now that we have substantially

modified the discount report and Index of Customers that were

proposed. However, the proposed elimination of these reports was

not solely dependent on the collection of the information

elsewhere. As stated suora, the information in these reports is

no longer needed for the Commission to carry out its regulatory

responsibility.

C. Removal of Initial. Subseauent. and Termination Reoorts

Under Suboart C

The Commission is deleting certain of the reporting

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requirements fo1 intrastate pipel ines transporting gas under NGPA

section 311 under Subpart C. The Commission is eliminating the

initial full report, subsequent reports, and notification of

termination currently required under section 284.126. The

Commission no longer finds these reports useful for regulatory

review. In the NOPR, the Commission invited the parties to

comment on our proposed removal of these reports. In response,

KN, Transok, Enogex, Texas Intrastates, and NI-Gas filed comments

supporting the elimination of the initial, subsequent, and

termination reports required in section 284.126.

While the Commission is eliminating the annual reporting

requirement for interstate pipelines, as described, sunra, the

Commission will continue to require intrastate pipelines to file

the annual report currently required by section 284.126(c), as

well as the semi-annual storage reports required under section

284.126(g), and the notification of bypass requirement currently

included in the initial report, section 284.126(a)(6). INGAA

suggests that the annual report be eliminated so that the

requirements for intrastate reporting will mirror the

requirements for interstate reporting. However, unlike the

interstate pipelines, intrastate pipelines are not subject to the

full force of the federal reporting requirements. Intrastate

pipelines do not file Form No. 2, an Index of Customers, or

general rate cases under section 4 of the NGA. Thus, fewer

opportunities are available to the Commission and the public to

obtain information about the intrastate pipelines'urisdictional

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activities. The participation of the intrastate pipelines in the

interstate market should be accompanied by accountability.

Therefore, the Commission is continuing to require the intrastate

pipelines to submit the annual report.

The Commission, though, is revising the annual report (now

section 284.126(b)), as proposed in the NOPR, to reflect the fact

that the transportation transactions are no longer docketed, and

to require the specification of whether the transportation

service is firm or interruptible. Until recently, intrastate

pipelines only provided interruptible transportation service.

Since they are now performing firm transportation service, firm

and interruptible transactions must be separately identified for

accurate reporting.

Transok and the Texas Intrastates ask that the filing date for

the annual report be changed from March 1 to March 31 to make it

easier to gather the necessary information, and consistent with

the due date for FERC Form No. 2-A. We will grant this request

for an extension of the filing date from March 1 to March 31.

This will lessen the burden in submitting this information.

The Texas Intrastates argue that the requirement to file

semi-annual storage reports (new section 284.126(c)) should be

removed. They state that the Commission has no certificate

jurisdiction over NGPA section 311 storage transactions by

intrastate pipelines, and that the storage reporting requirement

is duplicative because information on storage volumes is reported

in the annual transportation report. Transok, also, supports

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eliminating the semi-annual storage reports, adding that the

information is incomplete and not necessarily useful to the

Commission because non-jurisdictional intrastate activity is not

reported. Transok states that the DOE receives a complete report

of aggregated intrastate and interstate storage activity each

month through the Monthly Underground Gas Storage Report, Form

EIA-191. Transok further argues that, in its case, the request

for price information is moot because the Commission has approved

market-based pricing for Transok's section 311 storage services.

Similarly, Equitable urges the Commission to exempt

intrastate storage companies with market-based rates from the

requirement to file semi-annual reports, since the reports

require pricing information. Equitable maintains that where

market-based rates are in effect, the Commission does not need

pricing information to determine if the rates charged exceed

allowed maximums, or the extent of discounting for future

ratemaking purposes. Equitable states that in a competitive

market, price transparency occurs, if at all, through market

channels.

The Commission will not eliminate the semi-annual storage

report. Contrary to the Texas Intrastates'ssertion, storage

reporting is expressly excepted from the annual transportation

report. This report, therefore, is not duplicative.

Furthermore, the Form EIA-191 cannot be substituted for the semiannual storage data. As the Commission stated in Order No.

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636-A, ~75 the EIA does not collect data by individual

customer, nor does it collect rate and revenue data. In

addition, the pricing information for storage service subject to

market-based pricing is not moot. Although the Commission does

not have certificate jurisdiction over NGPA Section 311

intrastate storage service, Section 311 tasks the Commission with

the responsibility to ensure rates and charges are fair and

equitable. ~76 For the Commission to carry out this

responsibility, it is important for rates charged to be reported.

It is even more critical for the Commission to review pricing

when the Commission is relying on competition to regulate rates,

rather than scrutinizing the underlying cost of service. Thus,

we will not exempt intrastate storage companies charging marketbased rates from the requirement to file semi-annual storage

reports.

Accordingly, the Commission is deleting from section 284.126

existing paragraphs (a) (initial full report); (b) (subsequent

reports); (d) (notification of termination); (e) (filing fees);

and (f) (reporting form). ~77 The notification of bypass in

~75 Pipeline Service Obligations and Revisions to Regulations

Governing Self-Implementing Transportation; and Regulation

of Natural Gas Pipelines After Partial Wellhead Decontrol, III Stats. & Regs. Preambles $ 30,950 at p. 30,581 (August

3, 1992) (Order No. 636-A).

~76 15 U.S.C. 5 3372.

~77 Freeport notes that paragraph 106 of the regulation text

does not list current paragraph (d) regarding notification

of termination among those paragraphs to be removed,

contrary to the stated intent of the preamble. This was

(continued...)

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paragraph (a)(6) is now paragraph (a), the revised annual report

is now paragraph (b), and the semi-annual storage report is

paragraph (c). The only change we are making with respect to

section 284.126 in this final rule from what was proposed in the

NGPR, is the extension of the filing —deadline of the annual

report from March 1 to March 31.

Finally, the Commission is adopting an additional change

proposed in the NOPR in relation to Subpart C. The Commission is

revising the filing requirements under section 284.123(e) to

require that the statement filed by an intrastate pipeline within

30 days after commencement of new service under subpart C,

include the rate election made by the intrastate pipeline under

section 284 .123 (b) .

D. Modification of Discount Reoorts

1. NOPR Prooosal

In the NOPR, the Commission proposed to combine the

following two discount reporting requirements to avoid

duplication. Section 284.7(d)(5)(iv) presently requires that all

pipelines charging a discounted rate for transportation service

under subparts B and G of Part 284 file, within 15 days after a

billing period, a report with the Commission identifying the

maximum rate or reservation fee, the rate or fee actually charged

during the billing period, the shipper, and any affiliation

~77 (...continued)

simply an oversight of the Commission in the drafting of the

regulations. Paragraph (d) of section 284.126 should be

eliminated, and in the regulation text to this final rule,

we are including paragraph (d) among those to be removed.

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between the shipper and the pipeline. Section 250.16(d) requires

that pipelines transporting gas under subparts B or G that are

affiliated with a gas marketing or brokering entity and conduct

transportation transactions with such affiliate, also maintain a

variety of more detailed information on the transportation

discounts they provide to affiliate and non-affiliate shippers.

For example, section 250.16(d) requires maintenance of

information on quantities scheduled under the discount, while

section 284.7(d)(5)(iv) does not require the filing of any

quantity information. Thus, the more detailed information

required by section 250.16 only has to be maintained and made

available to the Commission upon request, while the limited

information required under section 284.7(d) (5)(iv) must be filed

with the Commission.

Because the information required by section 284.7(d)(5)(iv)

is also required by section 250.16(d), the Commission determined

in the NOPR that these requirements were somewhat duplicative,

and proposed to consolidate the two sections into one discount

reporting requirement, new section 284.7(c)(6). The Commission

proposed to eliminate the section 250.16(d) maintenance

requirements, and expand the filing requirements under Part 284

to include most of the information previously maintained under

section 250.16(d). Under this proposal, the major change from

the existing section 284.7(d)(5)(iv) was the addition of a

requirement for filing information on quantities of gas delivered

for discounted interruptible service, and the contract demand for

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discounted firm service. ~78 The Commission stated in the

NOPR that information on quantities shipped and contract demand

would enable the Commission and the market to compare the extent

of interruptible and firm discounting by the pipelines with the

extent of the discounting of capacity release transactions under

the capacity release program established by Order No. 636. The

Commission proposed that the discount information under new

section 284.7(c)(6) be filed electronically with the Commission.

2. Comments

The Commission received a few comments in support of its

proposal, but many more comments in opposition to proposed

section 284 .7 (c) (6), as summarized below.

APGA believes that the proposed change to the discount

reporting requirements will enhance the quality of data relating

to pipeline discounts. The Registry also fully supports the

modifications to the discount reporting requirements, and

believes that respondents will be able to file the discount

report using data that they already collect either to perform or

monitor essential services.

NI-Gas supports the proposed discount rate report but asks

that the Commission require information on the duration of

discounts and the applicable delivery points. NI-Gas asserts

that discount information must continue to be available on a

~78 For interruptible discounts, the Commission proposed to

include the zone in which the quantities are delivered. The

Commission stated that information on zones was not needed

for firm service because the information was to be reported

in the index of customers under section 284.106.

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timely basis to interested parties so that: (a) all interested

parties can monitor the operations of the market; and (b)

releasing shippers have access to the same information with

respect to pipeline sales of capacity as pipelines have with

respect to capacity releases. NI-Gas believes that the

additional information is necessary to achieve this parity.

However, many of the commenters argue that the proposed

modifications to the discount report will require pipelines to

publicly divulge commercially sensitive information. Panhandle

opposes the proposed reporting requirements on this basis. It

argues that the Commission should ensure that the pipeline and

its customers are not disadvantaged where there is a competitive

alternative provided by a non-regulated entity. Panhandle states

that shippers will be less inclined to deal with pipelines that

are required to reveal sensitive data. As an alternative to the

proposed requirement, Panhandle suggests providing for

confidential periodic audits, and requiring pipelines to maintain

information sets for a period of three years and to provide the

information to the Commission on a confidential basis upon

request.

Tennessee, also, believes that pipelines will be harmed if

they are required to reveal customer specific details of their

transactions as proposed in the discount rate reports and Index

of Customers. Tennessee argues that this level of detail has not

previously been required and is not necessary in a more

competitive environment. It states that other market

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participants are not required to divulge transactional

information at this level of detail. In any case, Tennessee

argues that this information can be produced on a case-specific

basis in response to a complaint or in a rate case, and that this

is the wrong time to expand the type and detail of transactional

information.

Consumers Power, NI-Gas, and AGA argue the proposed discount

rate data coupled with other publicly available information, such

as the proposed Index of Customers, will permit the derivation of

specific point-to-point contractual pricing information for firm

capacity discounts. For this reason, they suggest the removal of

the contract number from the discount rate report.

ANR/CIG note the increase in competition occasioned by the

Commission's issuance of Order Nos. 436 and 636. They state that

the discount reporting requirements provide such a wealth of

information that competitors can target pipelines'ustomers to

offer them better deals. ANR/CIG argue that specific details of

individual discounts disadvantage the customers who have

negotiated those discounts. Therefore, ANR/CIG assert that

discount information should be limited to the information

currently required.

INGAA argues the information the Commission proposes to

collect is commercially sensitive and not necessary to meet the

purpose of the discount reporting requirement -- to ensure that

discounts are provided on a non-discriminatory basis. INGAA

asserts that the Commission did not explain in the NOPR why it is

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proposing to alter the purpose and method of providing the

discount information, or why non-affiliate discount data is

inadequate as currently filed. Texas Gas, while supporting the

elimination of the duplicative discount reporting requirements,

concurs with INGAA's position that certain items of information

are inappropriate for public dissemination and unnecessary to

fulfill the original purpose of the discount reporting

requirements. INGAA adds that consideration of the data required

to compare the extent of interruptible and firm discounting by

pipelines with discounting in the capacity release market is

better addressed in the Commission's rulemaking on capacity

release. INGAA asserts that pipelines should be required to

maintain, but not file, discount information, making the data

available to the Commission upon request. Alternatively, if

information on discount transactions must be filed, INGAA argues

that the amount of information required must be reduced to no

more than is currently reported. KN and MRT either adopt or

support INGAA's comments with respect to the discount reports.

Some commenters propose that the Commission require a less

frequent reporting of the discount information and a lengthening

of the filing deadline, which is 15 days after the close of the

billing period. If information on discount transactions must be

filed, INGAA supports an annual reporting period for the discount

report, or the filing of the discount report no more frequently

than each quarter, with the filing deadline 30 days after the

last month of the quarter in which billing occurs. If pipelines

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must file monthly, INGAA states, the filing deadline should be

extended to 30 days after the close of the billing period. Texas

Gas agrees. Panhandle argues that if discount reporting remains

a requirement, monthly discount activity should be compiled and

submitted on a quarterly basis, 45 days following the last day of

each quarter. Panhandle states that all of the data elements

could be maintained on a monthly basis for a three-year period

from the time of the discounting.

3. Commission Rulina

In light of substantial opposition to the proposed changes,

the Commission will not adopt the proposed modifications to the

reporting requirements for discounted transactions outlined in

the NOPR. The Commission will retain the separate, pre-existing

requirements in sections 284.7 and 260.15(d), with some minor

modifications. While this will involve some duplication, the

existing requirements of section 284.7, together with the

requirements in section 260.15(d), already provide the balance

between public disclosure and confidentiality that the commenters

seek. The changes to these sections proposed in the NOPR were

not prompted by a need for more stringent reporting requirements

to ensure discounts are offered on a non-discriminatory basis.

Thus, the information available through, not only sections 284.7

and 250.16, but also through section 161.3, regarding affiliate

discount transactions, continues to be sufficient for the market

and the Commission to determine if any discriminatory activity is

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taking place. ~79 This is, and remains, the primary purpose

of these sections of the regulations.

Our proposal to expand the discount reports to include

information was designed to increase the usefulness of the

discount reports by enabling the market and the Commission to

compare the extent of discounting by pipelines with the extent of

discounting in the capacity release market. However, we have

determined that the benefits realized from the creation of

another use for the discount reports are outweighed by the risk

of harm to pipelines and LDCs that would stem from the release of

this detailed information.

The Commission is not modifying the existing regulations to

adopt annual or quarterly discount reporting, nor lengthening the

time of filing to 30 days after the close of the billing period.

The primary purpose of the discount reports is to allow customers

to monitor discounts to determine if the pipeline is

discriminating. Such proposals would make it impossible for

customers to monitor discrimination on a timely basis. Nor is

the Commission adopting INGAA's suggestion that all of the

discount data be maintained, but not filed. However, we are

adopting INGAA's alternative recommendation that the data that is

~79 Under Standard H of the Standards of Conduct,

section 161.3(h), pipelines transporting gas under subparts

B or G of Part 284 or subpart A of Part 157 that are

affiliated with a gas marketing or brokering entity and

conduct transportation transactions with such affiliate are

now required to post discount information concerning

affiliate transactions on their EBBs, including the delivery

points to which the discount applies.

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required to be filed be limited to the data currently required.

The Commission is removing the discount information

currently required in section 284.7(d) (5)(iv), and reinserting it

in a new section 284 .7(c) (6) . In addition, section 284 .7 (c) (6)

now specifies that the pipeline report "the full legal name of

the shipper being provided the discount," rather than merely "the

shipper," as the current regulation specifies. Further, the

Commission adopts the proposal from the NOPR to require the data

filed under section 284.7 to be submitted electronically.

The Commission also is adding, as proposed in the NOPR, a

provision specifying that the discount report does not apply to

capacity releases at a discounted rate, except when the release

is permanent. The discount report is designed to capture

discounts granted by the pipelines. In a temporary capacity

release, the releasing shipper is still obligated to the pipeline

under its initial contract. Thus, even if the shipper obtaining

released capacity pays a discounted rate, the pipeline has not

agreed to the discount because the releasing shipper will owe the

pipeline the maximum rate under its contract. In a permanent

capacity release, however, the releasing shipper's contractual

obligations end, and the replacement shipper enters into a new

primary contract with the pipeline. Thus, if the pipeline offers

a discount for a permanent capacity release, the pipeline is

providing the discount and would have to report it.

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E. Establishment of Electronic Index of Customers

1. NOPR Pronosal

In the NOPR, the Commission proposed to require interstate

pipelines transporting gas under subparts B and G to provide an

electronic Index of Customers ~80 through a downloadable file

that is updated monthly, and restated in its entirety annually

(proposed sections 284.106 and 284.223). As further discussed

below, the Commission is retaining the requirement that pipelines

maintain a downloadable electronic file containing an Index of

Customers in the final rule. However, the Commission is adopting

an Index of Customers that is greatly abbreviated from the Index

that was proposed in the NOPR, and is quarterly, rather than

monthly.

The electronic Index of Customers proposed in the NOPR

originated in the Electronic Bulletin Board (EBB) standardization

proceeding in Docket No. RM93-4-000. ~81 As explained in the

NOPR in this proceeding, the EBB Industry Working Groups in the

EBB standardization proceeding, which developed the standards

implemented by the Commission, failed to reach consensus on a

~80 The Commission is using the term "Index of Customers" rather

than "Index of Purchasers," to reflect the use of that term

in Docket No. RM95-3-000, revising part 154. "Index of

Customers" more accurately captures the nature of the

current natural gas market.

~81 Standards For Electronic Bulletin Boards Required Under Part

284 of the Commission's Regulations, Order No. 563, 59 FR

516 (Jan. 5, 1994), III FERC Stats. & Regs. Preambles

30,988 (Dec. 23, 1993), order on reh'g, Order No. 563-A,

59 FR 23624 (May 6, 1994), III FERC Stats. & Regs. Preambles

30,994 (May 2, 1994), reh'a denied, Order No. 563-B, 68

FERC $ 61,002 (1994).

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proposal for an Index of Customers that would provide the market

with information about capacity rights. However, several groups

of participants in the process submitted proposals for

consideration.

In the NOPR, the Commission proposed to adopt an electronic

Index of Customers containing the elements put forth by some of

the EBB Working Group participants, as well as some additional

elements. Specifically, the Commission proposed to include for

each firm transportation and storage shipper: shipper's name;

contract identifier; rate schedule; contract start date; contract

end date; contract quantity; receipt points (and associated

maximum daily quantities (MDQs)); delivery points (and associated

MDQs); and conjunctive restrictions, if any; information on

capacity held by rate zones to permit verification of reservation

billing determinants; data elements applicable to storage service

to capture the additional detail required to assess storage

capacity; a unique customer identifier to permit the information

in the Index of Customers to be tied to the electronic data

interchange (EDI) information on capacity release; ~82 and an

authorization code to delineate whether the information is for

Part 284, Subpart B, Part 284, Subpart G, or Part 157 service.

~82 Electronic Data Interchange (EDI) is a means by which

computers exchange information over communication lines

using standardized formats. For example, the capacity

release data posted on a pipeline's electronic bulletin

board is also available in downloadable files that conform

to the standards for EDI promulgated by the American

National Standards Institute (ANSI) Accredited Standards

Committee (ASC).

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The Commission identified in the NOPR two functions of the

Index of Customers. First, we stated that the Index would

provide the Commission with the information that it requires for

analyzing capacity held on pipelines (which was previously

included in the initial and subsequent reports). Second, it

would provide capacity information to the market, which would aid

the capacity release system by enabling shippers to locate those

holding capacity rights that the shippers may want to acquire.

However, the Commission recognized in the NOPR that some

commenters in the EBB proceeding objected to the inclusion of

receipt and delivery points in an index of purchasers. ~83

Therefore, the Commission instructed commenters to address the

relative burden or difficulty of including the receipt and

delivery point information in the proposed Index of Customers,

under the assumption that all of the other information proposed

would be required.

2. Comments

The Commission received widespread comment on the proposed

Index of Customers. Some commenters fully support the Index of

Customers as proposed. ~84 Other commenters support an Index

~83 These parties contended that the provision of such

information would be burdensome and might disclose

information that would place firm shippers at a competitive

disadvantage with respect to future gas purchase decisions.

See Order No. 636-A, III FERC Stats. 6 Regs. Preambles at

31I 047-48.

~84 Those commenters are: DOE, PMTG, PG&E, Registry, and

Gaslantic.

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of Customers, but suggest modifications or improvements. ~85

Many commenters oppose the adoption of any Index of

Customers, ~86 but either suggest alternatives, or certain

changes, to the proposed Index of Customers, if the Commission

continues to require some type of Index. The main issues raised

by the commenters are whether, and to what extent, the Commission

should require an Index of Customers, given the alleged

commercial sensitivity of the information and burden or cost in

reporting the information, and specifically, whether receipt and

delivery point information should be included in the Index.

a. Comments In Suooort

DOE, PMTG, and PG&E support the Index of Customers as

proposed. They believe that the Index will contain critical

baseline information about the rights of firm capacity holders

necessary for markets to operate efficiently and effectively.

PMTG notes it will be extremely beneficial to the capacity

release market, particularly the receipt and delivery point

information. PG6E supports the proposed Index of Customers as a

vehicle for price discovery. It states that price discovery is

critical to competition, and that LDCs need the opportunity to

see the price and terms of the interstate pipelines'ompeting

capacity on a real-time basis.

Gaslantic and the Registry also support the Index of

j85 Those commenters are APGA, NI-Gas, and Texas Gas.

~86 Those commenters are: ANR/CIG, AGA, Consumers Power, INGAA,

El Paso, CNG, Columbia, Columbia Distribution, Panhandle,

and KN.

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Customers as proposed. They argue that absent an Index of

Customers, and given the elimination of the ST reports, the

Commission, the market, and other regulators will have no window

to the workings of the short-term firm transportation market.

They maintain that this information is necessary for the market

to ensure that short-term firm transportation transactions do not

receive an unfair preference over released firm service or

similar requests for the same service.

The Registry states that short-term firm transportation,

including gray market transactions and interruptible

transportation markets, will be monitored through crosscorrelating information contained in the proposed Index of

Customers, Form Nos. 2, 2A, and 11, as well as the discount rate

reports. The Registry argues that the point level MDQ

information is crucial to the proper formation and functioning of

the secondary market in capacity rights, a more efficient

regulatory process, and a more effective day-to-day operating

environment. The Registry states that data on points rights is

essential for determining path-rights, segmentability, and

relative flexibility among shippers, i.e., quantity of receipt

and delivery point rights as compared to mainline rights. Absent

the Index, the Registry argues that no electronically processible

means exist to determine who to contact other than the pipeline,

or what total amount of firm rights might be available. Without

point rights information as a baseline, the Registry believes

that the market is bereft of exactly the data which is needed to

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identify transaction opportunities and pursue them.

Furthermore, according to Registry, regional, LDC, and

third-party-run exchanges, and market center developers, face

nearly insurmountable information integrity hurdles, which are

serious barriers to the entry of competing market centers and

information service providers. Registry believes these hurdles

can be avoided with the availability of capacity inventory

information. Moreover, the Registry notes that one of the

impediments to further integration of the national pipeline

network is the inability of the pipelines to coordinate the

simplest cross-pipeline transactions without extensive verbal and

written communication. With minor changes to the pending EDI

Nomination dataset and the addition of an electronic Index of

Customers which includes points and point rights, this problem

largely would be solved.

Gaslantic agrees with Registry on the importance of point

information. Gaslantic explains that pipelines confirm and

nominate released capacity as interruptible capacity, unless

scheduled from and to primary receipt and delivery points. Due

to this, Gaslantic states that released capacity moving between

points other than primary points is no more valuable to the

replacement shipper than interruptible capacity. Similarly,

Gaslantic states that the pipeline will not confirm or schedule

capacity nominated from, or to, secondary or alternate points if

there is no operationally available capacity at intervening

interconnects. Gaslantic believes that eliminating these

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problems will strengthen the secondary market, and that the key

is for buyers in the secondary market to be able to identify, and

seek release of, specific primary capacity. It states that this

is possible only if the primary capacity holders at each point

are identifiable.

Gaslantic states that the Index of Customers information is

available now on various reports filed with the Commission.

Gaslantic argues that with the elimination of these reports

(specifically, the initial and subsequent reports), the shortterm firm transportation sold by a pipeline would not be reported

anywhere, since it is not reported on pipelines'BBs, through

EDI, or in tariff indices of purchasers. Thus, Gaslantic urges

that the Commission adopt a comprehensive Index of Customers

including the point information. Gaslantic states that it and

other members of the EBB Working Group agreed to the reduction of

these reports only on the condition that they were replaced with

a comprehensive electronic Index of Customers that would contain

the essential point rights information now contained in the paper

reports.

b. Comments In Oooosition

Certain commenters, however, oppose the adoption of the

proposed Index of Customers. Generally, they argue that the data

the Commission wishes to be disclosed is commercially sensitive,

would be burdensome and costly to provide, and would result in

delays in the implementation of other higher priority electronic

data items. Opposing comments also question the necessity of the

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data for efficient operation of the capacity release market.

Consumers Power, ANR/CIG, and Panhandle argue that the

information proposed as a part of the electronic Index of

Customers is commercially sensitive and potentially damaging.

According to ANR/CIG, by mandating open access to pipeline

transportation services, and the unbundling of pipeline services,

the Commission has introduced competition into natural gas

markets. They argue that the Commission's regulations provide

the pipelines'ompetitors with a wealth of information about the

pipelines'usiness arrangements that these competitors can use

to target pipeline customers and offer them deals that undercut

those offered by the pipeline. ANR/CIG stress that pipelines do

not have equivalent information on these competitors. They

assert that the proposed regulations require the filing of

information not previously required, and require that information

be filed publicly, without adequate protection for non-public

disclosure of commercially sensitive information.

NI-Gas, Consumers Power, and Texas Gas argue that receipt

and delivery point information should not be included in the

Index of Customers because it is commercially sensitive data.

NI-Gas states that knowledge of primary receipt points will allow

parties to identify commercially sensitive information about the

sources of a shipper's supply. Consumers Power argues that the

release of such information would result in competitive detriment

to pipelines, and that such detriment is not outweighed by the

Commission's stated reasons for the Index.

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Texas Gas believes that some customers might object to the

inclusion of the information, feeling that the increased

accessibility to this information that posting on the EBB would

provide may put them at a competitive disadvantage with certain

suppliers. If the Commission insists on point data, Texas Gas

argues it should be limited to receipt and delivery points where

the shipper has reserved capacity on a primary basis.

Panhandle, Columbia, Columbia Distribution, AGA, and El Paso

object to the Index of Customers as burdensome. They argue that

the implementation and maintenance of the Index of Customers will

require significant financial commitments both in terms of human

resources and computer costs. AGA points to the significant

costs the pipelines would incur in changing their existing EBB

computer screens and formats. AGA also argues the Commission's

policy that data available through EDI datasets must also be

available on the EBB will increase costs. AGA believes that it

is questionable whether the benefits outweigh the costs.

AGA is further concerned that the industry will be applying

its resources to create an index for a capacity release market

that is still evolving and may change significantly over the next

several years. Columbia concurs, stating it is premature to

impose significant information system burdens on pipelines until

the capacity release program has been reviewed and modified. It

adds that many of the proposed elements are superfluous to the

purpose of providing a downloadable listing of customers with

firm capacity that could be releasable.

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El Paso, NI-Gas, and Columbia specifically oppose the

provision of receipt and delivery point data on the basis of the

burden it imposes on pipelines. El Paso argues that providing

MDQ by receipt and delivery point will be burdensome because this

information is not always readily available. NI-Gas asserts that

receipt points change far more often than delivery points,

placing a heavier burden on the pipeline.

Columbia quantifies the monthly burden of maintaining the

Index of Customers as approximately 16 hours, if receipt point

MDQ, delivery point MDQ, and conjunctive restrictions are

required. If they are not required, Columbia estimates it will

take only four hours per month to maintain. Thus, Columbia

proposes that the Commission require contract quantity and rate

schedule information in the aggregate. It states that aggregate

data will provide the Commission with all necessary information

for analyzing the capacity held on pipelines. Columbia believes

that the choice to disclose the contract specific data requested

in the proposed Index of Customers should rest with the capacity

holder.

AGA also challenges the Commission's assertion the

information is necessary to facilitate the capacity release

market. AGA argues that such need is questionable since shippers

are already under substantial economic pressure to release

capacity. INGAA, too, argues that requiring pipelines to post

underlying contract information is not only burdensome, but is

simply unnecessary for the industry to carry on capacity trading.

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INGAA argues that information on capacity for the market is

already available, and that the Commission can obtain pertinent

information on contracts either by requiring pipelines to file an

index in their tariffs, or via a less extensive electronic index.

Similarly, Panhandle asserts that data requirements in the

proposed rule are currently being provided as part of pipeline

capacity release systems and thus to provide this information on

all EBBs as part of the index would be duplicative in many

instances. KN agrees.

Texas Gas and AGA argue that requiring information on

receipt and delivery points to be included in an Index of

Customers is unnecessary. Texas Gas explains that with the

implementation of flexible receipt and delivery point authority

under Order No. 636, information concerning specific receipt and

delivery points is not as meaningful or significant as it was

'hen the regulations requiring the reporting of transportation

transactions were first implemented. Texas Gas states that many

pipelines already maintain updated information on their EBBs

concerning their "master receipt point lists," so that including

such information in the Index of Customers would be unnecessary.

El Paso, too, notes that receipt and delivery information is

already available in the Operationally Available Capacity section

of each pipeline's EBB.

AGA states that the Commission did not establish in the NOPR

a relevant need for this information. Like Texas Gas, AGA, also,

believes that the creation of flexible receipt and delivery

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points for all Part 284 transportation service greatly decreases

the need to know ownership of capacity at a particular point.

Furthermore, adoption of the index of customers, according

to the EBB Working Group, ANR/CIG, AGA, Consumers Power, and

INGAA, will result in delays in implementation of other higher

priority electronic communication data items. ANR/CIG and the

EBB Working Group point out the EBB Working Group has identified

eight higher priority natural gas transactions for development

and implementation. INGAA and AGA question the value of the

Index, citing a survey of 55 companies by the EBB Working Group,

showing the index of purchasers as the lowest priority item in a

list of 26 items to be standardized. ~87 INGAA and KN also

note that the EBB Working Group was unable to reach consensus on

the need for an Index of Customers. While supporting the concept

of an Index of Customers, NI-Gas, also, questions whether this

item should be a priority, given the other demands on pipeline

programming abilities.

As an alternative to establishing an Index of Customers, AGA

and Consumers Power believe the Commission should update the

Index of Purchasers contained in existing section 154.41. AGA

supports an Index of Purchasers that includes an alphabetical

list of all firm transporters under the pipeline's tariff, the

applicable rate schedules, and the maximum contract quantity

j87 The 55 companies surveyed include pipelines, LDCs,

producers, marketers, end-users, and information services

providers. AGA attaches to its comments the survey results

showing this ranking of standardization priorities.

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(summed by rate schedule, if appropriate). Consumers Power adds

the contract start date and end date to AGA's list. As is now

the case, AGA proposes that the revised Index of Purchasers be

included in the pipelines'ariffs. It states that since these

tariffs are currently available from the Commission in electronic

format, interested parties would be able to obtain the Index in

electronic format directly from the Commission. ANR/CIG maintain

that the data required in the Index of Customers can be provided

to the Commission during a rate case, if necessary.

INGAA argues that instead of imposing a mandatory

requirement that pipelines post contract information on an

electronic Index of Customers, the Commission should instead

allow the market to develop the information it needs on its own.

It states that the capacity release market has experienced rapid

and widespread growth, and that a number of third-party

information reporting systems have been developed, without the

existence of a mandatory pipeline electronic contract reporting

system.

Those commenters opposing the proposed Index of Customers

suggest modifications if the Commission adheres to the position

an index is necessary. Some commenters make broad-based

suggestions. Panhandle recommends that the same customer

information rules apply to all participants to the extent

practicable, so that one competitor class will not be afforded an

arbitrary advantage over another by the disclosure of information

that is not required to be publicly disclosed for regulatory

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purposes. KN suggests the information required on an electronic

Index of Customers be limited to data useful to the industry.

Other commenters opposed to the Index of Customers make

specific recommendations regarding the content of an Index if one

must be imposed. Columbia asserts the Index should be limited to

the basic information required to identify shippers that have

releasable capacity, the customer name, maximum contract

quantity, and rate schedule. INGAA urges the Commission to

reduce the amount of information to be included in the Index of

Customers to the shipper's name, rate schedule under which

service is performed, and the effective date of the contract. To

that, Panhandle would add the execution date of the contract.

However, it opposes public disclosure of the term of the contract

as commercially sensitive. ANR/CIG, on the other hand, would add

the termination date of the contract to the list. El Paso

supports the more limited Index of Customers discussed by the

Commission in Order No. 563-A, and noted suora.

c. Miscellaneous Comments

Both those commenters supporting and opposing the concept of

an index of customers suggest various minor modifications to the

proposed electronic Index of Customers.

To make the index more useful, DOE asserts that each

customer's name should be accompanied by a standardized I.D.

number for ease of identification. Similarly, the Industrials

want to be able to correlate the information reported in

Statement G with the information reported on the Index of

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Customers. Therefore, they urge the Commission to require

consistent reporting of customer names between Statement G and

the index of customers and the reporting of contract numbers on

both. In addition, DOE suggests that receipt and delivery point

information be accompanied by a standardized identification

number (PI-GRID) such as the location number used in EDI

datasets.

While supporting the proposed Index of Customers, APGA

suggests two modifications. APGA wants a pipeline to file an

updated copy of the Index of Customers on paper when it files a

general rate case. Further, APGA would like the Commission to

consider making the Index of Customers available through its

Central Issuance Posting System.

Freeport seeks to be excluded from the requirement to

establish an EBB to disseminate the Index of Customers. Freeport

states that the Commission expressly exempted it from having to

implement an EBB during its restructuring proceedings. It argues

that the reasons supporting that decision continue to apply here.

Freeport asserts this new regulation should not apply to any

interstate pipeline exempted from the Commission's EBB

regulations under Order No. 636, or whose throughput during the

past twelve months has been zero.

3. Commission Rulina

The proposal to establish an electronic Index of Customers

has been a highly contentious issue throughout both the EBB

standardization proceeding and this rulemaking proceeding. In

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the NOPR, we proposed an extensive Index of Customers. In

response, proponents of the proposed Index argue that the data

included in the Index of Customers, particularly the receipt and

delivery point data, is crucial for the efficient operation of

the capacity release market; it will ease the integration of the

national pipeline network by simplifying cross-pipeline

transactions; it provides solutions to information integrity

hurdles for exchanges and market center developers; and it will

provide a window on short-term firm transactions. Opponents of

the proposed Index argue just as strenuously that the data will

be burdensome and costly to provide; it is commercially

sensitive; it identifies sensitive data about a shipper's supply;

it is duplicative since it is supplied on the pipeline's EBB; and

it may not always be readily available.

In keeping with the primary goal of this rulemaking

proceeding to eliminate unnecessary regulations, and in light of

the numerous complaints in the comments that much of the

information is commercially sensitive, and that its disclosure

would be harmful and burdensome, the Commission has reassessed

its regulatory need for the information included in the proposed

Index of Customers. We have attempted to distinguish between

data that is absolutely necessary for the Commission's regulation

of the industry, and data that may not be necessary for review

purposes. The amount and type of information included in the

proposed Index extends beyond that which the Commission needs to

receive from all pipelines on a regular basis to regulate the

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natural gas industry today. For the Commission's purposes, only

a list of a pipeline's firm shippers, the rate schedule numbers

for the services for which the shippers are contracting, the

effective and expiration dates of the contracts, and maximum

daily contract quantities are necessary.

Several commenters have argued that the contract expiration

date and contract quantity should not be included in the Index.

We believe that this information is necessary for our regulatory

purposes. The information included in the Index being adopted

represents fundamental data about the natural gas industry

namely, how much of the pipeline's capacity shippers have under

firm contract. This information is basic to the Commission's

understanding of events taking place in the industry. With this

information, the Commission will remain apprised of, for example,

trends in the industry, the willingness of shippers to hold firm

capacity, the average length of time capacity remains under

contract, and the proportion of capacity rolling over under

evergreen provisions. Pipelines are beginning to deal with

complex issues related to shippers'ontracts coming up for

renewal in the post-restructuring period. ~88 The lack of

easily accessible data regarding customers'ontract levels and

contract terms could hamper the Commission's ability to assess

the impact of this phenomenon on the industry. The Index will

provide key data for this purpose.

~88 For example, Transwestern Pipeline Co. recently filed a

settlement in Docket No. RP95-271-000 to deal with the turn

back of significant amounts of capacity by a key customer.

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Those commenters in favor of the proposed Index of Customers

have not persuaded us that the Commission should require the

pipelines to maintain a comprehensive list of capacity rights by

receipt and delivery points to aid the secondary capacity market,

or to assist third-party-run exchanges and market center

developers. Their comments do not make clear what practical

effect providing the proposed additional information would have

on the secondary market. For example, there has been no evidence

presented that the inefficiencies in the capacity release market

would be removed if detailed information on the location of

capacity rights were made public. However, AGA's comments

stating that the capacity holders have incentives to market idle

capacity are persuasive. Moreover, the Commission can require

more detailed information on capacity rights to be produced in

particular proceedings, as necessary.

The Registry supports the proposed Index as a window on

short-term firm transportation. While the Index adopted in this

rule will provide information on short-term firm transportation,

not all short-term firm contracts entered into on the pipeline's

system will be reported, due to the decrease in the frequency of

filing. However, the Index adopted will provide a snapshot

profile of the pipeline's contracts on the first day of each

quarter. This will enable the industry to follow trends in the

proportion of capacity held under short-term firm contracts

versus the proportion of capacity held under longer-term

contracts.

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With respect to cross-pipeline issues, the industry is

currently grappling with the best way to resolve these issues.

Therefore, the Commission believes that it is premature to adopt

a reporting standard to aid in resolution of such issues.

Rather, the industry should be afforded time to attempt to reach

a resolution.

Therefore, while the Commission is retaining the requirement

that pipelines file an electronic Index of customers, the

Commission is adopting only a limited Index of Customers. The

Index will contain for all firm customers under contract as of

the first day of the calendar quarter, ~89 the full legal name

of the shipper, the rate schedule number for which service is

contracted, the contract effective and expiration dates, and the

contract quantities. The Commission is requiring the full legal

name of the customer to be reported to help to ensure that the

same customer name is reported regardless of the filing or form

in which it is reported. We are also requiring that the rate

schedule number be reported in the same format as it appears in

other reports and filings with the Commission.

The Index must posted on the pipeline's EBB, and filed

electronically, once each calendar quarter. That is, on the

first of each calendar quarter, the Index must be restated and

reposted on the EBB to include all firm contracts in effect on

that date, and filed with the Commission in electronic form. A

~89 It is not necessary to require the posting of interruptible

contracts in the Index of Customers.

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paper copy of the Index is not required to be filed. When a

pipeline has implemented the electronic Index of Customers, its

obligation to provide for an Index of Customers in its tariff

will cease. In addition, where a pipeline has received a waiver

from establishing an EBB, it does not have to establish an EBB in

order to implement an Index of Customers. In that case,

pipelines, such as Freeport, must comply with the reporting

requirements of section 154.111 instead.

Several commenters argue for the information included in the

Index to be filed in a rate case, or as part of the tariff,

instead of in a separate Index of Customers. Filing the data

with the rate case would not be timely enough for the

Commission's review purposes. It is true that filing the data as

part of the tariff, either by updating section 154.41 or

establishing a new index, would make it publicly available in an

electronic format. However, in the past, the Commission has had

difficulty extracting the Index of Customer data from the tariff

for use in spreadsheets and databases due to the inconsistent way

the data is presented, even from page to page within a single

tariff. To make the data most useful, we are requiring that it

be filed in a consistent format by all pipelines. The index will

be maintained on each pipeline's EBB in a delimited ASCII format

in a file which can be downloaded from the EBB.

Similarly, APGA proposed that the Commission require

pipelines to file an updated copy of the Index of Customers on

paper when it files a general rate case. We will not adopt

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APGA's suggestion. The Index will now be updated quarterly, and

it should be fairly simple for a paper copy of the index to be

generated from the electronic data. We will, however, adopt

APGA's proposal to make the Index of Customers available through

the Commission's bulletin board system.

A number of commenters express concern about the delay that

providing an electronic Index of Customers may cause in

implementing electronic data interchange (EDI) services which the

industry has identified as being higher priority. Others are

concerned with the costs involved. Still others, DOE for

instance, support using EDI to transmit the Index. Since the

Commission is proposing a substantial reduction in the data

included in the Index of Customers, transmittal through EDI will

not be necessary. As stated, the index will be available on the

pipeline's EBB. Therefore, implementation of the index should

cause no delay in the implementation of EDI services.

As discussed in the electronic format section of this rule,

Section Ix, the industrv will be working with the Commission

staff to develop the data sets and other procedures necessary to

provide for downloading of the Index of Customers on the EBB.

Instructions for reporting the data elements listed in the

regulations will need to be finalized. For example, appropriate

file names and the presentation of dates still need to be

determined.

Thus, the final implementation of the Index of Customers by

the industry and the Commission Staff will not occur until some

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time after the effective date of this rule. In the NOPR, the

Commission proposed to require the pipelines to initially comply

with the Index of Customers requirement within 180 days of the

effective date of the final rule, in order to allow ample time

for the industry and Staff to conclude their conferences, and for

the pipelines to implement the resulting electronic elements of

the Index of Customers. However, we will remove the requirement

that the index be completed within 180 days of the effective date

of this rule. The Commission would like the data to be provided

as quickly as possible, but recognizes the competing demands on

the pipelines'esources. We will require the pipelines to work

out a flexible implementation schedule with staff, and to report

back to the Commission for approval.

In the intervening period between the effective date of the

rule and the pipelines'mplementation of the electronic Index of

Customers under sections 284.106 and 284.223, pipelines providing

transportation service under sections 284.106 or 284.223 will be

required to comply with the Index of Customer requirements

applicable to transportation and sales under Part 157, as set

forth in sections 154.111(b) and (c).

F. Removal of Obsolete Transitional Reauirements

Several sections in Part 284 were established by either

Order No. 436 or Order No. 636 as interim measures to implement

those orders, or to bridge the transition between the two orders.

Some of these provisions contained action deadlines that have

long since passed. The Commission is removing the following

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sections because they have become outdated due to subsequent

events, and the current state of the regulatory environment.

Section 284.7(b) provides for interim rates for part 284

transactions to be charged until new transportation rates are

filed under section 284.7, which had to have been filed by July

1, 1986. This section has become obsolete, and therefore is no

longer necessary.

Section 284.10 provides an interim program for bundled sales

customers to convert to firm transportation services. Since

Order No. 636 has unbundled sales service, so that sales and

transportation services are now separate services, there is no

need for customers to convert from one to the other. This

section is no longer applicable to the current regulatory

framework.

Section 284.11 sets forth environmental compliance

requirements for any activity involving the construction of, or

abandonment with removal of, certain facilities. Paragraph

(d)(1) of section 284.11 requires the filing of a one-time

report, by December 9, 1992, for any such activity costing more

than $6.2 million that was commenced between July 14, 1992 and

November 9, 1992. This provision is now meaningless because it

required a one-time report, and the date for filing the report

has passed. Thus, paragraph (d)(1) is deleted from the section.

INGAA recommends the Commission change the filing deadline

for the capacity report required under section 284.12 to May 1 to

avoid conflict with financial reports due in April. Freeport

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requests modification of this provision in order not to require a

report for any year whenever there has been no change from the

last such report filed.

The Commission will not change the deadline for filing the

capacity report under section 284.12. The arguments made by

INGAA for moving the deadline to May 1 are not persuasive. The

filing date for the financial reports and the report due under

section 284.12 have been in close proximity for some time. The

respondents have been able to meet the April filing deadlines in

the past, and there is no reason to assume they cannot meet the

filing deadlines in the future.

Nor will the Commission modify section 284.12 so that no

capacity report is required when the capacity report remains the

same from the last report filed. Rather than revise our

regulations to provide for a situation that is likely to be the

exception and not the rule, pipelines may, as always, seek

waivers from this provision in these instances.

INGAA and Texas Gas recommend the Commission remove the

recordkeeping requirement in section 284.13. This section

requires that within 30 days after commencing any subpart B or G

transportation arrangement, the pipeline keep a log that includes

the date of the request, the name of the person requesting

transportation, and the volume of gas to be transported. INGAA

and Texas Gas state that this information was based on the firstcome, first-served capacity allocation procedure begun under

Order No. 436, and is no longer relevant for today's capacity

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allocation method based on price. They further state that

pipelines that use methods other than price to allocate capacity

must comply with the capacity allocation requirements of Order

No. 566. The Commission agrees with INGAA and Texas Gas. This

information was primarily used to establish queues for the firstcome, first-served allocation scheme under Order No. 436, and

that allocation procedure was changed by Order Nos. 636 and 566.

In addition, this recordkeeping requirement largely duplicates

the log keeping requirement for allocating capacity contained in

section 250.16(c). Therefore, section 284.13 is eliminated from

the regulations.

Section 284.14 -- Provisions governing pipeline

restructuring -- was designed to implement the restructuring of

pipelines'ervices under Order No. 636, and contains, among

other things, the requirements for the compliance filings

pipelines were required to make, and for the associated

restructuring proceedings. The restructuring process is now

complete; therefore this section is no longer necessary. Any

pipeline who proposes to offer transportation service under

subpart B or G of part 284 in the future will simply file to

comply with the requirements of this part and Order No. 636.

Sections 284.105 and 284.125, applicable to section 311

interstate and intrastate transportation, respectively, provided

that transportation arrangements existing prior to Order No. 436

could continue in effect, under the same terms and conditions

existing prior to Order No. 436 (with some exception), after the

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issuance of Order No. 436, for an interim period that would end,

at the latest, on October 9, 1987. Thus, these transitional

provisions only had effect for an interim period that is now

over. Accordingly, we are eliminating sections 284.105 and

284.125.

Section 284.122 governs transportation by intrastate

pipelines under Section 311(a)(2) of the NGPA. The Commission is

deleting paragraph (e) of section 284.122, which sets a January

31, 1992 expiration date for the authorization provided under

that section for certain transportation. This transitional

provision is no longer required. Similarly, section 284.123,

governing the rates and charges for this section 311

transportation service, contains in subparagraph (e)(2) a

transitional filing requirement deadline of February 1, 1985 for

certain pre-existing transportation arrangements; thus, the

Commission will remove section 284 .123 (e) (2) .

The Commission will also remove sections 284.223(e)

(Transitional rule for transportation arrangements) and

284.223(f) (governing the conversion of transportation service

under NGPA section 311 to NGA section 7(c) blanket transportation

service. Section 284.223 authorizes an interstate pipeline to

transport gas under a section 7 blanket certificate of public

convenience and necessity for any shipper for any end use by that

shipper or any other person. Section 284.223(e) was established

as a transitional provision to permit transportation arrangements

authorized under section 157.209(a)(1), which commenced before

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October 9, 1985, to qualify as transportation under section

284.223. Section 157.209(a)(1) permitted section 7 certificate

holders under section 157.201 to transport natural gas only on

behalf of a high-priority end user for a high-priority end use.

Section 157.209(a)(1) was replaced by section 284.223, and was

removed from the regulations effective November 18, 1985. ~90

Accordingly, the transitional rule contained section 284.223(e)

applicable to transportation under section 157.209 is obsolete,

and no longer necessary. Similarly, Section 284.223(f) is an

interim measure that was designed to implement the addition of

blanket transportation services. This section requires that all

conversions be made prior to November 1, 1990. Consequently,

sections 284.223(f) is also obsolete, and no longer necessary.

Section 284.227 grants a certificate for intrastate

pipelines in the coastal states for the transportation of federal

offshore gas for use in that state. Paragraph (d) requires the

intrastate pipeline converting from section 311 transportation

service to service under this section to file a conversion

report. This conversion report was a transitional requirement,

and references the initial and subsequent reports that are being

deleted by this rule. Accordingly, we are eliminating section

284.227(d).

Section 284.402 of Subpart L, setting forth the

authorization for blanket marketing certificates, provides in

paragraph (c)(1) that the authorization for an "affiliated

~90 See 50 FR 42408 (October 18, 1995)

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marketer" with respect to transactions involving affiliated

pipelines becomes effective either when the affiliated pipeline

receives its blanket sales certificate under Subpart J, a

transportation-only affiliated pipeline's Order No. 636

compliance filing is approved, or when the Commission terminates

the affiliated pipeline's RS proceeding. The Commission will

delete the latter two conditions, since those occurrences have

passed.

G. Other Revisions

The Commission is deleting most of Subpart D, governing

certain sales under section 311 of the NGPA by intrastate

pipelines. In Order No. 547, ~91 the Commission granted any

person who is not an interstate pipeline a blanket certificate of

public convenience and necessity pursuant to section 7 of the

Natural Gas Act, authorizing the certificate holder to make sales

for resale at negotiated rates in interstate commerce of any

category of gas that is subject to the Commission's Natural Gas

Act jurisdiction. The certificate of limited jurisdiction does

not subject the certificate holder to any other regulation under

the Natural Gas Act by virtue of transactions under the

certificate. Although the blanket certificate eliminates the

need for Subpart D, the Commission will retain the basic

authorization and rate provisions under Subpart D in sections

284.141, 284.142, and 284.144 for those persons who may wish to

make sales under the NGPA instead of the blanket certificate

~91 61 FERC $ 61,281 (1992)

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under the Natural Gas Act. However, in recognition that an

intrastate pipeline can also sell natural gas in an unbundled

transaction under the blanket certificate, at negotiated rates,

the Commission will retain a simplified version of section

284.144 governing rates and charges as part of the authorization

provision set forth in section 284.142. The new rate rule within

section 284.142, simplifies the current maximum sales rate rule

to permit the gas commodity price negotiated in the contract,

plus a fair and equitable transportation rate.

The Commission is deleting Subpart E in its entirety,

governing the assignment by any intrastate pipeline to any

interstate pipeline or local distribution company of its

contractual right to receive surplus natural gas at any first

sale, without prior Commission approval. The Natural Gas

Wellhead Decontrol Act of 1989 amended the definition of "surplus

natural gas" in section 312 of the NGPA to mean "any natural

gas." Moreover, the only filings under Subpart E were made in

1979. Therefore, Subpart E is no longer necessary.

The Commission is removing section 284.222, regarding

transportation by interstate pipelines on behalf of other

interstate pipelines. Since the Commission deleted the prior

notice requirement in Order No. 537, ~92 which applied to

transportation by interstate pipelines on behalf of shippers

~92 Revisions to Regulations Governing Transportation under

Section 311 of the Natural Gas Policy Act of 1978 and

Blanket Transportation Certificates, 56 FERC g 61,415 (1991).

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other than interstate pipelines under section 284.223, but did

not apply to transactions under section 284.222, there is no

longer any reason to distinguish between transportation under

sections 284.222 and 284.223. Thus, the Commission will delete

section 284.222, and apply section 284.223 to transportation by

interstate pipelines on behalf of other interstate pipelines, as

well as transportation by interstate pipelines on behalf of noninterstate pipeline shippers. Therefore, the Commission is also

modifying the title of section 284.223 to read "Transportation by

interstate pipelines on behalf of shippers."

The Commission is removing sections 284.225 and 284.226

concerning the transportation of gas released under the good

faith negotiation procedures. Order No. 567, ~93 issued July

28, 1994, in Docket No. RM94-18-000, removed the good faith

negotiation procedures under Section 270.201 as a result of the

repeal of maximum lawful ceiling prices under the NGPA.

Section 284.266 concerns the rates and charges for emergency

transportation and sales service by interstate pipelines.

Paragraph (b) of section 284.266 governs the determination of the

emergency sales rate, and refers to the methodology a pipeline

uses in designing its sales rates and its current purchased gas

costs. This paragraph is no longer relevant in light of the

changes brought about by Order No. 636. Order No. 636 unbundled

transportation and sales services. All pipelines wishing to make

unbundled sales, and holding a blanket certificate under subparts

~93 68 FERC $ 61, 135 (1994)

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B or G of Part 284, were granted a blanket certificate

authorizing firm and interruptible sales service with pre-granted

abandonment. ~94 The rate for unbundled sales service is

determined by the market. ~95 Similarly, the discussion in

paragraph (c) of section 284.266, regarding the treatment of

revenues, harks back to the time when transportation was the

exception rather than the rule. Pipelines primarily sold natural

gas bundled with transportation, calculating the price for the

natural gas in their purchased gas adjustments. Since pipelines

now offer transportation and sales services separately, with

sales service provided at market-based prices, the crediting

mechanism described in paragraph (c) has become an anachronism.

Therefore, sections 284.266(b) and (c) are removed.

In addition, the Commission is making a number of more

minor, miscellaneous changes, such as deleting references to

dates that have passed, updating the Commission's address, and

changing provisions to conform with other changes that are being

made in this rule. These modifications are set forth below.

Section 284.2(b), concerning interest on refunds, contains a

reference to section 154.102(c) for the interest formula. This

reference must be changed to indicate the new provision in Part

154 where the interest formula now appears (section 154.501(d)).

Section 284.4, specifying that all reports in Part 284 must

indicate quantities of gas in MMBtu's, refers to 5 270.102, which

j94 Order No. 636 at 30,437-38.

~95 Id.

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has been removed, for the definition of MMBtu. The definition of

MMBtu previously found at 4 270.102 must be incorporated in this

section. The Commission is still requiring the reporting of

quantities in MMBtu's, and the definition has not been changed.

Therefore, this change does not constitute a modification from

past requirements.

The Commission is making a grammatical revision in section

284.8(b) (4) (iii) .

In section 284.102(e), governing the certifications

interstate pipelines must obtain from shippers to be able to

transport gas on behalf of an intrastate pipeline or local

distribution company under section 311, the Commission is

deleting reference to a January 3, 1992 deadline for tariff

revisions establishing the certification requirement.

The Commission is modifying paragraph (b)(1) of section

284.221, setting forth the general rules regarding the

transportation by interstate pipelines on behalf of others under

section 7(c) blanket certificates, to delete reference to an

October 31, 1989 date no longer relevant, and a fee no longer

collected.

In sections 284 .6 (b) and 284 .8(b) (5) (i), we are deleting

reference to the specific street addresses of the Commission,

many of which are former addresses, and replacing them with only

the particular internal office name, the Commission's name, and

"Washington, D.C. 20426."

In many provisions, the Commission is deleting reference to

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sections that have been eliminated by this rule, or by other

prior rules. For example, in section 284.221(f)(2), we are

eliminating reference to section 284.222, which is removed by

this rule. Other conforming changes are set forth below.

In light of the proposed elimination of Subpart E, the

Commission is removing all references in section 284.224,

governing certain transportation, sales and assignments by local

distribution companies, to Subpart E, as well as to the word

assignments" in- the- section -provisions -and —in the section

heading. The Commission is retaining the blanket certificate and

rate election procedures in section 284.224 that allow local

distribution companies served by an interstate pipeline or

Hinshaw pipeline to engage in sales and transportation of natural

gas to the same extent as intrastate pipelines are authorized to

engage in such activities under subparts C and D. The Commission

is also removing the reference to assignment in section 284.3,

which sets forth the NGA jurisdiction.

Section 284.224(e)(5)(ii) requires the blanket certificate

holder to file a copy of all contracts as a part of the initial

full report under sections 284.126 and 284.148. Since the

Commission is deleting in subparts C and D the requirement to

file initial full reports, the Commission is also deleting

section 284.224(e) (5) (ii) .

Furthermore, since the Commission is deleting the initial

reports required in subparts C and D, the extension report in

subpart D, and entire subpart E, which also required an initial

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report, the Commission is deleting section 381.404, which

establishes the fee for initial or extension reports and refers

to the removed sections.

Section 284.269, concerning intrastate pipeline and LDC

emergency sales rates, refers to removed section 284.144 for the

calculation of the emergency sales rates. We are revising this

section to refer, instead, to section 284.142.

As a conforming change to our action in eliminating

transitional provision 284.14, the commission is deleting

references to sections 284.14 in, and making modifications to,

the following sections: 284.221(d), 284.284(b), 284.286(e),

284.287.

Section 2.104(a), governing the procedures for the

passthrough of pipeline take-or-pay buyout and buydown costs,

refers to the grandfather provisions in sections 284.105 and

284.223. We are eliminating the reference to these sections,

since we have deleted section 284.105 and the transitional

provisions in paragraphs (e) and (f) of section 284.223.

In Part 381, governing fees, section 381.404, concerning the

fee for initial or extension reports for Title III transactions,

references reports in sections 284 .148 (e), 284 .165 (d), and

284.126 that have been deleted. Therefore, section 381.404 is

deleted, also.

The Commission is revising section 385.2011, concerning

electronic filing requirements, to update the reference to part

154 and to the Commission's address, and add the discount rate

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report as an electronic filing requirement.

VIII. Part 157

In keeping with the goals of the NOPR, El Paso suggests that

the Drilling Gas Report required by section 157.53(b) of the

Commission's regulations can be eliminated, especially now that

pipelines are primarily transporters of natural gas. Section

157.53 exempts from the certificate requirements of section 7(c)

of the NGA, the construction and operation of facilities

necessary to render direct natural gas service for use in the

drilling of gas or oil wells, or for use in the testing and

purging of new natural gas pipeline facilities, as long as a

drilling gas report described such operations is filed annually.

The Commission agrees with El Paso, in part. Facilities

necessary to render direct natural gas service for use in the

drilling of gas or oil wells may be constructed and operated

under other procedures short of a full certificate filing. For

example, since pipelines generally have a reduced merchant role,

--many-of;&he--facilities of this type will be built on behalf of

natural gas producers. These facilities would be eligible for a

blanket certificate under subpart F of section 157. References

to these transactions will be removed from this section. We will

retain this section for facilities built to purge and test new

natural gas pipeline facilities since these facilities will

otherwise generally require full certificate proceedings.

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IX. Electronic Filinc Reauirements

A. Introduction

Currently, the Commission requires pipelines to file the

Form No. 2, Form No. 2-A, and Form No. 11 electronically. The

pipelines file the electronic data on the following media:

diskette, 9-track magnetic tape, and 18-track cartridge. The

tapes and cartridges are used with the mainframe computer.

However, the majority of pipelines file their data on diskette.

The present filing requirements call for the data to be submitted

in an ASCII flat file format. ~96 A flat file is composed of

data arranged in records or rows with no delimiters. Each data

item is assigned a position in the row to distinguish it from

other data in the row. This data structure was adopted primarily

because it was well-suited for use on mainframe computers. In

the NOPR, the Commission expressed the desire to adopt filing

requirements which are better suited for use on a personal

computer. In this rule, the Commission is requiring that the

Form Nos. 2, 2A, 11, and the discount rate reports be filed both

on paper and electronically. The Index of Customers will be

posted on the pipelines'BB's, and filed electronically only; no

paper copy of the Index of Customers will be required.

~96 ASCII, or "American Standard Code for Information

Interchange," conveys only letters, punctuation, and certain

symbols. It does not convey how the document should be

formatted or what fonts to use. A delimited ASCII file is created by keypunching a series of symbols using commas, tab, or some other symbol to designate the space at the end of a word or number (thus, "tab delimited," "comma

delimited, " etc. )

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In the NOPR, the Commission acknowledged that the changes to

the regulations and forms that it was proposing in that NOPR, and

in the companion NOPR in Docket No. RM95-3-000, would necessitate

modifications to the electronic formats for the affected filings

and forms. Thus, to ensure the widest possible input, the

Commission directed its staff to convene a technical conference

to obtain the participation of the industry and other users of

the filed information in designing the electronic filing

requirements.

On April 4, 1995, the Commission staff held the technical

conference to address the electronic filing requirements

associated with the proposed rules. Many issues were discussed

at the conference, such as whether to require the data to be

saved in files in a standard format, such as ASCII, or to allow

pipelines to submit electronic data in the format of the

applications software they employ; ~97 whether the appropriate

method for transmitting data to the Commission is via diskette,

or telecommunications; whether the Commission or the pipelines

should disseminate the electronic data, and how dissemination

should be accomplished (i.e., on diskette, or via the EBB); and

the standardization of data elements.

As a result of oral comments made at the conference, and

written comments submitted in this rulemaking, the Commission is

able to make a number of decisions related to the electronic

j97 Applications software means proprietary software, such as

Lotus, Quattro Pro, Excel, or WordPerfect.

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filing requirements in this rule. However, other issues still

will need to be resolved jointly with the industry. Therefore,

the Commission is directing staff to convene a further technical

conference, and to work with the industry, as needed, to resolve

the outstanding electronic filing issues in both this rule and

the Docket No. RM95-3-000 rule. This conference is to be held as

soon as possible after the issuance of these rules. The various

electronic filing issues raised at the conference, and the

comments on those issues, are addressed below.

B. Format For Electronic Filincs

Commenters generally support a change to the current means

of filing forms electronically. The Registry identifies three

main forms in which data can be delivered electronically, and

which allow for consistent presentation and unambiguous crosscorrelation:

Applications software, such as Lotus, which are best

for financial, performance, and other one-to-one

reporting subject areas;

Comma-delimited ASCII formats, which allow for all PCbased spreadsheet and database software to import the

data set forth in this format; and

Relational data structures such as electronic data

interchange (EDI), ~98 which are best for one-to-

~98 Electronic Data Interchange (EDI) is a means by which

computers exchange information over communication lines

using standardized formats. For example, the capacity release data posted on a pipeline's electronic bulletin

board is also available in downloadable files that conform

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many relationships and reporting areas.

INGAA notes that at the April 4 conference on electronic

filings, pipelines recommended that the electronic filing format

for most reports in this rulemaking should be platform

independent (in other words, able to be used with any hardware),

with delimited ASCII formats for numeric files, and Rich Text

Format (RTF) for text. Williston Basin and Panhandle support

this preference, voiced at the conference, for tab-delimited or

comma-delimited ASCII files for electronic filing of numeric data

fields.

Williston Basin believes that the Commission should

eliminate the current flat, non-delimited ASCII submission

format, because it is a time consuming and inefficient process.

Williston Basin states that tab-delimited formats for numeric

submissions would be more efficient, and that these formats are

readily producible from all of the current generations of

personal computer operating systems and applications software

packages. ~99

Panhandle asserts that the number of software applications

and computer platforms used by applicants, regulatory agencies,

and intervenors, and the various releases of such applications

to the standards for EDI promulgated by the American

National Standards Institute (ANSI) Accredited Standards

Committee (ASC).

~99 Williston Basin is not opposed to submitting electronic data

in the application software it uses, provided that numerical

data not include formulas and links, and the native

application format(s) supported by the Commission is

producible from its application software.

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used by the participants, calls for the adoption of a "common

denominator" approach for data transfer, such as delimited ASCII,

rather than a particular software application or applications.

Panhandle adds that delimited ASCII formats permit columnar data

fields to be imported and exported into, and out of, most offthe-shelf software.

For text only files, Panhandle and Williston Basin support

the RTF recommendation, which permits word files to contain text

enhancements, such as underscoring. The Registry adds that text

files, which can be read by word processors, are very useful for

scanning text, such as direct testimony, tariffs, and

descriptions. RTF can be read by AMI-PRO by Lotus, Word by

Microsoft, and Wordperfect by Novell. The format retains most of

the bold, indentation, tabbing, and paging formats, which can be

imported into any of the three applications with a minimum effort

for conversion and reformatting.

A related issue to electronic filing formats is whether the

Commission should develop form-fill software to assist the

pipelines to prepare the filings. In the NOPR, the Commission

noted its intention to use user-friendly form-fill software.

Williston Basin responded in support of a form-fill software

approach to preparation of the Form No. 2, if the software

package is appropriately designed and tested prior to

implementation. A critical requirement for Williston Basin would

be data import capabilities allowing the form-fill software to

receive data from its software packages.

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The companion rule in Docket No. RM95-3-000 adopts the use

of tab-delimited ASCII for most numeric data, with limited use of

spreadsheets for the rate case data. The Commission is adopting

a tab-delimited ASCII format for the numeric data submitted

electronically in this rulemaking, as well. The Commission is

adopting this standard in light of the substantial support it

enjoys.

The Commission is not adopting in this rule a format for the

text data that is filed electronically. RTF for text data enjoys

substantial support. The nature of RTF is discussed at greater

length in the companion rulemaking. However, the Commission has

certain concerns that we wish to have addressed before adopting

RTF for text. Thus, the companion rule directs staff to

establish a conference to explore further the efficacy of RTF for

text data. At the conference, the participants should address

alternatives to RTF, if any, and the concerns that: (1) the data

be error-free when translated; (2) translation be available in

the most popular word processing programs; and (3) RTF text be

usable in databases.

In light of the industry's support for independence from a

particular platform or software, the Commission will not prepare

form-fill software for the use of the industry. The data layouts

will be determined and edit specifications will be provided as a

result of the conference; however, no software for form-fill,

edit-checking, or printing will be provided. The industry is

free to develop whatever software best meets its needs, and the

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filing requirements set forth by the Commission.

C. Data Recuirements

The Registry recommends that the collection of information

across various reports and filings encourage correlation and

comparison. In particular, the Registry notes that:

time periods should be consistent and cross-comparable;

units of measurement should be consistent, and only one

energy and volume unit should be employed;

geographic zones (i.e., county and states) should be

equated to economic (i.e., rate) zones;

services (firm, interruptible, etc.) should be equated

to rate schedules; and

identifiers such as DUNS numbers of customers/contract

parties should be consistent.

The Registry also suggests that respondents should be

required to adhere to the following standards and practices:

standard naming conventions, page numbering, and

ordering of fields/contents of spreadsheets;

provision of both values-only, and formulas and values,

versions of data files; and

provision of both an edit-enabled and a password

locked, edit-protected version of each of the valuesonly and formulas-onlv files. there should be no hidden

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cells. ~100

201

The Commission wishes to encourage consistent reporting

among different electronic forms and filings. Where possible,

the conference participants should come to agreement on standards

for reporting common data elements, such as dates. The

participants must also explore at the conference what measures

would be appropriate for establishing the security of the data,

such as locking the file with a password, as suggested by

Registry. Further, the participants must discuss certain other

general issues, such as those raised by Registry, i.e., file

naming conventions, page numbering, ordering of fields/contents,

appropriate diskette size and labelling of the diskettes. In

addition, other issues common to electronic filing need to be

addressed, such as, treatment of footnotes, format for dates, and

what the industry considers to be text suitable for RTF. Since

we are adopting a tab-delimited ASCII format for numeric files,

the Commission is not requiring any of the reports subject to

this final rule to be filed in a spreadsheet form. Therefore,

the suggestion by Registry that a values-only version and a

values and formulas version of the spreadsheet data be submitted

is not an issue.

The Registry recommends adding a number of data elements to

the electronic version of the forms and/or filings. The

~100 The Registry also makes certain recommendations for the electronic filing requirements for rate case data. The

Commission is addressing this issue in the companion rule in

Docket No. RM95-3-000.

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Commission is requiring that the electronic filing be a faithful

representation of the data requirements set forth in the form or

filing. The electronic filing requirements will not be expanded

to include data not specified in the paper version of the form or

enumerated in the regulations. For example, where the rate

schedule number is reported, it should not be construed as also

requiring the type of service to be reported, unless specifically

stated in the form or regulations.

D. Submission and Dissemination of Electronic Data

With respect to the submission, or filing, of the electronic

data, INGAA states that, at a minimum, pipelines would prefer to

file on a diskette, but are willing to investigate communication

of data through CD-ROM or telecommunications. INGAA views EDI

applications for certain reports as an option on a voluntary

basis, where it can be shown to be cost effective.

In contrast, Williston Basin supports the use of

telecommunications medium for the submission of electronically

filed data. While Williston Basin prefers telecommunications

submission, if physical formats are used for submission,

Williston Basin supports CD-ROM as an alternative to diskettes.

Current electronic filings are commonly submitted on

diskette, as noted above. Filing on diskette continues to enjoy

substantial support in the comments. Thus, the standard means of

submitting data to the Commission will be by diskette. However,

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the Commission will also permit submission on CD-ROM. ~101

The Commission does not currently permit the filing of

electronic data through telecommunications. The Commission is

not yet prepared to accept data through telecommunications.

Before adopting filing by telecommunications, the Commission

would need to put the proper hardware and software in place, and

work out other issues. For example, section 385.2005 requires

filings with the Commission to be signed. Signatures are

difficult to reproduce electronically. ~102 Such issues can

be addressed at the conference to be convened by staff.

Therefore, the Commission will not adopt submission by

telecommunications until all of the issues are resolved.

With respect to the dissemination of the electronically

filed data, INGAA and Williston Basin support the goal of

increased use of electronic dissemination of reported data by the

Commission, and the elimination of hardcopy dissemination

whenever practical. Panhandle, too, supports the industry

preference that the Commission be the primary disseminator of

filed information. However, Williston Basin and INGAA urge the

Commission to put procedures in place to ensure the integrity of

~101 Technical specifications for CD-ROM submission will appear

in the electronic filing instructions for each individual

form or filing.

~102 In the past, the Commission received purchased gas

adjustment (PGA) schedules in electronic form only. The

diskette, tape or, tape cartridge containing the PGA

schedules was accompanied by a letter of transmittal. The

signature on the letter of transmittal met the requirements

of section 385.2005.

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the electronic filing, and the security of any confidential data.

AGD suggests that the Commission require pipelines to post

their Form No. 2 filings, (including backup information) on their

EBBs. The Registry suggests that the Form No. 2 data be made

available to the public in hardcopy printout of the electronic

version, and in compressed files on 3.5" 1.44 MB disks, in editprotected mode in the comma-delimited format in which it was

filed. It states that such Form No. 2 data should be available

for the price of reproduction, plus a handling charge. The

Registry also suggests that the diskette should contain the

record layout and description, so that users can import the

company-supplied data, and know how the fields correlate to the

Form No. 2 data with which they are familiar. In addition, the

Registry recommends that the uncompressed file names should

appear on the label or sleeve wrapper of the diskette.

The Registry suggests that the market monitoring

information, such as the Index of Customers and the discount rate

reports, be made available to the public in the following forms:

via EDI formatted downloads from the pipeline's EBB or

VAN, for which the pipeline has agreed to pay its

portion of the charges associated with using such means

of request and delivery;

via hard copy printout of a translated EDI file

available from the Commission; and

via EDI formatted files on 3.5" 1.44 MB disks in writeprotected mode available from the Commission, with a

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batch file which prompts the user for sender and

receiver IDs for the IS and GS levels which, once

supplied, enables the user to translate the file with

their EDI translator.

Conversely, Williston Basin states that although it may

support EDI for the transmission of certain frequent filings, it

believes EDI would not be a cost-effective option based on the

frequency and nature of the data being submitted.

It is the Commission's intention to disseminate all

electronically filed data to the extent the file size is

practical for downloading. Dissemination would be accomplished

through the Commission's Gas Pipeline Data bulletin board system.

Files on the bulletin board system are currently compressed for

faster downloading. The data layouts for each electronic filing

are currently made available through this system. This practice

will continue. Since the Form No. 2 will be available on the

Commission's bulletin board for all companies, we will not

require the pipelines to keep a copy of Form No. 2 on the

pipeline's own bulletin board.

Given the reduction in the number of data elements to be

submitted in the Index of Customers and the discount rate

reports, the Commission does not believe EDI is necessary for

transmission of the data. Further, a delimited ASCII file would

be easier to manipulate for many members of the public using the

Commission's bulletin board. Therefore, the Commission will not

adopt EDI for the Index of Customers or discount rate data.

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E. Finalization of Electronic Reauirements and

Procedural Considerations

Williston Basin, Panhandle, INGAA, and AGA urge the

Commission to postpone finalization of electronic requirements

until such time as a final order is issued, and sufficient time

has been allowed beyond issuance to develop appropriate

procedures, formats, and software. Panhandle notes that pipeline

and commercial software developers would need time to develop,

test, and place into production, the systems that generate the

reports required by the rule. In addition, Panhandle states that

it will be necessary to map data points for the new reporting

requirements. Panhandle is concerned that sufficient time be

allotted for the development, testing, and implementation of the

applications that will be used for generating electronic versions

of filed reports. In the same vein, AGA urges the Commission to

consider designing the software to operate on local area

networks.

The Registry recommends that FERC set additional schedules

and a procedural process, including another informal technical

conference, to handle the technical aspects of data layout,

content, and format. The Registry suggests that, at the

conference, the Commission should establish three working groups,

their chairs, their agendas, and their individual jurisdiction.

The Registry proposes a rate case working group dealing with

spreadsheets, file naming, formats, and data protection; a Form

No. 2 working group dealing with data field naming and record

layout for the comma-delimited filing format; and a EDI, market

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monitoring, and market confidence working group dealing with EDI

formats associated with the Index of Customers and discount

reports. The Registry further proposes a detailed procedural

process and timetable for resolution of the issues.

The Registry also urges the Commission to adopt a flexible

implementation and compliance schedule for the Index of

customers. Specifically, it proposes that the Commission should

set beginning and end dates for compliance with the electronic

index (for example six months), and that the pipelines submit

first, second, and third choices for the month in which they wish

to complete implementation. The Commission would then select a

schedule of compliance for the pipelines based on these choices,

using a first-come, first-served principle.

In view of the need for sufficient time to implement the new

requirements, INGAA suggests the changes to Form Nos. 2, 2A, and

11 should be effective on the January 1st that falls at least 180

days after publication of the final rule in the Federal Register.

Contrary to what was stated in the NOPR, this rule does not

finalize all of the electronic filing requirements. As desired

by the commenters, the Commission is allowing adequate time

subsequent to the issuance of this rule for the technical aspects

of the electronic filing requirements to be finalized. As we

have stated, we are convening another joint informal technical

conference in the two companion rulemaking proceedings for this

purpose. The Commission staff will convene the conference as

soon as possible after the issuance of the rules. The procedures

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to be subsequently followed will be discussed, and if possible,

established, at that conference.

The Commission discusses the appropriate filing date for the

revised Form No. 2 elsewhere in this rule. The revised Form No.

2 cannot be filed electronically until all of the electronic

filing instructions have been finalized. We are not requiring

that pipelines file the revised Form Nos. 2 and 2-A, either in

paper or electronically, until April 1997. Thus, there should be

more than adequate time to establish and put into place the new

electronic filing requirements prior to the filing of the revised

Form Nos. 2 and 2-A. The Form Nos. 2 and 2-A for the calendar

year 1995, filed in 1996, must be filed under the old filing

requirements, including the old electronic filing requirements.

Given the reduction in the scope of the Form No. 11 and the

Index of Customers, and the elimination of the changes to the

discount rate report, the Commission does not anticipate a

lengthy delay in implementing the electronic filing requirements

for those reports. We anticipate that the electronic filing

requirements will be finalized prior to the first filing of the

Form No. 11. If not, the pipeline must file only the paper copy

of the revised Form No. 11. In any event, a final schedule for

the implementation of the electronic filing requirements must be

worked out among the participants of the conference.

X. ENVIRONMENTAL ANALYSIS

The Commission is required to prepare an Environmental

Assessment or an Environmental Impact Statement for any action

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that may have a significant adverse effect on the human

environment. ~103 The Commission has categorically excluded

certain actions from these requirements as not having a

significant effect on the human environment. ~104 The action

taken here is procedural in nature and therefore falls within the

categorical exclusions provided in the Commission's regulations.

~105 Therefore, neither an environmental impact statement,

nor an environmental assessment is necessary, and will not be

prepared in this rulemaking.

XI. REPORTING FLEXIBILITY CERTIFICATION

The Regulatory Flexibility Act (RFA) ~106 generally

requires the Commission to describe the impact that a final rule

will have on small entities or to certify that the rule will not

have a significant economic impact on a substantial number of

small entities. An analysis is not required if a final rule will

not have such an impact. ~107 Most gas companies to whom the

final rule applies do not fall within the definition of a "small

~103 Order No. 486, Regulations Implementing the National

Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC

Statutes and Regulations, Regulations Preambles 1986-1990

30,783 (1987).

~104 18 CFR 380.4.

~105 See 18 CFR 380.4(a)(2)(ii)

~106 5 U.S.C. 601-612.

~107 5 U.S.C. 605(b).

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entity." ~108 Consequently, pursuant to section 605(b) of

the RFA, the Commission certifies that the final rule will not

have a significant impact on a substantial number of small

entities.

XII. INFORMATION COLLECTION STATEMENT

The Office of Management and Budget's (OMB) regulations

~109 require that OMB approve certain information and

recordkeeping requirements imposed by an agency. The information

collection requirements in this final rule are contained in the

following:

FERC Form No. 2 "Annual Report of Major Natural Gas

Companies" (1902-0028);

FERC Form No. 2-A, "Annual Report of Nonmajor Natural Gas

Companies" (1902-0030);

FERC Form No. 11, "Natural Gas Pipeline Company Monthly

Statement" (1902-0032);

FERC-549, "Gas Pipeline Rates: Natural Gas Policy Act Title

III Transactions" (1902-0086);

FERC-549B, "Gas Pipeline Rates: Capacity Release

Information" (1902-0169);

FERC-576, "Reports on Pipeline Systems Service

~108 Section 601(c) of the RFA defines a "small entity" as a

small business, a small not-for-profit enterprise, or a

small governmental jurisdiction. A "small business" is

defined by reference to section 3 of the Small Business Act

as an enterprise which is "independently owned and operated

and which is not dominant in its field of operation." 15

U.S.C. 632(a).

~109 5 CFR 1320.13.

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Interruptions" (1902-0004)

FERC Form No. 8, "Underground Gas Storage Report"

(1902-0026); and

FERC Form No. 14 Annual Report-for-Importers and Exporters

of Natural Gas" (1902-0027)

By this rule, the Commission is modernizing its regulations

to reflect the current regulatory environment that it instituted

with Order No. 636 and the restructuring of the natural gas

industry. Specifically, the Commission is revising its

regulations to focus on transportation services instead of

pipeline sales activities. The revised filing requirements will

improve the internal support of a pipeline's filing, reduce the

filing burden for all parties, and facilitate pipeline reporting

requirements.

The Commission's Office of Pipeline Regulation uses the data

in rate proceedings to review rate and tariff changes by natural

gas companies for the transportation of gas and for general

industry oversight under the Natural Gas Act. The Commission's

Office of Economic Policy also uses this data in its analysis of

interstate natural gas pipelines.

The Commission is submitting to the Office of Management and

Budget a notification of these collections of information. Under

the 1995 Recordkeeping Reduction Act, each of the forms being

revised or retained in this rule will carry the following notice:

"You shall not be penalized for failure to respond to this

collection of information unless the collection of information

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displays a valid OMB control number."

Interested persons may obtain information on these reporting

requirements by contacting the Federal Energy Regulatory

Commission, Washington, DC 20426 [Attention: Michael Miller,

Information Services Division, (202) 208-1415]. Comments on the

requirements of this rule can be sent to the Office of

Information and Regulatory Affairs of OMB, Washington, D.C.

20503, (Attention: Desk Officer for Federal Energy Regulatory

Commission) FAX: (202) 395-5167.

XIII. EFFECTIVE DATE AND TRANSITION PROVISIONS

This Final Rule is effective [insert 30 days after

publication in the Federal Recrister,] except for the changes to

the Uniform System of Accounts and Form Nos. 2, 2-A, and 11,

which will be effective January 1, 1996.

The NOPR proposed that the changes to the Uniform System of

Accounts and Form Nos. 2 and 2-A be made effective January 1,

1995. The remainder of the proposed rule, including changes to

Form No. 11, was proposed to be effective 30 days after

publication in the Federal Reaister. Numerous commenters

suggested that the effective dates for these changes be delayed

and implemented on a prospective basis.

INGAA, ANR, MRT, and El Paso suggest that the effective date

for the parts of the final rule that make changes to the Uniform

System of Accounts and Form Nos. 2 and 2-A should be the January

1 that falls at least 180 days after publication of the final

rule in the Federal Register. Other commenters suggest other

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prospective effective dates: (1) January 1 at least 90 days

subsequent to issuance of the final rule; ~110 January 1

following the year of issuance of the final rule; ~111 and

(3) January 1, 1996. ~112

Panhandle suggests that, prior to the issuance of the final

rule on changes in the storage accounting requirements, the

Commission conduct a field test of the final proposed storage

accounting guidelines with several interstate pipelines for two

or three months to thoroughly evaluate the associated benefits

and costs so that necessary revisions can be made. Panhandle

also suggests that a technical conference would be helpful.

AGA and Consumers Power suggest that all other revisions and

changes not be effective until 90 days after issuance of the

final rule. MRT seeks clarification that the remaining changes

are to take effect only after publication of the final rule in

the Federal Register and not after publication of the NOPR.

In response to the comments filed, as stated above, the

Commission is moving the effective date for the changes to the

Uniform System of Accounts and Form Nos. 2 and 2-A to January 1,

1996. In addition, to ensure a seamless transition to the new

Form No. 11 filing requirement, the Commission will make the

changes to Form No. 11 effective January 1, 1996. All other

changes adopted in the final rule will become effective 30 days

~110 AGA.

~111 Consumers Power.

~112 KN.

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after the final rule is published in the Federal Recister.

~113 The Commission believes that 30 days is an appropriate

time period.

The Commission believes the January 1, 1996 effective date

for the revisions to the Uniform System of Accounts and Form Nos.

2, 2-A, and 11 will provide adequate time for pipelines to adapt

to the requirements of the final rule and to make the necessary

modifications to their recordkeeping systems.

Since the Commission is permitting use of the fixed asset

and the inventory methods of accounting for system gas and has

simplified our accounting requirements for encroachments and

replacements of system gas under the fixed asset model, the

Commission sees no need to conduct a field test or to hold a

technical conference on our new storage accounting requirements.

A number of commenters raise a variety of implementation

issues resulting from the adoption of changes to Uniform System

of Accounts and Form Nos. 2 and 2-A in the final rule.

INGAA, Panhandle, and ANR ask the Commission to waive the

requirement to report prior year comparative data for the first

year of operation under the new requirements. They argue that

they need sufficient time to modify pipeline electronic formats

and various accounting and reporting systems. AGA suggests that

the comparative data requirement for the Statement of Retained

Earnings and Statement of Cash Flows should be delayed for one

~113 In response to Texas Intrastates, this includes the NGPA Section 311 material.

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year to avoid restating the prioryear and that sufficient time

should be provided to modify electronic hardware (local area

networks). Consumers Power suggests that the Commission consider

adopting transition provisions, which delay the comparative data

requirement, so that prior data would not have to be restated.

Since the Commission has postponed the effective date of the

changes to the accounting and Form Nos. 2 and 2-A reporting

requirements, pipelines will not have to recompute or restate

amounts related to 1995 transactions.

In response to concerns raised by commenters about the need

to restate prior year's account balances, the Commission will not

require such a restatement for FERC accounting and Form Nos. 2

and 2-A reporting purposes. To do so, would result in

retroactive application of the accounting and Form Nos. 2 and 2-A

rule changes contained in the final rule and would be

inconsistent with the accounting and Forms Nos. 2 and 2-A

reporting requirements in effect through December 31, 1995.

Rather than waiving the reporting of comparative data or

adopting transitional reporting pages, the Commission will permit

pipelines to use the previous data (1995) on the Form No. 2 or

Form No. 2-A reports for the 1996 reporting year filed in 1997.

The pipelines must footnote the place in the report where the

previous year's data is reported for the item. ~114 However,

~114 For example, the footnote should indicate in which Account

No. 489 subaccount the 1995 total for revenues from the

transportation of gas of others is reported.

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no amounts need to be reported for the previous year on schedules

302-307.

List of Subiects

18 CFR Part 2

Administrative practice and procedure, Electric power,

Natural gas, Pipelines, Reporting and recordkeeping requirements.

18 CFR Part 157

Administrative practice and procedure, Natural gas,

Reporting and recordkeeping requirements.

18 CFR Part 158

Administrative practice and procedure, Natural gas,

Reporting and recordkeeping requirements, Uniform System of

Accounts.

18 CFR Part 201

Natural gas, Reporting and recordkeeping requirements,

Uniform System of Accounts.

18 CFR Part 250

Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 260

Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 284

Continental shelf, Natural gas, Reporting and recordkeeping

requirements.

18 CFR Part 381

Electric power plants, Electric utilities, Natural gas

Reporting and recordkeeping requirements.

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18 CFR Part 385

Administrative practice and procedure, Electric power,

Penalties, Pipelines, Reporting and recordkeeping requirements.

By the Commission.

( S E A L )

Lois D. Cashell,

Secretary.

In consideration of the foregoing, the Commission is

amending Parts 2, 157, 158, 201, 250, 260, 284, 381, and 385,

Chapter I, Title 18, Code of Federal Reaulations, as set forth

below.

PART 2--GENERAL POLICY AND INTERPRETATIONS

1. The authority citation for part 2 continues to read as

follows:

Authority: 15 U.S.C. 717-717w, 3301-3432; 16 U.S.C. 791a825r, 2601-2645; 42 U.S.C. 4321-4361, 7101-7352.

B 2.104 [Amended]

2. In 4 2.104(a), the words "(other than under the grandfather

provisions of 5 284.105 or 4 284.223)" are removed.

PART 157--APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND

NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT

UNDER SECTION 7 OF TEE NATURAL GAS ACT

3. The authority citation for part 157 continues to read as

follows:

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Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-

7352.

5 157.53 [Amended]

4. In 5 157.53, the words "Drilling of gas or oil wells and t"

are removed from the section heading and the letter "T" is added

in their place, the words "drilling of gas or oil wells or for

the use in the" are removed from paragraph (a), and the words

"well or the" are removed from paragraph (b).

PART 158--ACCOUNTS, RECORDS, AND MEMORANDA

5. The authority citation for part 158 is revised to read as

follows:

Authoritv: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7102-

7352.

6. Section 158.10 is revised to read as follows:

5 158.10 Examination of Accounts.

All natural gas companies not classified as Class C or Class

D prior to January 1, 1984 shall secure for each year, the

services of an independent certified public accountant, or

independent licensed public accountant (licensed on or before

December 31, 1970), certified or licensed by a regulatory

authority of a State or other political subdivision of the United

States, to test compliance in all material respects of those

schedules that are indicated in the General Instructions set out

in the applicable Annual Report, Form No. 2 or Form No. 2-A, with

the Commission's Uniform System of Accounts and published

accounting releases. The Commission expects that identification

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of questionable matters by the independent accountant will

facilitate their early resolution and that the independent

accountant will seek advisory rulings by the Commission on such

items. This examination shall be deemed supplementary to

periodic Commission examinations of compliance.

7. Section 158.11 is revised to read as follows:

5 158.11 Report of certification.

Each natural gas company not classified as Class C or Class

D prior to January 1, 1984 shall file with the Commission a

letter or report of the independent accountant certifying

approval, together with the original and each copy of the filing

of the applicable Annual Report, Form No. 2 or Form No. 2-A,

covering the subjects and in the format prescribed in the General

Instructions of the applicable Annual Report. The letter or

report shall also set forth which, if any, of the examined

schedules do not conform to the Commission's requirements and

shall describe the discrepancies that exist. The Commission

shall not be bound by the certification of compliance made by an

independent accountant pursuant to this paragraph.

8. In section 158.12, the words "The Commission will not

recognize any certified public accountant or public accountant

through December 31, 1975, who is not in fact independent.

Beginning January 1, 1976, and each year thereafter, the" are

removed and the word "The" is added in their place.

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PART 201-UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR NATURAL

GAS COMPANIES SUBJECT TO THE PROVISIONS OF THE NATURAL GAS

ACT

9. The authority citation for Part 201 continues to read as

follows:

Authoritv: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-

7352, 7651-7651o.

10. In Part 201, Definitions, Definitions 13, 15, 16, 32B, 38,

and 39 are amended by removing the words "in the case of Major

natural gas companies," and Definition 29 is amended by removing

the words "(Major natural gas companies)."

11. In Part 201, General Instructions, paragraph 1 is revised to

read as follows:

General Instructions

1. Annlicabilitv. Each natural gas company must apply the

system of accounts prescribed by the Commission.

12. In Part 201, General Instructions, paragraphs 8, 12, 14, 15,

and 16, the words "(Major natural aas comoaniesl" are removed at

the end of each heading, and in the heading for paragraph 21, the

words "(Nonmaior Natural Gas Comoanies)" are removed.

13. In Part 201, Gas Plant Instructions, paragraph 1, the words

"Classification of utilities (Major natural gas companies) " are

removed from the heading and the words "Classification of gas

plant at the effective date of the system of accounts" are added

in their place.

14. In Part 201, Gas Plant Instructions, paragraph 3,

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introductory text, the words "For Major natural gas companies"

are removed and the words "A. The" are added in their place; the

words "(Major and Nonmajor Natural Gas Companies) " are removed

from paragraphs 3A.(17) and 3A.(19), and paragraph 3B. is

removed.

15. In Part 201, Gas Plant Instructions, paragraph 4C., the

words "For Major natural gas companies, the" are removed and the

word "The" is added in their place.

16. In Part 201, Gas Plant Instructions, paragraph 6A., the words

"(For Nonmajor companies, account 404, Amortization of LimitedTerm Gas Plant)" are removed.

17. In Part 201, Gas Plant Instructions, paragraphs 7C. and 7E.,

the words "or in the case of Major companies," are removed.

18. In Part 201, Gas Plant Instructions, paragraph 7D., the words

"In the case of Major companies, a parcel," are removed and the

words "A parcel" are added in their place.

19. In Part 201, Gas Plant Instructions, paragraph 7G., the words

"in the case of Major companies," are removed.

20. In Part 201, Gas Plant Instructions, paragraph 7H., the words

"(For Major companies, see," are removed and the word "(See" is

added in its place, and the two sentences "For Nonmajor

companies, see account 403.1, Depreciation and Depletion Expense,

and account 110, Accumulated Provision for Depreciation,

Depletion and Amortization of Gas Utility Plant. See also

account 797, Abandoned Leases, for the accounting for

abandonments of natural gas leases which have never been

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productive" are removed and the words ", and account 797,

Abandonment, leases" are added in their place.

21. In Part 201, Gas Plant Instructions, paragraph BG., the words

"(Major natural gas companies)" are removed at the end of Items

261112181922282932'5~36~3940414244

45, 47, 49, 52, 53, 55, 58, 60, 61, 62, 64, 65, 66, and 67.

18. In Part 201, Gas Plant Instructions, paragraph 10E., the

words "or in the case of Major companies," immediately following

the words "Gas Plant Held for Future Use" are removed.

22. In Part 201, Gas Plant Instructions, paragraph 10F., the

words "(account 110, Accumulated Provision for Depreciation,

Depletion and Amortization of Gas Utility Plant, in the case of

Nonmajor companies)" and the words "(account 110 for Nonmajor

companies)" are removed.

23. In Part 201, Gas Plant Instructions, paragraph 10G., the

words "In the case of Major companies, the accounting for" are

removed and the words "The accounting for" are added in their

place.

24. In Part 201, Gas Plant Instructions, paragraph 11C, the words

"In the case of Major companies, each utility" are removed and

the words "Each utility" are added in their place.

25. In Part 201, Gas Plant Instructions, paragraph 12, the words

"(105.1, Production Properties Held for Future Use, in the case

of Major companies)" are removed and the words "105.1, Production

Properties held for Future Use," are added in their place, and

the words "(Major Companies)" in the note are removed.

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26. In Part 201, Gas Plant Instructions, paragraph 14, the words

"(Major natural gas companies)" are removed at the end of the

heading.

27. In Part 201, Gas Plant Instructions, paragraph 15A., the

words "(account 180, Other Deferred Debits, in the case of

Nonmajor companies)" are removed from paragraph A.(1), the words

"(the amounts recorded in account 186 shall be cleared to the

appropriate plant accounts, in the case of Nonmajor companies)"

are removed from paragraph A.(2), and the words "(Account 180 in

the case of Nonmajor companies)" are removed from paragraph

A.(3) .

28. In Part 201, Gas Plant Instructions, paragraph 16 is removed.

29. In Part 201, Operating Expense Instructions, paragraph 1, the

words "(Major natural gas companies)" at the end of the heading

are removed.

30. In Part 201, Balance Sheet Chart of Accounts, and Balance

Sheet Accounts, the words "(Major only)" at the end of the

headings of Accounts 103, 105.1, 106, 108, 111, 115, 117, 123,

123.1, 125, 126, 128, 131 through 135, 151 through 153, 155, 156,

163, 164.3, 166, 167, 171 through 173, 183.1, 183.2, 184, 185,

188, 202, 203, 205 through 210, 216.1, 222, 238 through 241 are

removed.

31. In Part 201, Balance Sheet Chart of Accounts, and Balance

Sheet Accounts, Accounts 103.1, 110, 117, 129, 130, and 218 are

removed, and in Balance Sheet Chart of Accounts, Accounts 117.1

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through 117.4 and their respective titles are added to read as

follows:

Balance Sheet Chart of Accounts

117.1 Gas stored-Base gas.

117.2 System balancing gas.

117.3 Gas stored in reservoirs and pipelines-noncurrent.

117.4 Gas owed to system gas.

32. In Part 201, Balance Sheet Accounts, Account 116, paragraph

A, the words "For major companies, see" are removed, and the word

"See" is added in their place.

33. In Part 201, Balance Sheet Accounts, Account 117 is removed,

and new Special Instructions and Accounts 117.1, 117.2, 117.3,

and 117.4 are added to read as follows:

Balance Sheet Accounts

Special Instructions to

Accounts 117.1, 117.2 and 117.3.

The investment in and use of system gas included in Account

117.1, Gas Stored — Base Gas, and Account 117.2, System Balancing

Gas, may be accounted for using either the "fixed asset" method

or an "inventory" method as set forth below. The cost of stored

gas included in Account 117.3 must be accounted for using an

inventory method.

(a) Inventorv Method — Gas stored during the year must be priced

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at cost according to generally accepted methods of cost

determination consistently applied from year to year.

Transmission expenses for facilities of the utility used in

moving the gas to the storage area and expenses of storage

facilities cannot be included in the inventory of gas except as

may be authorized or directed by the Commission

Withdrawals of gas must be priced using the first-in-firstout, last-in-first-out, or weighted average cost method, provided

the method adopted by the utility is used consistently from year

to year and appropriate inventory records are maintained.

Approval of the Commission must be obtained for any other pricing

method, or change in the pricing method adopted by the utility.

(b) Fixed Asset Method — The cost of system gas designated by the

Commission as available for transmission load balancing and other

uses associated with maintaining efficient transmission

operations must be determined from the book balances on the date

of adoption of the "fixed asset" method. If at the date of

adoption, the actual volumes are less than the maximum volumes

authorized by the Commission, the deficient volumes are to be

priced at the current market price with an equal amount being

credited to Account 117.4.

Withdrawals that encroach upon the designated volumes must

be priced at an amount equal to the current market price of gas

available to the utility. Account 808.1, Gas withdrawn from

storage — debit, must be charged with such amount and Account

117.4, Gas owed to system gas, credited.

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For the purpose of these instructions, current market price

is the delivered spot price of gas in the utility's supply area,

as published in a recognized industry journal. The publication

used must be the same one identified in the utility's tariff for

use in its cash-out provision, if it has one. If the utility

does not have a cash-out provision, it must use one publication

consistently and identify the publication in its records.

When replacement of the gas is made, the amount carried in

Account 117.4 for such volumes must be cleared and Account 808.2,

Gas delivered to storage — credit. Any difference between the

utility's cost of replacement gas volumes and the amount cleared

from Account 117.4 must be recognized as a gain in Account 495,

Other gas revenues, or as a loss in Account 813, Other gas supply

expenses, with contra entries to Account 808.2.

Gas owned by the utility and injected into its system will

be deemed to satisfy any encroachment on system gas first before

any other use.

117.1 Gas stored-Base gas.

This account is to include the cost of recoverable gas

volumes that are necessary, in addition to those volumes for

which cost are properly includable in Account 101, Gas plant in

service, to maintain pressure and deliverability requirements for

each storage facility. Nonrecoverable gas volumes used for this

purpose are to be recorded in Account 352.3, Nonrecoverable

natural gas. For utilities using the fixed asset method of

accounting, the cost of base gas applicable to each gas storage

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facility shall not be changed from the amount initially recorded

except to reflect changes in volumes designated as base gas. If

an inventory method is used to account for gas included herein,

the utility may, at its election, price withdrawals in accordance

with the instructions to Account 117.4.

117.2 System balancing gas.

This account is to be used to record the cost of system gas

designated as available for transmission load balancing

(including no-notice transportation) and other uses associated

with maintaining efficient transmission operations other than gas

properly recordable in Account 117.1 or the plant accounts.

Detailed records must be kept separately identifying volumes and

unit prices of system gas held in underground storage facilities

and held in pipelines.

For utilities using fixed asset accounting, the cost

initially recorded herein cannot be changed except for

adjustments to volumes designated as system gas. Encroachments

upon system gas must be accounted for in accordance with the

instructions to Account 117.4, Gas owed to system gas.

117.3 Gas stored in reservoirs and pipelines-noncurrent.

This account is to include the cost of stored gas owned by

the utility and available for sale or other purposes. Gas

included in this account must be accounted for using an inventory

method in accordance with the Special Instructions to Accounts

117.1, 117.2, and 117.3 above.

117.4 Gas owed to system gas.

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This account is to be used to record encroachments of system

gas under the fixed asset method. This account may also be used

to record encroachments of base gas for utilities electing to use

an inventory method of accounting for system gas. Utilities may

revolve cumulative net imbalances, net all transactions, and

record one monthly entry with one month-end price for valuation

purposes.

34. In Part 201, Balance Sheet Accounts, Account 154, the words

"For Nonmajor utilities, this account shall include the cost of

fuel on hand and unapplied materials and supplies (except meters

and house regulators). For both Major and Nonmajor utilities, it

shall" are removed from the introductory text of paragraph A,

paragraph C and Note B are removed, Note A is redesignated Note,

and the words "they may be charged to a stores expense clearing

account (account 163, Stores Expenses Undistributed, in the case

of Major Utilities), and distributed therefrom to the appropriate

accounts" in redesignated Note are removed and the words "they

shall be charged to account 163, Stores expenses Undistributed"

are added in their place.

35. In Part 201, Balance Sheet Accounts, Account 164.1 is

revised to read as follows:

Balance Sheet Accounts

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164.1 Gas stored-current.

This account shall be debited with such amounts as are

credited to Account 117.2, System balancing gas, (for utilities

using an inventory method of accounting for system gas) and

Account 117.3, Gas Stored in Reservoirs and Pipelines-Noncurrent,

to reflect classification for balance sheet purposes of such

portion of the inventory of gas stored as represents a current

asset according to conventional rules for classification of

current assets.

Note: It shall not be considered conformity to conventional

rules of current asset classification if the amount included in

this account exceeds an amount equal to the cost of estimated

withdrawals of gas from storage within the 24-month period from

date of the balance sheet, or if the amount represents a volume

of gas which, in fact, could not be withdrawn from storage

without impairing pressure levels needed for normal operating

purposes.

36. In Part 201, Balance Sheet Accounts, Accounts 164.2,

paragraph D and 164.3, paragraph D, the words "Mcf" and "Mcf (or

Btu)," respectively, are removed, and the words "Dth" are added

in their place.

37. In Part 201, Balance Sheet Accounts, Account 174, the current

text is designated paragraph A, and a paragraph B is added to

read as follows:

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Balance Sheet Accounts

230

174 Miscellaneous current and accrued assets.

A. This account shall include the book cost of all other

current and accrued assets, appropriately designated and

supported so as to show the nature of each asset included

therein.

B. The utility is to include in a separate subaccount

amounts receivable for gas in unbalanced transactions where gas

is delivered to another party in exchange, load balancing, or nonotice transportation transactions. (See Account 806.) If the

amount receivable is settled by other than gas, Account 495,

Other Gas Revenues must be credited or Account 813, Other Gas

Supply Expenses, charged for the difference between the amount of

the consideration received and the recorded amount of the

receivable settled. Records are to be maintained so that there

is readily available for each party entering gas exchange, load

balancing, or no-notice transportation transactions, the quantity

and cost of gas delivered, and the amount and basis of

consideration received, if other than gas.

38. In Part 201, Balance Sheet Accounts, Account 186, the words

"For Major companies, this account shall" are removed from

paragraph A, and the words "This account shall" are added in

their place, paragraph B is removed, paragraph C is redesignated

as paragraph B, and all the words in parenthesis in redesignated

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paragraph B are removed.

39. In Part 201, Balance Sheet Accounts, Accounts 201 through

204, Note, the words "(For Nonmajor companies, account 211,

Miscellaneous Paid-In Capital) " are removed.

40. In Part 201, Balance Sheet Accounts, Account 211, the words

"(In the case of Nonmajor companies, this account shall be kept

so as to show the source of the credits includible herein)" are

removed, the ITEMS section and Note B are removed, Note A is

redesignated Note, and the words "(Major companies) " are removed

from the heading of redesignated Note.

41. In Part 201, Balance Sheet Accounts, Account 242, the current

text is designated paragraph A, a paragraph B is added, and the

Items section is removed to read as follows:

Balance Bheet Accounts

242 Miscellaneous current and accrued liabilities.

A. This account shall include the amount of all other

current and accrued liabilities not provided for elsewhere

appropriately designated and supported as to show the nature of

each liability.

B. The utility is to include in a separate subaccount

amounts payable for gas in unbalanced transactions where gas is

received from another party in exchange, load balancing, or nonotice transportation transactions. (See Account 806.) If the

amount payable is settled by other than gas, Account 495, Other

Gas Revenues, must be credited or Account 813, Other gas supply

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expenses, charged for the difference between the amount of the

consideration paid and the recorded amount of the payable

settled. Records are to be maintained so that there is readily

available for each party entering gas exchange, load balancing,

or no-notice transportation transactions, the quantity and cost

of gas received and the amount and basis of consideration paid if

other than gas.

42. In Part 201, Gas Plant Chart of Accounts and Gas Plant

Accounts, the words "(Major only)" at the end of each title of

Accounts 363, 363.1 through 363.4, and 364.1 through 364.8 are

removed.

43. In Part 201, Gas Plant Accounts, Accounts 302, paragraph C,

and 303, paragraph B, the words "(For Nonmajor Companies; account

110, Accumulated Provisions for Depreciation, Depletion and

Amortization of Gas Utility Plant)" following the words "Gas

Utility Plant" are removed.

44. In Part 201, Gas Plant Accounts, Account 352.3, paragraph B

is revised to read as follows:

Gas Plant Accounts

352.3 Nonrecoverable natural gas

B. Such nonrecoverable gas shall be priced at cost

according to generally accepted methods of cost determination

consistently applied. (See the Special Instructions to Accounts

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117.1, 117.2, and 117.3.

233

45. In Part 201, Income Chart of Accounts and Income Accounts,

Accounts 403, 404.1, 404.2, 404.3, and 418.1, the words "(Major

only}" are removed from the end of the headings.

46. In Part 201, Income Chart of Accounts, Accounts 403.1 and 404

are removed.

47. In Part 201, Income Accounts, Accounts 421.1 and 421.2, the

words "(Major only)" are removed.

48. In Part 201, Operating Revenue Chart of Accounts, Account 489

and its respective title is removed, and Accounts 489.1 through

489.4 and their respective titles are added to read as follows:

operating Revenue Chart of Accounts

489.1 Revenues from transportation of gas of others through

gathering facilities.

489.2 Revenues from transportation of gas of others through

transmission facilities.

489.3 Revenues from transportation of gas of others through

distribution facilities.

489.4 Revenues from storing gas of others.

49. In Part 201, Operating Revenue Chart of Accounts and

Operating Revenue Accounts, Account 482, the words "(Major only)"

are removed at the end of the headings.

50. In Part 201, Operating Revenue Accounts, Account 481,

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paragraph C, the words "(Major companies) " are removed from the

introductory text, and the word "Mcf" is removed and the word

"Dth" is added in its place.

51. In Part 201, Operating Revenue Accounts, Account 488, Item 3,

the words "For Major Companies, see," are removed and the word

"See" is added in its place.

52. In Part 201, Operating Revenue Accounts, Account 489 is

removed, and new Accounts 489.1, 489.2, 489.3, and 489.4 are

added to read as follows:

Operating Revenue Accounts

489.1 Revenues from transportation of gas of others through

gathering facilities.

This account includes revenues from transporting gas for

other companies through the gathering facilities of the utility.

489.2 Revenues from transportation of gas of others through

transmission facilities.

This account includes revenues from transporting gas for

other companies through the transmission facilities of the

utility.

489.3 Revenues from transportation of gas of others through

distribution facilities.

This account includes revenues from transporting gas for

other companies through the distribution facilities of the

utility.

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489.4 Revenues from storing gas of others.

This account includes revenues from storing gas for other

companies.

53. In Part 201, Operating Revenue Accounts, Account 491,

paragraph B is revised to read as follows:

Operating Revenue Accounts

491 Revenues from natural gas processed by others.

B. The records supporting this account must be maintained

so that full information concerning determination of the revenues

will be readily available concerning each processor of gas of the

utility, including as applicable (a) the Dth of gas delivered to

such other party for processing, (b) the Dth of gas received back

from the processor, (c) the field, general production area , or

other source of the gas processed, (d) Dth of gas used for

processing fuel, etc., which is chargeable to the utility, (e)

total gallons of each product recovered by the processor and the

utility's share thereof, (f) the revenues accruing to the

utility, and (g) the basis of determination of the revenues

accruing to the utility. Such records shall be maintained even

though no revenues are derived from the processor.

54. In Part 201, Operating Revenue Accounts, Account 495 is

revised to read as follows:

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Operating Revenue Accounts

236

495 Other gas revenues.

This account includes revenues derived from gas operations

not includible in any of the foregoing accounts.

ITEMS

1. Commission on sale or distribution of gas of others when

sold under rates filed by such others.

2. Compensation for minor or incidental services provided

for others such as customer billing, engineering, etc.

3. Profit or loss on sale of material and supplies not

ordinarily purchased for resale and not handled through

merchandising and jobbing accounts.

4. Sales of steam, water, or electricity, including sales or

transfers to other departments of the utility.

5. Miscellaneous royalties received.

6. Revenues from dehydration and other processing of gas of

others, except products extraction where products are received as

compensation and sales of such are includible in account 490,

Sales of Products Extracted From Natural Gas, and except

compression of gas of others, revenues from which are includible

in accounts 489.1, 489.2, or 489.3, Revenues from Transportation

of Gas of Others.

7. Include in a separate subaccount, revenues in payment for

rights and/or benefits received from others which are realized

through research, development, and demonstration ventures.

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8. Include in a separate subaccount, gains on settlements of

imbalance receivables and payables (See Accounts 174 and 242) and

gains on replacement of encroachment volumes (See Account 117.4).

Records must be maintained and readily available to support the

gains included in this account.

9. Include in a separate subaccount revenues from penalties

earned pursuant to tariff provisions, including penalties

associated with cash-out settlements.

55. In Part 201, Operation and Maintenance Expense Chart of

Accounts and Operation and Maintenance Expense Accounts, the

words "(Major only)" are removed at the end of each title of

Accounts 700 through 708, 711 through 724, 725 through 729, 730,

732 through 735, 740 through 742, 751 through 754, 756, 757, 761,

762, 765 through 769, 770 through 775, 777 through 791, 800, 801

through 804.1, 806, 809.1, 809.2, 810 through 812, 815 through

822, 824, 830, 831, 833 through 837, 840 through 847.8, 851

through 853, 854 through 857, 859, 861, 862, 865 through 867, 871

through 873, 875 through 877, 880, 885 through 892, 894, 901,

905, 907 through 913, and 916.

56. In Part 201, Operation and Maintenance Expense Chart of

Accounts and Operation and Maintenance Expense Accounts, Accounts

724 1~ 7291'37~743~7691/792~ 799~

8121'27~838~839'53.1,

857.1, 868, 880.1, 892.1, 895, 906, 917, and 933 are

removed, and Account 935 is redesignated Account 932.

57. In Part 201, Operation and Maintenance Expense Accounts,

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Account 710, the words "For Major companies, this" are removed

from paragraph A, and the word "This" is added in its place, and

paragraph B and the Items section are removed.

58. In Part 201, Operation and Maintenance Expense Accounts,

Account 731A and 731B, the words "(for Nonmajor companies,

account 154, Plant Materials and Operating Supplies}" are

removed.

59. In Part 201, Operation and Maintenance Expense Accounts,

Account 750, the words "For Major companies, this" in paragraph A

are removed and the word "This" is added in their place, and in

paragraph B, the headings "Major and Nonmajor" and "Nonmajor

Only" under Items, and Items 5 through 21 are removed.

60. In Part 201, Operation and Maintenance Expense Accounts,

Account 755, the words "stations (including in the case of Major

companies, applicable amounts of fuel stock expenses)" in

paragraph A are removed and the words "stations, including

applicable amounts of fuel stock expenses" are added in their

place, the words "For Major companies, respective" in paragraph B

are removed and the word "Respective" is added in their place,

Note B is removed, Note A is redesignated Note, and the words

"Major Companies" is removed from redesignated Note.

61. In Part 201, Operation and Maintenance Expense Accounts,

Account 759, the words "(Major companies only)" in the

introductory text are removed, the headings "Major only" and

"(Nonmajor companies):" in the Items section are removed, and

Items 1 through 18 following Item 5 are removed.

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62. In Part 201, Operation and Maintenance Expense Accounts,

Account 776, the words "in the case of Major companies," the

words "(Major only)" following the heading "Items", and the Note

at the end of the account are removed.

63. In Part 201, Operation and Maintenance Expense Accounts,

Account 795, Note, the words "(in the case of Nonmajor Companies,

account 105, Gas Plant Held for Future Use)" are removed.

64. In Part 201, Operation and Maintenance Expense Accounts,

Account 796, Note A, the words "(in the case of Nonmajor

companies, General Instruction 21, Gas Well Records)" following

the words "Each Plant" are removed.

65. In Part 201, Operation and Maintenance Expense Accounts,

Account 797, paragraph A, the words "For Major companies, this"

are removed, the word "This" is added in their place, and the

sentence following the word "productive." is removed, and in

paragraph B, the words "(Major only) " are removed.

66. In Part 201, Operation and Maintenance Expense Accounts,

Account 798, the words "for Major companies," and the words "for

"Nonmajor companies, see account 186, Miscellaneous Deferred

Debits" are removed.

67. In Part 201, Operation and Maintenance Expense Accounts,

Account 805, a new paragraph C is added to read as follows:

Operation and Maintenance Expense Accounts

805 Other gas purchases

* * * * *

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C. Utilities recognizing revenue for shipper-supplied gas

must include the current market price of such gas in this

account. Current market price is the delivered spot price of gas

in the utility's supply area, as published in a recognized

industry journal. The publication used must be the same one

identified in the pipeline's tariff for use in its cash-out

provision, if it has one. If it has no cash-out provision, the

utility must use one publication consistently. Contra entries to

those recorded herein must be made to the appropriate

transportation revenue account (Account 489.1 through Account

489.4). Records are to be maintained and readily available that

include the name of shipper, quantity of gas , and the

publication and price used to value shipper-supplied gas.

68. In Part 201, Operation and Maintenance Expense Accounts,

Account 806 is revised to read as follows:

Operation and Maintenance Expense Accounts

* * * * *

806 Exchange gas

A. This account includes debits or credits for the cost of

gas in unbalanced transactions where gas is received from or

delivered to another party in exchange, load balancing, or nonotice transportation transactions. The costs are to be

determined from the current market price of gas at the time gas

is tendered for transportation. (See the Special Instructions to

Accounts 117.1, 117.2, and 117.3 for the definition of the

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current market. price of gas.) Contra entries to those in this

account are to be made to account 174, Miscellaneous Current and

Accrued Assets, for gas receivable and to account 242,

Miscellaneous Current and Accrued Liabilities, for gas

deliverable under such transactions. Such entries must be

reversed and appropriate contra entries made to this account when

gas is received or delivered in satisfaction of the amounts

receivable or deliverable.

B. Records must be maintained so that there is readily available

for each party entering gas exchange, load balancing, or nonotice transportation transactions, the quantity and cost of gas

delivered and received.

69. In Part 201, Operation and Maintenance Expense Accounts,

Account 807, paragraph D, the words "(Major companies") are

removed.

70. In part 201, Operation and Maintenance Expense Accounts,

paragraph A of Accounts 808.1 and 808.2 are revised to read as

follows:

Operation and Maintenance Expense Accounts

808.1 Gas withdrawn from storage-Debit

A. This account shall include debits for the cost of gas

withdrawn from storage during the year. Contra credits for

entries to this account shall be made to accounts 117.3 Gas

Stored in Reservoirs and Pipelines-Noncurrent, or account 117.4,

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Gas Owed to System Gas, or account 164.2, Liquefied Natural Gas

Stored, as appropriate. (See the Special Instructions to

accounts 117.1, 117.2, and 117.3).

808.2 Gas delivered to storage-Credit

A. This account shall include credits for the cost of gas

delivered to storage during the year. Contra debits for entries

to this account shall be made to accounts 117.3 Gas Stored in

Reservoirs and Pipelines-Noncurrent, account 117.4, Gas Owed to

System Gas, or account 164.2, Liquefied Natural Gas Stored, as

appropriate. (See the Special Instructions to accounts 117.1,

117.2, and 117.3).

71. In Part 201, Operation and Maintenance Expense Accounts,

Account 813, the current text is designated paragraph A, the

words ", in the case of Major companies," are removed from

redesignated paragraph A, and a new paragraph B is added to read

as follows:

Operation and Maintenance Expense Accounts

813 Other gas supply expenses

B. Include in separate subaccounts: (1) losses on

settlements of imbalance receivables and payables (See Account

174 and 242) and losses on replacement of encroachment volumes

(See the Special Instructions to Accounts 117.1, 117.2 and

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117.3); (2) revaluations of storage encroachments; and (3) system

gas losses not associated with storage. Appropriate records must

be maintained and readily available that include the amount of

losses and associated volumes in Dth.

72. In Part 201, Operation and Maintenance Expense Accounts,

Account 814, paragraph B and the Items (Nonmajor only) section

are removed, and in paragraph A, the designation "A." and the

words "For Major companies, this" are removed and the word "This"

is added in their place.

73. In Part 201, Operation and Maintenance Expense Accounts,

Account 823, the words "For Major companies, see" are removed and

the word "See" is added in their place.

74. In Part 201, Operation and Maintenance Expense Accounts,

Account 845.6B, the words "Mcf or Dth, as appropriate," are

removed and the word Dth is added in their place.

75. In Part 201, Operation and Maintenance Expense Accounts,

Account 850, paragraph B and the Items (Nonmajor only) section

are removed, and in paragraph A, the designation "A." and the

words "For Major companies, this" are removed and the word "This"

is added in their place.

76. In Part 201, Operation and Maintenance Expense Accounts,

Accounts 853.1B and 854B, the word "Mcf" is removed and the word

"Dth" is added in its place.

77. In Part 201, Operation and Maintenance Expense Accounts,

Account 858, paragraph B, the word "Mcf" is removed and the word

"Dth" is added in its place.

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78. In Part 201, Operation and Maintenance Expense Accounts,

Account 870, the words "(Major only) " are removed, and the words

"For Major companies, see" are removed, and in their place the

word eSee" is added.

79. In Part 201, Operation and Maintenance Expense Accounts,

Account 874, Items, the words "(Major only)" in the heading

"Labor" are removed, the heading "Labor (Nonmajor only):" and

Items 1 through 3 under that heading are removed, the words

"(Major and Nonmajor):" in the heading "Materials and Expenses"

are removed, and the words "(Major only)" are removed from Items

2, and 8 through 12 under that heading.

80. In Part 201, Operation and Maintenance Expense Accounts,

Account 878, Items, the words "(Major only)" are removed at the

end of each Item 1 through 12 and 20.

81. In Part 201, Operation and Maintenance Expense Accounts,

Account 879, Items, the words "(Major only)" are removed at the

end of Items 1, 2, 4, 5, 6, 9, and 11 through 13.

82. In Part 201, Operation and Maintenance Expense Accounts,

Account 902, Items, Items 13 and 14 are removed, and a new Item

13 is added to read as follows:

Operation and Maintenance Expense Accounts

902 Meter reading expenses

13. Transportation, meals and incidental expenses.

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83. In Part 201, Operation and Maintenance Expense Accounts,

Account 903, the words "(Major only) " at the end of Item 26 are

removed, and Items 31 and 32 are removed.

84. In Part 201, Operation and Maintenance Expense Accounts,

Account 924, the words "For Major companies, it" are removed from

paragraph A and the word "It" is added in their place, the words

"(stores expenses in the case of Nonmajor companies)" are removed

from paragraph (1) of Note B, in paragraph (2) of Note B, the

words "For Major companies, transportation" are removed and the

word "Transportation" is added in their place, and the words "For

Nonmajor companies, transportation and garage equipment, to

account 933, Transportation expenses." are removed, and the words

"(Major only)" are removed from the title of Note C.

85. In Part 201, Operation and Maintenance Expense Accounts,

Account 925, paragraph A, the words "For Major Companies, it" are

removed and the word "It" is added in their place.

86. In Part 201, Operation and Maintenance Expense Accounts,

Account 926, paragraph D, the words "For Major companies,

records" are removed and the word "Records" is added in their

place.

87. In Part 201, Operation and Maintenance Expense Accounts,

Account 930.2, Item 4, the words "For Major Companies, research"

are removed and the word "Research" is added in its place, and

the words "For Nonmajor companies, experimental and general

research work for the industry." are removed.

88. In Part 201, Operation and Maintenance Expense Accounts,

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Account 935 is redesignated Account 932, and redesignated Account

932 is amended by removing the words "For Nonmajor companies,

include also other general equipment accounts (not including

transportation equipment)." in paragraph A, revising paragraph B,

and adding the Note to read as follows:

Operation and Maintenance Expense Accounts

932 Maintenance of general plant.

Manufactured Gas Production, accounts 708, 742.

Natural Gas Production and Gathering, account 769

Natural Gas Production Extraction, account 791

Underground Storage, account 837

Local Storage, account 846.2

Transmission Expenses, account 867

Distribution Expenses, account 894

Merchandising and Jobbing, account 416

Garage, Shops, etc. — appropriate clearing account, if used.

Note: Maintenance of plant included in other general plant

equipment accounts shall be included herein unless charged to

clearing accounts or to a particular functional maintenance

expense indicated by the use of the equipment.

PART 250 -- FORMS

89. The authority citation for part 250 continues to read as

follows:

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Authority: 15 U.S.C. 717 - 717w, 3301 — 3432; 42 U.S.C.

7101-7352.

90. Section 250.2 is revised to read as follows:

5 250.2 Form of proposed cancellation of tariff or part thereof

(see 5 154.602 of this chapter).

When cancelling an entire tariff or an entire rate schedule,

the notice of cancellation as set forth below must be filed as a

revised tariff sheet superseding the first tariff sheet in the

sequence of tariff sheets containing the tariff or part of the

tariff being cancelled. When cancelling an individual tariff

sheet, the tariff sheet should be designated as reserved for

future use.

CANCELLATION OF ENTIRE TARIFF

Notice is hereby given that effective

(date) FERC Gas Tariff of

(Name of Company) is to be cancelled.

CANCELLATION OF RATE SCHEDULE

Notice is hereby given that effective

(date) Rate Schedule -- -- -- -- -- constituting

Sheet(s) No.(s) -- -- -- of the FERC Gas

Tariff of -- -- -- -- -- -- -- -- (Name of Company) is

to be cancelled.

91. Section 250.3 is revised to read as follows:

5 250.3 Form of proposed cancellation or termination of contract

or part thereof (see 5 154.602 of this chapter).

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Notice is hereby given that effective the

day of -- -- -- --I

-- I the contract with I

(Name of customer or customers) dated -- -- -- -- and

relating to service under rate schedules(s)

(Here identify the rate schedule(s), giving sheet numbers in the

Tariff) is to be -- -- -- -- -- -- -- -- -- (Specify

whether it automatically terminates by its terms or is to be

canceled by action of the parties) -- -- -- -- -- (Name of

natural-gas company filing notice)

BY

(Title)

Datwd —-- —-- —-- —=

92. Section 250.4 is revised to read as follows:

5 250.4 Form of certificate of adoption (see 5 154.603 of this

chapter).

The

(Exact name of company or person)

(Address) effective

(Effective date of adoption)

hereby adopts, ratifies, and makes its own, in every respect, the

Tariff and contracts listed below, which have heretofore been

filed with the Federal Energy Regulatory Commission by

(Exact name of predecessor)

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(Here identify the

Tariff and contracts adopted.)

(Name of successor)

BY

(Title)

Dated

55 250.5, 250.7, 250.8, 250.9, 250.10, 250. 12, and 250. 14

[Removed]

93. Sections 250.5, 250.7, 250.8, 250.9, 250.10, 250.12, and

250.14 are removed and reserved.

94. In 5 250.16, the words "941 North Capitol Street, NE.," are

removed from paragraphs(c)(3) and (d)(2), and paragraph (d)(1) is

revised to read as follows:

5 250. 16 Pormat of compliance plan for transportation services

and affiliate transactions.

(d) Transoortation Discount Information. (1) A pipeline that

provides transportation service at a discounted rate must

maintain, for each billing period, the following information:

the name of the shipper being provided the discount; the

affiliate's role in the transportation transaction (i.e.,

shipper, marketer, supplier, seller); the duration of the

discount; the maximum rate or fee; the rate or fee actually

charged during the billing period; and the quantity of gas

scheduled at the discounted rate during the billing period for

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each delivery point. The discount information with respect to

each transaction must be maintained for three years from the date

the transaction commences.

PART 260 — STATEMENTS AND REPORTS (SCHEDULES)

95. 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.

96. In 5 260.1, paragraph (a) is amended by adding a heading, and

by removing the words "for the reporting year 1980 and

thereafter", and paragraph (b) is revised to read as follows:

5260.1 FERC Form No. 2, Annual report for Major natural gas

companies.

(a) Prescriotion. * * *

(b) Filina recuirements. Each natural gas company, as

defined in the Natural Gas Act (15 U.S.C. 717, et seq.) which is

a major company (a natural gas company whose combined gas

transported or stored for a fee exceeded 50 million Dth in each

of the three previous calendar years) must prepare and file with

the Commission, on or before April 30 following the close of each

calendar year, FERC Form No. 2. Newly established entities must

use projected data to determine whether FERC Form No. 2 must be

filed. The form must be filed electronically as indicated in the

general instructions set out in that form. The format for the

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electronic filing can be obtained at the Federal Energy

Regulatory Commission, Division of Information Services, Public

Reference and Files Maintenance Branch, Washington, D.C. 20426.

One copy of the report must be retained by the respondent in its

files. The conformed copies may be by any legible means of

reproduction.

97. In 4 260.2, paragraph (a) is amended by removing the words

"for the year 1980 and each year thereafter", and paragraph (b}

is revised to read as follows:

5 260.2 FERC Form No. 2-A, Annual report for Nonmajor natural

gas companies.

(b) Filina reauirements. Each natural gas company, as

defined by the Natural Gas Act, not meeting the filing threshold

for FERC Form No. 2, but having total gas sales or volume

transactions exceeding 200,000 Dth in each of the three previous

calendar years, must prepare and file with the Commission, on or

before March 31 following the close of each calendar year, FERC

Form No. 2-A. Newly established entities must use projected data

to determine whether FERC Form No. 2-A must be filed. The form

must be filed electronically as indicated in the general

instructions set out in that form. The format for the electronic

filing can be obtained at the Federal Energy Regulatory

Commission, Division of Information Services, Public Reference

and Files Maintenance Branch, Washington, D.C. 20426.

98. Section 260.3 is revised to read as follows:

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5260.3 FERC Form No. 11, Natural gas pipeline company quarterly

statement of monthly data.

(a) This form, which is applicable to natural gas companies

— — — designated herein, is designed to obtain on a quarterly basis

monthly information concerning selected revenues and associated

quantities.

(b)(1) Who must file. Each natural gas company, as defined

in the Natural Gas Act, whose gas transported or stored for a fee

exceeded 50 million Dth in each of the three previous calendar

years, must prepare and file with the Commission FERC Form No.

11. The form must be filed electronically. The format for the

electronic filing can be obtained at the Federal Energy

Regulatory Commission, Division of Information Services, Public

Reference and Files Maintenance Branch, Washington, D.C. 20426.

(2) When to file. The reports must be filed quarterly on

February 14 for data for the three months ending December 31, on

May 15 for data for the three months ending March 31, on August

14 for data for the three months ending June 30, and on November

14 for data for the three months ending September 30. Each

report must be signed by the person authorized to sign such

report, but is not required to be filed under oath.

5 260.4 [Removed]

99. Section 260.4 is removed and reserved.

100. In 5 260.9, the introductory text of paragraph (b), and

paragraphs (c) and (e) are revised to read as follows:

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 253

6260.9 Report by natural gas pipeline companies on service

interruptions occurring on the pipeline system.

(b) Natural gas pipeline companies must report such

interruptions to service by any electronic means, including

facsimile transmission or telegraph, to the Director, Division of

Environmental and Engineering Review, Office of Pipeline

Regulation, Federal Energy Regulatory Commission, Washington, DC

20426 (FAX: (202) 208-2853), at the earliest feasible time

following such interruption to service, and must state briefly:

(c) If so directed by the Commission or the Director,

Division of Environmental and Engineering Review, the company

must provide any supplemental information so as to provide a full

report of the circumstances surrounding the occurrence.

* * * * *

(e) Copies of the telegraphic or facsimile report on

interruption of service must be sent to the State commission in

those States where service has been or might be affected.

55 260.11, 260. 13, and 260.15 [Removed]

101. Sections 260.11, 260.13, and 260.15 are removed and

reserved.

PART 284 —CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER

THE NATURAL GAB POLICY ACT OF 1978 AND RELATED AUTHORITIES

102. The authority citation for part. 284 continues to read as

follows:

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Docket No. RM95-4-000 254

Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C.

7201-7352'3 U.S.C. 1331-1356.

8ubpart A -- General Provisions and Conditions

103. In 5 284.2, paragraph (b) is revised to read as follows:

8 284.2 Refunds and interest.

(b) Interest. All refunds made pursuant to this section must

include interest at an amount determined in accordance with

154.501(d) of this chapter.

8 284.3 [Amended]

104. In 5 284.3(a), the words ", sale or assignment" are removed

and the words "or sale" are added in their place.

105. Section 284.4 is revised to read as follows:

5 284.4 Reporting.

(a) Reoorts in MMBtu. All reports filed pursuant to this

part must indicate quantities of natural gas in MMBtu's. An

MMBtu means a million British thermal units. A British thermal

unit or Btu means the quantity of heat required to raise the

temperature of one pound avoirdupois of pure water from 58.5

degrees to 59.5 degrees Fahrenheit, determined in accordance with

paragraphs (b) and (c) of this section.

(b) Measurement. The Btu content of one cubic foot of

natural gas under the standard conditions specified in paragraph

(c) of this section is the number of Btu's produced by the

complete combustion of such cubic foot of gas, at constant

pressure with air of the same temperature and pressure as the

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 255

gas, when the products of combustion are cooled to the initial

temperature of the gas and air and when the water formed by such

combustion is condensed to a liquid state.

(c) Standard conditions. The standard conditions for

purposes of paragraph (b) of this section are as follows: The

gas is saturated with water vapor at 60 degrees Fahrenheit under

a pressure equivalent to that of 30.00 inches of mercury at 32

degrees Fahrenheit, under standard gravitational force (980.665

centimeters per second squared).

106. In 5 284.6, paragraph (b) is revised to read as follows:

5 284.6 Rate interpretations.

(b) Address. Requests for interpretations should be

addressed to: FERC Part 284 Interpretations, Office of General

Counsel, Federal Energy Regulatory Commission, Washington, DC

20426.

107. In 4 284.7, paragraph (b) is removed, paragraphs (c) and (d)

are redesignated (b) and (c), respectively, redesignated

paragraph (c)(5)(iv) is removed, and a new paragraph (c)(6) is

added to read as follows:

5 284.7 Rates.

(c) Rate desian. *

(6) Discount reoorts.

(i) A pipeline that provides either firm or interruptible

transportation service at a discounted rate must file within 15

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Docket No. RM95-4-000 256

days of the close of the billing period a report containing the

following information:

(A) the full legal name of the shipper being provided the

discount;

(B) any corporate affiliation between the transporting

pipeline and the shipper;

(C) the maximum rate or fee; and

(D) the rate or fee actually charged during the billing

period.

(ii) The requirements of this section do not apply to

discounts relating to the release of capacity under 4 284.243,

unless the release is permanent.

(iii} The discount report information must be provided in

electronic format according to specifications that can be

obtained at the Federal Energy Regulatory Commission, Division of

Information Services, Public Reference and Files Maintenance

Branch, Washington, DC 20426.

8 284.8 [Amended]

108. In 4 284.8, paragraph (b)(4)(iii), the word "of" is added

after the word "purging" and before the word "information" and

in paragraph (b)(5)(i), the words "941 North Capitol Street NE.,"

are removed.

8 284.10 [Removed]

109. Section 284.10 is removed and reserved.

5 284. 11 [Amended]

110. In Section 284.11, paragraph (d)(1) is removed, the

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 257

paragraph (d)(2) heading is removed, and paragraph (d)(2) is

redesignated (d).

55 284.13 and 284.14 [Removed]

111. Sections 284.13 and 284.14 are removed and reserved.

Subpart B -- Certain Transportation by Interstate Pipelines

112. Section 284.102(e) is revised to read as follows:

284.102 Transportation by interstate pipelines.

(e) An interstate pipeline must obtain from its shippers

certifications including sufficient information to verify that

their services qualify under this section. Prior to commencing

transportation service described in paragraph (d)(3) of this

section, an interstate pipeline must receive the certification

required from a local distribution company or an intrastate

pipeline pursuant to paragraph (d)(3) of this section.

5 284.105 [Removed]

113. Section 284.105 is removed and reserved.

114. In 5 284.106, paragraph (a) is revised, paragraphs (b)

through (f) are removed, paragraph (g) is redesignated as

paragraph (b), the introductory text of redesignated paragraph

(b) is revised, and a new paragraph (c) is added to read as

follows:

5 284.106 Reporting requirements.

(a) Notice of bvoass. An interstate pipeline that provides

transportation (except storage) under 5 284.102 to a customer

that is located in the service area of a local distribution

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Docket No. RM95-4-000 258

company and will not be delivering the customer's gas to that

local distribution company, must file with the Commission, within

thirty days after commencing such transportation, a statement

that the interstate pipeline has notified the local distribution

company and the local distribution company's appropriate

regulatory agency in writing of the proposed transportation prior

to commencement.

(b) Semi-annual storaae reoort. Within 30 days of the end

of each complete storage injection and withdrawal season, the

interstate pipeline must file with the Commission a report of

storage activity provided under the authority of either 5 284.102

or 5 284.223, as applicable. The report must be signed under

oath by a senior official, consist of an original and five

conformed copies, and contain a summary of storage injection and

withdrawal activities to include the following:

(c) Index of customers. (1) Each calendar quarter,

subsequent to the initial implementation of this provision, an

interstate pipeline must provide for electronic dissemination of

an index of all its firm transportation and storage customers

under contract as of the first day of the calendar quarter.

Electronic dissemination will be by placing a file, adhering to

the requirements set forth by the Commission, on the pipeline's

electronic bulletin board in a format which can be downloaded

from the electronic bulletin board. The pipeline must also

submit the electronic file to the Commission.

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Docket No. RM95-4-000 259

(2) Until an interstate pipeline is in compliance with the

reporting requirements of this paragraph, the pipeline must

comply with the index of customer requirements applicable to

transportation and sales under Part 157, set forth under

154.111(b) and (c) of this chapter.

(3) For each customer receiving firm transportation or

storage service, the index must include the information listed

below:

(i) the full legal name of the customer;

(ii) the rate schedule number of the service being

provided;

(iii) the contract effective date;

(iv) the contract expiration date;

(v) for transportation service, maximum daily contract

quantity (specify unit of measurement);

(vi) for storage service, maximum storage quantity

(specify unit of measurement).

(4) The information included in the quarterly index must be

available on the electronic bulletin board until the next

quarterly index is established. The electronic files must be

archived for at least three years.

(5) The requirements of this section do not apply to

contracts which relate solely to the release of capacity under

284.243, unless the release is permanent.

(6) The requirements for the electronic index can be

obtained at the Federal Energy Regulatory Commission, Division of

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Docket No. RM95-4-000 260

Information Services, Public Reference and Files Maintenance

Branch, Washington DC 20426.

Subpart C -- Certain Transportation by Intrastate Pipelines

8 284. 122 [Amended]

115. In 5 284.122, paragraph (e) is removed.

116. In 5 284.123, paragraph (e) is revised to read as follows:

5 284. 123 Rates and charges.

(e) Filina recuirements. Within 30 days of commencement of

new service, any intrastate pipeline that engages in

transportation arrangements under this subpart must file with the

Commission a statement that describes how the pipeline will

engage in these transportation arrangements, including operating

conditions, such as, quality standards and financial viability of

the shipper. The statement must also include the rate election

made by the intrastate pipeline pursuant to paragraph (b) of this

section. If the pipeline changes its operations or rate election

under this subpart, it must amend the statement and file such

amendments not later than 30 days after commencement of the

change in operations or the change in rate election.

8 284.125 [Removed]

117. Section 284.125 is removed and reserved.

118. In 5 284.126, paragraph (a) is revised, paragraphs (b), (e),

and (f) are removed, paragraphs (c} and (g} are redesignated (b),

and (c), respectively, and redesignated paragraph (b) is revised

to read as follows:

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Docket No. RM95-4-000 261

8 284.126 Reporting Requirements.

(a) Notice of bvoass. An intrastate pipeline that provides

transportation (except storage) under 5 284.122 to a customer

that is located in the service area of a local distribution

company and will not be delivering the customer's gas to that

local distribution company, must file with the Commission within

thirty days after commencing such transportation, a statement

that the interstate pipeline has notified the local distribution

and the local distribution company's appropriate state regulatory

agency in writing of the proposed transportation prior to

commencement.

(b) Annual reoort. Not later than March 31 of each year,

each intrastate pipeline must file an annual report with the

Commission and the appropriate state regulatory agency that

contains, for each transportation service (except storage)

provided during the preceding calendar year under 5284.122, the

following information:

(1) The name of the shipper receiving the transportation

service;

(2) The type of service performed (~e. firm or

interruptible);

(3) Total volumes transported for the shipper. If it is

firm service, the report should separately state reservation and

usage quantities; and

(4) Total revenues received for the shipper. If it is firm

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000 262

service, the report should separately state reservation and usage

revenues.

Subpart D -- Certain Sales hy Intrastate Pipelines

119. Section 284.142 is revised to read as follows:

5 284.142 Sales hy Intrastate pipelines.

Any intrastate pipeline may, without prior Commission

approval, sell natural gas to any interstate pipeline or any

local distribution company served by an interstate pipeline. The

rates charged by an intrastate pipeline pursuant to this subpart

may not exceed the price for gas as negotiated in the contract,

plus a fair and equitable transportation rate as determined in

accordance with 5 284.123,

55 284.143 through 284.148 [Removed]

120. Sections 284.143 through 284.148 are removed and reserved.

Subpart E -- Assignment of Contractual Rights to Receive Surplus

Natural Gas

Subpart E -- [Removed]

121. Subpart E is removed and reserved.

Subpart G -- Blanket Certificates Ruthorising Certain

Transportation by Interstate Pipelines on Behalf of Others and

Services hy Local Distribution Companies

122. In 5 284.221, the introductory text of paragraph (b)(1) is

revised, in paragraph (d)(1), the words "5284.14(e), and" are

removed, and in paragraph (f), the words "5284.222 or" are

removed, to read as follows:

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Docket No. RM95-4-000 263

5 284.221 General rule; transportation by interstate pipelines

on behalf of others.

(b) ADDlication orocedure. (1) An application for a blanket

certificate under this section must be filed electronically. The

format for the electronic application filing can be obtained at

the Federal Energy Regulatory Commission, Division of Information

Services, Public Reference and Files Maintenance Branch,

Washington, D.C. 20426, and must include:

8 284.222 [Removed]

123. Section 284.222 is removed and reserved.

124. In 4 284.223, the section heading is revised, paragraphs (b)

through (f) are removed, and a new paragraph (b) is added to read

as follows:

5 284.223 Transportation by interstate pipelines on behalf of

shippers.

(b) Reportina reauirements. Any interstate pipeline

transporting gas under this section must comply with each of the

reporting requirements specified in 4 284.106.

113. In 4 284.224, the heading, paragraphs (b)(3), (c)

introductory text, (d)(1), (e)(1), and (g) are revised, paragraph

(e)(5)(i) is redesignated as paragraph (e)(5), and paragraph

(e)(5)(ii) is removed to read as follows:

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Docket No. RN95-4-000 264

8 284.224 Certain transportation and sales by local distribution

companies.

(b) Blanket certificate-- * *

(3) The Commission will grant a blanket certificate to such

local distribution company or Hinshaw pipeline under this

section, if required by the present or future public convenience

and necessity. Such certificate will authorize the local

distribution company to enqage in the sale or transportation of

natural gas that is subject to the Commission's jurisdiction

under the Natural Gas Act, to the same extent that and in the

same manner that intrastate pipelines are authorized to engage in

such activities by subparts C and D of this part, except as

otherwise provided in paragraph (e)(2) of this section.

(c) ADDlication nrocedure. Applications for blanket

certificates must be accompanied by the fee prescribed in

381.207 of this chapter or a petition for waiver pursuant to

381.106 of this chapter, and shall state:

(d) Effect of certificate. (1) Any certificate granted under

this section will authorize the certificate holder to engage in

transactions of the type authorized by subparts C and D of this

part.

(e) General conditions. (1) Except as provided in paragraph

(e)(2) of this section, any transaction authorized under a

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Docket No. RM95-4-000 265

blanket certificate is subject to the same rates and charges,

terms and conditions, and reporting requirements that apply to a

transaction authorized for an intrastate pipeline under subparts

C and D of this part.

(g) Hinshaw nioeline without blanket certificate. A Hinshaw

pipeline that does not obtain a blanket certificate under this

section is not authorized to sell or transport natural gas as an

intrastate pipeline under subparts C and D of this part.

55 284.225 and 284.226 [Removed]

125. Sections 284.225 and 284.226 are removed and reserved.

5 284.227 [Amended]

126. In 5 284.227, paragraph (d) is removed, and paragraphs (e),

(f), and (g) are redesignated (d), (e), and (f).

Subpart I -- Emergency Natural Gas Sale, Transportation, and

Exchange Transactions

5 284.266 [Amended]

127. In 5 284.266, paragraphs (b) and (c) are removed, and

paragraph (d) is redesignated (b) .

5 284.269 [Amended]

128. In 5 284.269, the number "5 284.144" is removed, and the

number "5 284.142" is added in its place.

subpart J -- Blanket Certificates Authorizing Certain Natural Gas

Sales by Interstate Pipelines

5 284.284 [Amended]

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Docket No. RM95-4-000 266

129. In 5 284.284(b), the words ", except as adjusted in

284 .14(d) and (e) " are removed.

130. In 5 284.286, paragraph (e) is revised to read as follows:

284.286 Standards of conduct for unbundled sales service.

(e) A pipeline that provides unbundled sales service under

284.284 must have tariff provisions on file with the Commission

indicating how the pipeline is complying with the standards of

this section.

131. In 5 284.287, paragraph (a) is removed, paragraphs (b) and

(c) are redesignated (a) and (b), and redesignated paragraphs (a)

and (b) are revised to read as follows:

5 284.287 Implementation and effective date.

(a) Prior to offering any sales service under this subpart

J, a pipeline must file revised tariff sheets incorporating the

provisions of this subpart J.

(b) A blanket certificate issued under 5 284.284 will be

effective on the effective date (as approved by the Commission)

of the tariff sheets implementing service under that certificate.

Subpart L —Certain sales for Resale by Non-interstate Pipelines

132. In 5 284.402, paragraph (c)(1) is revised, and in the first

sentence of paragraph (c)(2), the word "criteria" is removed, and

the word "criterion" is added in its place, to read as follows:

5 284.402 Blanket marketing certificates.

(c)(1) The authorization granted in paragraph (a) of this

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Docket No. RM95-4-000 267

section will become effective for an affiliated marketer with

respect to transactions involving affiliated pipelines when an

affiliated pipeline receives its blanket certificate pursuant to

284.284.

PART 381 -- FEEB

133. The authority citation for part 381 continues to read as

follows:

Authority: 15 U.S.C. 717-717w; 16 U.S.C. 791-828c, 2601-

2645'1 U.S.C. 9701; 42 U.S.C. 7101-7352'9 U.S.C. 60502'9

App. U.S.C. 1-85.

5 381.404 [Removed]

134. Section 381.404 is removed and reserved.

PART 385 -- RULES OP PRACTICE AND PROCEDURE

135. The authority citation for part 385 continues to read as

follows:

Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432;

16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42 U.S.C. 7101-

7352; 49 U.S.C. 60502 '9 U.S.C. 1-85.

136. In section 385.2011, paragraphs (b), (c)(4), and (d) are

revised to read as follows:

5 385.2011 Procedures for filing on electronic media (Rule

2011) ~

(b) These procedures also apply to:

(1) Material submitted electronically pursuant to 5 154.4 of

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Docket No. RM95-4-000

this chapter.

268

(2) Certificate and abandonment applications filed under

Subparts A, E, and F of Part 157 of this chapter.

(3) Blanket certificate applications filed under Subpart G

of Part 284 of this chapter.

(4) Discount rate reports filed pursuant to 5 284.7 of this

chapter.

(c) What to file. * *

(4) The formats for the electronic filing and the paper

copy can be obtained at the Federal Energy Regulatory Commission,

Public Reference and Files Maintenance Branch, Division of

Information Services, Washington, DC 20426.

(d)(1) Where to file. The electronic media, the paper

copies, and accompanying cover letter must be submitted to:

Office of the Secretary, Federal Energy Regulatory Commission,

Washington, DC 20426.

(2) EDI data submissions must be made as indicated in the

electronic filing instructions and formats for the particular

form or filing, and the paper copies and accompanying cover

letter must be submitted to: Office of the Secretary, Federal

Energy Regulatory Commission, Washington, DC 20426.

19951003-0255 FERC PDF (Unofficial) 09/28/1995
NOTE: This Appendix will not be published in the Code of Federal

Regulations.

APPENDIX A

Parties Filing Comments on the

Notice of Proposed Rulemaking

Docket No. RM95-4-000

COMMENTER

American Forest & Paper

Association

American Gas Association

American Public Gas

Association

ANR Pipeline Company and

Colorado Interstate Gas

Company

Associated Gas Distributors

Association of Texas

Intrastate Natural Gas

Pipelines

CNG Transmission Corporation

Columbia Gas Distribution

Companies

Columbia Gas Transmission

Corporation and Columbia Gulf

Transmission Company

Consumers Power Company and

Michigan Gas Storage Company

Electronic Bulletin Board

Working Group

El Paso Natural Gas Company

Enogex, Inc.

Freeport Interstate Pipeline

Company

Gaslantic Corporation

Great Lakes Gas Transmission

Limited Partnership

Independent Petroleum

Association of America

ABBREVIATION

American Forest

AGA

APGA

ANR

AGD

Texas Intrastates

CNG

Columbia Distribution

Columbia

Consumers Power

EBB Working Group

El Paso

Enogex

Freeport

Gaslantic

Great Lakes

IPAA

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Appendix A

2

Interstate Natural Gas

Association of America

INGAA

KN Energy, Inc.

Kern River Gas Transmission

Company

Midwest Gas Services, Inc.

Mississippi River Transmission

Corporation and NorAm Gas

Transmission Company

Missouri Public Service

Commission

National Fuel Gas Supply

Corporation

National Registry of Capacity

Rights

Kern River

Midwest

MRT

Missouri

National Fuel

Registry

Natural Gas Supply Association NGSA

Northern Illinois Gas Company

Panhandle Eastern Pipeline

Company, Trunkline Gas

Company, Texas Eastern

Transmission Corporation, and

Algonquin Gas Transmission

Company

Pacific Gas and Electric

Company

Process Gas Consumers Group,

American Iron and Steel

Institute, and Georgia

Industrial Group

Producer-Marketer

Transportation Group

Southern California Gas

Company

Tennessee Gas Pipeline

Company, Midwestern Gas

Transmission Company, and East

Tennessee Natural Gas Company

Texas Gas Transmission

Corporation

NI-Gas

Panhandle

PG&E

Industrials

PMTG

SoCal

Tennessee

Texas Gas

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Appendix A

3

Transcontinental Gas Pipe Line

Corporation

Transok, Inc.

United States Department of

Energy

Williston Basin Interstate

Pipeline Company

Williams Natural Gas Company

Transco

Transok

DOE

Williston

Williams

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000

NOTE: This Appendix will not appear in the Federal Register.

APPENDIX B

FERC FORM NO. 2

19951003-0255 FERC PDF (Unofficial) 09/28/1995
check apprcqnate box'

Onginal signed form

Form Approved

ObtB No 1902.0028

(Expires

Cl Conformed coPY

«eteNT O»

FERC FORM NO. 2:

ANNUAL REPORT OF MAJOR NATURAL

GAS COMPANIES

This repon is mandatory under the Natural Gas Act, Sections 1 ola) and 16,

and 18 CFR 260.1. Failure to repon may result in criminal frnes, evil penalties

and other sanctions as provided by lavv. The Federal Energy Regulatory

Commission doas not consider this report to be of a confidential nature.

Exact Legal Name of Respondent (Companyl Year of Report

Dec. 31,

FERC FORM NO. 2 (12-96)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
INSTRUCTIONS FOR FILING THE

FERC FORM NO. 2

GENERAL INFORMATION

Purpose

This form is designed to collect financial and operational information from major interstate natural gas

companies subject to the jurisdiction of the Federal Energy Regulatory Commission. This report is a

nonconfidential public use form.

Who Must Submit

Each Major natural gas company which meets the filing requirements of 18 CFR 260.1 must submit this

form.

NOTE: Major means having combined gas transported or stored for a fee exceeding 50 milkon Dth in each

of the 3 previous calendar years.

What and Where to Submit

(al Submit the electronic medium in accordance with the procedures specified in 18 CFR li 385.2011

and an original and four (4) copies of this form to:

Office of the Secretary

Federal Energy Regulatory Commission

Washington, DC 20426

Retain one copy of this report for your files.

(b) Submit immediately upon publication, four l4) copies of the latest annual report to stockholders and

any annual financial or statistical report regularly prepared and distributed to bondholders, security

analysts, or industry associations. (Do not include monthly and quarterly reports. Indicate by

checking the appropriate box on page 4, List of Schedules, if the reports to stockholders will be

submitted or if no annual report to stockholders is prepared.) Mail these reports to:

Chief Accountant

Federal Energy Regulatory Commission

Washington, DC 20426

lc) For the CPA certification, submit with the original submission of this form, a letter or report (not

applicable to respondents classified as Class C or Class D prior to January 1, 1984) prepared in

conformity with current standards of reporting which will:

(i) contain a paragraph attesting to the conformity, in all material aspects, of the schedules

listed below with the Commission's applicable Uniform System of Accounts (including

applicable notes relating thereto and the Chief Accountant's published accounting releases),

and

FERC FORM NO. 2 (12-96) Page I

19951003-0255 FERC PDF (Unofficial) 09/28/1995
GENERAL INFORMATION

be signed by independent certified public accountants or independent licensed public

accountants, certified or licensed by a regulatory authonty of a State or other polnical

subdivision of the United States (See 18 CFR 158.10-158.12for specific qualifications.)

Schedules

Reference

Pacaes

Comparatwe Balance Sheet

Statement of Income

Statement of Retained Earnings

Statement of Cash Flows

Notes to Financial Statements

110-113

1 14-1 17

118-119

120-121

122-123

Insert the letter or report immediately following the cover sheet of the original and each copy of this form,

(d) Federal, State and Local Governments and other authonzed users may obtain additional blank

copies to meet their requirement free of charge from:

Public Reference and Files Maintenance

Washington, DC 20426

(202) 208-2356

IV. When to Submit

Submit this report form on or before April 30th of the year following the year covered by this report.

Where to Send Comments on Public Reporting Burden

The public reporting burden for this collection of information is estimated to average 2,475 hours per

response, including the time for reviewing instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the collection of information. Send comments

regarding this burden estimate or any aspect of this collection of information, including suggestions for

reducing this burden, to the Federal Energy Regulatory Commission, Washington, DC 20426 IAttention:

Michael Miller, ED-12.4); and to the Office of Information and Regulatory Affairs. Office of the

Management and Budget, Washington, DC 20503 (Attention: Desk Officer for the Federal Energy

Regulatory Commission).

You shall not be penalized for failure to respond to this collection of information unless the collection of

information displays a valid OMB control number.

FERC FORM NO. 2 (12-96) Page ii

19951003-0255 FERC PDF (Unofficial) 09/28/1995
GENERAL INSTRUCTIONS

Prepare this report in conformny with the Uniform Systems of Accounts l18 CFR 201)lU.S. of A.).

Interpret all accounting words and phrases in accordance wnh the U.S. of A.

Enter in whole numbers (dollars or Dthl only, except where otherwise noted. (Enter cents for averages and

figures per unit where cents are important.) The truncating of cents is allowed except on the four basic

financial statements where rounding to dollars is required. The amounts shown on all supporting pages

must agree wdh the amounts entered on the statements that they support. When applying thresholds to

determine significance for reporting purposes, use for balance sheet accounts the balances at the end of

the current reporting year, and use the current year amounts for statement of income accounts.

Complete each question fully and accurately, even if it has been answered in a previous annual report.

Enter the word "None" where it truly and completely states the fact.

IV. For any page(si that is not applicable to the respondent, either

(a) Enter the words "Not Applicable" on the particular page(s), or

(bl Omit the page(s) and enter "NA," "NONE," or "Not Applicable" in column (d) on the List of

Schedules, pages 2, 3, and 4.

Enter the month, day, and year for ail dates. Use customary abbreviations. The "Date of Report" at the

top of each page is applicable only to resubmissions (see Vll. below).

Vl. Indicate negative amounts (such as decreases) by enclosing the figures in parentheses ( ).

Vll. When making revisions, resubmit the electronic medium and only those pages that have been changed

from the original submission. Submit the same number of copies as required for filing the form. include

with the resubmission the Identification and Attestation, page 1. Mail dated resubmissions to:

Chief Accountant

Federal Energy Regulatory Commission

Washington, DC 20426

Vill. Provide a supplemental statement further explaining accounts or pages as necessary. Attach the

supplemental statement (8 1/2 by 11 inch size) to the page being supplemented. Provide the appropriate

identification information, including the title(sl of the page and the page number supplemented.

IX. Do not make references to reports of previous years or to other reports in lieu of required entries, except as

specifically authorized.

Wherever &schedule) pages refer to figures from a previous year, the figures reported must be based upon

those shown by the annual report of the previous year, or an appropriate explanation given as to why the

different figures were used.

XI. Report all gas volumes in Btu and Dth.

XII. Respondents may submit computer printed schedules (reduced to 8 1/2 x 11) instead of the schedules in

the FERC Form 2 if they are in substantially the same format.

FERC FORIN NO. 2 (12-96) Page iii

19951003-0255 FERC PDF (Unofficial) 09/28/1995
DEFINITIONS

Btu oer cubic foot —The total heating value, expressed in Btu, produced by the combustion, at constant

pressure, of the amount of the gas which would occupy a volume of I cubic foot at a temperature of 60'F

if saturated with water vapor and under a pressure equivalent to that of 30 inches of mercury at 32'F, and

under standard grawtational force (980.665 cm. per sec. ) with air of the same temperature and pressure

as the gas, when the products of combustion are cooled to the initial temperature of gas and air when the

water formed by combustion is condensed to the liquid state (called gross heating value or total heating

value).

Commission Authorization —The authorization of the Federal Energy Regulatory Commission, or any other

Commission. Name the Commission whose authorization was obtained and give date of the authorization.

III. Dekatherm —A unit of heating value equivalent to 10 therma or 1,000,000 Btu.

IV. Resoondent —The person, corporation, licensee, agency, authority, or other legal entity or instrumentality

on whose behalf the report is made.

EXCERPTS FROM THE LAW

(Natural Gas Act, 15 U.S.C. 717-717w)

"Sec.10(a). Every natural-gas company shall file with the Commission such annual and other periodic or

special reports as the Commission may by rules and regulations or order prescribe as necessary or appropriate to

assist the Commission in the proper administration of this act. The Commission may prescribe the manner and

form in vvhich such reports shall be made and require from such natural-gas companies specific answers to all

questions upon which the Commission may need information. The Commission may require that such reports shall

include, among other things, full information as to assets and liabilities, capitalization, investment and reduction

thereof, gross receipts, interest due and paid, depreciation, amortization, and other reserves, costs of facilities,

cost of maintenance and operation of facilities for the production, transportation, delivery, use, or sale of natural

gas, cost of renewal and replacement of such facilities, transportation, delivery, use, and sale of natural gas..."

"Sec. 16. The Commission shall have power to perform any and all acts, and to prescribe, issue, make,

amend, and rescind such orders, rules, and regulations as it may find necessary or appropriate to carry out the

provisions of this act. Among other things, such rules and regulations may define accounting, technical, and trade

terms used in this act; and may prescribe the form or forms of all statements declarations, applications, and

reports to be filed with the Commission, the information which they shall contain, and time within which they shall

be filed..."

GENERAl. PENALTIES

"Sec.21(b). Any person who willfully and knowingly violates any rule, regulation, restriction, condition, or

order made or imposed by the Commission under authority of this act, shall, in addition to any other penalties

provided by law, be punished upon conviction thereof by a fine of not exceeding $ 500 for each and every day

during which such offense occurs."

FERC FORM NO. 2 (12-96) Page Iv

19951003-0255 FERC PDF (Unofficial) 09/28/1995
FERC FORM NO. 2:

ANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES

IDENTIFICATION

I 01 Exact Legal Name of Respondent 02 Year oi Report

Dec. 31,

03 Prewous Name and Date of Change (If name changed during year)

04 Address of Principal Office at End of Year (Street, City, State, Zip Codei

05 Name of Contact Person 06 Title of Contact Person

07 Address of Contact Person (Srreer, City, Stere, Zip Code)

08 Telephone of Contact Person, Including Area

Code

09 This Report is:

0 An Original

Cl A Resubmission

10 Date of Report

(Mo, Da, yri

ATTESTATION

The undersigned officer certifies that heishe has examined the accompanying report; that to the best of hisiher

knowledge, information, and belief, all statements of fact contained in the accompanying report ars true and the

accompanying report is a correct statement of the business and affairs of the above named respondent in respect

to each and every matter set forth therein during the period from and including January 1 to snd including

December 31 of the year of the report.

01 Name 02 Title

03 Signature 04 Date Signed

Title 18. U.S.C. 'I 001, makes it a crime for sny person knowingly snd willingly to make to any Agency or

Department of the United States any false, fictitious or fraudulent statements ss to any matter within its

junsdiction.

FERC FORM NO. 2 (12-96) Page 1

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Onginal

Cl A Resubmission

Date of Report

(Mo, Da, Yr/

Year of Report

Dec. 31,

LIST OF SCHEDULES INatural Gas Company)

Enter in column ldl the terms "none," "nat apphcable," or "NA" as appropnate, where no information or amounts have been reported for

certain pages Omit pages where the responses are "none," "not applicable," or "NA."

Title of Schedule

(a)

Reference

Page No

(bl

Date Revised

(cl

Remarks

(di

GENERAL CORPORATE INFORMATION AND

FINANCIAL STATEMENTS

General information

Control Over Respondent

Corporations Controlled by Respondent

Security Holders snd Voting Powers

Importanl Changes During the Year

Comparative Balance Sheet

Statement of Income for the Year

Statement of Retained Earnings for the Year

Statements of Cash Flows

Notes to Financral Statements

101

102

103

107

108

110-113

114-116

118-119

120-121

122

BALANCE SHEET SUPPORTING SCHEDULES

(Assets and Other Debitsl

Summary of Uulity Plant and Accumulated provisions for Depremation,

Amortization, snd Depletion

Gas Plant in Service

Gas Property and Capacity Leased from Others

Gss Property and Capsmty Leased to Others

Gas Plant Held for Future Use

Construction Work in Progress-Gas

General Descnption of Construction Overhead Procedure

Accumulated Provision for Depreciation of Gss Utilrty Plant

Gas Stared

Investments

Investments in Subsidiary Companies

Prepaymsnts

Extraordinary Property Losses

Unrecovered Plant and Regulatory Study Costs

Other Regulatory Assets

Miscellaneous Deferred Debns

Accumulated Deferred Income Taxes

200-201

204-209

212

213

214

216

218

219

220

222-223

224-225

230

230

230

232

233

234-235

BALANCE SHEET SUPPORTING SCHEDULES

(Liabilities and Other Creditsl

Capital Stock

Capital Stock Subscribed, Capita( Stock Liability for Conversion, Premium on

Capital Stock, and Installments Recewed on Capital Stock

Other Paid-in Capital

Discount on Capital Stock

Capital Stock Expense

Securities issued ar Assumed snd Securities Refunded or Retired Dunng

the Year

Long-Term Debt

Unamortized Debt Expense, Premium, and Discount on Long-Term Debt

Unamortized Loss and Gain on Reacquired Debt

Reconciliation of Reported Net Income with Taxable Income for Federal

Income Taxes

250-251

252

253

254

254

255

256-257

258-259

260

261

FERC FORM NO. 2 (12-ggl Isage 2

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Ongrnai

0 A Resubmission

Date of Report

(Mo, Da, Yri

Year of Report

Dec, 31,

LIST OF SCHEDULES (Natural Gas Company)fContinued)

Enter m column Idi the terms "none," "not applicable," or "NA" as appropnate, where no mformation or amounts have been reported for

certain pages. Omit pages where the responses are "none," "not applicable," or "NA".

Title of Schedule

lal

Reference

Page No.

Ib)

Date Revised

Ici

Remarks

id)

BALANCE SHEET SUPPORTING SCHEDULES

ILiabilities end Other CreditsllContinuedl

Taxes Accrued, Prepaid, and Charged During Year

Miscellaneous Current end Accrued Liabibties

Other Deferred Credns

Accumulated Deferred Income Taxes-Other Property

Accumulated Deferred Income Taxes-Other

Other Regulatory Liabilities

262-263

268

269

274-275

276-277

278

INCOME ACCOUNT SUPPORTING SCHEDULES

Gas Operating Revenues

Revenues from Transportation of Gas of Other Through Gathering Facilities

Revenues trom Transportation of Gas of Other Through Transmission Facilities

Revenues from Storage Ges of Others

Other Gas Revenues

Gas Operation and Maintenance Expenses

Gas Purchases

Exchange and Imbalance Transactions

Gas Used in Utility Operations

Transmission and Compression of Gas by Others

Other Gas Supply Expenses

Miscellaneous General Expenses-Gas

Depremation. Depletion, and Amortization of Gas Plant

Particulars Concerning Certain income Deduction and Interest

Charges Accounts

300-301

302-303

304-305

306-307

308

31 7-325

327

328

331

332

334

335

336-338

340

COMMON SECTION

Regulatory Commission Expenses

Distribuuon of Salanes and Wages

Charges for Outside Professional snd Other Consultative Services

350-351

345-355

357

GAS PLANT STATISTICAL DATA

Compressor Stations

Gas Storage Prolects

Transmission Lines

Transmission System Peak Dekveries

Auxiliary Peakmg Facihties

Gss Account-Natural Gas

System Map

Footnote Data

Stockholders'eports (check appropriate boxl

508.509

512-513

514

518

519

520

522

551

0 Four copies will be submitted.

0 No annual report to stockholders is prepared.

FERC FORM NO. 2 (12-96) Page 3

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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Or(gina(

0 A Resubmission

Date of Report

(Mo, Da, Vrf

Year of Report

Dec. 31,

GENERAL INFORMATION

1. Provide name and title of officer having custody of the general corporate books of account and address of office where the general

corporate books are kept and address of office where any other corporate books of account are kept, if different from that where the general

corporate books are kept.

2. Provide the name of the State under the laws of which respondent is incorporated and date of incorporation, If incorporated under a

special law, give reference to such law. If not incorporated, state that fact and give the type of organization and the date organized.

3. If st any time during the Year the propertY of respondent was held by a receiver or trustee, gwe (sl name of receiver or trustee, ibl date

such receiver or trustee took possession, (cl the authonty by which the receivership or trusteeship was created, and (d) date when possession

by receiver or trustee ceased.

4. State the classes of utility and other services furnished by respondent dunng the year in each State in which the respondent operated.

5. Have you engaged ss the pnncipal accountant to audit your financial statements an accountant who is not the prmcipsl accountant for

your previous year's certified finanael statements7

(I I o Yss.LEnter the date when such independent accountant was initially engaged:

(2) o No

FERC FORM NO. 2 (12-96I Page 101

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

f-j A Resubmission

Date of Report

(Mo, Da, Yr/

Year of Report

Dec. 31,

CONTROL OVER RESPONDENT

I. Report in column lal the names of all corporations,

partnerships, business trusts. and similar organizations that

directly, indirectly, or (ointly held control (see page 103 for

definition of control( over the respondent at the end of the year If

control is in a holding company arganization, report in a footnote

the cham of organization.

2. If control is held by trustees, state in a footnote the names af

Irustees, the names of beneficianes for whom the trust is mamtained,

and the purpase af the trust.

3. In column Ibl designate type of control over the respondent. Report

an "M" if the company is the main parent or controlling company having

ultimate control over the respondent Otherwise. report s

"O" for direct,

an "I" for indirect, or a

"J" for ioint control.

Company Name

lal

Type of Control

(bl

State of

fncorporation

(c)

Percent Voting

Stock Owned

(d)

FERC FORNI NO. 2 (12-96) Page 102

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

0 An Original

EI A Resubmisston

Date of Report

(Mo, Qa, Yrl

Year of Report

Dec. 3t,

CORPORATIONS CONTROLLED BY RESPONDENT

1 Report below the names of all corporations, business trusts, and

similar organizations, controlled dtrsctty or indirectly by respondent

at any time dunng the year. If control ceased pnor to end of year,

gwe particulars tdetails) in a footnote.

2. If control was by other means than a direct holding of voting

nghts, state in a footnote the manner in which control was held,

naming any intermsdianss involved.

3. If control was held lointly with one or more other interests, state

the fact in a footnote and name the other interests.

4. In column (b) designate type of control of the respondent as "D"

for direct, an "I" for indirect, or a

"J" for toint control.

DEFINITIONS

1. See the Uniform System of Accounts for a definition of control.

2. Direct control is that which is exercised wtthout interposition of

an intermediary

3. Indirect control is that which is exercised by the interposition of

an intermediary that exermses direct control.

4. Joint conttol is that in which nsnher interest can effectively

control or direct ection without the consent of the other, as vrhere the

voting control rs equally divided between two holders, or each party

holds a veto power over the other. Joint control may exist by mutual

agreement or understanding between two ot mors parties who

together have control within the meaning of the definitron of control in

the Unrform System of Accounts, regardless of the relative votmg

rights of each party.

Name of Company Controlled

(a)

Type of Control

Ibl

Kind of Business

icl

Percent Voting

Stock Owned

(dl

Footnote

Reference

(el

FERC FORM NO. 2 f12-96) Page 103

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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

0 A Resubmission

Date of Report

fMo, Da, Yr)

Year of Report

Dec, 31,

SECURITY HOLDERS AND VOTING POWERS

1. Gwe the names and addresses of the 10 secunty holders of the

respondent who, at the date of the latest closing of the stock book or

compilation of list of stockholders ot the respondent, pnor to the end

of the year, had the highest voting powers in the respondent, and

state the number of votes that each could cast on that date if a

meeting were held. If any such holder held in trust, give in a footnote

the known particulars of the trust Iwhether voting trust, etc.),

durauon of trust, snd prinrxpal holders of benefimary interests in the

trust If the company did nat close the stock book or did not compde

a list of stockholders within one year pnor to the end of the year, or if

since it compiled the previous list of stockholders, some other class of

secunty has become vested wnh voting nghts, then show such 10

securny holders as of the close of the year. Arrange the names of the

secunty holders in the order of voting power, commencing with the

highest. Show in column (al the titles of officers and directors

included in such list of 10 secunty holders.

2. If any secunty other than stack cariies voting nghts, explain in a

supplemental statement how such secunty became vested with voting

nghts and gwe other important details concerning the voting rights of

such secunty. State whether voting rights are actual ar contingent; if

contingent, descnbe the contmgency.

3 If any class or issue af securny has any special pnwleges in the

election of directors, trustees or managers, or in the determination of

corporate action by any method, explain bnefly in a 'lootnote.

4. Furnish details concerning any options, warrants, or nghts

outstanding at the end of the year far others to purchase secunties of

the respondent or any securmes or other assets owned by the

respondent, including pnces, expiration dates. and other matenal

information relating to exercise of the options, warrants, or nghts.

Spemfy the amount af such secunties or assets any officer, director,

assomated company, or sny of the 10 largest sscunty holders is

entitled to purchase. This instructton is inapplicable to convertible

secunties or to any secunties substantially atl of which are

outstanding in the hands of the general pubbc where the opbons,

warrants, or nghts were issued on a prorata basis.

1. Gwe date of the latest closing of the

stock book pnor to end of year, and state the

purpose of such ctosmg:

2. State the total number of votes cast at the latest

general meeting pnor to the end of year for election of

directors of the respondent and number of such votes

cast by proxy.

Totah

By Proxy:

3. Give the date snd place of such

meeting:

VOTING SECURITIES

Number of votes as of (date):

Line

No.

Name (Title) and Address of

Secunty Holder

(sl

Total Votes

(b)

Common Stock

(c)

Preferred Stock

(dl

Other

(el

TOTAL votes af ag voting securities

TOTAL number of security holders

TOTAL votes of secunty holders listed below

7

8

9

10

11

12

13

14

15

15

17

18

19

20

21

22

23

24

25

FERC FORM NO. 2 (12-96) Page 107

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Dnginai

0 A Resubmission

Date of Report

(Mo, Da, Yrj

Year of Report

Dec. 31,

IMPORTANT CHANGES DURING THE YEAR

Give details concerning the matters indicated below. Make the

statements exphcit and precise, and number them in accordance with

Ihe mquines Answer each inquiry Enter "none" or "not appkcable"

where appkcable. If the answer is given elsewhere in the report, refer

to the schedule in which it appears.

1. Changes in and important additions to franchise nghts: Describe

the actual consideration and state fram whom the franchise nghts were

acquired. If the franchise nghts were acquired without the payment of

consideration, state that fact.

2. Acquisition of ownership in other companies by reorgamzation,

merger, or consolidation with other companies: Give names of

companies involved, particulars concerning the transactions, name of

the Cammissian authanzing the transaction, and reference to

Commission authorization.

3. Purchase or sale of an operating unit or system: Bnefly describe

the property, and the related transactions, and mte Commission

authonzation, if any was required. Give date journal entries called for

by Uniform System of Accounts were submitted to the Commission.

4. Important leaseholds lother than leaseholds for natural gas lands)

thai have been acquired or given, assigned or surrendered: Give

effective dates, lengths of terms, names of parties, rents, and other

conditians. State name af Commission authonzing lease and give

reference to such authorization.

5. Important extension or reduction of transmission or distrrbution

system: Stats terntory added or rehnquished and date operations began

or ceased and cne Commission authonzation, if any was required.

State also the approximate number of customers added or last and

approximate annual revenues of each class of service.

Each natural gas company must also state malor new continuing

sources of gas made available to n from purchases, development,

purchase contract or otherwise, givmg location and approximate

total gas volumes available, penod af contracts, and other parties to

any such arrangements, eic

6. Obligatians incurred or assumed by respondent as guarantor for

the performance by another of any agreement or obkganon,

including ordinary commercial paper matunng on demand or not later

than one year after date of issue: State on behalf of whom the

obligation was assumed and amount of the obhgation. Cne

Commission authonzation if any was required.

7. Changes in anicles of incorporation or amendments to charter:

Explain the nature and purpose of such changes or amendments.

8. Stats the estimated annual effect and nature of any important

wage scale changes dunng the year.

9. State briefly the status of any matenally imponant legal

proceedings pending at the end of the year, and the results of any

such proceedings culminated dunng the year.

10. Describe bnefly any matenally important transactions of the

respondent not disclosed elsewhere in this report in which an

officer, director, secunty holder, voting trustee. assoeated company

or known associate of any of these persons was a party or in which

any such person had a material interest.

11. Esbmated increase ar decrease in annual revenues caused by

important rate changes: State effective date and approximate

amount of increase or decrease for each revenue classification.

State the number of customers affected.

FERC FORM NO. 2 I12-96) Page 108

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Name of Responden1 This Report Is:

EI An Onginal

A Resubmission

Date of Report

fMo, Da, Yr)

Year of Report

Dec. 31,

COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)

Line

Nc.

10

12

13

'I 4

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

Tnle of Account

la)

UTILITY PLANT

Utihty Plant (101.106, 114)

Construction Work in Progress (107)

TOTAL Utihty Plant (Total of lines 2 and 3)

(Less) Accum. Provision for Depr., Amort., Depl. (108, 111, 115)

Net Utility Plant (Total of Ime 4 less 51

Nuclear Fuel (120.1 thru 120.4, and 120.61

(Less) Accum. Provision for Amort., of Nuclear Fuel Assemblies (120.51

Nuclear Fuel ITotal of line 7 less Bl

Net Utilny Plant (Total of lines 6 and 9)

Utdity Plant Adlustments I)161

Gas Stored-Base Gas (117.1)

System Balancing Gas l117.21

Gas Stored in Reservoirs and Pipe)ines —Noncurrent (117.3)

Gas Owned to System Gas i117.4)

OTHER PROPERTY AND INVESTMENTS

Nonutihty Property (121)

ILessl Accum. Provision for Depreciation and Amortization (122)

Investments in Associated Companies (123)

Investments in Subsidiary Companies (123.1)

(For Cost of Account 123.1 See Footnote Page 224, line 421

Noncurrent Ponion of Allowances

Other Investments (1241

Special Funds l125 thru 128)

TOTAL Other Property and investments ITotal of lines 17-20, 22-24)

CURRENT AND ACCRUED ASSFTS

CaSh (1311

Special Deposits ll 32-1 34)

Workmg Funds (1351

Temporary Cash Investments (136)

Notes Receivable (141)

Customer Accounts Receivable (142)

Other Accounts Recewsble (143)

(Less) Accum. Provision for Uncollectible Accounts - Credit (144)

Notes Receivable from Associated Companies (145)

Accounts Receivable from Associated Companies (146)

Fuel Stock (1511

Fuel Stock Expenses Undistributed (1521

Residuals (Elec) and Extracted Products (Gas) (1531

Plant Materials and Operatmg Supplies l1541

Merchandise (155)

Other Matensls and Supplies (156)

Nuclear Materials Held for Sale (157)

Reference

Page Number

lb)

200-201

200-201

200-201

122-123

220

220

220

220

221

221

222-223

224-225

222-223

222-223

Balance at End

of Current Year

lm do)lars)

(c)

Balance at End

of Prewous Year

lrn dollars)

(d)

FERC FORI91 NO. 2 (12-66& Page 110

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

E3 An Original

0 A Resubmission

Date of Report I Year of Report

(Mo, Da, Yr)

Dec. 31,

COMPARATIVE BALANCE SHEET IASSETS AND OTHER DEBITSl(Continuedl

Line

No

Title ol Account

(al

Reference

Page Number

Ib)

Balance at End

cf Current Year

Iin dollars)

Icl

Balance at End

of Previous Year

(in do)lars)

(d)

44 Allowances (158.1 and 158.2)

45 (fess) Noncurrent Portion of Allowances

46

47

48

49

50

Stores Expense Undistnbuted (163)

Gas Stored Underground —Current (164.1)

Liquefied Natural Gas Stored and Held for Processmg (164.2 thru 164.3)

Prapayments (165)

Advances for Gas (166 thru 167)

220

220

230

51 Interest and Dividends Receivable (171)

52 Rents Receivable (172l

53 Accrued Utilny Revenues (173)

54 Miscellaneous Currenl and Accrued Assets (174)

55 TOTAL Current and Accrued Assets (Total of Imss 27 thru 54)

56

57

58

59

60

61

62

63

64

65

ee

67

68

69

70

72

DEFERRED DEBITS

Unamoruzed Debt Expense I'(81)

Extraordinary Property Losses (182.1)

Unrecovered Plant and Regulatory Study Costs (182.2l

Other Regulatory Assets (182.3)

Preliminary Survey and Investigation Charges (Electncl(183l

Preliminary Survey snd Investigation Charges (Gas)(183.1 end 183.2)

Cleanng Accounts (184)

Temporary Facihties (185)

Miscellaneous Deterred Debits (186l

Deferred Losses from Disposition of Utilny Plant (187)

Research, Development, and Demonstration Expend. (188)

Unamortized Loss on Reacquired Debt (189)

Accumulated Deferred Income Taxes (190)

Unrecovered Purchased Gas Costs (191)

TOTAL Deferred Debits (Total of lines 57 thru 70)

TOTAL Assets and Other Debits (Total of lines 10-15.25.55,and 71)

230

230

232

233

234-235

FERC FORM NO. 2 (12-96) Page 111

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

E3 An Onginal

E3 A Resubmission

Year of Report

Dec. 31,

COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)

I.me

No.

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

Title of Account

Isl

PROPRIETARY CAPITAL

Common Stock Issued l201)

Preferred Stock Issued (204)

Caprtal Stock Subscribed (202. 205)

Stock Liability for Conversion (203, 206)

Premium on Capital Stock (207)

Other Paid-ln Capital 1208-211)

Installments Received on Capital Stock l212)

(Less) Discount on Capital Stock (213)

ILess) Capital Stock Expense (214)

Retained Earnings (215, 215.1, 216)

Unappropnated Undistnbuted Subsidiary Earnings (216.1)

(Cessl Reacquired Cspnal Stock 12171

TOTAL Propnetary Capital (Total of lines 2 thru 13)

LONG TERM DEBT

Bonds l221l

(Less) Reacquired Bonds (222)

Advances from Assocrated Companies (223l

Other Long-Term Debt (2241

Unamortized Premium on Long-Term Debt (225)

(Less) Unamonizsd Discount on Long-Term Debt-Dr (226)

(ress) Current Ponion of Long-Term Debt

TOTAL Long. Term Debt fTotal of lines 16 thru 22)

OTHER NONCURRENT LIABILITIES

Obligations Under Capital Leases —Noncurrent (227)

Accumulated Provision for Propeny Insurance (228.1)

Accumulated Provision for Iniuries and Damages (228.2)

Accumulated Provision for Pensions and Benefits 1228.3)

Accumulated Miscellaneous Opsratrng Provisions (228.4)

Accumulated Provision for Rate Refunds (229)

TOTAL Other Noncurrent Liabilities (Total of lines 25 thru 30)

Reference

Page Number

(b)

250-251

250-251

252

252

252

253

252

254

254

118-119

118-119

250-251

256-257

256-257

256-257

256-257

258-259

258-259

Balance at End

of Cunent Year

Iin dollars)

Icl

Balance at End

of Previous Year

(in do)lars)

(dl

FERC FORM NO. 2 (12-96) Page 112

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report is:

Ej An Onginal

Ej A Resubmission

Date of Report

(Mo, Da, Yr/

Year of Report

Dec. 31,

COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)(Continued)

Line

No

32

Title of Account

(a)

CURRENT AND ACCRUED LIABILITIES

Reference

Page Number

Ib)

Balance at End

of Current Year

(in dollar el

(cl

Balance at End

of Previous Year

lin doaarsi

Idi

33 Current Portion of Long-Term Debt

34 Notes Payable (231)

35 Accounts Payable (232l

36

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

Notes Payable to Assomated Companies l233)

Accourns Payable to Associated Companies l234l

Customer Deposits (235)

Taxes Accrued (236)

Interest Accrued (237)

Dividends Declared (238)

Matured Long-Term Debt 1239)

Matured Interest (240)

Tax Collections Payable (241)

Miscssaneous current and Accrued Liabilities (242l

Obligations Under Capital Leases —Current (243)

TOTAL Current and Accrued Liabilities (Total of lines 33 thru 46)

DEFERRED CREDITS

Customer Advances for Construction (252)

Accumulated Deferred Investment Tax Credits (255)

Deterred Gams from Disposition of Utilny Plant (256)

Other Deferred Credits (253)

Other Regulatory Liabilities (254)

Unamortized Gain on Reacquired Debt (257)

Accumulated Deferred Income Taxes (281-283)

TOTAL Dsfsried Crsdhs (Total of Imes 49 thru 55)

TOTAL Liabilities and Other Credits (Total of lines 14,23,31,47,end 56)

262-263

268

269

278

260

FERC FORM NO. 2 (12-96I Page 113

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is:

An Onginal

Cl A Resubmission

Date of Report

(Mo, Da, Yr)

Year of Report

Dec. 31,

STATEMENT OF INCOME FOR THE YEAR

1. Report amounts for accounts 412 and 413, Revenue snd

Expenses from Urilrry P/ant Leased ro Others, in another uuhty column

Ii,i) m a similar manner to a utihty depanment. Spread the amount(s)

over hnes 2 thru 24 as appropnats. Include these amounts in

columns (c) and (dl totals.

2. Report amounts in discount 414, Other Urihry Opersrrng raceme,

in the same manner as accounts 412 and 413 above.

3. Report data for hnes 7, 9. and 10 for Natural Gas companies

using accounts 404.1, 404.2, 404.3, 407.1, and 407.2

Line

No.

10

12

13

14

15

16

17

18

19

20

21

22

23

24

Tale of Account

lal

UTILITY OPERATING INCOME

Gas Operating Revenues (400l

Operating Expenses

Operation Expenses (401)

Maintenance Expenses (402)

Depreciation Expense (403)

Amarbzation snd Depletion of Utility Plant (404-405)

Amortization af utihty Plant Acu. Ad)ustment 1406)

Amort. of Prop. Losses, Unrecovered Plant and Reg. Study Costs (407.1)

Amortization of Conversion Expenses (407.2)

Regulatory Debits (407.3)

ILess) Regulatory Credits (407.4l

Taxes Other than income Taxes (408.1)

Income Taxes —Federal 1409.1)

Income Taxes-Other (409.1)

Provisian of Deferred Income Taxes (410.1)

(Less) Provision for De(shed Income Taxes —Credit l411.1)

Investment Tax Crsdn Ad)ustment-Net l411.4)

(Less) Gams from Disposition of Utility Plant l411.6l

Losses from Disposrtion af Utihty Plant (411.7)

(Less) Gams from Disposrtion of Aaowancss (411.8)

Losses from Disposition of Allowances (411.9)

TOTAL Utility Operating Expenses ITotal of lines 4 thru 22)

Net Utilrty Operating Income (Total of lines 2 less 23)

ICarry forward to page 116, Ime 25)

Reference

Page Number

(bl

300-301

31 7-325

317-325

336-338

336-338

336-338

262-263

262-263

262-263

234-235

234-235

Total

Current Year

Im dollars)

Ic)

Total

Previous Year

(in do(lars)

(dl

FERC FORM NO. 2 (12-96) Page 114

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

0 A Resubmission

Date of Report

()Lfo, Da, Yr)

Year of Report

Dec. 31,

STATEMENT OF INCOME FOR THE YEAR (Continuedl

4. Explain m a footnote if the preinous Year's hgures are difterem

from those reported in pnor reports.

5. If the columns are insufhoent for reporting additional utility

departments, supplv the sppropnate account tnles, lines 2 to 23, and

report the information in the blank space on page 122 or in a

supplemental statement.

ELECTRIC UTILITY GAS UTILITY OTHER UTILITY

Current Year

Iin do)lars)

(el

Previous Year

lin dollars)

(f)

Current Year

(m do)lars)

(g)

Preinous Year

(in do((arel

(Ii)

Current Year

(in dollars&

(il

Previous Year

lin dollars)

(i)

Line

No.

10

12

13

14

15

16

)7

18

19

20

21

22

23

24

FERC FORM NO. 2 (12-96& Page 1 15

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

0 A Resubmission

Date of Report

fMo, De, Yr)

Year of Report

Dec. 31,

STATEMENT OF INCOME FOR THE YEAR IContinued)

Line

No.

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

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

Title oi Account

la)

Net Utdity Operating Income ICarned forward from page 114)

OTHER INCOME AND DEDUCTIONS

Other Income

Nonutihty Operating Income

Revenues form Merchandising, Jobbing and Contract Work l415)

(Less) Costs and Expense of Merchandising, Job fr Contract Work 1416)

Revenues from NonutilitY Operations (4171

(Less) Expenses of Nonutility Operations (417.1)

Nonoperatmg Rental Income

Equity rn Earnings of Subsidiary Compames (418.11

Interest and Dividend Income (419)

Allowance for Other Funds Used Dunng Construction (419.1)

Miscellaneous Nonoperating income (421)

Gain on Disposition of Propeny l421.1)

TOTAL Other Incame (Total of hnes 29 thru 38)

Other Income Deductions

Loss on Disposition of Property (421.21

Miscellaneous Amortization (425)

Miscellaneous Income Deductions (426.1 thru 426.5)

TOTAL Other Income Deductions (Total of hnes 41 thru 431

Taxes Applic. to Other Income and Deductions

Taxes Other than Inaome Taxes l406.2)

Income Taxes —Federal (409.2)

Income Taxes —Other (409.21

Provision far Deferred Income Taxes (410.2)

(fess) Provrsion for Deferred Income Taxes-Credit (411.21

Investmsnt Tax Credit Adjustments —Net f411.5)

(Less) Investment Tax Credrts (420)

TOTAL Taxes on Other Income and Deductions (Total of lines 46.52)

Net Other Income and Deductions (Total af lines 39, 44, 53)

INTEREST CHARGES

Interest on Lang-Term Debt (4271

Amorbzation of Debt Disc. and Expense (4281

Amortization of Loss on Reacquired Debt (428.11

(Lessl Amortrzation of Premium on Debt-Credit (429)

(Less) Amortization of Gain on Reacquired Debt-Credn (429.1)

Interest on Debt to Associated Companies (4301

Other interest Expense (4311

(Less) Allowance for Borrowed Funds Used During Construction-Credit

Net Interest Charges (Total of lines SS thru 63)

Income Before Extraardinary Items (Total of lines 25,54 snd 64)

EXTRAORDINARY ITEMS

Extraordinary Income (434)

(fess) Extraordmary Deductions (4351

Net Extraordinary Items (Total of line 67 less line 68)

Income Taxes-Federal end Other l409.31

Extraordinary Items after Taxes (Total af line 69 less hne 70)

Nst Income (Total of lines 65 end 71)

Reference

Page Number

(bi

119

340

340

262-263

262-263

262-263

234-235

234-235

258-259

258-259

340

340

262-263

Total

Current Year

Iin dollars)

icl

Total

Previous Year

Im dollars)

(dl

FERC FORM NO, 2 t12-96) Page 116

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 1181

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

0 An Ong)na)

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year of Report

Dec. 31,

STATEMENT OF RETAINED EARNINGS FOR THE YEAR

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

lal

UNAPPROPRIATED RETAINED EARNINGS

Balance —Beginning of Year

Changes (Identify by prescribed retamed earnings sccountsl

Adlustments to Retained Earnings IAccount 439)

Credit:

Credit:

Credit:

Credit:

Credit:

TOTAL Credits to Retamsd Earnmgs IAccount 439)

(Total of lines 4 thru 8)

Debit:

Debn:

Debit:

Debn:

Debit:

TOTAL Debns to Retained Earnings (Account 439)

(Total of lines 10 thru 14)

Balance Transferred from Income (Acct 433 less Acct 418.1)

Appropnations of Retamed Earnings (Account 436)

TOTAL Appropnstions of Retained Earnings (Account 436)

(Total of lines 18 thru 21)

Dividends Declared-Preferred Stock (Account 437l

TOTAL Dividends Declared.Preferred Stock (Account 4371

(Total of lines 24 thru 27)

Dnndends Declared-Common Stock (Account 438)

TOTAL Dividends Declared-Common Stock (Account 438l

(Total of )mes 30 thru 331

Transfers from Account 2'16.1, Unappropriated Undistributed

Subsidrary Earnings

Balance-End of Year (Total of lines I, 9, 15,16,22,28,34,and35)

1. Report all changes in appropnated retained earnings,

unappropnated retained earnings, and unappropnated undistnbuted

subsidiary esrnmgs for the year.

2 Each credit and debit dunng the year should be identified as to

the retained earnings account in which recorded IAccounts 433, 436-

439 inclusive). Show the contra pnmary accoum affected in column

Ib).

Line item

No.

Contra Pnmary

Account Affected

(bl

Current Year

Amount

(in dollars)

(cl

Previous Year

Amount

(in dollars)

(dl

3 State the purpose and amount for each reservation or

appropnation of retained earnings

4. List first Account 439, Adrusrmenrs ro Reremed Earnings,

reflecting adlustments to the opening balance of retained earnings.

Follow by credit, then debit items, in that order.

5. Show dwidsnds lor each class and sensa of capital stock.

FERC FORM NO. 2 (12-96) Page 116

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is:

An Ooginal

0 A Resubmission

Data of Report

fMo, Da, Yrj

Year of Report

Dec. 31,

STATEMENT OF RETAINED EARNINGS FOR THE YEAR

6 Show separately the State and Federal income tax effect of items

shown in Account 439, Adjustmenrs ro Retamed Earnings

7. Explain in a foatnate the basis (or determining ths amount

reserved or appropnated. If such reservation or appropnstion is to be

recurrent; state the number and annual amounts to be reserved or

appropnated as well as the totals evemually to be accumulated.

Line

No

Item

la)

Contra Pnmary

Account Affected

Ibl

Current Year

Amount

lin dollars)

lcl

Prewous Year

Amount

(rn do)lars)

(dl

APPROPRIATED RETAINED EARNINGS (Account 215)

State balance and purpose of each appropriated retained earnings amount at end of year and give accounting entnes for any

apphcations of appropnated retained earnings durrng the year.

37

38

39

40

41

42

43

44

45 TOTAL Appropriated Retamed Earnings (Account 215)

APPROPRIATED RETAINED EARN)NGS-AMORTIZATION RESERVE, FEDERAL (Account 215.1)

State below the total amount set aside through appropnations of retamed earnings, as of the end of the year, in compliance wnh ths

provisions of Federally granted hydroelectnc project licenses held by the respondent. If any reductions or changes other than the

normal annual credits hereto have been made during the year, exp)am such items in a footnate.

46 TOTAL Appropriated Retained Earn(ngs-Amortization

Reserve, Federal IAccaunt 21 5.1)

47 TOTAL Appropnated Retained Earnings

IAccaunts 215, 215.1)

(Total of lines 45 end 46)

48 TOTAL Retained Earnings (Accounts 215, 215.1, 216)

(Total of lines 36 and 47l

UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1)

49 Balance-Beginning of Year (Debit or Credit)

50

51

52

Equny in Earnings for Year (Credit) (Accaunt 418.1l

(Less) Dividends Received (Debit)

Other Changes (Explain)

53 Balance-End ot Year

FERC FORM NO. 2 )12-96) Page 119

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report

fMo, Da, Yr)

Year of Report

Dec. 31,

STATEMENT OF CASH FLOWS

1. Information about noncash investing and financing activmes

should be provided on page 122. Prowde also on page 122 a

reconcihation between "Cash and Cash Equivalents at End of Year"

with related amounts on the balance sheet.

2 Under "Other" specify significant amounts and group others.

Line DESCRIPTION (See instructions tor Explanation of

No. (al

I Net cash Flow from Operating Acuviues

2 Net Income (Line 72(c) on page 116)

3 Noncash Chatges ICredns) to Income:

4 Depreaation and Depletion

5 Amortization of (Specify)

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21 Net Cash Provided by (Used inl Operating Actwities

22 ITotsl of Lines 2 thru 20)

23

24

25

26

27

28

29

30

31

32

33

34 Cash Outf lowe for Plant (Total of bnes 26 thru 33)

35

36 Acquisition of Other Noncurrent Assets (d)

37 Proceeds trom Disposal of Noncurrent Assets Idl

38

39

40

41

42

43

44

45

Prewous Year Amount

lc)

Deferred income Taxes (Natl

investment Tax Credit Adlustments (Net)

Net ltncreasel Decrease in Receivables

Net llncresse) Decrease in Inventory

Net Ilncreasel Decrease in Altovrances Inventory

Net Increase (Decrease) in Payables and Accrued Expenses

Net (Increasel Decrease m Other Regulatory Assets

Net Increase (Decrease) in Other Regulatory Liabilities

(Lessl Allowance (or Other Funds Used Dunng Construction

(Lessl Undistnbuted Earnings from Subsidiary Companies

Other:

Cash Flows from Investment Activities:

Construction and Acquisnion af Plant (including lsndh

Gross Additions to Utilny Plant i)ass nuclear fusil

Gross Additions to Nuclear Fuel

Gross Additions to Common Utility Plant

Gross Addmons to Nonutility plant

(Lessl Allowance for Other Funds Used Dunng Constructron

Other:

investments in and Advances to Assoc. and Subsidiary Companies

Contnbutions and Advances from Assoc, and Subsidiary Companies

Disposition of Investments in land Advances to)

Associated and Subsidiary Campanies

3. Operating Activities-Other: Include gains and losses pertaining to

operating activities only. Gains and losses perraining to investing and

financing activnies should be reported in those actwities. Show on

page 122 the amounls of interest paid (net of amounts capitalizedl

and income taxes paid

Codes) Current Year Amount

(bl

FERC FORM NO. 2 (12-96) Page 120

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Cl An Original

Cl A Resubmission

Date of Report

(Mo, Da, Vrl

Year of Report

Oec. 31,

STATEMENT OF CASH FLOWS (Continued)

Line

No.

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

DESCRIPTION (See Instructions for Explanation of Codesi

(s)

Loans Made or Purchased

Collections on Loans

Ne'liicreasei Decrease in Recewables

Net llncreasel Decrease in Inventory

Net (Increase) Decrease m Allowances Held for Speculatron

Net Increase (Decreasel in Payables and Accrued Expenses

Other:

Nst Cash Prowdsd by (Used in) Investing Activities

ITotal of hnes 34 thru 55)

Cash Flows from Financing Activities:

Proceeds from Issuance of:

Long-Term Debt (b)

Preferred Stock

Common Stock

Other:

Nst increase in Short-term Debt ici

Other:

Cash Provided by Outside Sources (Total of hnes 61 thru 69)

Payments for Retirement of:

Long-Term Debt (bl

Preferred Stock

Common Stock

Other.'st

Decrease in Short.Term Debt (c)

Diwdsnds on Preferred Stock

Diwdends on Common Stock

Net Cash Provided by IUssd in) Financing Activities

(Total of lines 70 thru 81)

Nat Increase (Decrease) in Cash and Cash Equivalents

(Total of line 22, 57 and 83)

Cash snd Cash Equivalents at Beginning of Year

Cash end Cash Equivalents st End of Veer

4. Investing Actwities: Include at Other (Line 31)net cash outflow

to acquire other companies, Provide a reconciliation of assets acquired

with (abilities assumed on page 122. Do not include on this

statement the dollar amount of leases capitalized per U.S, of A.

General instruction 20; instead provide a reconciliation of the dollar

amount of leases capitahzed vnth the plant cost on page 122.

5 Codes used:

ia) Net Proceeds or payments.

lb) Bonds, Debentures, and other long-term debt.

(cl Include commercial paper.

Id) Identify separate such items as mvestments fixed assets,

intangibles, etc.

6 Enter on page 122 clarifications and explanations.

Currenl Year Amount Previous Year Amount

(b) (cl

FERC FORM )80. 2 (12-96) Page 121

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

0 An Original

''

0 A Resubmission

Year of Report

Dec. 31,

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 s subheading

for each statement except where a disclosure is applicable to more than one statement. The disclosures must be on the same subject matters

snd 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 4 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 IPBOP) plans, and post-employment benefit

plans as required by instrucuon no. 1 and, in addition, disclose for each individual plan the current year's cash contnbutions. 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 obligabons

or assets, gains or losses, the amounts deferred and the expected recovery periods. Also, disclose any current year's plan or trust

curtailments, termmations, transfers, or reversions of assets.

4. Where Account 189, Unamorrizsd Loss on Reacquired Debt, and 257, Unamondzad Gain on Reacquired Debt, are not used, give an

explanation, providing the rate treatment given these item. See General Instruction 17 of the Uniform System of Accounts.

5. Explain concisely eny retained earnings restrictions and state the amount of retained earnings affected by such restrictions.

6. 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 psrtnerships,

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 corporationis). and distributions of capital.

7. Explain concisely unsenled rate proceedings where a contingency exists such that the company msy 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 snd the tax effects and explain the major factors that affect the rights of the

ublity to retain such revenues or to recover amounts paid with respect to power and gas purchases.

s. Explain concisely significant amounts of any refunds made or received dunng the year resulting from senlement of any rate proceeding

affecting revenues received or costs incurred for power or gas purchases, and summanze the sdiustments made to balance sheet, income, and

expense accounts.

9. Explain concisely only those changes in accounting methods made dunng the year which had an effect on net income, mcluding the basis

of allocations and apportionments from those used in the preceding year. Also give the approximate dollar effect of such changes.

FERC FORM NO. 2 (12-961 Page 122

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 200]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent

Line

No.

This Report Is: Date of Report

E3 An Original (Mo, Da, Yrl

E3 A Resubmission

SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS

FOR DEPRECIATION, AMORTIZATION AND DEPLETION

Item

(a)

UTILITY PLANT

Year Ending

Dec. 31,

Total

(bl

2 In Service

3 Plant in Service IC(assified)

4 Property Under Capital Leases

5 Plant Purchased or Sold

6 Completed Construcuon not Classified

7 Expenmental Plant Unclassifmd

8 TOTAL Utility Plant (Total of lines 3 thru 7)

9 Leased to Others

10 Held for Future Use

Construction Work in Progress

12 Acquisition Adlustments

13 TOTAL Utility Plant (Total of lines 8 thru 12)

14 Accumulated Provisions for Oeprstuation, Amonization, Ik Depletion

15 Net Utilny Plant ITotsl of lines 13 and 14)

16 DETAIL OF ACCUMULATED PROVISIONS

FOR DEPRECIATION, AMORTIZATION AND DEPLETION

17 In Service:

IS Depreciation

19 Amortization and Depletion of Producing Natural Gas Land and Land Rights

20 Amortization of Underground Storage Land snd Land Rights

21 Amortization of Other Utilny Plant

22 TOTAL In Service iTotal of lines 18 thru 21l

23 Leased to Others

24 Depreciation

25 Amortization snd Depletion

26 TOTAL Leased to Others (Total of lines 24 and 25)

27 Held for Future Use

28 Depreciation

29 Amortization

30 TOTAL Held for Future Use fTotal of lines 28 and 29)

31 Abandonment of Leases (Natural Gss)

32 Amortization of Plant Acquisition Adjustmsnt

33 TOTAL Accum. Provrsions (Should agree with line 14 above)(Total of lines 22, 26, 30. 31, and 32)

FERC FORM NO. 2 (12-961 Page 200

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is:

0 An Onginal

E) A Resubmission

Date of Report Year Ending I

(Mo, Qa, Yrl

Dec. 31,

Electric

Ic)

SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS

FOR DEPRECIATION, AMORTIZATION AND DEPLETION (Continued)

Gaa Other Ispeorfyl

ld) le)

Common

Ifl

Line

No.

10

12

13

14

15

16

17

18

20

22

24

25

26

28

29

30

31

32

33

FERC FORIN NO. 2 (12-96) Page 201 [Next page is 204)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS PLANT IN SERVICE IACCC)UNTS 101, 102, 103, AND 106)

1. Report below the onginal cost of gas plant in service according to

the prescnbed accounts.

2. In addition to Account 101, Gss Planrin Service (Clsssifiedl, this

page snd the next mclude Account 102, Gss Plant Purchased or Sold,

Account 103, Expenmenrsl Gss Plsnl Unclassified, and Account 106,

Complered Consrrucnon Nor Classified-das.

3. Include in column Ic) and (d), as appropnate corrections of

additions snd retirements for the current or preceding year.

4. Enclose in parenthesis credit adiustments of plant accounts to

indicate ths negatws effect of such accounts.

5. Classify Account 106 according to prescnbed accounts, on an

estimated basis il necessary, and include the emnes in column

Ic).A)so to be included in column Ic) ars enlnes for reversals af

tentative distnbutions of pnor year reported in column Ib). Likewise,

if the respondent hss a significant amount of plant retirements which

have not been classified \o pnmary accounts st the end of the year,

include in column Id) a tentatwe distnbution af such retiremems, on

an estimated basis, with appropnate contra entry to the account for

accumulated depreciation provision. Include also in column id)

reversals of tentative distnbuuons af pnor year's unclassified

retirements. Attach supplemental statement showing the account

distributions of these tentatwe classifications in columns (cl snd Id),

L I no

No.

10

12

13

14

15

16

17

18

20

21

22

24

25

26

27

28

29

30

31

32

33

Account

Ia)

INTANGIBLE PLANT

301 Organization

302 Franchises snd Consents

303 Miscellaneous Intangible Plant

TOTAL Intangible Plant

PRODUCTION PLANT

Natural Gss Production snd Gathenng Plant

325.1 Produong Lends

325.2 Praducing Leaseholds

325.3 Gss Rights

325.4 Rights-af-Wsy

325.5 Other Land and Land Rights

326 Gas Well Structures

327 Field Compressor Station Structures

328 Field Measunng and Regulating Station Equipment

329 Other Structures

330 Producing Gas Wells-Well Consvuctian

331 Producing Gas Wells-Well Equipmsnt

332 Field Lines

333 Field Compressor Station Equipment

334 Field Measuring and Regulating Station Equipment

335 Drilling and Cleaning Equipment

336 Punficstion Equipment

337 Other Equipment

338 Unsuccessful Exploratron and Development Costs

TOTAL Production and Gathering Plant

PRODUCTS EXTRACTION PLANT

340 Land and Land Rights

341 Structures snd Improvements

342 Extraction end Refining Eauipment

343 Pipe Lines

344 Extracted Products Storage Equipment

345 Compressor Equipment

Balance at

Beginning of Year

(bl

Addmons

(c)

FERC FORM NO. 2 (12-96) Page 204

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

CI A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106)IContinued)

including the reversals of the pnor years tentatwe account

distnbutions of these amounts. Careful observance of the above

instructions and the texts of Account 101 and 106 will avoid senous

omissions of respondent's reported amount for plant actually in

service at end of year.

6. Show in column (I) reclassifications or transfers within utihty

plant accounts. Include also in column lf) the addmons or reductions

of pnmary account classifications ansing from distribution of amounts

innially recorded in Account 102. In showing the clearance of

Account 102, mclude m column (el the amounts with respect to

accumulated provision for depreciation, acquisition sdlustments, etc.,

and show in column If) only the offset to the debus or credits to

pnmary account classifications.

7 For Account 399, state the nature and use of plant included m

this account and if substantial in amount submit a supplementary

statement showing subaccount c)assification of such plant conforming

to the requirements of these pages

8. For each amount compnsing the reported balance and changes in

Account 102, state the propeny purchased or sold, name of vendor or

purchaser, and date of transaction. If proposed journal entries have

been filed with the Commission as required by the Uniform System of

Accounts, give date of such fihng.

Retirements

Id)

Ad)us'truants

(el

Transfers Balance at

End of Year

lgl

Line

No.

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

FERC FORM NO. 2 (12-96) Page 205

19951003-0255 FERC PDF (Unofficial) 09/28/1995
(

Name of Respondent This Report Is:

An Original

CI A Resubmission

Date of Report

(Mo, Da, Yrl

Year Ending

Dec. 31,

GAS PLANT IN SERVICE IACCOUNTS 101, 102, 103, AND 106l(Continued)

Line

No

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

Account

i el

346 Gss Msssunng and Regulating Equipmsnt

347 Other Equipment

TOTAL Products Extraction Plant

TOTAL Natural Gas Production Plant

Manufactured Gas Production Plant (Submir Supp/emenrsry Srarement)

TOTAL Production Plant

NATURAL GAS STORAGE ANO PROCESSING PLANT

Underground Storage Planl

350.1 Lend

350.2 Rights-of-Way

351 Structures and Improvements

352 Wells

352.1 Storage Leaseholds and Rights

352.2 Reservoirs

352.3 Non-rscoversbls Natural Gas

353 Lines

354 Compressor Station Equipment

Measunng and Regulating Equipment

Punfication Equipment

357 Other Equipment

TOTAL Underground Storage Planl

Other Storage Plant

Land and Land Rights

Structures and Improvements

355

356

360

361

362 Gss Holders

365.1 Land and Land Rights

365.2 Rights-of-Wey

366 Structures and Improvements

363 Punfication Equipment

363.1 Liquefaction Equipment

363.2 Vaporizing Equipment

363.3 Compressor Equrpment

363.4 Measuring and Regulating Equipment

363.5 Other Equipment

TOTAL Other Storage Plant

Bass Load Liquefied Natural Gas Terminaling and Processing Plant

364.1 Land and Land Rights

364.2 Structures and improvements

364.3 LNG Processing Terminal Equipment

364.4 LNG Transportation Equipment

364.5 Measuring snd Regulating Equipment

364.6 Compressor Station Equipment

364.7 Communications Equipment

364.8 Other Equipment

TOTAL Base Load Liquefied Natural Gas, Tarmjneling and Processing Plant

TOTAL Natural Gss Storage and Processing Plant

TRANSMISSION PLANT

Balance at

Begmning of Year

Ib)

Additions

Icl

FERC FORM NO. 2 (12-96) Page 206

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

0 A Resu)hrnission

Date of Report

(Mo, Da, Yrh

Year Ending

Dec. 31,

(3AS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106)IContinuedl

RetirementS

(d)

Adhustments

(e)

Transfers BalanCe at

End of Year

(9)

Line

No

34

35

36

37

38

39

40

41

42

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

FERC FORM NO. 2 112-96) Page 207

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, )'r(

Veer Ending

Dec. 31,

Line

No.

81 367 Mains

GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106)(Continued)

Account Balance at

Beginning of Year

ia) (b)

Addnions

(cl

82

83

84

85

87

88

89

90

358 Compressor Station Equipment

369 Measunng and Regulating Station Equipmsnt

370 Communication Equipment

371 Other Equipment

TOTAL Transmission Plant

DISTRIBUTION PLANT

374 Land and Land Rights

375 Structures and Improvements

376 Mains

91

92

93

94

377

378

379

380

Compressor Station Equipment

Measuring and Regulating Station Equipment-General

Measuring and Regulating Station Equipment-City Gate

Services

95

96

97

98

100

101

102

103

104

105

106

107

108

109

110

112

113

114

115

116

117

118

119

120

121

381 Meters

382 Meter Installations

383 House Regulators

384 House Regulator Installations

385 Industrial Measuring and Regulatmg Station Equipment

386 Other Progeny on Customers'remises

387 Other Equipment

TOTAL Distribution Plant

GENERAL PLANT

389 Land and Land Rights

390 Structures snd Improvements

391 Office Furniture and Equipment

392 Transportation Equipment

393 Stores Equipment

394 Tools, Shop, end Garage Equipment

395 Laboratory Equipment

396 Power Operated Equipment

397 Communication Equipment

398 Miscellaneous Equipment

Subtotal

399 Other Tangible Propeny

TOTAL General Plant

TOTAL (Accounts 101 and 106)

Gas Plant Purchased (See Instruction 8)

(Less) Gss Plant Sold (See Instruction 8)

Errperrmenta( Gas Plant Unclassified

TOTAL Gas Plant In Service

FERC FORM NO. 2 (12-86) Page 208

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Onginai

0 A Resubmission

Date of Report Year

(Mo, Da, YN

Dec.

Ending

31

GAS PLANT IN SERVICE IACCOUNTS 101, 102, 103, AND 106)(Contrnuedl

Retirements

Id l

Adiustments

(el

Transfers Balance at

End of Year

(9)

Line

No.

81

82

83

84

85

86

67

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

12'I

FERC FORM NO. 2 (12-99) Page 209 [Next page is 2121

19951003-0255 FERC PDF (Unofficial) 09/28/1995
~ Name of Respondent This Report Is:

E3 An Onginal

0 A Resubmission

Date of Report

IMo, Da, Yr)

Year Ending

Dec. 31,

GAS PROPERTY AND CAPACITY LEASED FROM OTHERS

1. Report below the information called for concerning gas property

and capacny leased from others for gas operations.

2. For all leases in which the average annual lease payment over the

initial term of the lease exceeds 1500,000. descnbe in column lb), if

applicable the property or capaaty leased.

Line

No.

Name of Lessor

IDesignate associated companies wnh an astenskt

(sl

Descnption of Lease

Ib)

Lease Payments For

Current year

(cl

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

45 TOTAL

FERC FORNI ND. 2 (12-96) Page 212

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS PROPERTY AND CAPACITY LEASED TO OTHERS

1. For all leases m which the average lease income over the inn ial

term of the lease exceeds 4500,000 prowde in column Ibi, a

descnption of each facility or leased capacity that is classified as

plsm in service, and is leased to others tor gas operations.

gas

2 In column lc) prowde the lease payments received from others.

Line

No

Name of Lessor

IDesignate associated companies with an asterisk)

lai

Descnption of Lease

Ibl

Lease Payments For

Current year

Icl

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 TOTAL

FERC FORM NO. 2 (12-96) Page 213

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS PLANT HELD FOR FUTURE USE (ACCOUNT 105)

I Report separately each property held for future use at end of the

year having an onginal cost of S1,000,000 or more Group other

items of property held for future use.

2 For property having an onginal cost of $ 1,000,000 or more

previously used in utihty operauons, now held for future use, give in

column lal, in addition to other reguired information, the date that

utility use of such property was discontinued, and the date the

onginal cost was transferred to Account 105

i.inc

No

Description and Location

of Property

I a)

Date Onginally Included

in this Account

lbl

Date Expected to be Used

in Utility Service

(c)

Balance at

End of Year

ilj I

'I

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 TOTAL

FERC FORM NO. 2 (12-96) Page 214

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 216]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Onginal

0 A Resubmission

Date of Report

ff(rfo, Da, Yr)

Year Ending

Dec. 31,

CONSTRUCTION WORK IN PROGRESS-GAS (ACCOUNT 1 07)

1. Report below descnptions and balances at end of year of pro)acts

in process of construction (Accoum 107)

2. Show items relating to "research, development, and

demonstration" pro)acts last, under a caption Research, Development,

and Demonstration (see Account 107 of the uniform System of

Accounts).

3. Minor pro)acts (less than $ 1,000.000) may be grouped.

Line

No.

Descnption of Pro)act

(a)

Construction Work in Progressusas

fAccount 107)

(b)

Estimated Additional

Cost of Pro)act

(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

43

44

45 TOTAL

FERC FORM NO. 2 112-96) Page 216

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 218]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Onginal

D A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE

1 For each construction overhead explain; (al nature and extent of

work, elc., the overhead charges are intended to cover, Ibl the

general procedure for determining the amount capitakzed, Ic'I the

method of distnbuuon to construction lobs. Idl whether different rates

are appked to different types of construction, (e) basis of

differentiation in rates for different types of construction, and (fl

whether the overhead is directly or indirectly assigned.

2. Show below the computation of allowance for funds used dunng

construction rates, in accordance with the provisions of Gas Plant

Instrucuons 3 l17) of the Uniform System of Accounts.

3. Where a net-of-tax rate for borrowed funds is used, show the

appropnate tax effect ad)ustment to the computations below in a

manner that clearly indicates the amount of reduction m lhe gross rate

for tax effects.

COMPUTATION OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES

For line (5), column (d) below, enter the rate granted in the last rate proceeding. If not available, use the average rate earned dunng

the preceding 3 years.

1. Components of Formula (Denved from actual book balances and actual cost retesl:

Title

(a)

Amount

(bl

Capital Ratio

(Percent)

(c)

Cost Rate Percentage

(dl

ll) Average Shon-Term Debt

12) Short-Term Interest

13) Long-Term Debt

(4l Preferred Stock

{nr C n

c . ~..

(el Total Capitalization

(7) Average Construction Work in Progress Balance

6

D

100%

2. Gross Rate for Borrowed Funds s(S) + d~D (1-Sl

W D+P+C W

3, Rate for Other Funds (I-Sl IP~P + c~CI

W D+P+C D+P+C

4. Weighted Average Rate Actually Used for the Year:

a. Rate for Borrowed Fundsb. Rate for Other FundsFERC FORM NO. 2 (12-96) Page 218

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is:

Ej An Onginel

0 A Resubmission

Date of Report

f/kfo, De, Yr/

Veer Ending

Dec. 31,

ACCUMULATED PRO)7(SION FOR DEPRECIATION OF GAS UTILITY PLANT (ACCOUNT 108)

1 Explain in a footnote any importam sdlustrnents dunng year

2 Explain in a footnote any difference between the amount for

book cost of plant retired, hne 11, column Ic), and that reported for

gas plant in service, page 204-209. column (dl, excluding retirements

of nondepreciable property.

3. The prowsions of Account 108 in the Uniform System of

Accounts require that retirements of depreciable plant be recorded

when such plant is removed from service If the respondent has a

significant amount of plant retired at year end which has not been

recorded and/or classified to the venous reserve functional

classifications, make prekmmary closing entnes to tentatively

functionalize the book cost of the plant retired In addnion, include all

costs included in retirement work in progress at year end m the

appropnate functional classifications

4. Show separately interest credos under a sinking fund or simdar

method of depreciation accounting

Line

No.

Item

lal

Total

Ic+d+e)

(bl

Gas Plant in

Service

ic)

Gas Plant Held

for Future Use

(dl

Gas Plant Leased

.to Others

(s)

Section A. BALANCES AND CHANGES DURING YEAR

Balance Beginntng of Year

Depreciation Protesions for Year, Charged to

(403) Depreciation Expense

(413) Expense of Gas Plant Leased to Others

Transportation Expenses - Cleanng

Other Clearing Accounts

Other Clearing (5pecify)i

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

TOTAL Deprec. Prov. for Year (Total of lines 3 thru 8)

Net Charges for Plant Rettred:

Book Cost of Plant Retired

Cost of Removal

Salvage (Credit)

TOTAL Net Chrgs for Plant Ret. (Total of lines I 1thru13)

Other Debit or Credo Items (Describel:

Balance End of Year (Total of lines I, 9, 14, 15, and 16)

Section B. BALANCES AT END OF YEAR ACCORDING TO FUNCTIONAL CLASSIFICATIONS

ProductronsiManufactured Gas

Production snd Gathenng-Natural Gas

Products Extraction-Natural Gas

Underground Gas Storage

Other Storage Plant

Base Load LNG Tsrminalmg and Processing Plant

Transmission

Distribution

General

TOTAL (Total of )mes 18 thru 26)

FERC FORM NO. 2 (12-96) Page 219

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report is:

D An Onginal

D A Resubmission

Date of Report

(Mo, Da, VN

Year Ending

Dec. 31,

GAS STORED (ACCOUNTS 117.1,117.2, 117.3, 117.4, 164.1, 164.2, AND 164.3)

1. Ii dunng the year adiustments were made to the stored gas

mvemory reported in columns Id), (f), (g), and Ih) (such as to correct

cumuianve inaccuracies of gas measurementsl, explain in a footnote

the reason for the adlustments, the Dth and dollar amount of

ad)ustment. and account charged or credited.

2 Report m column le) all encroachments dunng the year upon the

volumes designated as base gas, column (b), and system balancing

gas, column (cl, and gas propeny recordable in the plant accounts.

3. State in a footnote the basis of segregation of inventory between

current and noncurrent portions. Also, state in a footnote the method

used to report storage (i.e., fixed asset model or inventory method).

Line

No. Descnption

la)

Balance at Begmning of

Year

IAccount

117.1)

(bl

(Account

117.2)

icl

Noncurrent

(Account

117.3)

Idl

(Account

1 1 7.41

le)

Current

IAccount

164.1)

(fi

LNG

IAccount

164.2)

(g)

LNG

(Account

164.31

Ih)

Total

Gas Delwered to Storage

(contra account)

Gas Withdrawn from

Storage (contra account)

Other Debns and Credits

Balance at Bnd nf Year

Dtli

Amount Per Dth

FERC FORM NO. 2 (12-96) Page 220

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 222]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Onginal

D A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

INVESTMENTS (ACCOUNT 123, 124, AND 136I

Reporr below mvestments m Accounts 123, invesrmenrs in

Associated Companies, 124, Orner investments, and 136, Temporary

Cash invesrmenrs.

2. Provide a subheading for each account and list thereunder the

information called lor

ial Investment in Secuntres —List and descnbe each secunty

owned, giving name of issuer, date acquired and date ot matunty.

For bonds, also give pnnmpal amount, date of issue, matunty, and

interest rate. For capnal stock hncluding capital stock of

tespondent reacquired under a definite plan for resale pursuant

to authonzation by the Board of Directors, and mcluded m Account

124, Orher invesrmentsl state number of shares, class, and sense of

stock Minor investments may be grouped by classes. Investments

included in Account 136, Temporary Cash invesrmenrs, also may be

grouped by classes.

lb) Investment Advances —Report separately for each person or

company the amounts of loans or investment advances that are

properly includable in Account 123 Include advances subiect to

current repayment in Account 145 and 146. With respect to each

advance, show whether the advance is a note or open account.

L I no

No.

Descnption of Investment Book Cost at Beginnmg of Year

(lf book cost is different from cost to

respondent, give cost to respondent in s

footnote snd explain dkftersncs.

Purchases or Additions

Dunng Year

ial (b) lcl

I

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

FERC FORM NO. 2 I12-96) Page 222

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

E3 A Resubmission

Date of Report Year Ending

(Mo, Da, Yr)

Dec. 31,

INVESTMENTS (ACCOUNT 123, 124, AND 136) IContinuedl

List each note, gwing date of issuance, maturny date, and specifymg

whether note is a renewal. Designate any advances due from

officers, directors, stockholders, or employees.

3. Designate with an astensk any secunties, notes or accounts that

were pledged, and in a footnote state the name of pledges and

purpose of the pledge.

4 If Commission approval was required for any advance made or

secunty acquired, designate such fact in a footnote and cite

Commission, date of authonzation, and case or docket number.

5 Report in column igl mterest and dividend revenues from

investments including such revenues from secunties disposed of

dunng the year.

6 In column (hl report for each investment disposed of dunng

the year the gain or loss represented by the difference between cost

of the investment lor the other amount at which cerned in the books

of account if different from cost) and the selling pnce thereof,

not including any dividend or interest ad)ustment includible in

column lgl

Sales or Other

Disposnions Dunng Year

(dl

Pnncipal Amount or

No. of Shares at

End of Year

(el

Book Cost at End of Year

llf book cost is different from

cost to respondent, gwe cost to

respondent in a footnote and

explain difference.l

(f)

Revenues for Year

lg)

Gain or Loss from

Investment

Disposed of

Line

No.

I

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

FERC FORM NO. 2 (12-99) Page 223

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report

/Mo, Da, Yrf

Year Ending

Dec. 31,

INVESTMENTS IN SUBSIDIARY COMPANIES (ACCOUNT 123.1)

I Report below investments in Account 123 I, rnvestmenrs in

SupsrChary Companies.

2. Prowde a subheading for each company and hst thereunder the

information called for below. 5ub-total by company and give a total in

columns le), (I), lg) and lhl

la) investment in Sacunues —List and descnbe each secunty owned

For bonds give also pnncipal amount, date of issue, maturny, and

intereat rate

(bl Investment Advances - Report separately the amounts of loans

or investment advances which are sub)act to repayment, but which

are not sub)act to current san)ament. With respect to each advance

show whether the advance is a note or open account. List each

note giving date of issuance, matunty date, and specifying whether

note is a renewal.

3. Report separately the equny m undistnbuted subsidiary earnings

since acquisition. The total in column le) should equal the amount

entered for Account 418.I.

Line

No.

Descnption of Investment

(a)

Dare

Acquired

(bl

Date of

Matunty

(cl

Amount of

Investment at

Beginning of Year

(d)

I

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 TOTAL

FERC FORM NO. 2 (12-66) Page 224

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

O An Original

0 A Resubmission

Date of Report

(Mo, Da, Yrl

Year Ending

Dec. 31,

INVESTMENTS IN SUBSIDIARY COMPANIES (ACCOUNT 123.1)IContinuedl

4 Designate in a footnote, any secunties, notes, ar accounts that

were pledged, and state the name of pledgee and purpose of the

pledge.

5. If Commission approval was required for any advance made ar

securny acquired, designate such fact in a footnote and give name of

Commission, date of authanzauon, and case or docket number.

6. Report in column If) interest and dwidend revenues from

investments, including such revenues from secuntiss disposed of

dunng the year.

7. In column lhi report for each mvestment disposed of dunng the

year, the gain or loss represented by the difference between cost of

the investment lor the other amount at which cerned in the books of

accaunt if different from cost). and the selhng pnce thereof, not

including interest adlustments includible in column lf).

8. Report on Line 40, column la) and total cost of Account 123 1.

Equity in Subsidiary

Earnings for Year

Revenues for Year Amount of Investment at

End of Year

Gain ar Loss from

Investmsnt Disposed of

Line

No.

ls) lgl lhl

I

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

FERC FORM NO. 2 (12-66I Page 226 INext page is 230l

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Q An Onginal

D A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

PREPAYMENTS (ACCOUNT 166)

1 Report below the particulars (detailsi on each prepayment

Line

No.

I Prepaid Insurance

2 Prepaid Rents

3 Prepaid Taxes

4 Prepaid Interest

5 Miscellaneous Prepeyments

6 TOTAL

Nature of Prepayment

lsi

EXTRAORDINARY PROPERTY LOSSES (ACCOUNT 182.1)

Balance at End of

Year (in dollarsl

(b)

Line

No.

Descnption of Extraordinary Loss llnclude the

date of loss, the date of Commission

suthonration to use Account 182.1 and psnod

of amortization (mo, yr, to mo, yrll

Balance at

Beginning

of Year

Total Losses WRITTEN OFF

Amount Recognized DURING YEAR

of Loss During Year

Balance at

End of Year

la) (bl (c) Idl

Account Amount

Charged

(el (fl (pl

TOTAL

UNRECOVERED PLANT AND REGULATORY STUDY COSTS (ACCOUNT 182.2)

Lme

No.

Dsscnption of Unrecovered Plant and Regulatory

Study Costs llnclude in the descnption of costs,

the date of Commission authorization to use

Account 182.2 and period of amortization (mo,

yr, to mo yrll

Balance at

Beginning

of Year

Total

Amount

of Charges

Costs

Recognized

Dunng Year

WRITTEN OFF

DURING YEAR

Batance at

End of Year

10

11

12

13

14

15

16

)7

18

19

20 TOTAL

(s) (b) (c) (d)

Account Amount

Charged

(el (f) (gl

FERC FORM NO. 2 (12-96) Page 230

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 232]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Ej An Original

Cl A Resubmission

Date of Report

fMo, Da, Yrf

Year Ending

Dec. 31,

OTHER REGULATORY ASSETS (ACCOUNT 182.3)

I Report below the details called ior concerning other regulatory

assets which are created through the ratemaking acuons of regulatory

agencies land not includable in other accountsl

2. For regulatory assets being amortized, show period of

amortization m column la).

3 Mmor items Isia of the Balance at End of Year for Account

182.3 or amounts less than f250,000. whichever is less) may be

grouped by classes

4 Report separately any "Deferred Regulatory Commission

Expenses" that are also reponed on pages 350-351. Regulatory

Commission Expenses.

Line

No.

Descnption and Purpose of

Other Regulatory Assets

Balance at

Beginning

of Year

Debits WRITTEN OFF

DURING YEAR

Balance at

End of Year

(a) Ib) (cl

Accouitt

Charge

(d)

Amount

(el

I

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 TOTAL

FERC FORNI NO. 2 l12-96) Page 232

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Original

CI A Resubmission

Date of Report

/Mo, Da, Yrf

Year Ending

Dec. 31,

MISCELLANEOUS DEFERRED DEBITS (ACCOUNT 186I

I Report below the details called for concerning miscellaneous

deferred debits

2. For any deterred debn being amonized, show pened of

amortization in column (a).

3 Minor items fleas than $ 250,000) may be grouped by classes.

Line

No

Descnption of Miscellaneous

Deferred Debits

Balance at

Beginning of Year

Debits CREDITS Balance at

End of Year

la) &b) lc I

Account

Charged

ld)

Amount

le)

I

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 Miscellaneous Work in Progress

40 TOTAL

FERC FORM NO. 2 (12-96) Page 233

19951003-0255 FERC PDF (Unofficial) 09/28/1995
( Name of Respondent This Report ls:

Cl An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec 31,

ACCUMULATED DEFERRED INCOME TAXES (ACCOUNT 190)

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 Subdiwsions Balance at

Beginning of Year

CHANGES DURING YEAR

Amounts Debned to

Account 410 I

Amounts Credned to

Account 411.1

la) ibl (c) (d)

1 Account 190

2 Electric

3 Gas

4 Other (Define)

5 Total (Total of lines 2 thru 4)

6 Other (Specify)

9 TOTAL Account 190 (Total of hnes 5 thru Bl

10 Classification of TOTAL

11 Federal Income Tax

12 State Income Tax

13 Local Income Tax

NOTES

FERC FORM NO. 2 (12-96) Page 234

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report (s:

An Onginal

D A Resubmission

Date of Report

(Mo, Da, YN

Year Ending

Dec. 31,

ACCUMULATED DEFERRED (NCOME TAXES (ACCOUNT 190) (Continuedl

3. If more space is needed, use separate pages as required. 4. In the space prowded below, idenufv bv amount and

classification, significant items for which deferred taxes are being

provided. Indicate insignificant amounts listed under "Other"

CHANGES DURING YEAR ADJUSTMENTS Balance at

End of Year

Line

No.

Amoums Debited

to Account 410.2

Amounts Credited

to Account 411.2

DEBITS CREDITS

(el

Acct No.

(gl

Amount

(Ill

Acct. No.

(il

Amount

(i)

12

Notes (Continuedl

13

FERC FORM NO. 2 (12-96) Page 236 [Next page is 2cu0)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

A Resubmission

CAPITAL STOCK (ACCOUNTS 201 AND 204)

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

1. Report below the details celled for concernmg common end

preferred stock at and of year, distinguishing separate sense of sny

general class. Show separate totals for common end preferred stock.

2. Entries rn column (b) should represent the number of shares

authorized by the articles of incorporetron ss amended to end of year.

3. owe details concernrng shares of any class and sense of stock

authorized to be issued by a regulatory commission which have not

yet been issued.

Line

No.

Class and Series of Stock and

Name of Stock Exchange

(s)

Number of Shares

Authorized by Charter

(b)

Par or Stated Value

Per Share

(c)

Csg Price et

End o( Year

(d)

1

2

3

4

5

6

7

6

9

10

ll

12

13

14

15

16

17

16

19

20

21

22

23

24

25

26

27

26

28

30

31

32

33

34

35

36

37

38

38

40

FERC FORM NO. 2 112-96) Page 260

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is:

D An Origina(

D A Resubmission

Date of Report

(Mo, Da, Yr/

Year Ending

Dec. 31,

CAPITAL STOCK (ACCOUNTS 201 AND 204) (Continued)

4 The identification of each class of preferred stock should show

the diwdend rate and whether the dividends are cumulatwe or

noncumulative.

5 State in a footnote if any capital stock that has been nominally

issued is nominally outstanding at end of year.

6. Give particulars Idetailsl rn column (al of any nomrnally issued

capnal stock, reacquired stock, or stock in sinking and other funds

which is pledged, statmg name of pledgee and purpose of pledge.

OUTSTANDING PER BALANCE SHEET

(Total amount outstanding without

reducuon for amounts held by respondent)

HELD By RESPONDENT

AS REQUIRED STOCK

(Account 217)

IN SINKING AND

OTHER FUNDS

Lme

No

Shares

(el

Amount

(f)

Shares

(gl

Cost

(Ill

Shares

(il

Amount

(II

I

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

FERC FORM NO. 2 (12-96) Page 261

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Cl An Original

CI A Resubmission

Date of Report

fMo, Da, Yr/

Year Ending

Dec. 31,

CAPITAL STOCK SUBSCRIBED, CAPITAL STOCK LIABILITY FOR CONVERSION,

PREMIUM ON CAPITAL STOCK,AND INSTALLMENTS RECEIVED ON CAPITAL STOCK

IACCOUNTS 202, 203, 206, 206, 207, and 212l

1 Shaw for each of the above accounts the amounts applying to

each class and sense of capital stock.

2. For Account 202, Common Stock Subscribed, and Account 205,

Preferred Stock Subscribed, show the subscription price and the

balance due on each class at the end of year.

3. Describe in s footnote the agreement and transactions under

which a conversion hability existed under Account 203, Common

Stock Liabiirry for Conversion, or Account 206, Preferred Srock

Lrabifrry for Conversion. at the end of year.

4. For Premium on Account 207, Cepiisi Srack, designate with an

astensk any amounts representing the excess of consideration

received over stated values of stocks wnhout par value.

Line

No.

Name of Account and

Descnption of Item

la)

Number

of Shares

(bl

Amount

(cl

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 TOTAL

FERC FORM NO. 2 (12-96) Page 262

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

OTHER PAID-IN CAPITAL (ACCOUNTS 208-21 1 )

1. Report below the balance at the end of the year and the

information specified below for the respectwe other paid-in cspnal

accounts. Prowde a subheadmg for each account and show a total

for the account, as well as a total of all accounts for reconcihation

with the balance sheet, page 112. Add more columns for any

account if deemed necessary. Explain changes made in sny account

dunng the year and give the accounting entnes effecting such change

la) Donations Received from Stockholders (Account 208) - State

amount and bnefly explain the ongin and purpose of each donation.

(b) Reducrion rn Par or Sra red Value oi Cspirsi Srock (Account 209)

State amount and bnefly exp)am the capital changes that gave nse to

amounts reported under this caption including identification wnh the

class and sense of stock to which related.

(c) Gain or Resale or Cancel)aeon of Reacquired Capirai Srock

IAccount 210) - Repon balance at beginning of year, credits, debits,

and balance at end of year with a designation of the nature of each

credit and debit identified by the class and senes of stock to which

related.

ldl Miscellaneous Paid-In Capirs/ lAccount 211l - Classify amounts

included in this account according to capoons that, together with bnef

explanations, disclose the general nature of the transactions that 4)ave

nse to the reported amounts.

Litic

No.

Item

(a)

Amount

(b)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

te

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

FERC FORM NO. 2 (12-96) Page 253

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

DISCOUNT ON CAPITAL STOCK (ACCOUNT 213i

1. Repart the balance at end of year of discount on capnal stock for

each class and sanes of capital stock.

2. lf any change occurred dunng the year in the balance wnh

respect to any class or senes of stock, attach a statement giving

details of the change. State the reason for any charge-off during the

year and specify the accaunt charged.

Line

No.

Class and Sensa of Stock

(a)

Balance at End of year

Ibl

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15 TOTAL

CAPITAL STOCK EXPENSE (ACCOUNT 2141

1. Report the balance at end af year af capital stock expenses for

each class snd sensa of capital stock.

2. If any change occurred during the year in the balance with

respect to sny class or sensa of stock, attach a statement giving

details of the change. State the reason for any charge-off of capnal

stock expense and specify the account charged.

Line

No.

Class and Senex of Stock

(ai

Balance at End ot year

(b)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15 TOTAL

FERC FORM NO. 2 (12-96) Page 254

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

SECURITIES ISSUED OR ASSUMED AND

SECURITIES REFUNDED OR RETIRED DURING THE YEAR

1. Furnish a supplemental statement bnefly descnbing secunty

fmancing and refinancing transactions dunng the year and the

accounting for the securiues, discounts, premiums, expenses, and

related gains or losses. Identify as to Commission authonzation

numbers and dates.

2 Provide details showing the full accounung for the total pnncipal

amount, par value, or stated value of each class and series of secunty

issued, assumed, retired, or refunded and the accounting for

premiums, discounts, expenses, and gains or losses relating to the

secunties. Set forth the facts of the accaunung clearly with regacd to

redemption premiums, unamortized discounts, expenses, and gain or

losses relating to securities retired or refunded, including the

accounting for such amounts cerned in the respondent's accounts at

the date of the refunding or refinancing transactions with respect to

securmes previously refunded or retired.

3. Include in the identification of each class and series of secunty.

as aqpropnate, the intecest oc dwidend rate, nominal date of issuance,

matunty date, aggregate pnncipal amount, par value ar stated value,

and number of shares. Give also the issuance of redemption price and

name of the pnnmpal underwnung firm through which the secunty

transactions were consummated.

4. yyhere the accountmg for amounts relating to secunties refunded

Or retired is other then that specified in General Instruction 17 of the

Uniform System of Accounts, cite the Commission authonzation for

the diffecent accountmg and stare the accountmg method.

5. For securities assumed, give the name of the company for which

the kabilny on the secunties was assumed as well as details of rhe

transactions whereby the respondent undertook to pay obligations of

another company. If any unamortized discount, premiums, expenses,

and gains oc losses were taken over onto the respondent's books,

furnish details of these amounts with amounts relating to refunded

secunties clearly earmarked.

NOTES

FERC FORNI NO. 2 I12-96& Page 255

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

Ej A Resubmission

Date of Report

(Mo, DB, Yr(

Year Ending

Dec. 31,

LONG-TERM DEBT (ACCOUNTS 221, 222, 223, AND 224)

1 Report by Balance Sheet Account the details concerning,long

term debt included in Account 221. Bonds, 222, Reacquired Bonds,

223, Advances from Associared Companies, and 224, Orher LongTerm Deer.

2. For bonds assumed by the respondent, include in column (a) the

name of the isswng company as well as a descnption of the bonds.

3 For Advances from Associated Companies, report separately

advances on notes and advances on open accounts Designate

demand notes as such. Include in column (a) names of assomated

companies from which advances were received.

4. For recewers'ertificates, show in column (al the name of the

court and date of court order under which such cenificates were

issued.

Line

No.

Class and Series of Obligation and

Name of Stock Exchange

(al

Nominal Date

of Issue

(b)

Date of

Matunty

icl

Outstanding

(Total amount

outstanding without

ledllctlon fcl

amounts hald by

respondent)

(dl

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 TOTAL

FERC FORM NO. 2 (12-96) Page 266

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Original

0 A Resubmission

Date of Report

IMo, Da, YrJ

Year Ending

Dec. 31,

LONG-TERM DEBT (ACCOUNT 221, 222, 223, and 224)(Continued)

5. In a supplememal statement, give explanatory details for

Accounts 223 and 224 of net changes dunng the year. With respect

to lang-term advances, show foi each company. (a) pnncipal

advanced durmg year (bl interest added to pnncipal amount, and (c)

pnncipal repaid dunng year. Give Commission authonzation numbers

and dates.

6. If the respondent has pledged any of its long-term debt

secunties, give particulars Idetailsl in a footnote, includmg name

of the pledgee and purpose of the pledge.

7. If the respondent has any long-term securnies that have been

nominally issued and are nominally outstandmg at end of year,

describe such secunties in a foomote.

8. If mterest expense was incurred dunng the year on any

obhgations retired or reacquired before end of year, include such

mterest expense in column (f) Explain in a footnote any difference

between the total of column (fl and the total Account 427, Interest on

Long-Term and Account 430, Inrerasr on Dear ro Associered

Companies.

9. Give details concernmg any long-term debt authonzed by a

regulatory commission but not yet issued.

INTEREST FOR YEAR HELD BY RESPONDENT

Rate

Iin %)

(el

Amount Reacquired

Bonds

(Account 222)

(gl

Sinking and

Other Funds

Redemption Pnce

Per 4100 at

End of Year

(il

Line

No.

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

FERC FORM NO. 2 f12-96) Page 267

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

O An Onginal

O A Resubmission

Date of Report

fafo, Da, yrl

Year Endmg

Dec 31,

UNAMORTIZED DEBT EXPENSE, PREMIUM AND DISCOUNT ON LONG-TERM DEBT IACCOUNTS 161,225,2261

1. Report under separate subheadings for Unamortized Debt

Expense, Unamortized Premium on Long-Term Debt and Unamoruzed

Discount on Long-Term Debt, details of expense, premium or discount

appbcable to each class and sensa of long-term debt

2 Show premium amounts by enclosing the figures in parentheses

3. In column (bl show the pnnmpal amount of bonds or other long.

term debt onginally issued

4. In column Icl show the expense, premium or discount with

respect to the amount of bonds or other long-term debt onginally

issued.

Line

No.

Designation of

Long-Term Debt

Pnncipal Amount

of Debt Issued

Total Expense

Premium or

Discount

4M 0R7I2 AT I0N

PERIOD

(al (bl (cl

Date From

(d)

Date To

(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

38

39

40

FERC FORM NO. 2 112-96) Page 269

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

C3 An Original

A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

UNAMORTIZED DEBT EXPENSE, PREMIUM AND DISCOUNT ON LONG-TERM DEBT (Accts.f8 t,226,226((Cont.(

5. Furnish in a footnote details regarding the treatment of

unamanized debt expense, premium or discount assoaated wnh

issues redeemed during the year. Also, give in a footnote the date of

the Commission's authonzation of treatment other than as specified

by the uniform System of Accounts.

6. Identify separately undisposed amounts applicable to issues

which were redeemed in pnor years

7 Explain any debits and credits ether than amartization debned

to Account 428, Amortizsrion or Debt Discounr snd Expense, or

credited to Account 429, Amorozaaon af Premium on Debt-Credit.

Balance at

Beginning of Year

Debits Dunng

Year

Credits Dunng

Year

Balance at

End of Year

Lme

No

(gl (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

FERC FORM NO. 2 (12-96) Page 269

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Orlgtnal

0 A Resubmission

Date of Report

fMo, Da, Yr)

Year Ending

Dec. 31,

UNAMORTIZED LOSS AND GAIN ON REACQUIRED DEBT IACCOUNTS 169, 257)

1. Report under separate subheadings for Unamonizad Loss and

Unamonized Gain on Reacquired Debt, details of gain and loss,

including maturny date, on reacquisition apphcable to each class and

sensa of long-term debl. If gain or loss resulted from a refunding

transaction, include also the matunty date of the new issue.

2. In column (cl show the prinmpal amount of bonds or other longterm debt reacquired.

3. In column (d) show the net gain or net loss realized on each debt

reacquisition as computed in accordance with General )nstruction 17

of the Uniform Systems of Accounts.

4 Show loss amounts by enclosing the figures in parentheses

5. Explain in a footnote any debits and credits other than

amortization debited to Accoum 428.1, Amortization of Loss on

Reacquired Debr, or credned to Account 429.1.Amorozenon ot Gain

on Reacquired Debt-Credit

Line

No.

Designation of

Long-Term Debt

la)

Date

Reacquired

(bl

Pnnrnpal

of Debt

Reacquired

(c)

Net Gain or

Net Loss

Id)

Balance at

Beginning

of Year

(el

Balance at

End of Year

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

FERC FORM NO. 2 (12-961 Page 260

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Onginal

0 A Resubmission

Date of Report

fMo, Da, Yri

Year Ending

Dec. 31,

RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES

1. Report the reconcikation of reported net income for the year with

taxable income used in computing Federal Income Tax accruals and

show computation of such tax accruals. Include in the reconcihation,

as far as practicable, the earns detail as furnished on Schedule Nt-I of

the tax return for the year. Submn a reconcikation even though there

is no taxable income for the year Indicate clearly the nature of each

reconcihng amount.

2. If the utilny is a member of a group that files consolidated

Federal tax return, reconcile reported net income wnh taxable net

income as if a separate return were to be filed, indicating, however.

intercompany amounts to be eliminated in such a consolidated return.

State names of group members, tax assigned to each group member,

snd basis of allocation, assignments, or shanng of the consolidated

tax among the group members.

Line

No.

Nst Income for the Year (Page 116)

Reconcilmg Items for the Year

DETAILS

lal

Amount

lbl

Taxable income Not Reported on Books

10

Deductions Recorded on Books Not Deducted for Return

12

13

14

15

16

17

Income Recorded on Books Not Included in Return

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

Deductions on Return Not Charged Against Book Income

Federal 1 sx Net Income

Show Computation of Tax:

FERC FORM NO. 2 (12-96) Page 261

19951003-0255 FERC PDF (Unofficial) 09/28/1995
I

Name of Respondent This Report Is:

An Onginal

Ej A Resubmission

Date of Report

(Mo, Da, Vrl

Year Ending

Dec. 31,

TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR

I Give details of the combined prepaid and accrued tax accounts

and show the total taxes charged to operations and ether accounts

dunng the year. Do not include gasokne and other sales taxes which

have been charged to the accounts to vihich the taxed mstensl 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 dunng the year and charged

direct to fmal accounts, (not charged to prepaid or accrued taxesl.

Enter the amounts in both columns Id) and (el The balancing of this

page is not affected by the inclusion of these taxes.

3. Include in column (d) taxes charged dunng the year, taxes

charged to operauons and other accounts through Ia) accrue(a

credited to taxes accrued, Ib) amounts credited ta the portion of

prepaid taxes charged to current year, and Icl taxes paid and charged

direct to operations or accounts other than accrued and prepaid tax

accounts.

4. List ths aggregate of each kind of tax in such manner that the

total tax for each State and subdivision can readily be ascertained.

BALANCE AT BEGINNING OF YEAR

Line

No.

Kind of Tax

(See Instruction 5)

la)

Taxes

Accrued

(b)

Prepaid

Taxes

(cl

I

2

3

4

5

6

7

8

9

10

11

12

13

14

15 TOTAL

DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.)

Line

No.

Electric

(Account 408.1, 409.1)

(il

Gss

(Account 408.1, 409.1)

(il

Other Utility Department

(Account 408.1, 409.1)

(kl

Other Income and Deductions

(Account 408.2, 409.21

II)

I

2

3

4

5

6

7

8

9

10

11

12

13

14

15 TOTAL

FERC FORM NO. 2 (12-961 Page 262

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Onginal

E) A Resubmission

Date of Report Year Ending

(Mo, Da, Vrj

Dec. 3),

TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR (Continued)

5 If any tax lexclude Federal and State income taxesl covers more

than one year, show the required information separately for each tax

year, identifying the year in column (a).

6 Enter all adlustments of the accrued and prepaid tax accounts in

column (fl and exp)am each ad)ustment in a footnote. Designate debit

adlustments by parentheses.

7. Do not include on this page sntnes wnh respect to deferred

income taxes or taxes collected through payroll deducuons or

otherwise pending transminal of such taxes to the taxing authonty.

8. Show in columns (il thru (p) how the taxes accounts were

distnbuted. Show both the utility department and number of account

charged For taxes charged to utility plant, show the number ol the

appropnate balance sheet plant account or subaccount.

9 For sny tax apportioned to more than one utihty department or

account, state in a footnote the basis (necessity) of apportioning such

tax.

10. Items under $250,000 may be grouped

BALANCE AT END OF YEAR

Taxes Charged

Dunng Year

Idl

Taxes Paid

Dunng Year

Iel

Adjustments Taxes Accrued

(Account 236)

(gl

Prepaid Taxes Lrne

(Included in Acct 165) No.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

DISTRIBUTION OF TAXES CHARGED (Show utility department where applicable and account charged.l

Extraordinary Items

(Account 409.3)

(m)

Other Utility Opn. Income

(Account 408.1, 409.1)

In)

Adjustmsrn to Ret. Earnings

(Account 439)

Io)

Other

(pl

Line

No.

I

2

3

4

5

6

7

8

9

10

11

12

13

14

15

FERC FORM NO. 2 )12-96) Page 263 [Next page is 266)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report

fMo, Da, Yr)

Year Ending

Dec. 31,

MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES (ACCOUNT 242I

1. Descnbe and report the amount of other current and accrued

habilnies at the end of year.

2 Minor items (less than 1250,000) may be grouped under

appropnate title

Line

No.

Item

(a)

Balance at End of Year

Ib)

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

3l

32

33

34

35

36

37

38

39

40

41

42

43

44

45 TOTAL

FERC FORM NO. 2 [12-96) Page 268

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

OTHER DEFERRED CREDITS )ACCOUNT 253)

1. Report below the details called for concerning other deferred

credns.

2 For any deferred credit being amortized, show the penod of

amortization.

3. Minor items fleas than 1250,000) may be grouped by classes

DEBITS

Line

No

Descnption of Other

Deferred Credits

(al

Balance at

Beginning of Year

ib)

Contra Account

ic)

Amount

(dl

Credits

le)

Balance at

End of Year

(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

39

40

41

42

43

44

45 TOTAL

FERC FORM NO. 2 (12-96) Page 269 [Next page is 274)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Ej An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

ACCUMULATED DEFERRED INCOME TAXES-OTHER PROPERTY IACCOUNT 282)

1 Report the information called for below concerning the

respondent's accounting for deferred income taxes relating to

property not subiect to accelerated amortization.

2. For Other, include deferrals relating to other income and

deductions.

Line

No

Account Subdivisions Balance at

Beginning of Year

Amounts Debited

to Account 410.1

Amounts Credited

to Account 411 1

la) (bl (cl (d)

Account 282

Electnc

Gas

Other (Define)

Total IEnter Total of lines 2 thru 4)

Other (Specify)

10

12

)3

TOTAL Account 282 (Enter Total of )mes 5 thru 8)

Classification of TOTAL

Federal Income Tax

State Income Tax

Local Income Tax

NOTES

FERC FORNI NO. 2 (12-96) Page 274

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

Cl A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

ACCUMULATED DEFERRED INCOME TAXES-OTHER PROPERTY (ACCOUNT 282)(Continued)

3. Use separate pages as required.

CHANGES DURING YEAR ADJUSTMENTS

Amounts Debned

to Account 410.2

le)

Amounts Credited

to Account 411.2

If)

Debns

Acct. No. Amount

(g)

Credns

Acct. No. Amount Balance at

End of Year

(kl

Line

No.

10

12

NOTES (Continuedl

13

FERC FORM NO. 2 (12-96) Page 215

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

0 A Resubmission

Date of Report Year Ending

(Mo, Da, Yr(

Dec. 31,

ACCUMULATED DEFERRED INCOME TAXES-OTHER (ACCOUNT 283)

1. Report the information called for below concernmg the

respondent's accounting for deferred income taxes relating to

amounts recorded in Account 283.

2. For Other, include deferrals relating to other income and

deductions.

CHANGES DURING YEAR

Lme

No.

Account Subdivisions

(al

Balance et

Beginning of Year

(bl

Amounts Debited

to Account 410.1

(c)

Amounts Credned

to Account 411.1

(d)

I Account 283

2 Electnc

3 Gas

4 Other (Definel

5 Total (Total of lines 2 thru 4l

5 Other (Specifyl

9 TOTAL Account 283 (Total of lines 5 thru al

10 Classification of TOTAL

11 Federal Income Tax

12 State Income Tax

13 Local Income Tax

NOTES

FERC FORE(( NO. 2 (12-96( Page 216

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report (s:

An Onginal

A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31, 19

ACCUMULATED DEFERRED INCOME TAXES-OTHER (ACCOUNT 283)IContinuedl

3 Prowde in the space below explanations for pages 276 and 277.

Include amounts relating to insignificant items hated under Other.

CHANGES DURING YEAR

4 Use separate pages as required.

ADJUSTMENTS

Amounts Debned

to Account 410.2

(el

Amounts Credited

to Account 411.2

(fl

Debns

Account No.

(gl

Amount

Cretlits

Account No. Amount Balance at Line

End of Year No

(kl

10

12

NOTES (Continuedl

13

FERC FORM NO. 2 (12-96) Page 277

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is;

0 An Origina)

E3 A Resubmission

Date of Report Year Ending

(Mo, Da, Yrf

Dec. 31,

OTHER REGULATORY LIABILITIES (ACCOUNT 254)

1 Reporting below the details called for concerning other regulatory

liabiimes which are created through the ratemaking actions of

regulatory agencies (and not includable in other amounts).

2. For regulatory habilities being amorlized, show penod of

amonization in column la).

3. Minor items (5'Yrr of the Balance at End of Year for Account 254

or amounts less than $ 250,000, whichever is less) may be grouped

by classes.

DEBITS

Line

No.

Descnption and Purpose of

Other Regulatory Liabilnies

la)

Balance at

Beginning of Year

(b)

Account

Credited

(c)

Amount

(d)

Credits

(el

Balance at

End of Year

If)

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 TOTAL

FERC FORM NO. 2 (12-96) Page 278

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 300]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

EI A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

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 Ib) and Ic) include transition costs from

upstream pipebnes.

3. Other Revenues in columns

charges recewed by the pipeline

reflected in columns (b) through

revenues for Accounts 480-495

(f) and (gl include reservation

plus usage charges, less revenues

Iel. Include m columns (fl and (g)

REVENUES for Transition Costs

and Take-or-Pay REVENUES for

GR( and ACA

Line

No. Title of Account Amount for

Current

Year

Amount for

Previous

Year

Amount for

Current

Year

Amount for

Previous

Year

(a) Ib) Ic) Id) le)

'I 480-484 Sales

2 485 Intracompany Transfers

3 487 Forfeited Discounts

4 488 Miscellaneous Service Revenues

5 489.1 Revenues from Transponstion of Gas

af Others Through Gathenng

Fee)mes

6 489.2 Revenues from Transportation of Gas

of Others Through Transmission

Facilities

7 489.3 Revenues from Transportation of Gas

af Others Through Distribution

Facilities

8 489.4 Revenues from Storing Gas of Others

9 490 Sales of Prod. Ext. from Natural Gas

10 491 Revenues from Natural Gas Proc, by

Others

11 492 Incidental Gasoline and Oil Sales

12 493 Rent from Gas Property

13 494 Interdepartmental Rents

14 495 Other Gas Revenues

15 Subtotal:

16 496 ILess) Provision for Rate Refunds

TOTAL:

FERC FORM NO. 2 (12-96) Page 300

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name for Respondent This Report Is:

E3 An Original

Ej A Resubmission

Date of Report

IMo, Da, Yrj

Year Ending

Dec. 31,

GAS OPERATING REVENUES IConttnued)

4 a mcreases or decreases fram prewous year are not denved

from previously reported figures, explam any inconsistencies in a

footnote.

5. On Page 104, include information on malor changes dunng the

year, new service, and important rate increases or decreases.

6 Report the revenue from transportation services that

are bundled with storage serwces as transportation service

revenue.

OTHER REVENUES TOTAL OPERATING REVENUES DEKATHERM OF NATURAL GAS

Amount for

Current

Year

Amount for

Previous

Year

lg)

Amount for

Current

Year

Amount for

Previous

Year

Amount for

Current

Year

Amount for

Previous

Year

lkl

FERC FORM NO. 2 (12-96) Page 301

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Onginal

0 A Resubmission

Date of Report

(Mo, Da, YrJ

Year Ending

Dec. 31,

REVENUES FROM TRANSPORTATION OF GAS OF OTHERS THROUGH GATHERING FACILITIES (ACCOUNT489.1)

1. Report revenues and Dth of gas dekvered through gathenng

feei(mes by zone of receipt li.e. state in which gas enters

respondent's systemi.

2. Revenues for penalties including penalties for unauthonzed

overruns must be reported on page 308

REVENUES for Transition Costs

and Take-or-Pay

REVENUES for

GR( and ACA

Line

No.

Rate Schedule and

Zone of Receipt

(a)

Amount for

Current Year

Ibl

Amount for

Previous Year

(cl

Amount for

Current Year

(dl

Amount for

Previous Year

(el

10

13

15

16

17

18

19

20

21

22

23

25

FERC FORM NO. 2 (12-96) Page 302

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

REVENUES FROM TRANSPORTATION OF GAS OF OTHERS THROUGH GATHERING FACILITIES (Continuedl

3 Other Revenues m columns ill and lg) include reservation

charges received by the pipehne plus usage charges, less revenues

reflected in columns lbl through (e).

4. Debvered Dth of gas must not be ad)usted for discounting.

OTHER REVENUES TOTAL OPERATING REVENUES DEKATHERM OF NATURAL GAS

Amount for

Current Year

Amount for

Previous Year

(9)

Amount for

Current Year

lh)

Amount for

Previous Year

Amount for

Current Year

Amount for

Previous Year

(k)

Liiie

No.

10

12

13

14

15

16

18

19

20

21

22

23

24

25

FERC FORM NO. 2 (12-96) Page 303

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Onginal

A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

REVENUES FROM TRANSPORTATION OF GAS OF OTHERS THROUGH TRANSMISSION FACILITIES (ACCOUNT 488.2)

1. Report revenues and Dth of gas dekvered by Zone of Dekvery

by Rate Schedule. Total by Zone of Dehvery and for all zones. If

respondent does not have separate zones, provide totals by rate

schedule.

2. Revenues for penalties including penalties for unauthonzed

overruns must be reponed on page 308.

3. Other Revenues in columns If) and (gl include reservation

charges received by the pipeline plus usage charges for transportauon

and hub services, less revenues reflected in columns (b) through (el.

REVENUES for Transition Costs

and Take-or-Pay

REVENUES for

GRI and ACA

Line

No.

Zone of Delivery,

Rate Schedule

Amount for

Current Year

Amount for

Previous Year

Amount for

Current Year

Amount for

Previous Year

Ia) lbl icl (dl le)

10

12

13

14

15

18

18

18

20

21

22

23

FERC FORM NO. 2 (12-96) Page 304

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec, 31,

REVENUES FROM TRANSPORTATION OF GAS OF OTHERS THROUGH TRANSMISSION FACILITIES IContinued)

4 Dehvered Dlh of gas must not be ad)usted for discounting.

5 Each incremental rate schedule and each individually certificated

rate schedule must be separately reported.

6. Where transportation services are bundled with storage services,

repon total revenues but only transponation Dth.

OTHER REVENUES TOTAL OPERATING REVENUES DEKATHERM OF NATURAL GAS

Amount for

Current Year

Amount for

Previous Year

Amount for

Current Year

Amount for

Previous Year

Amount for

Currem Year

Amount for

Previous Year

Lme

No.

(gl (kl

10

12

13

14

15

16

17

18

lg

20

21

22

23

24

25

FERC FORM NO. 2 (12-96) Page 305

19951003-0255 FERC PDF (Unofficial) 09/28/1995
~ Name of Respondent This Report Is:

0 An Original

0 A Resubmisston

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

REVENUES FROM STORING GAS OF OTHERS (ACCOUNT 489.4)

1 Report revenues and 0th of gas withdrawn from storage by

Schedule and in total.

2. Revenues for penalties including penalties for unauthonzed

overruns must be reported on page 308.

Rate 3 Other revenues m columns (f) and (g) include reservation

charges, dehverability charges, in(schon and withdrawal charges, less

revenues reflected m columns (b) through (e).

REVENUES for Transition Cost

and Take or Pay

REVENUES for

GR) and ACA

Line

No.

Rate Schedule Amount for

Current Year

Amount for

Previous Year

Amount for

Current Year

Amount for

Previous Year

l el Ibl Ic) (d) (el

10

12

13

14

15

16

)7

18

19

20

21

22

23

24

25

FERC FORM NO. 2 (12-96) Page 306

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

l7 A Resubmission

Date of Report

(Mo, Da, Yr(

Year Ending

Dec. 31,

REVENUES FROM STORING GAS OF OTHERS (ACCOUNT 489.4)IContinued)

4 Dth of gas withdrawn from storage must not be adiusted for

discounting.

5. Where transportauon services are bundled with storage services,

report only Dth withdrawn from storage.

OTHER REVENUES TOTAL OPERATING REVENUES DEKATHERM OF NATURAL GAS

Amount for

Current Year

Amount for

Previous Year

Amount for

Current Year

Amount for

Previous Year

Amount for

Current Year

Amount for Lme

Previous Year No.

(9)

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

FERC FORM NO. 2 112-96) Page 307

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Original

E3 A Resubmission

Date of Report Year Ending

(Mo, Da, Yrf

Dec. 31,

OTHER GAS REVENUES (ACCOUNT 495)

1. For transactions with annual revenues of 4250.000 or more,

descnbe. for each transacuon, commissions on sales of distnbutions

of gas of others, compensation for minor or incidental services

provided for others, penalties, profit or loss on sales of matenal

and supplies, sales of steam. water, or electncity, mrsceilaneous

royalties, revenues from dehydration, other processing of gas of

others, and gains on settlements of imbalance receivables. Separately

report revenues from cash-out penalties

Line

No

Descnption of Transaction

(al

Revenues

Iin dollars)

fbi

10

12

13

14

15

15

17

18

19

20

21

22

23

24

25 TOTAL

FERC FORM NO. 2 (12-96) Page 308 [Next page is 317)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report )s:

0 An Original

0 A Resubmission

Date of Report

(ltfo, Qa, Yr)

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES

1. Report operation and maintenance expenses lf the amount for

previous year rs not denved from previously reported figures, explain

in footnotes.

2. Provide in footnotes the source of the index used to determine

the pace for gss supphed by shippers as reflected on (me 74.

Line

No.

Account

(a)

Amount for

Current Year

(bl

Amount for

Previous Year

Ic)

1. PRODUCTION EXPENSES

A. Manufactured Gas Production

Manufactured Gas Production (Submit Supplememal Statement)

B. Natural Gss Production

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

26

29

30

81. Natural Gas Production snd Gathenng

Operation

750 Operation Supervision and Engineenng

751 Production Maps and Records

752 Gas Well Expenses

753 Field Lines Expenses

754 Field Compressor Station Expenses

755 Field Compressor Station Fuel and Power

756 Field Measunng and Regulsung Station Expenses

757 Purihcation Expenses

758 Gss Well Royalties

759 Other Expenses

760 Rents

TOTAL Operation (Total of fines 7 thru 17)

Maintenance

761 Maintenance Superwsion and Engineering

762 Maintenance af Structures and improvements

763 Mamtenance of Produmng Gas Wells

764 Maintenance of Field Lines

765 Maintenance of Field Compressor Station Equipment

766 Mamtensnce of Field Measuring and Regulating Station Equipment

767 Maintenance of Purification Equipmsnt

768 Maintenance of Drilling snd Cleaning Equipmsnt

769 Maintenance of Other Equipmsnt

TOTAL Mruntenancs (Total af lines 20 thru 28)

TOTAL Natural Gas Production snd Gathering (Total of lines 18 and 29)

FERC FORM NO. 2 (12-96) Page 317

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

E3 An Onginal (lbfo, Da, Yrf

0 A Resubmission

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES IConbnuedi

Line

No.

31

Account

I el

62. Products Extraction

Amount for

Current Year

lbl

Amount for

Previous Year

Ic)

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

Operation

770 Operation Supervision and Engineenng

771 Operation Labor

772 Gas Shnnkage

773 Fuel

774 Power

775 Matenals

776 Operation Supplies and Expenses

777 Gas Processed by Others

778 Royalties on Products Extracted

779 Marketing Expenses

780 Products Purchased for Resale

781 Venation in Products Inventory

(Lessi 782 Extracted Products Used by the Utility-Credit

783 Rents

47 TOTAL Operation ITotal of lines 33 thru 46)

48

49

50

51

52

53

54

55

56

57

58

Maintenance

784 Mamtenance Supervision and Engineering

785 Mamtenance of Structures snd Improvements

786 Mamtenance of Extraction snd Refining Equipment

787 Maintenance of Pipe Lines

788 Maintenance of Extracted Products Storage Equipment

789 Maintenance of Compressor Equipment

790 Maintenance of Gas Measuring and Regulating Equipment

791 Maintenance of Other Equipment

TOTAL Maintenance ITotsl of lines 49 thru 56I

TOTAL Products Extraction ITotal of lines 47 and 57I

FERC FORM NO. 2 (12-96) Page 318

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is.'

An Onginal

0 A Resubmission

Date of Report

IMo, Da, Yrj

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continued)

Lme

No.

Account

(a)

Amount for

Current Year

Ibl

Amount for

Previous Year

ic)

59 C. Exploration snd Development

60

61

63

64

Operation

795 Delay Rentals

796 Nonproductive Well Dnlling

797 Abandoned Leases

798 Other Exploration

65

66

TOTAL Exploration and Development (Total of lines 61 thru 64)

D. Other Gss Supply Expenses

67

68

69

70

71

72

73

74

75

76

77

Operation

800 Natural Gas Well Head Purchases

800.1 Natural Gas Wsg Head Purchases, lntrscompany Transfers

801 Natural Gas Fold Line Purchases

802 Natural Gas Gasolme Plant Outlet Purchases

803 Natural Gas Transmission Line Purchases

804 Natural Gas City Gate Purchases

804.1 Liquefied Natural Gas Purchases

805 Other Gas Purchases

ftsssi 805.1 Purchases Gas Cost Adjustments

TOTAL Purchased Gas (Total of lines 68 thru 76)

78

79

80

81

82

83

84

806 Exchange Gas

Purchased Gas Expenses

807.1 Wsg Expense-Purchased Gss

807.2 Operation of Purchased Gas Measuring Stations

807.3 Mamtensnce of Purchased Gas Measuring Stations

807.4 Purchased Gas Calculations Expenses

807.5 Other Purchased Gss Expenses

85 TOTAL Purchased Gas Expenses ITotal of lines 80 thru 84)

FERC FORM NO. 2 (12-96) Page 319

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

fMo, Da, Yrf

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continuedl

Line

No

86

87

88

89

90

91

92

93

94

95

97

98

99

100

101

102

103

104

105

106

107

108

109

110

112

113

114

Account

(a)

808 I Gas Withdrawn from Storage-Debit

ILessf 808.2 Gas Delivered to Storage-Credit

809.1 Withdrawals of Liquefied Natural Gas for Processing-Debn

ftess/ 809.2 Delivenes of Natural Gas for Processing-Credit

Gss used in Utility Operation-Credit

810 Gas Used for Compressor Station Fuel-Credit

811 Gas Used for Products Extraction-Credit

812 Gas Used for Other Utility Operations-Credit

TOTAL Gss Used in Utibty Operations-Credit ITotal of lines 91 thru 93l

613 Other Gas Supply Expenses

TOTAL Other Gss Supply Exp. ITotal of ones 77,78,85,86 thru 89,94,951

TOTAL Production Expenses ITotsl of lines 3, 30, 58. 65, and 961

2. NATURAL GAS STORAGE. TERMINALING AND PROCESSING EXPEN5ES

A. Underground Storage Expenses

Operanon

814 Operation Supervision snd Engineenng

815 Maps and Records

816 Wells Expenses

817 Lines Expense

818 Compressor Station Expenses

819 Compressor Station Fuel snd Power

820 Measuring snd Regulating Station Expenses

821 Purification Expenses

822 Exploration end Development

823 Gas Losses

824 Other Expenses

825 Storage Well Royalties

826 Rents

TOTAL Operation ITotsl of lines of 101 thru 113)

Amount for

Current Year

Ibl

Amount for

Previous Year

Icl

FERC FORM NO. 2 (12-96) Page 320

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

(Mo, Da, Yr(

Ej A Resubmission

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continuedl

Line

No.

Account

(el

Amount for

Current Year

(bi

Amount for

Previous Year

Ic)

l15 Maintenance

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

830 Maintenance Supervrsron and Engrneenng

831 Marntenance of Structures and Improvements

832 Maintenance of Reservorrs and Wells

833 Mamtensnce of Lines

834 Maintenance of Compressor Statron Equrpment

835 Maintenance of Measunng and Regulating Statron Equipment

836 Mamtenance of Punfication Equrpmsnt

837 Marntenance of Other Equrpment

TOTAL Marntenanca (Total of lines 116thru 123(

TOTAL underground Storage Expenses (Total of lines 114 and 124I

8. Other Storage Expenses

Operation

840 Operation Superwsion and Engtnsenng

841 Operation Labor and Expenses

842 Rants

842.1 Fuel

842.2 Power

842.3 Gas Losses

TOTAL Operation (Total of ones 128 thru 1331

Mamtenanca

843.1 Maintenance Supervision and Engmeering

843.2 Maintenance of Structures and Improvements

843.3 Mamtensnce of Gas Holders

843.4 Maintenance of Purification Equipment

843.5 Maintenance of Liquefaction Equipment

843.6 Maintenance of Vaporizing Equipment

843.7 Maintenance of Compressor Equipment

843.8 Maintenance of Measunng snd Regulating Equipment

843.9 Maintenance of Other Equipment

TOTAL Maintenance (Total of lines 136 thru 144I

TOTAL Other Storage Expenses (Total of lines 134 and 1451

FERC FORM NO. 2 (12-96) Page 321

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

l-l A Resubmission

Date of Report

IMo, Da, Vrl

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continuedl

Line

No.

147

Account

(al

C. Liquefied Natural Gas Terminabng and Processmg Expenses

Amount for

Current Year

Ibl

Amount for

Previous Year

(cl

148 Operation

149 844.1 Operation Supervision and Engineering

150 844.2 LNG Processing Terminal Labor and Expenses

151 844.3 Liquefaction Processing Labor and Expenses

152 844.4 Liquefaction Transportation Labor and Expenses

153 844.5 Measuring and Regulatmg Labor and Expenses

154 844.6 Compressor Station Labor and Expenses

155 844.7 Communication System Expenses

156 844.8 System Control and Load Dispatching

157 845.1 Fuel

158 845.2 Power

159 845.3 Rents

160 845.4 Demurrage Charges

161 //sss/ 845.5 Wharfage Receipts-Credit

162 845.6 Processing Liquefied or I/aponzsd Gas by Others

163 846.1 Gas Losses

164 846.2 Other Expanses

165 TOTAL Operation (Total of (mes 149 thru 164(

166 Maintenance

167 847.1 Maintenance Supervision and Engmeering

168 847.2 Maintenance of Structures and Improvements

169 847.3 Maintenance of LNG Processing Terminal Equipment

170 847.4 Maintenance of LNG Transponstion Equipmsnt

171 847.5 Maintenance of Measuring and Regulating Equipmsnt

172 847.6 Maintenance of Compressor Station Equipment

173 847.7 Maintenance of Communication Equipment

174 847.8 Maintenance of Other Equipment

175 TOTAL Maintenance (Total of lines 167 thru 1741

176 TQTAL Liquefied Nat Gas Terminaling snd proc Exp (Total of Ines les snd 175I

177 TOTAL Natural Gas Storage (Total of lines 125, 146, and 1761

FERC FORM NO. 2 (12-96) Page 322

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

An Original

C3 A Resubrmssion

Date of Report

()trio, Da, Yr)

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continued)

Line

No.

178

179

180

181

182

183

184

185

186

187

188

189

190

Account

la)

3. TRANSMISSION EXPENSES

Operation

850 Operation Supervision and Engineenng

851 System Control and Load Dispatching

852 Communication System Expenses

853 Compressor Station Labor and Expenses

854 Gas for Compressor Station Fuel

855 Other Fuel and Power for Compressor Stations

856 Mains Expenses

857 Msasunng and Regulating Station Expenses

858 Transmission and Compression of Gas by Others

859 Other Expenses

860 Rents

Amount for

Current Year

ib)

Amount for

Previous Year

(c)

191 TOTAL Operation (Total of lines 180 thru 190)

192

193

194

195

196

197

198

199

200

201

202

203

204

205

206

207

Maintenance

861 Maintenance Supervision and Engineering

862 Maintenance of Structures and improvements

863 Maintenance of Mains

864 Maintenance of Compressor Station Equipment

865 Marntenance of Measuring snd Regulating Station Equipment

866 Marntenance of Communication Equipment

867 Maintenance of Other Equipmsnt

TOTAL Maintenance ITotal of hnes 193thru 199)

TOTAL Transmission Expenses ITotsl o( lines 191 and 200)

4. DISTRIBUTION EXPENSES

Operation

870 Operation Supervision and Engineering

871 Distribution Load Dispatching

872 Compressor Station Labor and Expenses

873 Compressor Station Fuel snd Power

FERC FORM NO. 2 (12-96) Page 323

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES )Continued)

Line

No.

Accoulit

(a)

Amount for

Current Year

Ib)

Amount for

Previous Veer

Ic)

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

232

233

234

874 Mains and Services Expenses

875 Measunng and Regulating Station Expenses-General

876 Measunng and Regulating Station Expenses-lndustnal

877 Measunng and Regulaung station Expenses-city Gas check station

878 Meter and House Regulator Expenses

879 Customer Installations Expenses

880 Other Expenses

881 Rents

TOTAL Operation ITotal of lines 204 thru 215)

Maintenance

885 Maintenance Supervision snd Engineering

886 Maintenance of Structures and Improvements

887 Maintenance of Mains

888 Mamtenance of Compressor Station Equipment

889 Maintenance of Measunng and Regulating Station Equipment-General

890 Mwntenance of Mess. snd Rsg. Station Eqwpment-Industnal

891 Maintenance of Mess. and Reg. Station Equip-City Gate Check Station

892 Maintenance of Services

893 Maintenance of Meters and House Regulators

894 Maintenance of Other Equipment

TOTAL Maintenance ITotal of lines 218 thru 227)

TOTAL Oistribution Expenses ITotal o( linea 216 end 228)

5. CUSTOMER ACCOUNTS EXPENSES

Operation

901 Supervision

902 Meter Reading Expenses

903 Customer Records and Collection Expenses

FERC FORM NO. 2 112-96) Page 324

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

(Mo, Da, Yr)

0 A Resubmission

Year Ending

Dac. 31,

GAS OPERATION AND MAINTENANCE EXPENSES IContinuadl

Lme

No.

Account

(a)

Amount for

Current Year

Ibl

Amount for

Previous Year

(c)

235 904 Uncollectible Accounts

236 905 Miscellaneous Customer Accounts Expenses

237 TOTAL Customer Accounts Exoenses (Tatal of lines 232 thru 236)

238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES

239 Operation

240 907 Supervision

241 908 Customer Assistance Expenses

242 909 Informational and Instructional Expenses

243 910 Miscellaneous Customer Service and informational Expenses

244 TOTAL Customer Service and Information ExOenses (Total of lines 240 thru 243l

245 7. SALES EXPENSES

246 Operaoon

247 911 Supervision

248 912 Dsmonstratma and Saltine Expenses

249 913 Advenisina Expenses

250 916 Miscellaneous Sales Expenses

251

252

TOTAL Sales Expenses (Total of lines 247 thru 250)

8. ADMINISTRATIVE AND GENERAL EXPENSES

253 Operation

254 920 Admmistrative and General Salaries

255 921 Office Supplies and Expenses

256 (Less) 922 Administratme Expenses Transferred-Credit

257 923 Outside Services Emoloved

258 924 Propertv Insurance

259 925 tniuries and Damaaes

260 926 Employee Pensions and Benefits

261 927 Franchise Rsauirements

262 928 Rspulstory Commission Expenses

263 (Less) 929 Duolicate Charade-Credit

264 930.1General Advertisina Expenses

265 930.2Miscellsneous General Expenses

266 931 Rents

267 TOTAL Operation fTotel of lines 254 thru 266)

268 Maintenance

269 935 Maintenance of General Plant

270 TOTAL Adminisaative and General Expenses (Total of lines 257 snd 269)

271 TOTAL Gss OILM Expenses iTotai or Snes 97.177 201.229.237.244.251. snd 270)

FERC FORM NO. 2 (12-96) Page 326 [Next pape is 328)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

A Resubmission

Date of Report

/Mo, Da, Yr)

Year Ending

Dec. 31,

EXCHANGE AND IMBALANCE TRANSACTIONS

1. Report below details by zone and rate schedule concerning the

gas quantities and related dollar amount of imbalances associated

with system balancing and no-nonce service. Also, report certificated

natural gas exchange transactions dunng the year. Provide subtotals

for imbalance and no-notice quantnies for exchanges

lf respondent does not have separate zones, provide totals by rate

schedule. Minor exchange transactions (less than 100,000 Dth) may

be grouped.

Line

No. Zone)Rate schedule

Gas Received

from Others

Gas Dehvered

to Others

la)

Amount

(li)

D\)1

(c)

Amount

(d)

Dth

(e)

10

12

)3

14

15

16

)7

18

19

20

21

22

23

24

25 TOTAL

FERC FORM NO. 2 f12-98) Page 328 [Next page is 331]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

Ej A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

GAS USED IN UTILITY OPERATIONS

1 Report below details of credits during Ihe year to Accounts 810,

811, and 812.

2. If any natural gas was used by the respondent for which a

charge was not made to the appropnate operating expense or other

account, bst separately in column lc) the Oth of gas used, omittmg

entnes in column (d).

Line

No.

Purpose for Which Gas Was Used Account

Charged

Gas Used

(Ottl)

Amount of

Credo

lin dollars)

Natural Gas

Gas Used

(Dt)1)

Amount

of Credit

Manufactured Gas

(a) (b) (cl (d) (e)

810 Gas Used for Compressor

Station Fuel - Credit

811 Gas Used for Products

Extraction - Credit

Gas Shrinkage and Other Usage

in Respondent's Own Processing

Gas Shnnkage, etc. for Respondent's

Gas Processed by Others

812 Gas Used for Other Utility

Operations - Credit

(Report separately for each prinaqal

use. Group minor uses.l

10

12

13

14

15

16

17

18

19

2a

21

22

23

24

25 TOTAL

FERC FORM NO. 2 (12-96) Page 331

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Cj An Original

A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

TRANSMISSION AND COMPRESSION OF GAS BY OTHERS (ACCOUNT 858)

Report below details concerning gas transported or compressed

for respondent by others equalling more than 1,000,000 Dth and

amounts of payments for such services dunng the year. Minor items

(less than 1,000,000) Dth may be grouped. Also, include in column

lb) amounts paid as transition costs to an upstream pipebne.

2. In column (a) give name of companies, points of dehvery and

receipt of gss. Designate points of dehvery and receipt so that they

can be identified readily on a map of respondent's pipeline system.

Line

No

Name of Company and Descnption of Service Performed

(Designate associared companies with en astenskl

(al

Amount of Payment

(m doaarsl

(b)

Dth of Gas Delwered

Ic)

10

12

13

14

15

16

17

15

19

20

21

22

23

24

25 TOTAL

FERC FORM NO. 2 (12-96) Page 332

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 334]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is:

0 An Original

0 A Resubmission

Date of Report

fMo, Oa, Yr)

Year Ending

Dec. 31,

OTHER GAS SUPPLY EXPENSES (ACCOUNT 813)

1. Report other gas supply expenses by descnptive tnles that

clearly indicate the nature of such expenses. Show maintenance

expenses, revaluation of monthly encroachments recorded in Account

117.4, and losses on settlements of imbalances and gas losses not

associated with storage separately. Indicate the functional

classification and purpose of property to which any expenses relate.

List separately items of 1250,000 or moce.

Line

No.

Oescnption

(al

Amount

lin dollars)

lbl

10

12

13

14

15

16

17

18

19

20

21

23

24

25 TOTAL

FERC FORM NO. 2 (12-96) Page 334

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

E3 An Original

E3 A Resubmission

Date of Report

(Mo, Da, Yr!

Year Ending

Dec. 31,

MISCELLANEOUS GENERAL EXPENSES (ACCOUNT 930.2)

I Prowde the information requested below on miscellaneous

general expenses.

2 For Other Expenses, show the lal purpose,

amount of such items List separately amounts

however, amounts less than 1250,000 may be

of items of so grouped is shown

(b) recipient and (cl

of 4250,000 or more

grouped if the number

Line.

No.

Descnption

(al

Amount

(in dollars)

(b)

Industry assoaanon dues.

Expenmental and general research expenses.

a. Gas Research Institute IGRI)

b. Other

Publishing and distributing information and repons to stockholders, trustee, registrar, and transfer

agent fess and expenses, and other expenses of servicing outstandmg securities of the respondent

Other expenses

10

12

(3

14

15

15

17

18

19

20

21

22

23

24

25 TOTAL

FERC FORM NO. 2 (12-96) Page 335

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (ACCOUNTS 403,404.1,404.2,404.3,405)

fExcepr Amonizarion of Acquisirion Adjusrmenrsi

1. Report in Section A the smoums of depreciauon expense,

depletion and amortization for the accounts indicated and classified

according to the plant functional groups shown.

2. Repon in Section B, column (b) all depremable or amortizable

plant balances to which rates are applied and show a composite total.

(lf more desirable, report by plant account. subaccount or functional

classifications other than those pre-pnnted in column (a). Indicate at

the bottom of Section 9 the manner in which column lb) balances are

Secuon A. Summary of Depreciation, Depletion, snd Amortization Charges

Line

No

Funclional Classification

(a)

Depreciauon Expense

IAccount 403)

(bl

Amortization and

Depletion of

Produmng Natural

Gas Land and Land

Rights

IAccount 404.1)

Icl

Amomzanon of

Underground Storage

Land and Land

Rights

(Account 404.2)

(d)

1 Intangible plant

2 Production plant, manufaclured gas

3 Production and gathenng plant, natural gss

4 Products extraction plant

5 Underground gas storage plant

6 Other storage plant

7 Base load LNG terminaling and processing plant

6 Transmission plant

9 Distnbulion plant

10 General plant

11 Common plant-gas

12

13

14

15

16

17

16

19

20

21

22

23

24

25 TOTAL

FERC FORM NO. 2 (12-96) Page 336

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (ACCOUNTS 403,404.1,404.2,404.3,405)

(Excepr Amorfizarion of Acquisition Adjusfmenfsi (Continued)

obtained. If average balances are used, state the method of averaging

used For column (c) report available rnformation for each plant

functional classification hated in column (a) If composne depreciauon

accounting is used, report available information called for in columns

(bl and Ic) on this basis. Where the unit-of-production method is used

to determine depreciation charges, show at the bonom of Section B

any rewsions made to estimated gas reserves.

3. If provisions for depreciation were made dunng the year in

addmon to depremation prowded by application of reported rates,

state at the bottom of Section 6 the amounts and nature of the

provisions and the plant norns to which related.

Section A. Summary of Depreciation, Depletion, and Amortization Charges

Amortization of

Other Limited-term

Gas Plant

(Account 404.3)

Amonization of

Other Gas Plant

(Account 405)

Total

(b to f)

Functional Classification Line

No.

(el (gl iel

Intangible plant

Production plant, manufactured gas

Production and gathenng plant, natural gas

Products extraction plant

Underground gas storage plant

Other storage plant

Base load LNG terminating and processing plant

Transmission plant

Distribution plant

General plant

Common plant - gas

10

12

13

14

15

16

17

18

19

20

21

22

23

24

TOTAL 25

FERC FORM NO. 2 (12-96) Page 337

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Ej An Original

E3 A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT )Continued)

Section B. Factors Used in Estimating Depreciation Charges

Line

No

Functional Classification

(a)

Plant Bases

lthousands)

(b)

Apphed Oepreciauon

or

Amortizanon Rates

lpercent)

(cl

Producuon and Gathenng Plant

Offshore

Onshore

underground Gas Storage Plant

Transmission Plant

Offshore

Onshore

General Plant

10

)2

)3

)4

15

Notes

FERC FORM NO. 2 (12-96) Page 338

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 340]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

Cl A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

PARTICULARS CONCERNING CERTAIN INCOME DEDUCTIONS AND INTEREST CHARGES ACCOUNTS

Repart the information specified below, in the order given, for the

respective mcome deduction and interest charges accounts Add

addmonal columns if deemed appropnate with respect to any account.

(a) afiscelianeaus Amorrizarian lAccount 425) —Describe the nature

of items included in this account, the contra account charged, the

total of amortization charges for the year, and the psnod of

amoruzation.

(b) Miscellaneous Income Deducrions-Report the nature, payee,

and amount of other income deductions for the year as required by

Accounts 426.1, Donations; 426.2, Lrte Insurance; 426,3, Penalries;

426.4, Expendirures for Certain Civic, Political and Relared Acriviries;

and 426.5, Other Deductions, of the Uniform System of Accounts.

Amounts of less then 4250,000 may be grouped by classes wnhin

the above accounts.

(c) Inreresr on Dear ro Associared Compames (Account 430)—For

each associated company that incurred interest on debt dunng 1he

year, indicate ths amount and interest rate respectwely for la)

advances on notes, ib'I advances an open account, Ic) notes payable.

ld) accounts payable, and (e) other debt, and total interest Explain

the nature of other debt on which interest was incurred dunng the

year.

ld) Other Interest Expense (Account 431) - Report details including

the amount and interest rate for other interest charges incurred dunng

the year.

Line

No.

Item

la)

Amount

lbl

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

FERC FORM NO. 2 (12-96) Page 340

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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[Next page is 350]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

REGULATORY COMMISSION EXPENSES IAccount 928)

I Report below details of regulatory commission expenses incurred

dunng the current year (or in previous years, if being amortized)

re)sung to formal cases before a regulatory body, or cases m whrch

such a body was a pany

2 In column (b) and Ic), indicate whether the expenses were

assessed by a regulatory body or were otherwise incurred by the

uti)it'y.

Line

No.

Descnption

(Furnish name of reguterory commissron or body

rhe docker number, and e descnption of the case.)

Assessed by

Regulatory

Commission

Expenses

of

utibty

Total

Expenses

to Date

Deferred in

Account 182.3

at Beginning

of Year

la) (bl (cl (d) le)

10

12

13

14

15

15

17

18

19

20

21

22

23

24

25 TOTAL

FERC FORM NO. 2 112-96) Page 360

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Origina)

E3 A Resubmission

Date of Report

IMo, Da, Yrj

Year Ending

Dec. 31,

REGULATORY COMMISSION EXPENSES (Continued)

3 Show m column (k) any expenses incurred in pnor years that are

being amortized. List in column (a) the penod of amonizauon

4 idenufy separately all annual charge adlustments (ACA).

5. List in column (f), (g), and (h) expenses incurred dunng year

which were charges currently to income, plant, or other accounts

6. Mrnor nems (less than 1250,000) may be grouped

EXPENSES INCURRED DURING YEAR AMORTIZED DURING YEAR

CHARGED CURRENTLY TO

Department Account No.

(g)

Amount

Deferred to

Account

182.3

(i)

Contra

Account

Amount

(kl

Deferred in

Account 182.3

End of Year

Il)

Line

No.

10

12

13

14

15

16

17

18

19

20

21

22

23

24

FERC FORM NO. 2 (12-96) Page 351

25

(Next page is 354(

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

D A Resubmission

Date of Report

(Mo, Da, Yr/

Year Ending

Dec. 31,

DISTRIBUTION OF SALARIES AND WAGES

In determinmg this segregation of saianes and wages ongrnally

charged to cleanng accounts, a method of approxrmation giving

substantially correct results may be used

Direct Payroll

Distnbuuon

Allocation of Payroll

Charged for

Clearing Accounts

(cl

Total

(a) (b) Id)

1 Electnc

2

3

4

5

6

7

8

10

11

12

13

14

15

16

17

16

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

Operation

Production

Transmission

Distribution

Customer Accounts

Cusmmet Service and Informational

Sales

m.;„sl a r.e and General

TOTAL Opereuon (Total of lines 3 thru 9)

Maintenance

Production

Transmission

Distribution

Administratwe and General

TOTAL Maintenance (Total of lines 12 thru 15l

Total Operation and Maintenance

Production (Total of hnes 3 and 12)

Transmission (Total of lines 4 and 13)

Distnbuuon ITotsl of )mes 5 snd 14)

Customer Accounts lime 6)

Customer Service and Informational (line 7)

Sales (hns 8)

Administratwe and General (Tote( of hnes 9 and 15)

TDTAL Operation and Mamtenance (Total of lines 18 th

Gas

ru 24)

Operation

Production - Manufactured Gas

Production - Natural Gss(including Explotation snd Development)

Other Gas Supply

Storage, LNG Terminalmg and Processing

Transmission

Distnbution

Customer Accounts

Customer Serwce and Informational

Sales

Administrative and General

TOTAL Operation (Total of lines 28 thru 37)

Maintenance

Production - Manufactured Gas

Production - Natural Gas(including Exploration and Development)

Other Gas Supply

Storage, LNG Terminahng and Processing

Transmission

Distribution

Administrative end General

TOTAL Maintenance (Total of lines 40 thru 46)

Report below the distnbution of total salanes and wages for the

year. Segregate amounts onginally charged to cleanng accounts to

Vsaiy Deparrmenrs, Consrrucrion, Planr Removals, and Or)ter

Accounts, and enter such amounts in the appropnate lines and

columns prowded.

Line Classificanon

No.

FERC FORM NO. 2 (12-96) Page 354

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

Line

No.

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

DISTRIBUTION OF SALARIES AND

Classification

(a)

Gas IContinued)

Total Operation and Maintenance

Production - Manufactured Gas (Total of lines 28 and 40)

Production - Natural Gas (including Expl. and Dev.l(hnes 29 and 41)

Other Gas Supply (Total of hnes 30 snd 42)

Storage, LNG Terminahng and Processing ITotal of hnes 31 and 43)

Transmission (Total of bnes 32 and 44)

Distnbution (Total of lines 33 and 45)

Customer Accounts (Total of line 34)

Customer Service and Informational (Total of line 35)

Sales (Total of tine 36)

Administrative and General (Total of lines 37 and 46l

Other Utility Departments

Operation and Maintenance

TOTAL ALL Utihty Dept. (Total of (mes 25, 59, and 61)

Utility Plant

Construction (By Utilny Departmental

Electric Plant

Gas Plant

Otner

TOTAL Construction (Total of lines 65 thru 67)

Plant Removal (By Utility Departments)

Electric Plant

Gas Plant

Other

TOTAL Plant Removal (Total of lines 70 ttvu 721

TOTAL Other Accounts

TOTAL SALARIES AND WAGES

WAGES (Continued)

Direct Payroll Allocanon of Payroll

Distnbution Charged for

Cleanng Accounts

Ibl Icl

Total

(d)

FERC FORM NO. 2 (12-95) Page 355

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 357]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

IMo, Da, Yr)

Year Ending

Dec, 31,

CHARGES FOR OUTSIDE PROFESSIONAL AND OTHER CONSULTATIVE SERVICES

1. Report the information specified below for all charges made

dunng the year included in any account (including plant accountsl for

outside consultatrve and other professional services. These services

include rate, management, construction, engineenng, research,

financial, valuauon, legal, accounung, purchasing, advertising, labor

relations, and pubhc relations, rendered far the resqandent under

wnnen or oral arrangement, for which aggregate payments were

made dunng 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) amountmg to more

than 4250,000, including payments far legis(save services, except

those which should be reported in Account 426.4 Expenditures for

Cerrain Ciwc, Pofirrcar and Re(ared Acriwnes

(el Name of person or organization rendenng serwces.

lb) Total charges for the year.

2. Designate assoaated companies with an astensk.

Line

No.

Descnpuon

la)

Amount

(in dollars)

Ib)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

18

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

FERC FORM NO. 2 (12-96) Page 357 (Next page is 508)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
This Report Is:

0 An Original

A Resubmission

Date of Report Year Ending

(Mo, Da, Yr)

Dec. 31,

COMPRESSOR STATIONS

1 Report below details concernmg compressor stations. Use the

following subheadmgs: field compressor stations, products ernraction

compressor stations. underground storage compressor stations,

transmission compressor stations, distnbution compressor stations,

and other compressor stations.

2 For column (al, indicate the production areas where such stations

are used. Group relauvely small field compressor stations by

production areas. Show the number of stations grouped. Idenufy any

station held under at 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 iointly owned

Line

No.

Name of Station and Location

(al

Number of Units

at Station

Ib)

Certificated

Horsepower for

Each Station

Ic)

Plant Cost

(dl

10

12

13

14

15

16

17

16

19

20

21

22

23

24

25

FERC FORM NO. 2 (12-96) Page 508

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

CI A Resubmission

Date of Report

(Mo, Da, Yrf

Year Endrng

Dec. 31,

COMPRESSOR STATIONS (Continuedl

Designate any station that was not operated dunng the past year.

State m 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

dunng the year and show in a footnote each unit's size

and the date the unn was placed in operation.

3. For column le), include the type of fuel or power, if other than

natural gas If Iwo types of fuel or power are used, show separate

entnes for natural gas and the other fuel or power.

Expenses IExcept depreciation and taxesl Ops~ation Data

Fuel or Power

Ie)

Other Gas for

Compressor

Fuel in Dth

le)

Total Compressor

Hours of Operation

Dunng year

Number of

Compressors

Operated at Time

of Station Peak

Iil

Date of

Station

Peak

Line

ffo.

10

12

13

14

15

15

17

18

19

20

21

22

23

24

25

FERC FORM NO. 2 (12-96) Page 509 [Next page is 5121

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS STORAGE PROJECTS

Report iniections and withdrawals of gas for all storage proiects used by respondent.

Line

No

Item

la)

Gas

Belonging to

Respondent tli)ID

Ibl

Gas

Belonging to

Others

(Dth)

(c)

Total

Amount

ID I It)

(dl

STORAGE OPERATIONS (in Dthl

Gas Delivered to Storage

January

February

March

April

May

June

July

10

12

13

August

September

October

November

December

14 TOTAL (Total of knee 2 thru 13)

15

16

17

18

Gas Wnhdrawn from Storage

January

February

March

19 April

20

21

May

June

22

23

24

25

26

27

July

August

September

October

November

December

28 TOTAL (Total of lines 16 thru 27)

FERC FORM NO. 2 (12-96) Page 612

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

D An Original

CI A Resubmission

Date of Report

((V(o, Da, Yr)

Year Ending

Dec. 31,

GAS STORAGE PROJECTS (Continued)

I On kne 4, enter the total storage capacity certificated by FERC. 2. Report total amount in Dth or other unit, as apphcabie on lines

2, 3. 4, 7. If quantny is convened from Mcf to Dth, provide

conversion factor in a footnote.

Line

No

item

Ia)

Total Amount

Ibl

STORAGE OPERATIONS

1 Top or Working Gas End of Year

2 Cushion Gas (Including Native Gas)

3 Total Gas in Reservoir (Total of hne I and 2)

4 Certificated Storage Capacity

5 Number ol In)ection - Withdrawal Wells

6 Number of Observation Wells

7 Maximum Days'ithdrawal from Storage

6 Date of Maximum Days'ithdrawal

9 LNG Terminal Companies (in Dth)

10 Number of Tanks

11 Capacity of Tanks

12 LNG Volume

13

14

15

16

Received st "Ship Rail"

Transferred to Tanks

Withdrawn from Tanks

"Boil Off" Vaponzation Loss

FERC FORM NO. 2 (12-96) Page 513

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Onginal

E3 A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

TRANSMISSION LINES

1. Report below, by state, the total miles of transmission knee of

each transmission system operated by respondent at end of year

2. Report separately any knee held under a title other than full

ownership Designate such lines with an astensk and in a footnote

state the name of owner, or co-owner, nature of respondent's title,

and percent ownership if lomtly owned.

3 Report separately any line that was not operated dunng the past

year. Enter in a footnote the details and state whether the book cost

of such a kne, or any portion thereof, has been retired in the books of

account, or what disposition of the kne and its book costs aie

contemplated,

4 Repon the number of miles of pipe to one decimal point.

Line

No.

Designation (Identification)

of Line ot Group of Liitss

l el

Total Miles of

Pipe

Ib)

10

12

13

14

15

15

17

19

20

21

22

23

24

25

FERC FORM NO. 2 (12-96) Page 514

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 518]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

TRANSMISSION SYSTEM PEAK DELIVERIES

Line

No.

Descnption

SECTION A: SINGLE DAY PEAK'DELIVERIES

Report be)ow the total transmission system delwenes of gas lm

Dth), excluding de))vance to storage, for the penod of system peak

dshvenes mdicated below, dunng the 12 months embracing the

heating season overlapping the year's end for which this report is

submitted The season's peak normally will be reached before the

due date af this report, Apnl 30, which permns inclusion of the peak

information required an this page.

Dth of Gas Dth of Gas Total

Dehvered to Delwered to Ibl + lc)

Interstate Pipeknes Others

(I)) (cl id)

I

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

Date:

Volumes of Gas Transported

No-Notice Transportation

Other Firm Transportation

Interruptible Transpartation

Other (Descnbel

TOTAL

Volumes of gas Withdrawn form Storage under Storage Contracts

No-Notice Storage

Other Firm 5torage

Interruptible Storage

Other (Descnbel

TOTAL

Other Operational Activities

Gas Withdrawn from Storage for System Operations

Reduction in Line Pack

Other (Describel

TOTAL

SECTION 8: CONSECUTIVE THREE-DAY PEAK DELIVERIES

Dates:

Volumes of Gas Transported

No-Notice Transportation

Other Firm Transportation

Interrupt)hie Transportation

Other (Dsscnbe)

TOTAL

Volumes of Gas Withdrawn from Storage under Storage Contracts

No-Notice Storage

Other Firm Storage

Intsrruptible Storage

Giber (Describe)

TOTAL

Other Operational Activibes

Gas Withdrawn from Storage for System Operations

Reduction in Line Pack

Other (Dsscnbe)

TOTAL

FERC FORM NO. 2 (12-961 Page 518

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Onginal

CI A Resubmission

Oate of Report

(Mo, Da, Yr(

Year Ending

Dec. 31,

AUXILIARY PEAKING FACILITIES

I Report below auxihary facikties of the respondent for meetmg

seasonal peak demands on the respondent's system, such as

underground storage pro)acts, liquefied petroleum gss installations,

gas kquefaction plants, oil gas sets, etc

2 For column (cl, for underground storage pro(acts, report the

delivery capacity on February 1 of the heating season overlappmg the

year-end for which this report is submitted.

For other facikties, report the rated maximum daily dehvery capamties

3 For column ldl, include or exclude (as appropnate) the cost of

any plant used )ointly with another facihty on the basis of predominant

use, unless the auxikary peaking facility is a separate plant as

contemplated by general instruction 12 of the uniform system of

Accounts

Line

No.

Location of

Facility

Type of

Facility

Maximum Daily

Delivery Capacity

of Famlity

DIII

Cost of

Facility

lin do()arel

Was Famlity Operated

on Day of Highest

Transmission Peak

Delrvery?

(al (bl (c) ld)

Yes

le)

No

lf)

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

FERC FORM NO. 2 (12-96) Page 619

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

D An Onginal

E3 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS ACCOUNT - NATURAL GAS

1. The purpose of this schedule is to account for the quantny of

natural gas received and dekvered by the respondent.

2 Natural gas means either natural gas unmixed or any mixture of

natural and manufactured gas

3 Enter in column(cl the Dth as reported in the schedules indicated

for the items of receipts and dehvenes.

4. Indicate in a footnote the qusnuties of bundled sales and

transportation gas and specify the hne on which such quantities are

hated.

5. If the respondent operates two or more systems which sre not

interconnected, submit separate pages for this purpose Use copies

of pages 520.

6. Also indicate by footnote the quantities of gas not sublect to

Commission regulation which did not incur FERC regulatory costs by

showing (I ) the local distribution volumes another lunsdictional

pipebne dehvered to the local distribution company portion of the

reporting pipeline l2) the quantities that the reporting pipeline

transported or sold through its local distnbution facikties or intrastate

facilities and which the reporting pipeline recewed through gsthenng

facihties or intrastate facilmes, but not through any of the interstate

portion of the reporting pipeline, and (3) the gathenng hne quantnies

that were not destined for interstate market or that were not

transported through any interstate portion of the reporting pipeline

7. Also indicate in a footnote 111 the system supply quantities of

gas that are stored by the reporting pipehne, dunng the reporting year

and also reported as sales, transportation snd compression volumes

by the reponing pipehne dunng the same reporting year, (2) the

system supply quantities of gas that are stored by the reporting

pipeline during the reportmg year which the reporting pipeline intends

to sell or transport in a future reporting year, snd l3) contract storage

quantities.

8. Also indicate the volumes of pipe)me production field sales that

are included in both the company's total sales figure and the

company's total transportation figure.

01 NAME OF SYSTEM

I&ne

No.

Item

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

29

29

30

31

32

33

34

35

36

37

(al

GAS RECEIVED

Gas Purchases (Accounts 800-805)

Gas of Others Received for Gathering (Account 489.1)

Gas of Others Received for Transmission (Account 489.2)

Ges of Others Received for Distribution (Account 489,31

Gas of Others Received for Contract Storage (Account 489,41

Exchanged Gas Received from Others (Account 806)

Gas Received as Imbalances (Account 8061

Receipts of Respondent's Ges Transported by Others (Account

Other Gas Withdrawn from Storage IExplain)

Gas Received from Shippers as Compressor Station Fuel

Gas Received from Shippers ss Lost snd Unaccounted for

Other Receipts (Specify)

Total Receipts (Total of lines 3 thru 141

GAS DELIVERED

Gas Sales (Accounts 480-484)

Delivenes of Gas Gathered for Others (Account 489.11

Debvenes of Gas Transported for Others (Account 489.2)

Delivenes of Gas Distributed for Others (Account 489.31

Delivenes of Contract Storage Gas (Account 489.4)

Exchange Gss Dehvered to Others IAccount 806)

Gas Delivered as Imbatances (Account 8061

Deliveries of Gas to Others for Transportation (Account 8581

Other Gas Delwered to Storage (Explain)

Gas Used for Compressor Station Fuel

Other Deliveries (Specifyl

Total Deliveries (Total of lines 17 thru 27)

GAS UNACCOUNTED FOR

8581

Production System Losses

Gathering System Losses

Transmission System Losses

Distribution System Losses

Storage System Losses

Other Losses (Specifyl

Total Unaccounted For (Total of lines 30 thru 35)

Total Deliveries 8 Unaccounted For (Total of lines 28 and 36)

Ref.

Page

No.

(I7)

303

305

301

307

328

328

332

303

305

301

307

328

328

332

509

Amount of Dth

(cl

FERC FORM NO. 2 (12-96) Page 520

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Blank Page

[Next page is 522]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Original

0 A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

SYSTEM MAPS

I Furnish five copies of a system map (one with each filed copy of

this report) of the facihties operated by the respondent for the

producuon, gathenng, trsnsportauon, and sale of natural gas. New

maps need not be furnished if no important change has occurred in

the tacihties operated by the respondent since the date of the maps

furnished with a previous year's annual report. If, however, maps are

not furnished for this reason, reference should be made in the space

below to the year's annual report with which the maps were

furnished.

2. Indicate the following information on the maps:

la) Transmission hnes.

(bl Incremental feei)ities.

(c) Location of gathenng areas

(d) Location of zones and rate areas.

(e) Location of storage fields.

(f) Location of natural gas fields.

Ig) Location of compressor stabons.

(h) Normal direction of gas flow (indicated by arrows)

Size of pipe

Ijl Locauon of products extraction plants, stabilization plants.

punfication plants, recychng areas, etc

(k) Pnnmpal communities receiving service through the

respondent's pipehne.

3. In addition, show on each map: graphic scale of the map; date of

the facts the map purpons to show; a legend giving all symbols and

abbreviations used; designahons of feei(mes leased to or from another

company, giving name of such other company.

4. Maps not larger than 24 inches square are desired. If necessary,

however, submit larger maps to show essential information. Fold the

maps to a size not larger then this report. Bind the maps to the

report.

FERC FORM NO. 2 (12-96) Page 522 [Next page is 5511

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report is:

0 An Onginal

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

FOOTNOTE DATA

Page

No.

(a)

One Column

No. No.

II3) (c)

Comments

FERC FORM NO. 2 (12-96) Page 551

19951003-0255 FERC PDF (Unofficial) 09/28/1995
INDEX

Accrued and prepaid taxes

Accumulated provision for depreciation of

gas utility plant

utility plant Isummsryi

Advance to associated companies

Associated companies

advances from

advances to

control over respondent

corporations controlled by respondent

investment in

service contracts charges

Attestation.

Balance Sheet, comparative

.

Bonds

Capital Stock

discount

expense

premiums

reacquired.

subscribed.

Cash flows, statement of

Changes

—important during the year

Compressor Stations

Construction

overhead procedures, general description of

work in progress

—other utility departments

Contracts, service charges

Control

corporations controlled by respondent

.

over respondent

security holders and voting powers

Current and accrued

liabilities, miscellaneous

.

Deferred

credits, other.

debits, miscellaneous

income taxes, accumulated

regulatory expenses

Depletion

amortization and depreciation of gas plant

.

and amortization of producing natural gas land

Depreciation

gas plant

gas plant in service

Discount on Capital Stock

Dividend appropriations

Earnings, retained

Exchange gas transactions

.

Expenses, gas operation and maintenance

.

Extraordinary property losses

Footnote Data

.

Gas account

—natural

and land rights

262-263

219

. 200-201

222

256

..222-223

102

103

..222-223

3571

110-113

..256-257

..250-251

254

254

252

251

252

120-121

108-109

..508-509

218

. 200-201

357

103

102

107

268

269

233

234-235

350-351

336-338

336-338

336-338

219

254

118-119

118-119

328-330

320-325

230

551

520

FERC FORM NO.

2 (12-96l INDEX

1

19951003-0255 FERC PDF (Unofficial) 09/28/1995
INDEX IContinued)

Gas

exchanped, natural... receipts.......................

stored underpround

used in utility operations, credit

plant in service

Gathering revenues

General description of construction overhead procedures

General information

.

Income

deductions

—details

statement of, for year

installments received on capital stock

Interest

on debt to associated companies

on long-term from investment, advances, etc.

Investment

in associated companies

other

subsidiary companies

securities disposed of during year

temporary cash

Legal proceedings during year

Long-term debt

assumed during year

retained durinp year

Management and engineerinp contracts

Map, system.

Miscellaneous peneral expense

Notes

Payable, advances from associated companies

to balance sheet

to financial statement

to statement of income for the year

Operatinp

expenses

—pas

revenues

—gas

Other

donations received from stockholders

pains on resale or cancellation of reacquired capital stock

miscellaneous paid-in capital

other supplies expense

.

paid-in capital

reduction in par or stated value of capital stock

regulatory assets

regulatory liabilities

Peak deliveries, transmission system,

Peaking facilities, auxiliary

Plant

—pas

construction work in progress

held for future use

leased from others

leased to others

.

.. 328-330

327

220

331

..204-209

..302-303

218

101

256-259, 340

114116

252

340

. 256-257

..222-223

..222-223

..224225

..222-223

..222-223

108-109

..256-257

255

255

357

522

335

256-257

122-123

122-123

122-123

317-325

300-301

253

253

253

334

253

253

232

278

518

519

216

214

212

213

FERC FORM NO.

2 (12-96l INDEX

2

19951003-0255 FERC PDF (Unofficial) 09/28/1995
INDEX (Continued)

Plant —Utility

accumulated provisions (summary)

leased to others, income from

Premium on capital stock

Prepaid taxed

Prepayments

Professional services, charges for .

Property losses, extraordinary

Reacquired

capital stock

long-term debt .

Receivers'ertificate .

Reconciliation of reported net income with taxable income from Federal income taxes

Regulatory commission expenses

Regulatory commission expenses —deferred

Retained earnings

appropriated

statement of .

una p pro pria ted

Revenues

from storing gas of others

from transportation of gas through gathering facilities

from transportation of gas through transmission facilities

gas operating .

Salaries and wages, distribution of

Sales

Securities

disposed of during year

holders and voting powers

investment in associated companies

investment, others .

issued or assumed during year

refunded or retired during year

registered on a national exchange .

Stock liability for conversion .

Storage

of natural gas, underground

revenues .

Taxes

accrued and prepaid .

charged during the year

on income, deferred —accumulated .

reconciliation of net income for

Transmission

and compression of gas by others

lines

revenues

system peak deliveries .

Unamortized

debt discount and expense

loss and gain on reacquired debt

premium on debt

Underground

storage of natural gas. expense, operating data, plant .

Unrecovered plant and regulatory study costs

200-201

213

252

..262-263

230

357

230

..250-251

..256-257

..256-257

261

..350-351

232

118-119

118-119

118-119

306-307

302-303

304-305

300

354-355

300-301

222-223

107

......... 222-223

......... 222-223

225

255

250-251, 256-257

252

512-513

306-307

......... 262-263

. 262-263

222-223, 234-235

261

332

514

. 304-305

518

. 258-259

260

..258-259

. 512-513

230

FERC FORM NO. 2 (12-96) INDEX 3

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Docket No. RM95-4-000

NOTE: This Appendix will not appear in the Federal Register.

APPENDIX C

FERC FORM NO. 2-A

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Check appropriate box:

Cl Ongmsl signed form

Form Approved

OMB No 1 902-0030

i Expires

Ct Conformed copy

wdtassT Oc

der

r

'MIXE"

go saectft +

FERC FORM NO. 2-A:

ANNUAL REPORT OF MAJOR NATURAL

GAS COMPANIES

This report is mandatory under the Natural Gas Act, Sections 10(al and 16,

snd 18 cFR 2so.l. Failure to report msy result in cnminal fines, civil penalties

and other sanctions ss provided by law. The Federal Energy Regulatory

Commission does not consider this report to be of a confidential nature.

Exact Legal Name of Respondent lCompanyl Year of Report

Dec. 31,

FERC FORM NO. 2-A (12-96)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
INSTRUCTIONS FOR FILING THE

FERC FORM NO. 2-A

GENERAL INFORMATION

Purpose

This form is designed to collect financial and operational information from non-major interstate natural gas

companies subject to the jurisdiction of the Federal Energy Regulatory Commission.

Who Must Submit

Each Non-Major Natural Gas Company which meets the filing requirements of 18 CFR 260.1 must submit

this form.

NOTE: Non-Major means having total annual volume transactions exceeding 200,000 Dth in each of the

three previous calendar years and not classified as "Major".

What and Where to Submit

(a) Submit the electronic medium in accordance with the procedures specified in 18 CFR li 385,2011

and an original and two (2) copies of this form to:

Office of the Secretary

Federal Energy Regulatory Commission

Washington, DC 20426

Retain one copy of this report for your files.

(b) For the CPA certification, submit with the original submission of this form, a letter or report (not

applicable to respondents classified as Class C or Class D prior to January 1, 1984) prepared in

conformity with current standards of reporting which will:

contain a paragraph attesting to the conformity, in all material aspects, of the schedules

listed below with the Commission's applicable Uniform System of Accounts (including

applicable notes relating thereto and the Chief Accountant's published accounting releases),

and

be signed by independent certified public accountants or independent licensed public

accountants, certified or licensed by a regulatory authority of a State or other political

subdivision of the United States (See 16 CFR 158.10-158.12for specific qualifications.l

Schedules

Reference

Paries

Comparative Balance Sheet

Statement of Income

Statement of Retained Earnings

Statement of Cash Flows

Notes to Financial Statements

110-113

114-117

118-119

1 20-1 21

122

FERC FORM NO. 2-A (12-96) Page i

19951003-0255 FERC PDF (Unofficial) 09/28/1995
GENERAL INFORMATION

Insert the letter or report immediately following the cover sheet of the original and each copy of this form.

(c) Federal, State and Local Governments and other authonzed users may obtain additional blank

copies to meet their requirement free of charge from:

Public Reference and Files Maintenance

Washington, DC 20426

(202) 208-2356

IV. When to Submit

Submit this report form on or before April 30th of the year following the year covered by this report.

Where to Send Comments on Public Reporting Burden

The public reporting burden for this collection of information is estimated to average 30 hours per

response, including the time for reviewing instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the collection of information. Send comments

regarding this burden estimate or any aspect of this collection of information, including suggestions for

reducing this burden, to the Federal Energy Regulatory Commission, Washington, DC 20426 (Attention:

Michael Miller, ED-12.4); and to the Office of Information and Regulatory Affairs. Office of the

Management and Budget, Washington, DC 20503 (Attention; Desk Officer for the Federal Energy

Regulatory Commission).

You shall not be penalized for failure to respond to this collection of information unless the collection of

information displays a valid OMB control number.

GENERAL INSTRUCTIONS

Report data as outlined in the Uniform Systems of Accounts (U.S. of A.). (18 CFR 210).

II. Enter in whole numbers (dollars or Dth) only.

5). Irxgcete negative amountisuch-as decreases&by enclosinig ihe figures in parentheses ().

IV. When making revisions, resubmit only those pages that have been changed from the original. Include with

the resubmission the Identification, and Attestation, page 1.

V. Use Footnote Data, page 551, to footnote any entry made to proceeding pages.

Vl. Enter "NA" whenever a particular part is not applicable.

FERC FORM NO. 2-A (12-96) Page ii

19951003-0255 FERC PDF (Unofficial) 09/28/1995
FERC FORM NO. 2-A:

ANNUAL REPORT OF NON-MAJOR NATURAI. GAS COMPANIES

IDENTIFICATION

01 Exact Legal Name of Respondent 02 Year of Report

Dec. 31,

03 Previous Name and Date of Change (If name changed during year)

04 Address of Pnncipal Office at End of Year (Street, City, State, Zip Code)

05 Name of Contact Person

07 Address of Contact Person (Street, City, Stare, Zip Code)

08 Telephone of Contact Person, Including Area Code 09 This Report is:

E3 An Original

0 A Resubmission

10 Date of Report

(Mo. Da, Yrl

11 Name of Officer Having Custody of the Books of 12 Title of Officer

Account

13 Address of Officer Where Books of Accounts Are Kept (Street, City, Stare, Zip Code)

14 Name of State Where Respondent Is

Incorporated

15 Date of Incorporation

(Mo, Da, Yr)

16 If applicable Reference to Law

Incorporated Under

17 Explanation of Manner and Extent of Corporate Control (If the respondent controls or is controlled by any other

corporation, business trust, or similar organization)

The undersigned officer certifies that he/she has examined the accompanying report; that to the best of his/her

knowledge, information, and belief, all statements of fact contained in the accompanying report are true and the

accompanying report is a correct statement of the business and affairs of the above named respondent in respect

to each and every matter set forth therein during the period from and including January 1 to and including

December 31 of the year of the report.

01 Name 02 Title

03 Signature 04 Date Signed

Title 18, U.S.C. 1001, makes it a crime for any person knowingly and willingly to make to any Agency or

Department of the United States any false, fictitious or fraudulent statements as to any matter within its

jurisdiction.

FERC FORM NO. 2-A (12-96) Page 1

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Onginal

CI A Resubmission

Date of Report

fMo, Da, Yr)

Year of Report

Dec. 31,

LIST OF SCHEDULES (Natural Gas Company)

Enter in column Id) the terms "none," "not appkcable," or "NA" as appropnate, where no information or amounts have been reported for

certain pages. Omn pages where the responses are "none," "not apphcable," or "NA."

Title of Schedule

(a)

Reference

Page No.

(b)

Date Rewsed

(c)

Remarks

(d)

GENERAL CORPORATE INFORMATION AND

FINANCIAL STATEMENTS

Security Holders and Voting Powers

Comparative Balance Sheet

Statement of Income for the Year

Statement of Retained Earnings for the Year

Statements of Cash Flows

Notes to Finanmal Statements

106

110-113

1 14-116

116-119

120-121

122

BALANCE SHEET SUPPORTING SCHEDULES

(Assets and Other Debits)

Gas Plant in Service

General information on Plant and Operations

Gas Property and Capacity Leased From and to Others

Accumulated Provision for Depreciation of Gas Utility Plant

Other Regulatory Assets - Gas

204-209

211

21 2-21 3

219

232

BALANCE SHEET SUPPORTING SCHEDULES

(Liabilities and Other Creditsl

Other Regulatory Liabilities

Capital Stock

250

276

INCOME ACCOUNT SUPPORTING SCHEDULES

Gas Operating Revenues

Gas Operation and Maintenance Expenses

300-301

317-325

GAS PLANT STATISTICAL DATA

Gas Account-Natural Gas

Footnote Date

520

551

FERC FORM NO. 2-A )12-96) Page 2 )Next page is 107)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

CI An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr/

Year o( Report

Dec. 31,

SECURITY HOLDERS AND VOTING POWERS

1. Give the names and addresses of the 10 secunty holders of the

respondent who, at the date of the latest closmg of the stock book or

compiiauon of kst of stockholders of the respondent, pnor to the end

of the year, had the highest voting powers in the respondent, and

state the number of votes that each could cast on that date if a

meetmg were held. If any such holder held in trust, give in a footnote

the known particulars of the trust (whether voting trust, etc.l,

duration of trust, and principal holders of beneficiary interests in the

trust. If the company did not close the stock book or did not compile

a hst of stockholders within one year prior to the end of the year, or rf

since it compiled the prevrous list of stockholders, some other class of

security has become vested with voting rights, then show such 10

secunty holders as of the close of the year. Arrange the names of the

securny holders in the order of voting power, commencing with the

highest. Show in column (a) the titles of officers and directors

included in such hst of 10 secunty holders.

2. If any secunty other than stock carries voting nghts, explain in a

supplemental statemenl how such security became vested with voting

nghts and gwe other important details concerning the voting nghts of

such secunty. State whether voting nghts are actual or contingent, rl

contingent, descnbe the contmgency

3. If any class or issue of secunty has any special pnvileges in the

election of directors, trustees or managers, or rn the determrnatron of

corporate action by any method, explain bnefly m a footnote.

4. Furnish details concerning any options, warrants, or rights

outstanding at the end of the year for others to purchase securnies ol

the respondent or any secuntres or other assets owned by the

respondent, includmg prices, expiration dates, and other matenal

information relating to exermse of the options, warrants, or nghts.

Speafy the amount of such securities or assets any officer, director,

associated company, or any of the I 0 largest security holders is

entitled to purchase. This instruction is rnapphcable to convertible

securities or to any securities substantially all of which are

outstanding in the hands of the general pubkc where the options,

warrants, or rights were issued on a prorata basis.

1. Gwe date of the latest closing of the

stock book prior to end of year, and state the

purpose of such closmg:

2. State the total number of votes cast at the latest

general meeting prior to the end of year for election of

directors of the respondent and number of such votes

cast by proxy.

Total:

By Proxy:

3. Give the date and place of such

meeting:

VOTING SECURITIES

Number of votes as of (date):

Line

No.

Name (Title) and Address of

Secunty Holder

la)

Total Votes

(b)

Common Stock

lc)

Preferred Stock Other

le)

4 TOTAL votes of all voting securities

5 TOTAL number of secunty holders

6 TOTAL votes of secunty holders listed below

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

FERC FORM NO. 2-A (12-96) Page 107 INext page is 110)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

E3 An Original

Ej A Resubmission

Year of Report

Dec. 31,

COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)

Lms

No

10

12

13

14

15

16

17

18

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

Title of Account

(a)

UTILITY PLANT

Utihty Plant (101-106, 114)

Construction Work in Progress (107l

TOTAL Utihty Plant (Total of lines 2 and 3)

(Less) Accum. Provision for Depr., Amort., Depl. (108, 111, 115)

Net Utility Plant (Total of line 4 less 5)

Nuclear Fuel (120.1 thru 120.4, and 120.6)

(Less) Accum. Provision for Amort., of Nuclear Fuel Assemblies (120.5)

Nuclear Fuel (Total of line 7 less 8)

Net Utaity Plant (Total of lines 6 and 9)

Utihty Plant Adjustments (116)

Gas Stored-Base Gas (117.1)

System Balancing Gas (117.2)

Gas Stored in Reservoirs and Pipe(ines —Noncurrent (117.3)

Gas Owned to System Gas 1117.4)

OTHER PROPERTY AND INVESTMENTS

Nonutihty Property (121)

(Less) Accum. Provision for Depreciation and Amortization (122)

— -

1nvestrTients iii Assama(ed Companies i1 23i

Investments in Subsidiary Companies (123.1)

(For Cost of Account 123.1 See Footnote Page 224, hne 42)

Noncurrent Portion of Allowances

Other Investments (124l

Special Funds (125 thru 128)

TOTAL Other Property and Investments (Total of lines 17-20, 22-24)

CURRENT AND ACCRUED ASSETS

Cash (131)

Special Deposits (132-134)

Working Funds (135l

Temporary Cash Investments (136)

Notes Receivable (141)

Customer Accounts Receivable (142)

Other Accounts Receivable (143)

(Less) Accum. Provision for Uncollectible Accounts - Credit (144)

Notes Receivable from Associated Companies (145)

Accounts Recewable from Associated Companies (146)

Fuel Stock (151)

Fuel Stock Expenses Undistributed (152)

Residuals (Elec) and Extracted Products (Gas) (153)

Plant Materials and Operating Supplies (154)

Merchandise (155)

Other Materials and Supplies (156)

Nuclear Materials Held for Sale (157)

Reference

Page Number

200-201

200-201

200-201

122-123

220

220

220

220

221

221

222-223

224-225

222-223

222-223

Balance at End

of Current Year

(in doliarsl

(c)

Balance at End

of Previous Year

(in dollars)

id)

FERC FORM NO. 2-A (12-96) Page 110

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

0 An Original (Mo, Da, Yr)

0 A Resubmission

Year of Report

Dec. 31,

COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)(Continued)

Line

No

Title of Account

ia)

Reference

Page Number

(b)

Balance at End

of Current Year

(m dollars)

(c)

Balance at End

of Prewous Year

(in dollars)

(d)

44 Allowances (158.1 and 158 2)

45 Itessl Noncurrent Portion of Allowances

46

47

48

49

50

Stores Expense Undistnbuted (163)

Gas Stored Underground —Current (164.1)

Liquefied Natural Gas Stored and Held for Processing (164.2 thru 164.3)

Prepayments (165)

Advances for Gas (166 thru 167)

220

220

230

51 Interest and Dividends Receivable (171)

52 Rents Receivable (172)

53 Accrued Utility Revenues (173)

54 Miscellaneous Current and Accrued Assets (174)

55 TOTAL Current and Accrued Assets (Total of lines 27 thru 54l

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

DEFERRED DEBITS

Unamortized Debt Expense (181l

Extraordinary Property Losses (182,1)

Unrecovered Plant and Regulatory Study Costs (182.2)

Other Regulatory Assets (182.3)

Preliminary Survey and investigation Charges (Electric)(183)

Prehminary Survey and Investigation Charges (Gas)(183.1 and 183.2)

Clearing Accounts (184)

Temporary Facilities (185)

Miscellaneous Deferred Debits (186)

Deferred Losses from Disposition of Utility Plant (187l

Research, Development, snd Demonstration Expend. (188)

Unamortized Loss on Reacquired Debt (189l

Accumulated Deferred Income Taxes (190)

Unrecovered Purchased Gas Costs (191)

TOTAL Deferred Debits (Total of lines 57 thru 70)

TOTAL Assets and Other Debits (Total of lines 10-15,25,55,and 71)

230

230

232

233

234-235

FERC FORM NO. 2-A (12-96) Page 111

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

Cl An Original

E3 A Resubmission

Year of Report

Dec. 31,

COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)

Lme

No.

Title of Account

(a)

PROPRIETARY CAPITAL

Reference

Page Number

(b)

Balance at End

of Current Year

(in dollars)

Ic)

Balance at End

of Prewous Year

(m dollars)

Id)

2 Common Stock issued (201)

3 Preferred Stock Issued (204)

4 Capita(Stock Subscribed (202, 205)

5 Stock Liability for Conversion (203, 206)

6 Premium on Capital Stock (207)

7 Other Paid-In Capital (208-211)

8 Installments Received on Capital Stock (212)

9 (Lass) Discount on Capital Stock (213l

10 (Less) Capital Stock Expense (2141

11 Retamed Earnings (215, 215.1, 216)

12 Unappropriated Undistributed Subsidiary Earmngs (216.1)

13 (Less) Reacquired Capital Stock (217)

14 TOTAL Proprietary Capital (Total of hnes 2 thru 13)

250-251

250-251

252

252

252

253

252

254

254

118-119

118-119

250-251

15 LONG TERM DEBT

16 Bonds (221)

17 (Less) Reacquired Bonds (222)

18 Advances from Associated Companies l223)

19 Other Long-Term Debt (224)

20 Unamortized Premium on Long-Term Debt (225)

21 (Less) Unamortized Discount on Long-Term Debt-Dr (226)

22 ILessl Current Portion of Long-Term Debt

23 TOTAL Long-Term Debt (Total of lines 16 thru 22)

256-257

256-257

256-257

256-257

258-259

258-259

24 OTHER NONCURRENT LIABILITIES

25 Obhgations Under Capital Leases —Noncurrent (227)

26 Accumulated Provision for Property Insurance (228.1)

27 Accumulated Provision for In)ones snd Damages (228.2)

28 Accumulated Provision for Pensions and Benefits (228.3)

29 Accumulated Miscellaneous Operating Provisions (228.4)

30 Accumulated Provision for Rate Refunds (229)

31 TOTAL Other Noncurrent Liabilities (Total of lines 25 thru 30)

FERC FORM NO. 2-A (12-96) Page 112

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

0 A Resubmission

Date of Report

(Mo, Da, Yrf

Year of Report

Dec. 31,

COMPARATIVE BALANCE SHEET ILIABILITIES AND OTHER CREDITS)(Continued)

Lme

No.

32

Title of Account

la)

CURRENT AND ACCRUED LIABILITIES

Reference

Page Number

(b)

Balance at End

of Current Year

Im dollars)

(cl

Balance at End

of Previous Year

(m dollars)

(d)

33 Current Poruon of Long-Term Debt

34 Notes Payable (231)

35 Accounts Payable (232)

36 Notes Payable to Associated Companies (233)

37 Accounts Payable to Assomated Companies (234)

38 Customer Deposits (235)

39 Taxes Accrued l236)

40 Interest Accrued (237)

41 Dividends Declared (2381

42 Matured Long-Term Debt (239)

43 Matured Interest l240)

44 Tax Cogections Payable (241)

45 Miscellaneous Current and Accrued Liabihties (242l

46 Obligations Under Capital Leases —Current (243)

47 TOTAL Current and Accrued Liabilities (Total of lines 33 thru 46)

262-263

268

48 DEFERRED CREDITS

49 Customer Advances for Construction (252)

50 Accumulated Deferred Investment Tax Credits (255)

51 Deferred Gains from Disposition of Utility Plant (256)

52 Other Deferred Credits (253)

53 Other Regulatory Liabilities (254)

54 Unamortized Gain on Reacquired Debt (257)

55 Accumulated Deferred Income Taxes (281-283)

56 TOTAL Deferred Credits (Total of lines 49 thru 55)

57 TOTAL Liabilities and Other Credits (Total of lines 14,23,31,47,snd 56)

269

278

260

FERC FORM ND. 2-A (12-96) Page 113

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is; Date of Report

E3 An Originai (Mo, Da, YN

A Resubmission

Year of Report

Dec. 31,

STATEMENT OF INCOME FOR THE YEAR

I Report amounts for accounts 412 and 413, Revenue and

Expenses from IJ(iary planr Leased ro Others, in another uuhty column

(i,l) in a similar manner to a utihty department Spread the amount(sl

over hnes 2 thru 24 as appropnate. Include these amounts m

columns (c) and (d) totals.

2. Report amounts in discount 414, Orher Uriliry Operarrng income

in the same manner as accounts 412 and 413 above.

3. Report data for hnes 7, 9, and 10 for Natural Gas companies

using accounts 404.1, 404.2, 404.3, 407.1, and 407.2.

Line

No

10

12

13

14

15

16

17

18

19

20

21

22

23

24

Title of Account

(a)

UTILITY OPERATING INCOME

Gas Operating Revenues (400)

Operating Expenses

Operation Expenses (401)

Maintenance Expenses (402)

Depreciation Expense (4031

Amortization and Depletion of Utihty Plant (404-405)

Amortization of Utihty Plant Acu. Adjustment (406)

Amort. of Prop. Losses, Unrecovered Plant and Reg. Study Costs (407.1)

Amorozation of Conversion Expenses (407.2)

Regulatory Debits l407.3)

(Less) Regulatory Credits (407.4)

Taxes Other than income Taxes (408.1)

Income Taxes —Federal (409.1)

Income Taxes —Other (409.1)

Provision of Deferred income Taxes (410.1)

ILessl Provision for Deferred Income Taxes —Credit (411.1)

Investment Tax Credit Ad)ustment —Net (411.4)

(Less) Gains from Disposition of Utility Plant (411.6)

Losses from Disposition of Utility Plant (411.7)

(Less) Gains from Disposition of Allowances (411.8)

Losses from Disposition of Allowances (411.9)

TOTAL Utility Operatmg Expenses (Total of )mes 4 thru 22)

Net Utility Operating Income (Total of lines 2 less 23)

(Carry forward to page 116, line 25)

Reference

Page Number

(b)

300-301

317-325

31 7-325

336-338

336-338

336-338

262-263

262-263

262-263

234-235

234-235

Total

Current Year

(in dollars)

(cl

Total

Previous Year

Iin dollars)

Idl

FERC FORM NO. 2-A (12-96) Page 114

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year of Report

Dec. 31

STATEMENT OF INCOME FOR THE YEAR (Continued)

4 Explain in a footnote if the previous year's figures are different

from those reporred in pnor reports.

5. If the columns are insufficient for reporting addnional uti

departments, supply the appropnate account titles, knee 2 to

report the information in the blank space on page 122 or in a

supplemental statement.

Iitv

23, and

ELECTRIC UTILITY GAS UTILITY OTHER UTILITY

Current Year

(in do(lars)

(e)

Previous Year

(in dollars)

(f)

Current Year

(m dollars)

(gl

Previous Year

(in do)lars)

(til

Current Year

(in do(lars)

(il

Previous Year

(in do((arel

(il

Line

No.

10

12

13

14

15

16

17

18

19

20

21

22

23

FERC FORM NO. 2-A (12-96) Page 115

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

An Onginal (Mo, Da, Yr)

CI A Resubmission

Year of Report

Dec. 31,

Lme

No.

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

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

STATEMENT OF INCOME FOR THE YEAR (Continued)

1 ale of Account Reference

Page Number

(b)

119

340

340

262-263

262-263

262-263

234-235

234-235

258-259

258-259

340

340

262-263

(al

Net Utilny Operating Income (Cerned forward from page 114)

OTHER INCOME AND DEDUCTIONS

Other Income

Nonuulity Operatmg Income

Revenues form Merchandising, Jobbmg and Contract Work (415)

(Less) Costs and Expense of Merchandising, Job (k Contract Work (416)

Revenues from Nonutility Operations (417)

ILsssl Expenses of Nonutility Operations (417.1)

Nonoperating Rental Income

Equity in Earnings of Subsidiary Companies l418.1)

Interest and Dividend Income (419)

Allowance for Other Funds Used During Construction (419.1)

Miscellaneous Nonoperating Income (421)

Gain on Disposition of Property (421.1)

TOTAL Other income (Total of lines 29 thru 38)

Other Income Deductions

Loss on Disposition of Property (421.2)

Miscellaneous Amortization (425)

Miscellaneous Income Deductions (426.1 thru 426.5)

TOTAL Other Income Deductions (Total of lines 41 thru 431

Taxes Applic. to Other Income and Deductions

Taxes Other than income Taxes (406.2)

Income Taxes —Federal (409.2)

Income Taxes —Other (409.2l

Provision for Deferred Income Taxes (410.2)

(Lass) Provision for Deferred income Taxes-Credit (411.2)

Investment Tsx Credit Adlustments —Net (411.5l

(Less) Investment Tax Credits (420)

TOTAL Taxes on Other Income and Deductions (Total of lines 46-52)

Net Other Income and Deductions (Total of lines 39, 44, 53)

INTEREST CHARGES

Interest on Long-Term Debt (427)

Amortization of Debt Disc. and Expense l428)

Amortization of Loss on Reacquired Debt (428.1)

(l.sss) Amortization of Premium on Debt-Credit (429)

(Less) Amortization of Gain on Reacquired Debt-Credit (429.1)

Interest on Debt to Associated Companies (430)

Other Interest Expense (431I

(Less) Allowance for Borrowed Funds Used During Construction-Credit

Nst Interest Charges (Total of lines 56 thru 63)

Income Before Extraordinary items (Total of lines 25,54 and 64)

EXTRAORDINARY ITEMS

Extraordinary Income (434)

(Lsssl Extraordinary Deductions (435)

Net Extraordinary Items (Total of line 67 less line 68l

Income Taxes —Federal and Other (409.3)

Extraordinary Items after Taxes (Total of line 69 less line 70)

Net Income (Total of lines 65 snd 71)

Total

Current Year

lin doll arel

(cl

Total

Premous Year

iin dollars)

(dl

FERC FORM NO. 2-A (12-96) Page 116

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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

E3 A Resubmission

Date of Report

(Mo, Da, Yr)

Year of Report

Dec. 31,

STATEMENT OF RETAINED EARNINGS FOR THE YEAR

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

(al

UNAPPROPRIATED RETAINED EARNINGS

Balance —Beginning of Year

Changes (Identify by prescnbed retained earnings accounts)

Adlustments to Retained Earnings (Account 439)

Credit:

Credit:

Credit:

Credit:

Credit:

TOTAL Credits to Retained Earnings (Account 439)

(Total of lines 4 thru 8)

Debit:

Debit:

Debit:

Debn:

Debit:

TOTAL Debits to Retained Earnings (Account 439)

(Total of lines 10 thru 14)

Balance Transferred from Income (Acct 433 less Acct 418.1)

Appropriations of Retained Earnings (Account 436)

TOTAL Appropriations of Retamed Earnings (Account 436)

(Total of lines 18 thru 21)

Dividends Declared-Preferred Stock (Account 437)

TOTAL Dividends Declared-Preferred Stock IAccount 437l

(Total of (mes 24 thru 27)

Dividends Declared-Common Stock (Account 438)

TOTAL Dividends Declared-Common Stock (Account 438)

(Total of lines 30 thru 33)

Transfers from Account 216.1, Unappropriated Undistributed

Subsidiary Earnings

Balance-End of Year (Total of lines I, 9, 15,16,22,28,34,and35)

I Report all changes in appropnated retained earnings,

unappropnatad retained earnmgs, and unappropnated undistnbuted

subsidiary earnings for the year.

2. Each credit and debit dunng the year should be identified as to

the retained earnings account in whrch recorded (Accounts 433, 436-

439 inclusive). Show the contra pnmary account affected in column

(b).

Lme Item

No.

Contra Pnmary

Account Affected

(bl

Current Year

Amount

(in do(lars)

(cl

Prewous Year

Amount

(in do)lars)

(dl

3. State the purpose and amount for each reservation or

appropnation of retained earnings.

4. List first Accoum 439, Adlusrmenrs ro Reiamed Earmngs,

reflecting adlustments to the opening balance of retamed earnings.

Follow by credit, then debit items, in that order.

5. Show dividends for each class and senes of capital stock

FERC FORM NO. 2-A (12-96) Page 118

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

Ej An Original

E3 A Resubmission

Date of Report

(Mo, Da, Yrj

Year of Report

Dec. 31,

STATEMENT OF RETAINED EARNINGS FOR THE YEAR

6. Show separately the State and Federal income tax effect of items

shown in Account 439, Adrusrmenrs ro Rersined Earnmgs.

7. Explain in a footnote the basis for determinmg the amount

reserved or appropnated. If such reservation or appropnation is to be

recurrent, state the number and annual amounts to be reserved or

appropnated as well as the totals eventually to be accumulated.

Lme

No.

Item

(al

Contra Pnmary

Account Affected

(b)

Current Year

Amount

(in dollars)

(c)

Previous Year

Amount

(m dollars)

(dl

APPROPRIATED RETAINED EARNINGS (Account 215)

State balance and purpose of each appropnated retained earnings amount at end of year and give accounting entnes for any

applications of appropriated retained earnings dunng the year.

37

38

39

40

41

42

43

44

45 TOTAL Appropriated Retained Earnings (Account 215)

APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account 215.1)

State below the total amount set aside through appropriations of retained earnmgs, as of ths end of the year, in compliance with the

provisions of Federally granted hydroelectric project licenses held by the respondent. If any reductions or changes other than the

normal annual credits hereto have been made during the year, explain such items in a footnote.

46 TOTAL Appropriated Retained Earnings-Amortization

Reserve, Federal (Account 215.1)

47 TOTAL Appropnated Retained Earnings

(Accounts 215, 215.1)

(Total of bnes 45 and 46)

48 TOTAL Retained Earnings (Accounts 215, 215.1, 216)

(Tote) of lines 36 and 47)

UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account 216.1)

49 Balance-Beginning of Year (Debit or Creditl

50 Equity in Earnings for Year (Credit) (Account 416.1)

51 (Less) Dividends Received (Debit)

52 Other Changes (Explain)

53 Balance-End of Year

FERC FORM NO. 2-A (12-96) Page 119

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

E3 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yrf

Year of Report

Dec. 3'l,

STATEMENT OF CASH FLOWS

I Information about noncash investing and fmancing activities

should be provided on page 122. Provide also on page 122 a

reconcihation between "Cash and Cash Equivalents at End of Year"

with related amounts on the balance sheet.

2. Under "Other" specify significant amounts and group others.

Line DESCRIPTION (See Instructions for Explanation of

No. (a)

I Net Cash Flow from Operating Activities

2 Net Income (Line 72(c) on page 116)

3 Noncash Charges ICredits) to Income:

4 Depreciation and Depletion

5 Amortization of (Specify)

6

3 Operating Activnies-Other: Include gains and losses pertaining to

operating activiues only. Gams and losses pertainmg to mvestmg and

financing actiwues should be reported in those activities. Show on

page 122 the amounts of interest paid (net of amounts capitahzedl

and income taxes paid.

Codes) Current Year Amount

(bl

7

8

9

10

11

12

13

14

15

16

17

18

lg

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

Deferred Income Taxes INet)

Investment Tax Credit Adlustments (Natl

Net (Increase) Decrease m Receivables

Net (Increasel Decrease in Inventory

Net llncressel Decrease in Allowances Inventory

Net Increase loecrease) in Paysbles and Accrued Expenses

Net (Increasel Decrease in Other Regulatory Assets

Net Increase (Decreasel in Other Regulatory Liabilities

(Less) Allowance for Other Funds Used Dunng Construction

(Lessl Undistnbuted Earnings from Subsidiary Companies

Other:

Net Cash Provided by (Used inl Operating Activities

(Total of Lines 2 thru 20)

Cash Flows from Investment Activities:

Construction and Acquisition of Plant (including land):

Gross Additions to Utility Plant (less nuclear fuel&

Gross Additions to Nuclear Fuel

Gross Additions to Common Utility Plant

Gross Addmons to Nonutility plant

(Less) Agowance for Other Funds Used During Construction

Other;

Cash Outf lowe for Plant (Total of hnes 26 thru 33)

Acquisition of Other Noncurrent Assets (dl

Proceeds from Disposal of Noncurrent Assets (dl

Investments in and Advances to Assoc, and Subsidiary Companies

Contributions and Advances from Assoc. and Subsidiary Companies

Disposition of Investments in (and Advances tol

Associated and Subsidiary Companies

Purchase of Investment Securities (a)

Proceeds from Sales of Investment Securities (a)

FERC FORM NO. 2-A (12-96) Page 120

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

CI A Resubmission

Date of Report

(Mo, Da, Yri

Year of Report

Dec. 31,

STATEMENT OF CASH FLOWS (Continued)

Line

No.

46

47

48

49

50

51

52

53

54

55

56

57

Sa

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

DESCRIPTION (See Instructions for Explanation of Codesl

(a)

Loans Made or Purchased

Collections on Loans

Net (Increasel Decrease in Receivables

Net (Increasel Decrease in Inventory

Net (Increasel Decrease in Allowances Held for Speculation

Net Increase (Decreasel in Payables and Accrued Expenses

Other:

Net Cash Provided by (Used inl Investing Activities

(Total of hnes 34 thru 55)

Cash Flows from Finsnmng Activities:

Proceeds from Issuance of:

Long-Term Debt (b)

Preferred Stock

Common Stock

Other:

Net Increase in Short-term Debt (c)

Other:

Cash Provided by Outside Sources (Total of lines 61 thru 69)

Payments for Retirement of:

Long-Term Debt (b)

Preferred Stock

Common Stock

Other:

Net Decrease in Short-Term Debt Icl

Dividends on Preferred Stock

Dividends on Common Stock

Net Cash Prowded by (Used inl Financmg Activities

(Total of hnes 70 thru 81)

Net Increase (Decrease) in Cash and Cash Equivalents

(Total of hne 22, 57 and 83)

Cash and Cash Eqmvalents at Beginning of Year

Cash and Cash Equwalents at End of Year

4 Investing Activities: Include at Other (Lme 31) net cash outflow

to acquire other companies Provide a reconcihauon of assets acquired

with Iabikties assumed on page 122. Do not include on this

statement the dollar amount of leases capitakzed per U.S. of A.

General Instruction 20, instead provide a reconcihation of the dollar

amount of leases capnakzed with the plant cost on page 122.

5. Codes used:

lal Net Proceeds or payments.

(b) Bonds, Debentures, and other long-term debt.

(c) Include commercial paper.

(d) Identify separate such nems as investments fixed assets,

intangibles, etc.

6. Enter on page 122 clanfications and explanauons.

Current Year Amount Previous Year Amount

(b) Ic)

FERC FORM NO. 2-A (12-96) Page 121

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

E3 A Resubmission

Date of Report

(Mo, Da, Yrj

Year of Report

Dec. 31,

NOTES TO FINANCIAL STATEMENTS

Provide important disclosures regarding the Balance Sheet, Statement of Income for the Year, Statement of Retained Earnmgs 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 s disclosure is appkcable to more than one statement. The disclosures must be on the same sublect maners

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 particulars (detailsl as to any significant contingent assets or liabihties existing at year end, and briefly explain any action inmated

by the Internal Revenue Service involving possible assessment of additional income taxes of matenal amount, or a claim for refund of income

taxes of s matenal amount initiated by the utihty. Also, bnefly 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. I 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 penods. Also, disclose any current year's plan or trust

curtsilments, terminations, transfers, or reversions of assets.

4. Where Account 189, Unamortized Loss on Reacquired Dear, and 257, Lrnamorrized Garo on Reacquired Debt, are not used, give an

explanation, providing the rate treatment given these item. See General Instruction 17 of the Uniform System of Accounts.

5. Explain concisely any retained earnmgs restrictions and state the amount of retained earnings affected by such restnctions.

6. Disclose details on any significant fmancial 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 m the gas pipeline to limited partnerships, investments in related industnes (i.e.,

production, gathering), major pipeline investments, acquisitions by the parent corporation(sl, and distributions of capital.

7. Explain concisely unsettled rate proceedings where a contmgency exists such that the company may need to refund a material amount to the utility's customers or that the utility may receive a matensl refund with respect to power or gss purchases. State for each year effected

the gross revenues or costs to which the contingency relates and the tax effects and explain the ma(or factors that affect the nghts of the

utihty to retain such revenues or to recover amounts paid with respect to power and gss purchases.

8. Explain concisely sigmficant 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 adlustments made to balance sheet, income, and

expense accounts.

9. Explain concisely only those changes in accounting methods made during the year which had an effect on net income, including the basis of agocstions and apportionments from those used in the preceding year. Also give the approximate dollar effect of such changes.

FERC FORM NO. 2-A (12-96) Page 122

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Original

A Resubmission

Date of Report

(Mo, Da, Yri

Year Ending

Dec. 31,

GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106)

1. Report below the onginal cost of gas plant in service according to

the prescnbed accounts

2. In addition to Account 101, Gas Planr in Service lClassifiedl, this

page and the next include Account 102, Gas Plant Purchased or Sold,

Account 103, Expenmental Gas Plant Unclassified, and Account 106,

Completed Consrrucoon Nor Classified-Gas.

3. Include in column (c) and (d), as appropriate corrections of

additions and retirements for the current or preceding year.

4. Enclose in parenthesis credit adlustments of plant accounts to

indicate the negative effect of such accounts.

5. Classify Account 106 according to prescribed accounts, on an

estimated basis if necessary, and include the entnes in column

(c).A)so to be included in column (c) are entnes for reversals of

tentative distnbutions of pnor year reported in column (b) Likewise,

if the respondent has a significant amount of plant reurements which

have not been classified to pnmary accounts at the end of the year,

include in column (d) a tentative distnbution of such retirements, on

an estimated basis, with appropnate contra entry to the account for

accumulated depreciation provision. Include also in column (d)

reversals of tentative distributions of pnor year's unclassified

retirements. Attach supplemental statement showing the account

distnbutions of these tentative classifications in columns (c) and (d),

Line

No.

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

Account

(a)

INTANGIBLE PLANT

301 Organization

302 Franchises and Consents

303 Miscellaneous Intangible Plant

TOTAL Intangible Plant

PRODUCTION PLANT

Natural Gas Production end Gathenng Plant

325.1 Producing Lands

325.2 Producing Leaseholds

325.3 Gas Rights

325.4 Rights-of-Way

325.5 Other Lend and Land Rights

326 Gas Well Structures

327 Field Compressor Station Structures

328 Field Measuring and Regulatmg Station Equipment

329 Other Structures

330 Produmng Gas Wells-Well Construction

331 Producing Gas Wells-Well Equipment

332 Field Lines

333 Field Compressor Station Equipment

334 Field Measuring and Regulating Station Equipment

335 Drilhng and Cleaning Equipment

336 Purification Eqmpment

337 Other Equipment

338 Unsuccessful Exploration and Development Costs

TOTAL Production end Gathering Plant

PRODUCTS EXTRACTION PLANT

340 Land and Land Rights

341 Structures and Improvements

342 Extraction and Refining Equipment

343 Pipe Lines

344 Extracted Products Storage Equipment

345 Compressor Equipment

Balance at

Begtnning of year

(b)

Additions

icl

FERC FORM NO. 2-A (12-96) Page 204

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

A Resubmission

Date of Report

(Mo, Da, Yrj

Year Ending

Dec. 31,

GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 1061(Continued)

including the reversals of the pnor years tentatwe account

distnbutions of these amounts. Careful observance of the above

instructions and the texts of Account 101 and 106 will avoid senous

omissions of respondent's reported amount for plant actually m

serwce at end of year.

6. Show in column (I) rsclassifications or transfers within utibty

plant accounts. Include also in column (f) the addiuons or reductions

of primary account classifications ansing from distnbution of amounts

initially recorded in Account 102. In showmg the clearance of

Account 102, include in column (e) the amounts with respect to

accumulated provision for depreciation, acquisition adjustments, etc.,

and show in column (f) only the offset to the debits or credits to

pnmary account classifications.

7. For Account 399, state the nature and use of plant mcluded in

this account and if substantial in amount submit a supplementary

statement showing subaccount classification of such plant conforming

to the requirements of these pages.

B. For each amount compnsmg the reported balance and changes in

Account 102, state the property purchased or sold, name of vendor or

purchaser, and date of transaction. If proposed Iournal entnes have

been filed with the Commission as required by the Uniform System of

Accounts, give date of such fibng.

Retirements Adjustmsnts

(e)

Transfers Balance at

End of Year

(gl

Line

No.

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

26

29

30

31

32

33

FERC FORM NO. 2-A (12-96) Page 206

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

Ej An Originai

E) A Resubmission

Year Ending

Dec. 31,

GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106)IContinued)

Line

Nc.

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

Account

Iai

346 Gas Measunng and Regulating Equipment

347 Other Equipment

TOTAL Products Extraction Plant

TOTAL Natural Gas Production Plant

Manufactured Gas Production Plant (Submit Supplementary Srsremenrl

TOTAL Production Plant

NATURAL GAS STORAGE ANO PROCESSING PLANT

Underground Storage Plant

350.1 Land

350,2 Rights-of-Way

351 Structures and Improvements

352 Wells

352.1 Storage Leassholds and Rights

352.2 Reservoirs

352.3 Non-recoverable Natural Gas

353 Lines

354 Compressor Station Equipment

355 Measuring and Regulating Equipment

356 Purification Equipment

357 Other Equipment

TOTAL Underground Storage Plant

Other Storage Plant

360 Land and Land Rights

361 Structures snd Improvements

362 Gas Holders

363 Punfication Equipment

363.1 Liquefaction Eqwpment

363.2 Vaporizing Equipment

363.3 Compressor Equipmsnt

363.4 Measuring and Regulating Equipment

363.5 Other Equipment

TOTAL Other Storage Plant

Base Load Liquefied Natural Gas Terminaling and Processing Plant

364.1 Land snd Land Rights

364.2 Structures and Improvements

364.3 LNG Processing Terminal Equipment

364.4 LNG Transportation Equipment

364.5 Measuring and Regulating Equipment

364.6 Compressor Station Equipmsnt

364.7 Communications Equipment

364.8 Other Equipmsnt

TOTAL Base Load Liquefied Natural Gas, Termmaling snd Processing Plant

TOTAL Natural Gas Storage and Processing Plant

TRANSMISSION PLANT

365.1 Land and Land Rights

365.2 Rights-of-Way

366 Structures snd improvements

Balance at

Beginning of Year

(bi

Additions

(c)

FERC FORM NO. 2-A (12-96) Page 206

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Onginal

A Resubmission

Date of Report Year

(Mo, Da, Yr)

Dec.

Ending

31,

GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 1061(Continuedi

Retirements

(dl

Adlostments

(el

Transfers Balance at

End of Year

(el

Line

No.

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

FERC FORM NO. 2-A 112-96) Page 207

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dac. 31,

GAS PLANT IN SERVICE (ACCOUNTS 101, 102, 103, AND 106)(Continued)

Line

No

81 367 Mama

Account

ia)

Balance at

Beginning of year

(b)

Additions

(c)

82

83

368

369

Compressor Station Equipment

Measuring and Regulatmg Station Equipment

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

112

113

114

115

116

117

118

119

120

121

379

380

Measunng snd Regulating Station Equipment-City Gate

Services

381 Meters

382 Meter installations

383 House Regulators

384 House Regulator Installations

385 Industrial Measuring and Regulating Station Equipment

386 Other Property on Customers'remises

387 Other Equipment

TOTAL Distribution Plant

GENERAL PLANT

Land and Land Rights

Structures and Improvements

Office Furniture and Equipment

Transportation Equipment

Stores Equipment

Tools, Shop, and Garage Equipment

Laboratory Equipment

396 Power Operated Equipment

397 Communication Equipment

398 Miscellaneous Equipment

Subtotal

389

390

391

392

393

394

395

399 Other Tangible Property

TOTAL General P(ant

TOTAL (Accounts 101 end 106)

Gas Plant Purchased (See Instruction Bl

(Less) Gas Plant Sold (See Instruction 8)

Experimental Gas Plant Unclassified

TOTAL Gas Plant In Service

370 Communication Equipment

371 Other Equipment

TOTAL Transmission Plant

DISTRIBUTION PLANT

374 Land and Land Rights

375 Structures and Improvements

376 Mains

377 Compressor Station Equipment

378 Measunng and Regulating Station Equipment-General

FERC FORM NO. 2-A (12-96) Page 208

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

A Resubmission

Date of Report Year Ending

(Mo, Da, Yr/

Dec. 31,

GAS PLANT IN SERVICE IACCOUNTS 101, 102, 103, AND 106IIContinued)

Retirements

fd)

Adiostments

fel

Transfers Balance at

End of Year

(9)

Line

No.

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

112

113

114

115

116

117

118

119

120

121

FERC FORM NO. 2-A (12-96) Page 209

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Onginal

CI A Resubmission

Date of Report

(Mo, Da, Yrj

Year Ending

Dec. 31,

GENERAL INFORMATION ON PLANT AND OPERATIONS

l In the space below provide a bnef descnption of the plant and

operations of the respondent.

2 State the name and location of the fields in which the respondent

operates, the number of acres of operated gas lands, number of gas

wells. miles of gathenng hnes, miles of transmission bnes, number and

capacity of compressor stations, and other information which will give

a general idea of the size and nature of the facilities operated by the

respondent m the production, gathenng, transmission and storage of

natural gas.

3. Provide details covenng any important changes in the scope of

respondent's operations dunng the report year.

FERC FORM NO. 2-A f12-96) Page 211

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

Ej An Ongina(

Ej A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

GAS PROPERTY AND CAPACITY LEASED FROM OTHERS

1 Report below the mformation called for concerning gas property

and capacity leased from others for gas operations.

2 For all leases in which the average annual lease payment over the

inmal term of the lease exceeds $ 500,000, descnbe in column (bi, if

apphcable: the property or capacny leased

Line

No.

Name of Lessor

(Designate associated companies with an asterisk)

(a)

Descnption of Lease

(bi

Lease Payments For

Current Year

(cl

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 1'OTAL

FERC FORM NO. 2-A (12-96) Page 212

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

E3 A Resubmission

Date of Report

(Mo, Da, Yrj

Year Ending

Dec. 31,

GAS PROPERTY AND CAPACITY LEASED TO OTHERS

1. For all leases in which the average lease income over the innial

term of the lease exceeds $ 500,000 provide in column (b), a

descnption of each facihty or leased capacity that is classified as gas

plant in serwce, and is leased to others for gas operations.

2. In column (c) prowde the lease payment. received from others

Line

No.

Name of Lessor

loesignate associated companies with an asterisk)

(a)

Oescnption of Lease

(b)

Lease Payments For

Current Year

(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

43

44

45 TOTAL

FERC FORM NO. 2-A (12-96) Page 213

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

Ej A Resubmission

Date of Report Year Ending

(Mo, Da, Yr/

Dec. 31,

ACCUMULATED PROVISION FOR DEPRECIATION OF GAS UTILITY PLANT IACCOUNT 108)

1. Explain in a footnote any important adiustments dunng year

2 Explain in a footnote any difference between the amount for

book cost of plant retired, bne 11, column (c), and that reported for

gas plant in service, page 204-209, column (d), excluding retirements

of nondepreciable property.

3. The provisions of Account 108 in the Uniform System of

Accounts require that retirements of depreciable plant be recorded

when such plant is removed from serwce. If the respondent has a

significant amount of plant retired at year end which has noi been

recorded and(or classified to the venous reserve functional

classifications, make prekmmary closing entnes to tentatively

functional ze the book cost of the plant retired. In addmon, mclude all

costs included in retirement work in progress at year end in the

appropriate functional classifications.

4. Show separately mterest credits under a sinking fund or similar

method of depreciation accounting

Line

No.

Item

(a)

To 1 a I

Ic+d+e)

(b)

Gas Plant in

Service

(c)

Gas Plant Held

for Future Use

(dl

Gas Plant Leased

to Others

(el

Section A. BALANCES AND CHANGES DURING YEAR

Balance Beginning of Year

Depreciation Provisions for Year, Charged to

l403l Depreciation Expense

(413) Expense of Gas Plant Leased to Others

Transportation Expenses - Cleanng

Other Cleanng Accounts

Other Cleanng (Specify):

10

12

13

14

15

16

17

18

18

20

21

22

23

24

25

26

27

TOTAL Deprec. Prov, for Year (Total of lines 3 thru 8)

Net Charges for Plant Retired;

Book Cost of Plant Retired

Cost of Removal

Salvage ICrediti

TOTAL Net Chrgs for Plant Ret. (Total of lines I 1thru13)

Other Debit or Credit Items (Describel:

Balance End of Year (Total of lines I, 9, 14, 15, and 16)

Section B. BALANCES AT END OF YEAR ACCORDING TO FUNCTIONAL CLASSIFICATIONS

Productions-Manufactured Gas

Production and Gathering-Natural Gas

Products Extraction-Natural Gas

Underground Gas Storage

Other Storage Plant

Base Load LNG Terminaling and Processing Plant

Transmission

Distribution

General

TOTAL (Total of )mes 18 thru 26)

FERC FORM NO. 2-A (12-96) Page 219 [Next page is 232j

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Onginal

(-I A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

OTHER REGULATORY ASSETS (ACCOUNT t 82.3)

1 Report below the details called for concerning other regulatory 3 Minor items (5'f the Balance at End of Year for Account

assets which are created through the ratemakrng acuons of regulatory 182.3 or amounts less than $ 250,000, whichever is less) may be

agencies iand not includable in other accounts) grouped by classes

2. For regulatory assets bemg amortized, show penod of 4. Report separately any "Deferred Regulatory Commission

amortization m column (a). Expenses" that are also reported on pages 350-351, Regulatory

Commission Expenses.

Line

No.

Descnption and Purpose of

Other Regulatory Assets

Balance at

Beginning

of Year

Debits WRITTEN OFF

DURING YEAR

Balance at

End of Year

(a) Ic)

Account

Charge

(dl

Amount

(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

38

39

40 TOTAL

FERC FORM NO. 2-A (12-96) Page 232

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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19951003-0255 FERC PDF (Unofficial) 09/28/1995
l Name of Respondent This Report Is:

An Original

0 A Resubmission

Date of Report Year Ending

(Mo, Da, Yr)

Dec. 3),

CAPITAL STOCK DATA

1. Report below the details called for concerning common stock and

long-term debt.

2 The total amount outstanding reflected in column lf) for Capital

Stock Data refers to total amount outstanding without reduction for

amounts held by respondent.

Line

No

Class and Sensa of Stock Number of

Shares

Authonzed

Par Value

Per Share

of Par

Value

Stock

Stated Value

Per Share

of Nonpar

Stock

Outstanding Per

Balance Sheet

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

(a) (b) (c) (dl

Shares

(e)

Amount

LONG-TERM DEBT DATA

Line

No.

Class and Series of Obligation Nominal

Date of

Issue

Date of

Matunty

Outstanding

Par Balance

Sheet

Interest for year

(al (b) (c) (dl

SS Rats

(e)

Amount

(fl

1

2

3

4

5

6

7

6

9

10

11

12

13

14

15

TOTAL

FERC FORM NO. 2-A (12-96) Page 250

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is;

E3 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 3),

OTHER REGULATORY LIABILITIES (ACCOUNT 254)

1. Reporung below the details called for concerning other regulatory

kabilities which are created through the ratemaking actions of

regulatory agencies (and not mcludable in other amounts).

2. For regulatory kabikties being amoruzed, show period of

amortization in column (a).

3. Minor nems (5'/ of the Balance at End of Year for Account 254

or amounts less than $ 250,000, whichever is less) may be grouped

by classes.

DEBITS

Line

No.

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

Description and Purpose of

Other Regulatory Liabihties

(a)

Balance at

Beginning of Year

(b)

Account

Credited

(c)

Amount

(d)

Credits

le)

Balance at

End of Year

(fl

45 TOTAL

FERC FORM NO. 2-A (12-96) Page 278

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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[Next page is 300]

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Origina)

A Resubmrssion

Date of Report

(Mo, Da, YN

Year Ending

Dec. 31,

GAS OPERATING REVENUES

1. Report below natural gas operating revenues for each

prescnbed 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 pipehnes.

3. Other Revenues in columns (f) and (gl mclude reservation

charges received by the pipeline plus usage charges, less revenues

reflected in columns (b) through (e). Include in columns (fl and (gl

revenues for Accounts 480-495.

REVENUES for Transition Costs

and Take-or-Pay REVENUES for

GRI and ACA

Line

No. Tnle of Account

(a)

Amount for

Current

Year

(b)

Amount for

Prewous

Year

(cl

Amount for

Current

Year

Amount for

Previous

Year

le)

1 480-484 Sales

2 485 Intracompany Transfers

3 487 Forfeited Discounts

4 488 Miscellaneous Service Revenues

5 489.1 Revenues from Transportation of Gas

of Others Through Gathenng

Facibties

6 489.2 Revenues from Transportation of Gas

of Others Through Transmission

Facilities

7 489.3 Revenues from Transportation of Gas

of Others Through Distnbution

Facilities

8 489.4 Revenues from Storing Gas of Others

9 490 Sales of Prod. Ext. from Natural Gas

10 491 Revenues from Natural Gas Proc. by

Others

11 492 Incidental Gasohne and Oil Sales

12 493 Rent from Gas Property

13 494 Interdepartmental Rents

14 495 Other Gas Revenues

15 Subtotal:

16 496 (Less) Provision for Rate Refunds

17 TOTAL:

FERC FORM NO. 2-A (12-96) Page 300

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name for Respondent This Report Is:

C3 An Original

A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS OPERATING REVENUES (Continued)

4 If increases or decreases from previous year are not denved

from prewously reported figures, explain any inconsistencies in a

footnote

5. On Page )04, include information on malor changes dunng the

year, new serwce, and important rate increases or decreases

6 Report the revenue from transportation services that

are bundled wnh storage serwces as transportanon service

revenue.

OTHER REVENUES TOTAL OPERATING REVENUES OEKATHERM OF NATURAL GAS

Amount for

Current

Year

Amount for

Previous

Year

Amount for

Current

Year

Amount for

Previous

Year

Amount for

Current

Year

Amount for

Prewous

Year

(gl (k)

FERC FORM NO. 2-A (12-96) Page 301

19951003-0255 FERC PDF (Unofficial) 09/28/1995
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19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

E3 An Onginal

Ej A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES

1. Reporr operation and maintenance expenses lf the amount for

prewous year is not denved from prewously reported figures, explain

in footnotes.

2 Provide in footnotes the source of the index used to determine

the pnce for gas supphed by shippers as reflected on hne 74.

Line

No.

Account

la)

Amount for

Current Year

(b)

Amount for

Previous Year

(cl

1. PRODUC1)ON EXPENSES

A. Manufactured Gas Production

Manufactured Gas Production (Submit Supplemental Statement)

B. Natural Gas Production

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

81 Natural Gas Production and Gathenng

Operation

750 Operation Supervision and Enginesnng

751 Production Maps and Records

752 Gas Wsl)Expenses

753 Field Lines Expenses

754 Field Compressor Station Expenses

755 Field Compressor Station Fuel and Power

756 Field Measuring and Regulating Station Expenses

757 Purification Expenses

758 Gas Well Royalties

759 Other Expenses

760 Rents

TOTAL Operation (Total of lines 7 thru 17)

Maintenance

761 Maintenance Supervision and Engineering

762 Maintenance of Structures and Improvements

763 Maintenance of Producing Gas Wells

764 Maintenance of Field Lines

765 Maintenance of Field Compressor Station Equipment

766 Maintenance of Field Measuring and Regulating Station Equipment

767 Maintenance of Punfication Equipment

768 Maintenance of Drilling and Cleaning Equipment

769 Maintenance of Other Equipment

TOTAL Maintenance (Total of lines 20 thru 28)

TOTAL Natural Gas Production and Gathenng (Total of lines 18 and 29)

FERC FORM NO. 2-A (12-96) Page 317

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yrf

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES IContinued)

Line

No.

Account

(a)

Amount for

Current Year

ib)

Amount for

Previous Year

I c)

31 82. Products Extraction

32 Operation

33 770 Operation Supervision and Engineering

34 771 Operation Labor

35 772 Gas Shnnkage

36 773 Fuel

37 774 Power

38 775 Materials

39 776 Operation Suppkes and Expenses

40 777 Gas Processed by Others

41 778 Roya)ties on Products Extracted

42 779 Marketing Expenses

43 780 Products Purchased for Resale

44 781 Variation in Products Inventory

45

46

ftessi 782 Extracted Products Used by the Utility-Credit

783 Rents

47 TOTAL Operation ITotal of lines 33 thru 46)

48

49

50

51

52

53

54

55

56

57

58

Maintenance

784 Mamtenance Supervision and Engineering

785 Maintenance of Structures and Improvements

786 Maintenance of Extraction and Refining Equipment

787 Maintenance of Pipe Lines

788 Maintenance of Extracted Products Storage Equipment

789 Maintenance of Compressor Equipment

790 Maintenance of Gas Measuring and Regulating Equipment

791 Maintenance of Other Equipment

TOTAL Maintenance (Total of lines 49 thru 56)

TOTAL Products Extraction (Total of lines 47 and 57l

FERC FORM NO. 2-A (12-96) Page 316

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

(Mo, Da, Yrf

E3 A Resubmission

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continuedl

Line

No

59

Account

(a)

C Exploration and Development

Amount for

Current Year

(b)

Amount for

Previous Year

(c)

60

61

62

63

64

Operation

795 Delay Rentals

796 Nonproductive Well Drilling

797 Abandoned Leases

798 Other Exploration

65

66

TOTAL Exploration and Development (Total of lines 61 thru 64)

D. Other Gas Supply Expenses

67

68

69

70

71

72

73

74

75

76

Operation

800 Natural Gas Well Head Purchases

800.1 Natural Gss Well Head Purchases, Intracompany Transfers

80'I Natural Gas Field Line Purchases

802 Natura)Gas Gasohne Plant Outlet Purchases

803 Natural Gas Transmission Line Purchases

804 Natural Gas City Gate Purchases

804.1 Liquefied Natural Gas Purchases

805 Other Gas Purchases

(Lessl 805.1 Purchases Gas Cost Adjustments

77 TOTAL Purchased Gas (Total of (mes 68 thru 76)

78

79

80

81

82

83

84

85

806 Exchange Gas

Purchased Gas Expenses

807.1 Well Expense-Purchased Gas

807.2 Operation of Purchased Gas Measuring Stations

807.3 Maintenance of Purchased Gas Measuring Stations

807.4 Purchased Gas Calculations Expenses

807.5 Other Purchased Gas Expenses

TOTAL Purchased Gas Expenses (Total of lines 80 thru 84)

FERC FORM NO. 2-A (12-96) Page 319

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

0 A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES IContinued)

Line

No

Account

(a)

Amount for

Current Year

Ib)

Amount for

Previous Year

(c)

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

112

113

114

808.1 Gas Withdrawn from Storage-Debit

(Less) 808.2 Gas Debvered to Storage-Credit

809.1 Withdrawals of Liquefied Natural Gas for Processing-Debit

(Less) 809.2 Debvenes of Natural Gas for Processmg-Credit

Gas used in Utihty Operation-Credit

810 Gas Used for Compressor Station Fuel-Credit

811 Gas Used for Products Extraction-Credit

812 Gas Used for Other Utility Operations-Credit

TOTAL Gas Used in Utibty Operations-Credit (Total of lines 91 thru 93)

813 Other Gas Supply Expenses

TOTAL Other Gas Supply Exp. (Total of lines 77,78,85,86 thru 89,94,95)

TOTAL Production Expenses (Total of lines 3, 30, 58, 65, and 96)

2. NATURAL GAS STORAGE, TERMINALING AND PROCESSING EXPENSES

A. Underground Storage Expenses

Operation

814 Operation Supervision and Engineering

815 Maps and Records

816 Wells Expenses

817 Lines Expense

818 Compressor Station Expenses

819 Compressor Station Fuel and Power

820 Measuring snd Regulating Station Expenses

821 Purificabon Expenses

822 Exploration and Development

823 Gas Losses

824 Other Expenses

825 Storage Weg Royalties

826 Rents

TOTAL Operation (Total of lines of 101 thru 113)

FERC FORM NO. 2-A (12-96) Page 320

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

(Mo, Da, Yr)

A Resubmission

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continued)

Line

No

Account

(a)

Amount for

Current Year

(b)

Amount for

Prewous Year

lc)

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

Maintenance

830 Maintenance Supervision and Engineenng

831 Maintenance of Structures and improvements

832 Maintenance of Reservoirs and Wells

833 Maintenance of l.ines

834 Maintenance of Compressor Station Equipment

835 Maintenance of Measuring and Regulating Station Equipment

836 Maintenance of Punfication Equipment

837 Maintenance of Other Equipment

TOTAL Maintenance (Total of uncs 116 thru 123)

TOTAL Underground Storage Expenses (Total of lines 114 and 124)

8. Other Storage Expenses

Operation

840 Operation Supervision and Enginsenng

841 Operation Labor and Expenses

842 Rents

842.1 Fuel

842.2 Power

842.3 Gas Losses

TOTAL Operation (Total of lines 128 thru 133)

Maintenance

843.1 Maintenance Supervision and Engineering

843.2 Maintenance of Structures and Improvements

843.3 Maintenance of Gas Holders

843.4 Maintenance of Purification Equipment

843.5 Maintenance of Liquefaction Equipment

843.6 Maintenance of Vaporizing Equipment

843.7 Maintenance of Compressor Equipment

843.8 Msmtenance of Measuring and Regulating Equipment

843.9 Maintenance of Other Equipment

TOTAL Maintenance (Tote) of lines 1 36 thru 145)

TOTAL Other Storage Expenses (Total of lines 134 and 145)

FERC FORM NO. 2-A (12-96) Page 321

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

0 An Original

A Resubmission

Date of Report

fMo, Da, Yrf

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES (Continuedl

Line

No.

Account

(a)

Amount for

Current Year

(b)

Amount for

Prewous Year

(c)

147 C. Liquefied Natural Gas Terminaling and Processmg Expenses

148 Operation

149 844.1 Operation Supervision and Engmeenng

150 844.2 LNG Processing Terminal Labor and Expenses

151 844.3 Liquefaction Processing Labor and Expenses

152 844.4 Liquefaction Transportation Labor and Expenses

153 844.5 Measuring snd Regulating Labor and Expenses

154 844.6 Compressor Station Labor and Expenses

155 844.7 Communication System Expenses

156 844.8 System Control and Load Dispatching

157 845.1 Fuel

158 845.2 Power

159 845.3 Rents

160 845.4 Demurrage Charges

161 frsssl 845.5 Wharfage Receipts-Credit

162 845.6 Processing Liquefied or Vaponzed Gas by Others

163 846.1 Gas Losses

164 846.2 Other Expenses

165 TOTAL Operation (Total of lines 149 thru 164)

166 Maintenance

167 847.1 Maintenance Supervision and Enginsenng

168 847.2 Maintenance of Structures and Improvements

169 847.3 Maintenance of LNG Processing Termins)Equipment

170 847.4 Maintenance of LNG Transportation Equipment

171 847.5 Maintenance of Measuring and Regulating Equipment

172 847.6 Maintenance of Compressor Station Equipment

173 847.7 Maintenance of Communication Equipment

174 847.8 Maintenance of Other Equipment

175 TOTAL Maintenance (Tote) of hnes 167 thru 174)

176 TOTAL Liquefied Nat Gas Terminslmg and Proc Exp (Total of lines 165 snd 175)

177 TOTAL Natural Gas Storage (Total of lines 125, 146, and 176)

FERC FORM NO. 2-A (12-96) Page 322

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

EI An Original (Mo, Da, Yr!

E3 A Resubmission

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES IContinued)

Line

Nc.

178

Account

la)

3. TRANSMISSION EXPENSES

Amount for

Current Year

Ib)

Amount for

Previous Year

(cl

179

180

181

182

183

184

185

186

187

188

189

190

Operation

850 Operation Superwsion and Engineenng

851 System Control and Load Dispatching

852 Communication System Expenses

853 Compressor Station Labor and Expenses

854 Gas for Compressor Station Fuel

855 Other Fuel and Power for Compressor Stations

856 Mains Expenses

857 Messunng and Regulating Station Expenses

858 Transmission and Compression of Gas by Others

859 Other Expenses

860 Rents

191 TOTAL Operation (Total of ones 180 thru 190)

192 Maintenance

193

194

195

196

197

198

199

200

201

202

203

204

205

206

207

861 Maintenance Supervision and Engineering

862 Maintenance of Structures and Improvements

863 Maintenance of Mains

864 Maintenance of Compressor Station Equipment

865 Maintenance of Measuring and Regulatmg Station Equipment

866 Maintenance of Communication Equipment

867 Maintenance of Other Equipment

TOTAL Maintenance (Tote( of lines 193thru 199)

TOTAL Transmission Expenses (Total of lines 191 and 200)

4. DISTRIBUTION EXPENSES

Operation

870 Operation Supervision and Engineering

871 Distribution Load Dispatching

872 Compressor Station Labor and Expenses

873 Compressor Station Fuel snd Power

FERC FORM NO. 2-A (12-96) Page 323

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

A Resubmission

Date of Report

(Mo, Da, Yr)

Year Ending

Dec. 31,

GAS OPERATION AND MAINTENANCE EXPENSES IContinued)

Line

No.

Account

(a)

Amount for

Current Year

lli)

Amount for

Prewous Year

(c)

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

232

233

234

874 Mains and Services Expenses

875 Measuring and Regulating Station Expenses-General

876 Measunng and Regulating Station Expenses-Industnal

877 Measuring and Regulating Station Expenses-City Gas Check Station

878 Meter and House Regulator Expenses

879 Customer Installations Expenses

880 Other Expenses

881 Rents

TOTAL Operation (Total of knee 204 thru 215)

Maintenance

885 Maintenance Supervision and Engmssnng

886 Maintenance of Structures and Improvements

887 Maintenance of Mains

888 Maintenance of Compressor Station Equipment

889 Maintenance of Measunng and Regulating Station Equipment-General

890 Maintenance of Mess. and Reg. Station Equipmsnt-Industrial

991 Maintenance of Mess. and Reg. Station Equip-City Gate Check Station

892 Maintenance of Services

893 Mamtenance of Meters and House Regulators

894 Maintenance of Other Equipment

TOTAL Maintenance (Total of hnes 218 thru 227l

TOTAL Distribution Expenses (Total of lines 216 and 2281

5. CUSTOMER ACCOUNTS EXPENSES

Operation

901 Supervision

902 Meter Reading Expenses

903 Customer Records and Collection Expenses

FERC FORM AD. r)-A31ar-86! ge- ts 'a ort

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is: Date of Report

p i

(Mo, Da, Yri

0 A Resubmission

Year Ending

Dec. 31,

GAS QPERATIPN AND MAINTENANCE EXPENSES IConbnuedi

Line

No

Account

Ia)

Amount for

Current Year

ib)

Amount for

Prewous Year

ic)

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

251

252

253

254

255

256

257

258

259

260

261

262

263

264

265

266

267

268

269

270

271

904 Uncollectible Accounts

905 Miscellaneous Customer Accounts Expenses

TOTAL Customer Accounts Expenses ITotal of hnes 232 thru 236)

6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES

Operation

907 Supervision

908 Customer Assistance Expenses

909 informational and Instructional Expenses

910 Miscellaneous Customer Service and Informational Expenses

TOTAL Customer Service and information Expenses tTotal of hnes 240 thru 243)

7. SALES EXPENSES

Operation

911 Supervision

912 Demonstrabng and Sellmg Expenses

913 Advertismg Expenses

916 Miscellaneous Sales Expenses

TOTAL Sales Exoenses ITotal of hnes 247 thru 250)

8. ADMINISTRATIVE AND GENERAL EXPENSES

Operetioii

920 Administrative and General Salaries

921 Office Supolias snd Expenses

(Less) 922 Administratme Expenses Transferred-Credit

923 Outside Services Employed

924 Property Insurance

925 In)vries and Damages

926 Emplovee Pensions and Benefits

927 Franchise Reouirements

928 Regulatory Commission Expenses

(toss) 929 Duplicate Charges-Credit

930.1General Advertising Expenses

930.2Miscellaneous General Expenses

931 Rents

TOTAL Operation )Total of lines 254 thru 266)

Mamtenance

935 Maintenance of General Plant

TOTAL Administrative and General Expenses tTotsl of lines 287 and 269)

TOTAL Gas OarM Expenses tTetsl of lines s7.177.201.229.237.244.251.end 2701

FERC FORM NO. 2-A I12-96) Page 325 )Next page is 520)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report )s:

An Onginal

A Resubmission

Date of Report Year Ending

/Mo, Da, Yrj

Dec. 31,

GAS ACCOUNT - NATURAL GAS

1. The purpose of this schedule is to account for the quantity of

natural gas received and dehvered 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 Dth as reported in the schedules indicated

for the items of receipts and dehvenes.

4. Indicate in a footnote the quantnies of bundled sales and

transportation gas and specify the hne on which such quantities are

listed.

5. If the respondent operates two or more systems which are not

interconnected, submit separate pages for this purpose. Use copies

of pages 520.

6. Also indicate by footnote the quantities of gas not subject to

Commission regulation which did not incur FERC regulatory costs by

showing (I) 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 distnbution facilities or intrastate

facikties and which the reporting pipeline recewed through gathenng

facihties or intrastate facihties, but not through any of the interstate

portion of the reporting pipeline, and (3) the gathenng line quantities

that were not destined for interstate market or that were not

transported through any interstate portion of the reporting pipehne.

7 Also indicate in a footnote II ) the system supply quantnies of

gas that are stored by the reporting pipehne, dunng the reporting year

and also reported as sales, transportation and compression volumes

by the reporting pipeline dunng the same reporting year, (2) the

system supply quantities of gas that are stored by the reporting

pipeline dunng the reporting year which the reporting pipeline intends

to sell or transport in a future reporting year, and (3) contract storage

quantnies.

8. Also indicate the volumes of pipeline production field sales that

are included m both the company's total sales figure and the

company's total transportation figure.

01 NAME OF SYSTEM

Lme

No.

Item

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

3'I

32

33

34

35

36

37

(el

GAS RECEIVED

Gas Purchases (Accounts 800-805)

Gas of Others Received for Gathering (Account 489.1)

Gas of Others Received for Transmission (Account 489.2)

Gas of Others Received for Distribution (Account 489.3)

Gas of Others Received for Contract Storage (Account 489.4)

Exchanged Gas Received from Others (Account 806)

Gas Received as Imbalances (Account 806)

Receipts of Respondent's Gas Transported by Others (Account

Other Gas Withdrawn from Storage (Exp(am)

Gas Received from Shippers as Compressor Station Fuel

Gas Received from Shippers as Lost and Unaccounted for

Other Receipts (Specify)

Total Receipts (Total of lines 3 thru 14)

GAS DELIVERED

858)

Gas Sales (Accounts 480-484)

Dehvenes of Gas Gathered for Others (Account 489.1)

Delweries of Gas Transported for Others (Account 489.2l

Deliveries of Gas Distributed for Others (Account 489.3)

Delivenes of Contract Storage Gas (Account 489.4)

Exchange Gas Delivered to Others (Account 806)

Gas Delivered as Imbalances (Account 806)

Deliveries of Gas to Others for Transportation (Account 858)

Other Gas Delivered to Storage (Explain)

Gas Used for Compressor Station Fuel

Other Deliveries (Specify)

Tote) Deliveries (Total of lines 17 thru 27)

GAS UNACCOUNTED FOR

Production System Losses

Gathenng System Losses

Transmission System Losses

Distribution System Losses

Storage System Losses

Other Losses(Specify)

Total Unaccounted For (Total of lines 30 thru 35)

Total Deliveries ar Unaccounted For (Total of lines 28 and 36)

Ref. Amount of Dth

Page

No.

(b) (c)

303

305

301

307

328

328

332

303

305

301

307

328

328

332

509

FERC FORM NO. 2-A (12-96) Page 520 (Next page is 551)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Name of Respondent This Report Is:

An Original

0 A Resubmission

Date of Report Year Ending

(Mo, Da, Yr/

Dec. 31,

FOOTNOTE DATA

Page

No.

la)

Line Column

No. No

ib) (c)

Comments

(d)

FERC FORM NO. 2-A (12-96) Page 551

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Dochet No. RM95-4 —000

NOTE: This Appendix will not appear in the Federal Register.

APPENDIX D

FERC FORM NO. 11

19951003-0255 FERC PDF (Unofficial) 09/28/1995
U.S. DEPARTtxtENJ OF ENERCiy

Fetleral Ener y Re'nlatory Cotnmission

Washin ton, DC 20426

Form Approi etl

OMB No. 1902-0032

(Expires — — )

FERC FORM NO. 11:NATURAL GAS PIPELINE COMPANY QUARTERLY

STATEMENT OF MONTHLY DATA

I. Purpose

GENERAL INFORMATION

This form is designed to obtain information concerning selected revenues

and associated quantities.

II. Who Must Submit

Each natural gas company whose gas transported or stored for a fee

exceeded 50 million Dth in each of the three previous calendar years.

III. When to Submit

Submit this report quarterly. The reports must adhere to the following

schedule:

Report Period Report Date

January-March

April-June

July-September

October-December

May 15

August 14

November 14

February 14

IV. What and Where to Submit

(a) Submit an original and two (2) copies of this form to:

Office of the Secretary

Federal Energy Regulatory Commission

Washington DC 20426

19951003-0255 FERC PDF (Unofficial) 09/28/1995
GEXTRAL IXFORWIATIOX

Where to Send Cominents on Public Reporting Burden

The public reporting burden for this collection of information is estimated to

average 3 hours per response, including the time for reviewing instructions,

searching existing data sources, gathering and maintaining the data needed,

and completing and reviewing the collection of information. Send comments

regarding this burden estimate or any aspect of this collection of

information, including suggestions for reducing this burden, to the Federal

Energy Regulatory Commission, Washington, DC 20426 (Attention:

Michael Miller, ED-12.4); and to the Office of Information and Regulatory

Affairs, Office of the Management and Budget, Washington DC 20503

(Attention: Desk Officer for the Federal Energy Regulatory Commission).

You shall not be penalized for failure to respond to this collection of

information unless the collection of information displays a valid OMB

control number.

19951003-0255 FERC PDF (Unofficial) 09/28/1995
GENE!!AL I ~ STREC1'IOUS

Report data as outlined in the Uniform System of Accounts for Natural Gas

Companies (U.S. of A.) (I g CFR Part 201). Data reported on this form

must, when aggregated, be equiil to the data reported on Form No. 2.

aggregated.

II. Indicate negative amounts by enclosing the figures in parentheses, ( ),

except where otherwise noted.

III. Report dollar entries in thousands. Report quantities in thousands of

dekatherms.

IV. Provide, by footnotes, a brief description of any adjustments significantly

affecting this report. Mark an "X" in the Footnote Column to indicate a

footnote has been entered in Part III.

V. Report one Part II form for each month.

19951003-0255 FERC PDF (Unofficial) 09/28/1995
SPECIFIC INSTRUCTIONS

Item Instruction

A 1 1 Refer to the form and(or Uniform System of Accounts (U.S. of A.)

for Natural Gas Companies (18 CFR Part 201). Reference to account

numbers in the U.S. of A, are provided in parentheses beside

applicable data. Quantities must not be adjusted for discounts.

6-7,

10-11 Report revenues and quantities of gas by rate schedule. Add rows if

necessary to report data for all rate schedules. The rate schedule

should be identified in the same manner as identified in other reports

to the Commission. Where transportation services are bundled with

storage services, reflect only transportation Dth. When reporting

storage, report Dth of gas withdrawn from storage and revenues by

rate schedule. Add rows as necessary to report all rate schedules.

Part II Revenues in Column (d) include transition costs from upstream

pipelines. Revenue (Other) in Column (f) includes reservation

charges received by the pipeline plus usage charges, less revenues

reflected in Columns (d) and (e). Include in Column (f), revenue for

Accounts 490-49S.

19951003-0255 FERC PDF (Unofficial) 09/28/1995
U,S. DEPAR1 51ENT OF ENER(iY

Fetleral Energy Reguliitory ('ommission

Washington, DC 20426

FERC FORM NO. 11:NATURAL GAS PIPELINE COMPANY QUARTERLY

STATEMENT OF MONTHLY DATA

Tiua rcport tv manchrt iry umler thc actin&rtty "rantccl hy Sectmna io and th and sanctt na pr valccl hv Sectam

lnal u!'he. Natural Gaa Act Fadurc ui rcport may result m cream.tt linev, ctvtl pcnalttes aml rther armcturns av pnwtded

hy law

Company Code Number

Penod Reported

PART I; IDENTIFICATION

l. Name of Company

2. Address of Company

(I) Number and Street (2) City (3) State (4) Ztp Code

3. Person Authorized to Sign This Report

(I) Signature, (2) Phone Number (Inctudmg Area Code)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Ciimp;m& Ciid» Nnmlier 51&inth Reii rted

PART II: REVENUE DATA

Line

No.

I trill Total Quantitiev and Rei enues Footnote

(a)

Quantity

(c)

Revenue

(Tr»nsition

Costs and Take

or-Pay)

(d)

Revenue

(GRI k

ACA)

Revenue

(Otliel')

(e) (f)

Revenue

(Total)

(g) (h)

ix„:!4::i,".;l:Total Sales

5 Transportation ot

Gas for Others

6 [Rate Schedule

Numher[

7 [Rate Schedule

Numher]

p.";. ; 'averts("'1 Total Transportation

9 Storage

10 [Rate Schedule

Number[

%%~~lses[~yiy'4ai:.'; P@FArnJ[ssp'ei Ãr'vrrpe+P~ yrr&aspÃ~n'1 Psl@orpy. Wy$

gPkgFP, .x ~a~&~',,rs,(,r" '=t ""''.~, '";ts" "»",:,„';rr"""„ss.. ~"" '"„4;

11 [Rate Schedule

Number[

',"fP'i,'::,: Total Storage

13 Gathenng

14 Gathenng-Firm

15 GathenngInterruptihle

16 Additional Revenues

17 Products Sale and

Extraction (490-492)

18 Rents (493 and 494)

SHR[~r-"~~~a s" "'ue(

"'" '4h~~%%5~

%%5%Ã ""'i'~g":--%~

19 Other Gas Revenues

(495)

19951003-0255 FERC PDF (Unofficial) 09/28/1995
( ompunt CoJe Numt~et Slimth RqnirteJ

PART ill: FOOTNOTES

Line

No.

Reterence

Column

Reference

Text nt the Footnote

19951003-0255 FERC PDF (Unofficial) 09/28/1995
Document Content(s)

8373002.tif...........................................................1-464

19951003-0255 FERC PDF (Unofficial) 09/28/1995