[Federal Register Volume 60, Number 9 (Friday, January 13, 1995)]
[Proposed Rules]
[Pages 3111-3141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-654]



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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 154

[Docket No. RM95-3-000]


Filing and Reporting Requirements for Interstate Natural Gas 
Company Rate Schedules and Tariffs; Notice of Proposed Rulemaking

    Issued: December 16, 1994.

AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission proposes to amend 
part 154 of the Commission's regulations under the Natural Gas Act. The 
Commission proposes to reorganize, rewrite and update its regulations 
governing the form, composition and filing of rates and charges for the 
transportation of natural gas in interstate commerce. This proposal is 
part of the Commission's ongoing program to review its filing and 
reporting requirements and reduce unnecessary burdens by eliminating 
the collection of data that are not necessary to the performance of the 
Commission's regulatory responsibilities. The Commission also proposes 
to require that certain data, necessary to the analysis of a proposed 
rate, be filed at an earlier stage of the process.

DATES: Comments are due no later than April 13, 1995.

ADDRESSES: An original and 14 copies of written comments must be filed. 
All filings must refer to Docket No. RM95-3-000 and be addressed to 
Office of the Secretary, Federal Energy Regulatory Commission, 825 
North Capitol Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: Richard A. White, Office of the 
General Counsel, Federal Energy Regulatory Commission, 825 North 
Capitol Street, NE., Washington, DC 20426, (202) 208-0491.

SUPPLEMENTARY INFORMATION: In addition to publishing the full text of 
this document in the Federal Register, the Commission also provides all 
interested persons an opportunity to inspect or copy the contents of 
this document during normal business hours in Room 3104, 941 North 
Capitol Street, NE., Washington, DC 20426.
    The Commission Issuance Posting System (CIPS), an electronic 
bulletin board service, provides access to the texts of formal 
documents issued by the Commission. CIPS is available at no charge to 
the user and may be accessed using a personal computer with a modem by 
dialing (202) 208-1397. To access CIPS, set your communications 
software to 19200, 14400, 12000, 9600, 7200, 4800, 2400, 1200, or 300 
bps, full duplex, no parity, 8 data bits, and 1 stop bit. The full text 
of this document will be available on CIPS for 60 days from the date of 
issuance in ASCII and WordPerfect 5.1 format. After 60 days, the 
document will be archived, but still accessible. The complete text on 
diskette in Wordperfect format may also be purchased from the 
Commission's copy contractor, La Dorn Systems Corporation, also located 
in Room 3104, 941 North Capitol Street, NE., Washington, DC 20426.

I. Introduction

    The Federal Energy Regulatory Commission (Commission) proposes to 
amend part 154 of its regulations governing the form and composition of 
interstate natural gas pipeline tariffs and the filing of rates and 
charges for the transportation of natural gas in interstate commerce 
under sections 4 and 5 of the Natural Gas Act (NGA) and section 311 of 
the Natural Gas Policy Act. This notice of proposed rulemaking is a 
companion to the notice of proposed rulemaking, issued concurrently, 
titled ``Revisions to the Uniform System of Accounts and to Forms and 
Statements and Reporting Requirements for Natural Gas Companies'' which 
proposes to amend, among other things, the Uniform System of Accounts 
and FERC Form No. 2.
    The Commission intends to make the filing and reporting 
requirements reflect recent regulatory changes, in particular the 
implementation of Order No. 636, and the realities of the process of a 
modern rate case.<SUP>1 The restructuring of the pipeline industry has 
rendered many of the current rate and tariff regulations superfluous or 
outdated. The Commission is proposing filing requirements that reflect 
the current part 284 service regulations that mandate unbundled 
pipeline sales and open-access transportation of natural gas. The 
current part 154 rate regulations are not designed for the type of rate 
changes that will occur in the restructured service environment. These 
filing requirements were originally designed to focus on pipeline sales 
activities. The revised regulations focus on transportation services.

    \1\Pipeline Service Obligations and Revisions to Regulations 
Governing Self-Implementing Transportation; and Regulation of 
Natural Gas Pipelines After Partial Wellhead Decontrol, Order No. 
636, 57 FR 13267 (April 16, 1992), FERC Statutes and Regulations 
30,939 (April 8, 1992); order on reh'g, Order No. 636-A, 57 FR 
36128 (August 12, 1992), FERC Statutes and Regulations 30,950 
(August 3, 1992); order on reh'g, Order No. 636-B, 57 FR 57911 
(December 8, 1992), 61 FERC 61,272 (1992), reh'g denied, 62 FERC 
61,007 (1993), appeal re-docketed sub nom. Atlanta Gas Light 
Company and Chattanooga Gas Company, et al. versus FERC, No. 94-1171 
(D.C. Cir. May 27, 1994).
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    Before the recent industry restructuring, natural gas pipelines 
primarily provided a merchant service. A typical pipeline company would 
purchase gas from producers or other suppliers, transport the gas from 
the supply area to storage fields or sales delivery points, and sell 
the gas on a bundled basis. Now, pipeline [[Page 3112]] companies are 
primarily transporters of natural gas. However, in the Commission's 
view, the change in the primary role of the pipeline from merchant to 
transporter requires that the filing requirements be adapted to the 
change. Therefore, the Commission proposes to delete all of the current 
regulations in part 154 and replace them with new regulations that 
reflect the restructured industry.
    The changes to the Commission's regulations are proposed to be 
effective 90 days after publication in the Federal Register.

II. Public Reporting Burden

    Due to offsetting changes, the expected impact of the proposal is 
minimal.
    The Commission estimates the public reporting burden for filing 
under the rule will decrease the existing reporting burden by an 
average of 69 hours per filing.
    Interested persons may send comments regarding these burden 
estimates or any other aspect of this information collection, including 
suggestions for reducing the burden, by contacting the Federal Energy 
Regulatory Commission, 941 North Capitol Street, NE., Washington, DC 
20426 [Attention: Michael Miller, Information Services Division, (202) 
208-1415], and to the Office of Information and Regulatory Affairs, 
Office of Management and Budget, Washington DC 20503 (Attention: Desk 
Officer for the Federal Energy Regulatory Commission), FAX: (202) 395-
5167.

III. Discussion

A. Overview and Objectives of the Proposed Rule

    Section 4(a) of the Natural Gas Act (NGA) requires that any rate 
charged by a natural gas company must be ``just and reasonable.''<SUP>2 
In order to aid the Commission in establishing whether a change in a 
rate meets the statutory standard, section 4 of the NGA grants 
authority to the Commission to establish procedures for the review of 
proposed changes. Section 4(c) of the NGA requires that a natural gas 
company file proposed changes in rates with the Commission thirty days 
prior to the proposed effective date.<SUP>3 The Commission may suspend 
the effectiveness of the proposed changes to that rate for up to five 
months, permit the changed rates to take effect subject to refund, and 
may order a hearing to determine the lawfulness of the proposed 
rates.<SUP>4 At such hearing, the company bears the burden of proof 
that the proposed changed rates are just and reasonable. Part 154 
currently imposes specific filing and reporting requirements on 
jurisdictional natural gas companies in order for the Commission to 
fulfill its statutory review functions.

    \2\15 U.S.C. 717c(a).
    \3\15 U.S.C. 717c(d).
    \4\15 U.S.C. 717(c).
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    In this proceeding, the Commission proposes a major overhaul of its 
regulations governing natural gas company filing and reporting 
requirements. The proposed new part 154 incorporates both basic 
``housekeeping'' changes to eliminate obsolete language and sections, 
and substantive changes to update the regulations to reflect the many 
developments that have taken place in the natural gas industry since 
the regulations were first promulgated.
    The proposed part 154 represents the reorganization, rewriting, 
updating, modification, consolidation, and pruning of the current 
regulations. The changes provide for more useful and less burdensome 
data filed in electronic format; a schedule by schedule revision of the 
current Sec. 154.63 filing requirements for an NGA section 4(e) general 
rate case; and, new filing requirements for initial rates and various 
limited section 4 filings, miscellaneous tariff change filings, and 
cost tracking filings.
1. Organization and Editorial Changes
    Proposed Part 154--Rate Schedules and Tariffs has been reorganized 
into subparts: Subpart A--General Provisions and Conditions; Subpart 
B--Form and Composition of Tariff; Subpart C--Procedures for Changing 
Tariffs; Subpart D--Material to be Filed With Changes; Subpart E--
Limited Rate Changes; Subpart F--Refunds and Reports; Subpart G--Other 
Tariff Changes.
    The revised part 154 is organized in such a way that the filing 
requirements are cumulative. That is, all filings must meet the 
requirements of Subpart A even if no other subpart applies. All tariff 
sheets or executed service agreements must conform to the requirements 
of Subpart B. Changes to tariff sheets or executed service agreements, 
whether additions or modifications, must conform to the requirements of 
Subpart B and comply with the filing requirements of Subpart C. 
Additional filing or reporting requirements applicable to specific 
types of filings fall under Subparts D through G.
    The entire part 154 has been edited for clarity and to remove 
outdated references. For example all references to filing fees have 
been removed because fees are no longer required. Also, the current 
regulations contain some sections which have never been updated and 
refer to the Commission as the ``FPC'' or direct the applicant to 
comply with sections that have been removed. The Commission proposes 
appropriate editorial revisions to these sections.
    Some current sections contain provisions on several different 
matters and, for the sake of clarity, have been broken out into several 
smaller sections. For example, the provisions of current Sec. 154.63 
are proposed to be redistributed throughout the proposed part 154. 
Current Sec. 154.38(d)(5) and (6) deal with the substantive rules for 
obtaining rate treatment for research, development, and demonstration 
costs (RD&D) and annual charge adjustment (ACA) expenditures, 
respectively. These sections are proposed to be moved to a separate 
subpart and revised.
    Many provisions the Commission proposes to redraft to reflect 
prevalent practice in the industry. For example, proposed Sec. 154.207 
formally adds to the regulations the requirement that the company must 
serve notice upon its customers. Proposed Sec. 154.208 sets out a new 
form of notice to reflect current practice. Proposed Sec. 154.107 
formalizes the general practice of providing a detailed statement of 
rates and charges in a particular location in the tariff. Proposed 
Sec. 154.107(b) requires rates to be stated in terms of thermal units 
instead of units of volume. Proposed Sec. 154.4 provides that any 
filing must be on electronic media and proposed Sec. 154.2(d) allows 
mailing to customers and state commissions to be accomplished either 
through electronic media or traditional methods.
2. Substantive Changes
    The Commission is proposing changes to create filing requirements 
that reflect the current service regulations that mandate unbundled 
pipeline sales and open-access transportation of natural gas. The 
primary objectives of the substantive changes are to update the filing 
and reporting requirements to reflect restructured services and 
operations, streamline rate case processing by receiving important 
information earlier in the process, and remove outdated requirements. 
The Commission does not intend to propose changes in its substantive 
rate policies in this rulemaking, but rather to bring its filing 
requirements and procedures up to date to match its current substantive 
policies. [[Page 3113]] 
    As a result of Order No. 636, virtually all of a pipeline's 
services are covered by a blanket certificate issued under section 7 of 
the NGA and pursuant to part 284 of this chapter. As a practical 
matter, this means that filings for changes in transportation services 
or new services generally will be treated as tariff filings under 
section 4 of the NGA; not certificate amendment applications under 
section 7. Therefore, the Commission must act within 30 days of filing 
and can suspend the changes for no more than five months. This usually 
does not leave sufficient time to complete a full hearing that involves 
extensive discovery. Therefore, it is important that filings contain as 
full an explanation of the rate or tariff change as possible.
    Currently, when a pipeline proposes a rate increase its customers 
routinely ask for a hearing and the rates are routinely suspended. When 
the issues are clear and the parties committed to rapid closure, the 
hearing process need not take an inordinate length of time. The time 
required to complete a hearing and ready the case for decision is 
affected by a variety of factors including the scope of issues set for 
hearing, the scope of discovery needed, and the progress of settlement 
discussions. The proposed filing requirements would improve the support 
of a pipeline's filing, reduce discovery needs by all parties, and 
facilitate more rapid settlement or adjudication of pipeline rate 
proposals. More complete support of rate filings would enable the 
Commission to speed the processing of rate cases by resolving as many 
issues as possible in the suspension order.
    The proposed filing requirements are intended to permit parties to 
address the important issues more quickly. For example, pipelines 
currently file their Statement P testimony 15 days after filing the 
rate proposal. The Commission's experience is that Statement P provides 
the most comprehensive description of the proposed change. The proposed 
rule would require Statement P to be filed concurrently with the rate 
case so as to make a more complete explanation of the rate proposal 
available at the outset. To achieve its intended purpose of expediting 
the hearing, Statement P must serve as the applicant's complete case-
in-chief not a mere description of proposed rates.
    One of the most time consuming aspects of the hearing process is 
discovery. Parties must often resort to discovery to obtain an adequate 
explanation of the pipeline's rate proposals. The Commission proposes 
to expand the filing requirements in certain areas so that discovery 
can be reduced, and eliminate other data that are not being used by the 
parties. Therefore, though the burden on filing companies to provide 
information in the first submittal is increased, the net burden remains 
relatively unaffected because the only change is in the timing of the 
submission.
    The current approach to rate regulation sets an annual revenue 
requirement based on operating and capital costs occurring during a 
test period adjusted for known and measurable changes expected to occur 
by the time suspended rates take effect. Rates are generally designed 
to recover the required revenue based on contract capacity entitlements 
and projected annual volumes. The proposed filing requirements have 
been designed to obtain the information needed to justify rates under 
this cost-of-service method. However, the Commission has been receiving 
increasing numbers of rate filings in which the pipeline seeks to 
justify its rates on a basis other than the traditional cost-of-service 
method.
    However, the Commission also recognizes that the significant 
changes in the industry over the last decade have also heightened 
interest in the industry in the prospect for non-cost-based rate 
proposals. In the past several years, the Commission has processed on a 
case-by-case basis proposals that are not necessarily confined to a 
traditional revenue requirement. For example, the Commission has 
approved market-based rates for storage services in several 
cases.<SUP>5 The Commission plans to continue the case-by-case 
evaluation of new filings. However, in the process of developing 
specific new filing requirements in this proceeding, the Commission has 
concluded that it should also begin a more comprehensive examination of 
different ratemaking standards and methodologies. These might include, 
for example, market-based rates or incentive rates. Among other things, 
the Commission must consider the appropriate criteria to evaluate such 
proposals, to ensure consistency with the just and reasonable standard, 
and to develop filing requirements for the information that would be 
needed to justify those rates. Such alternative rate designs may 
provide customers and pipelines with needed flexibility as the market 
continues to evolve. The Commission, therefore, will move forward with 
an initiative in the very near future in which it will explore the 
criteria and filing requirements that could be employed to achieve non-
cost based rates that also meet the ``just and reasonable'' standard of 
the NGA. The Commission will not commence such a proceeding here since 
the instant rulemaking is limited to filing and reporting requirements 
for rates justified under the traditional cost-of-service method.

    \5\E.g., Avoca Natural Gas Storage, 68 FERC 61,045 (1994); Koch 
Gateway Pipeline Co., 66 FERC 61,385 (1994); Bay Gas Storage Co., 
Ltd., 66 FERC 61,354 (1994); Petal Gas Storage Co., 64 FERC 61,190 
(1993); Richfield Gas Storage System, 59 FERC 61,316 (1992).
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    Certain regulations are, as a practical matter, no longer of 
general interest. The Commission proposes to remove them from the 
general regulations. The regulations concerning Research, Development, 
and Demonstration expenses (RD&D) for example, are currently a lengthy 
and cumbersome part of Sec. 154.38. These regulations were originally 
developed to apply to all pipelines and to any number of RD&D 
organizations. However, in practice, there is one predominant and 
principal research organization, Gas Research Institute (GRI). Thus, 
the Commission proposes to streamline the regulations, recognizing that 
GRI is the principal research organization funded by the natural gas 
industry.
    The Commission proposes to remove the regulations governing 
Purchase Gas Adjustments (PGAs) from the general regulations. As a 
result of the restructuring of the industry under Order No. 636, most 
pipelines have shed their traditional merchant function. Only two 
natural-gas companies, Eastern Shore Natural Gas Company and West Texas 
Gas, Inc., continue to pass through gas purchase costs under the PGA 
regulations.<SUP>6 The Commission proposes to require those two 
natural-gas companies to incorporate all of the existing PGA regulatory 
requirements applicable to them into their tariffs. The PGA regulations 
will be removed from part 154. The Commission also proposes to require 
the provisions governing PGAs in current Sec. 154.111 to be 
incorporated into these companies' tariffs so that the section may also 
be removed.

    \6\These pipelines do not provide open access transportation 
under part 284 of this chapter; and so, were not subject to 
restructuring under Order No. 636.
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    The Commission is proposing to delete current Sec. 154.201-213. 
Those regulations apply primarily to shippers seeking to recover 
charges incurred for the conditioning and transportation of Alaska 
natural gas through the Alaska Natural Gas System (ANGTS) for sale in 
the contiguous 48 states of the United States. Those provisions 
establish the terms and conditions for a permanent [[Page 3114]] tariff 
provision that a shipper may propose to adjust its rates semiannually 
to flow through to its jurisdictional customers the jurisdictional 
portion of changes its ANGTS charges. Alternatively, a shipper may 
recover the jurisdictional portion of these charges through a cost-of-
service tariff approved by the Commission.
    The Commission proposes to delete these regulations because the 
ANGTS project has not been built as originally contemplated, and the 
regulations are obsolete in light of the post-Order No. 636 unbundled 
environment. Nonetheless, the Commission remains ready to facilitate 
the construction of ANGTS, which Congress has found to be in the public 
interest.<SUP>7 Hence, if action is warranted in the future to 
facilitate financing and progress on the ANGTS and the recovery of 
ANGTS costs, the Commission will act expeditiously. What was stated in 
Order No. 636-A applies here as well: ``nothing in the rule [Order No. 
636] is intended to disturb the United States government's commitment 
to the ANGTS prebuild.''<SUP>8 Further, the Commission continues to 
view the Northern Border prebuild segment as remaining subject to the 
various agreements between the United States and Canadian governments 
and subsequent findings in Commission orders certificating Northern 
Border Pipeline Company's system.<SUP>9 Removing these regulations is 
not intended to have any effect on the ANGTS prebuild revenue stream.

    \7\Alaska Natural Gas Transportation System Act, 15 U.S.C. 719-
719.
    \8\Order No. 636-A, III FERC Stats. & Regs. Preambles 30,950 at 
p. 30,674 (1992).
    \9\Northern Border Pipeline Co., 63 FERC 61,289 (1993).
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3. Electronic Filing
    The Commission recognizes that changes to these regulations and to 
the forms in the companion notice of proposed rulemaking titled 
``Revisions to the Uniform System of Accounts and to Forms and 
Statements and Reporting Requirements for Natural Gas Companies'' 
necessitate modifications to the electronic formats for the affected 
filings and forms. To ensure the widest possible input, the Commission 
directs 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. By the time the 
Commission issues a final rule in these companion rulemakings, the 
Commission expects staff, with the participation of interested parties, 
to have developed the changes needed to make the electronic filings 
that would be required under the regulations proposed in these two 
notices of proposed rulemaking. The Commission intends to move toward a 
PC-based electronic filing system and away from mainframes. The 
Commission intends to employ user friendly form-fill, word processing, 
or spreadsheet application software as much as possible. If these 
revisions are not complete by the time the Commission issues the final 
rule, since the changes will make the current electronic formats 
obsolete upon the adoption of revised filing requirements and forms, 
the Commission would suspend collection of the formats for rate filings 
subject to proposed Subpart D in electronic form, until new electronic 
formats are devised.
    The electronic tariff sheet formats will not be included in this 
effort. The Commission has derived substantial benefit from the 
electronic tariff sheet filings and proposes only modest changes to the 
electronic tariff filing requirements. Those changes are attached as an 
appendix and briefly discussed below.

B. The Revised Regulations

    The proposed part 154 has a completely new organization from the 
current regulations, and virtually every section has been changed in 
some way. The text has been edited to remove outdated and incorrect 
references, and rewritten in a more concise style. Although many filing 
and reporting requirements have not been changed, they have been 
relocated. The proposed regulations may be best understood by a 
comparison to the current regulations they replace. Details of the 
proposed regulations are provided below.

a. Subpart A--General Provisions and Conditions

    i. Section 154.1  Application; obligation to file--The Commission 
proposes to retain the description of the purpose of part 154 (current 
Sec. 154.1(a)), which reflects the requirement of Section 4(c) of the 
NGA that every natural gas company must file with the Commission, and 
maintain for open inspection, its schedules and contracts.
    The Commission proposes to delete outdated language (i.e., ``On or 
after December 1, 1948''). The Commission proposes to remove the 
electronic medium requirements from this paragraph and place them in 
proposed Sec. 154.4.
    The Commission proposes to require that any executed service 
agreement which deviates in a material aspect from the form of service 
agreement in the tariff must be filed with the Commission. (See also 
discussion of proposed Sec. 154.112). This requirement conforms to 
current Commission policy as set forth in Tennessee Gas Pipeline 
Co.<SUP>10 In that order, the Commission recognized that parties may 
negotiate terms in their service agreements but indicated a preference 
for all part 284 services to be conducted under the same terms and 
conditions. The Commission clarified that if parties agree to terms 
that in any way materially differ from the form of service agreement on 
file, then the pipeline must file the agreement under NGA section 4.

    \10\65 FERC 61,356 (1993); reh'g denied, 67 FERC 61,196 
(1994).
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b. Section 154.2  Definitions

    The Commission proposes to define terms of general applicability in 
proposed Sec. 154.2. The Commission is proposing stylistic changes only 
to definitions for: ``Rate Schedule,'' currently in Sec. 154.11, 
``Contract,'' currently in Sec. 154.12, ``Service Agreement,'' 
currently in Sec. 154.13, and ``Tariff or FERC Gas Tariff,'' currently 
in Sec. 154.14. ``Posting,'' currently in Sec. 154.16, has been defined 
to allow the parties to agree to alternative methods of ``mailing'' 
such as electronic mail.

c. Section 154.3  Effective Tariff

    The Commission proposes to describe the term ``Effective tariff'' 
in Sec. 154.3, currently Sec. 154.21. The proposed description 
clarifies that a pipeline may not avoid filing for a rate change by 
making the rate subject to an exception or condition, such as a 
periodic rate change under a price index. At present this concept is 
found in Sec. 154.38(d)(3).

d. Section 154.4  Electronic and Paper Media

    Current Sec. 154.26 calls for 6 paper copies to cover the 
Commission's internal distribution needs but allows electronic filing 
as an exception. Proposed Sec. 154.4 requires electronic media filings 
in addition to paper copies.
    The proposed section consolidates in one place the Commission's 
requirements with respect to electronic submittal of filings required 
by part 154. Currently, these requirements are strewn throughout part 
154, often redundantly.
    The appendix to this notice of proposed rulemaking includes updated 
electronic tariff filing formats as well as tariff pagination 
guidelines.<SUP>11 The [[Page 3115]] revised formats take into 
consideration improvements in the FASTR software which reads the tariff 
ASCII files submitted by the companies to the Commission.<SUP>12 All 
companies that have not yet restated their paper tariffs electronically 
must do so on or before June 1, 1995.

    \11\The appendix will not appear in the Code of Federal 
Regulations. The formats for the electronic filing and paper copy 
can be obtained at the Federal Energy Regulatory Commission, 
Division of Public Information, Washington, DC 20426.
    \12\On February 28, 1990, the Commission issued the ``Notice of 
Tariff Retrieval System Software Availability,'' otherwise referred 
to as the FASTR software package.
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e. Section 154.5  Incomplete Filings

    Proposed Sec. 154.5 replaces current Sec. 154.15 with a description 
of filing date based on Sec. 35.2(c) of the Commission's regulations 
for public utilities under the Federal Power Act (16 U.S.C. 797(b)). 
Proposed Sec. 154.5 provides that a document will be considered filed 
on the date of receipt in the Office of the Secretary, if it is 
complete and is not rejected. The Commission proposes to allow the 
Director of the Office of Pipeline Regulation to notify a natural gas 
company that its filing is incomplete within 15 days of receipt of the 
document. Under this proposal, the date of receipt stamped by the 
Secretary may not be the officially recognized filing date.

f. Section 154.6  Acceptance for Filing Not Approval

    Proposed Sec. 154.6 would replace current Secs. 154.23 and 24. The 
rejection language of Sec. 154.24 is amended and the reference to fees 
is deleted.

g. Section 154.7  General Requirements for the Submission of a Tariff 
Filing or Executed Service Agreement

    The Commission proposes Sec. 154.7 as a new section setting forth 
the content of a tariff filing or executed service agreement. In part, 
proposed Sec. 154.7 reflects current Sec. 154.63(b)(1). Proposed 
Sec. 154.7 concerns all filings of tariff sheets and executed service 
agreements. In light of the short time period in which the Commission 
and interested parties have to review the filing, several items have 
been added to speed processing of the filing and minimize additional 
requests for information. These include an expanded definition of the 
reference to the authority under which the filing is made, addition of 
the name and telephone number of an official able to respond to 
questions regarding the filing, and clarification of the contents of 
the statement of the nature, reasons, and basis for the filing.

h. Section 154.8  Informal Submission for Staff Suggestions

    The Commission proposes Sec. 154.8 to replace current Sec. 154.25.
2. Subpart B--Form and Composition of Tariff
    a. Section 154.101  Form. The Commission proposes Sec. 154.101 as 
the replacement for current Sec. 154.32. The Commission is proposing to 
eliminate the requirement that electronic media record format duplicate 
the page size, borders, and margins of the paper copy. The electronic 
filing requirements are in proposed Sec. 154.4. In addition, the 
Commission proposes to eliminate the requirement of a binder.
    b. Section 154.102  Title Page and Arrangement. The Commission 
proposes Sec. 154.102 as the replacement for current Sec. 154.33. The 
Commission proposes to eliminate the reference to Sec. 154.52, as 
special exceptions are covered by proposed Sec. 154.112. The Commission 
proposes to eliminate the requirement of a binder, and to require that 
the numbering of sheets be as provided in the Tariff Sheet Pagination 
Guidelines.<SUP>13

    \13\The guidelines and electronic and filing instructions for 
tariff sheets may be obtained at the Federal Energy Regulatory 
Commission, Division of Public Information, Washington, DC 20426.
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    Currently, compliance with these guidelines is optional although 
the Commission has required use of the pagination guidelines in 
individual cases. Many companies have already voluntarily adopted the 
use of the Commission's guidelines. The Commission proposes to make 
these guidelines mandatory. The guidelines provide the only means to 
ensure that tariff sheets are in the proper order in the Commission's 
electronic database. The guidelines also provide the basic knowledge 
necessary to create a sorting methodology for any party that wishes to 
create a database. Most importantly, the guidelines help to create a 
clear guide to the succession of tariff sheets.
    c. Section 154.103  Composition of Tariff. The Commission proposes 
Sec. 154.103 as the replacement for current Sec. 154.34. In recognition 
of prevailing practice, the proposed section specifically requires that 
the tariff set forth all the currently effective rates. The Commission 
also proposes to delete the reference to special exceptions and change 
the examples of classes of service to reflect the current prevalent 
designations.
    d. Section 154.104  Table of Contents. The Commission proposes 
Sec. 154.104 as the replacement for current Sec. 154.35 with the 
clarification that the table of contents must contain a list of the 
sections of the general terms and conditions.
    e. Section 154.105  Preliminary Statement. The Commission proposes 
Sec. 154.105 as the replacement for current Sec. 154.36 with stylistic 
changes only.
    f. Section 154.106  Map. The Commission proposes Sec. 154.106 as 
the replacement for current Sec. 154.37. The Commission proposes that 
maps must be submitted on paper and updated to reflect major changes. 
The proposed section states a preference for zones to be displayed on 
separate sheets.
    g. Section 154.107  Currently Effective Rates. The Commission 
proposes new Sec. 154.107 to govern the tariff sheets setting forth the 
natural gas company's currently effective rates. In part, this new 
section would replace Sec. 154.38(d)(1) and (2) and would require rates 
to be stated in thermal units, as is the prevalent practice, rather 
than in units of volume.
    h. Section 154.108  Composition of Rate Schedules. The Commission 
proposes Sec. 154.108 as a replacement for current Sec. 154.38. Current 
Sec. 154.38(d)(4), Refunds, is moved to proposed Sec. 154.501. Current 
Sec. 154.38(d)(5), RD&D, is moved to proposed Sec. 154.401. Current 
Sec. 154.38(d)(6), ACA expenditures, is moved to Sec. 154.402. Current 
Secs. 154.38(d)(1) and (2) are revised and moved to proposed 
Sec. 154.107. Current Sec. 154.38(d)(3) is moved to Sec. 154.3. Current 
Sec. 154.38(e), minimum bill, is deleted.
    i. Section 154.109  General Terms and Conditions. The Commission 
proposes Sec. 154.109 as the replacement for current Sec. 154.39. The 
company's discounting policies are added to the tariff.
    j. Section 154.110  Form of Service Agreement. The Commission 
proposes Sec. 154.110 as the replacement for current Sec. 154.40 with 
the addition of receipt points as an item for insertion on the form 
when appropriate.
    k. Section 154.111  Index of Customers. The Commission proposes 
Sec. 154.111 as a replacement for current Sec. 154.41, Index of 
Purchasers, but with applicability specifically limited to natural gas 
activities not subject to part 284 of this chapter. The Commission 
proposes to expand the index of customers to include all firm 
transportation services and contract demand for each customer for each 
rate schedule. In the order issued in Tennessee Gas Pipeline Company's 
restructuring proceeding,<SUP>14 the Commission clarified that 
Sec. 154.41 is not limited to the requirement to file sales-related 
information. The changes proposed here make that interpretation 
explicit. Some pipelines have provided contract demand information on a 
[[Page 3116]] voluntary basis before this. The information has proven 
valuable to the Commission in analyzing pipelines' filings and in 
eliminating additional requests for information.

    \14\Tennessee Gas Pipeline Company, 65 FERC 61,224 (1993).
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    The Commission proposes that pipelines that offer services under 
part 284 of this chapter, exclusively or in addition to services 
authorized under part 157 of this chapter, comply with the requirements 
proposed in the companion rulemaking instead of this provision. In the 
companion rulemaking, the Commission is proposing that pipelines 
providing service pursuant to part 284 of this chapter, provide an 
index of customers on the electronic bulletin board (EBB). The 
Commission proposes, as an interim measure, to require pipelines 
providing transportation service under part 284 to comply with the non-
electronic index of customers requirements as set forth in Sec. 154.111 
until the electronic index is implemented.
    l. Section 154.112  Exception to Form and Composition of Tariff. 
The Commission proposes Sec. 154.112 as a replacement for current 
Sec. 154.52 with the deletion of those paragraphs dealing with the sale 
of gas or purchased gas cost tracking. Because the requirements of 
proposed Sec. 154.101 (Form) and Sec. 154.102 (Title page and 
arrangements) are applicable, the proposed Sec. 154.112 does not refer 
to those matters. Proposed Sec. 154.112 specifies that special rate 
schedules for service under part 157 of this chapter would be included 
in Volume No. 2 and that non-conforming contracts for service under 
part 284 of this chapter would be included in Volume No. 1.
3. Subpart C--Procedures for Changing Tariffs
    a. Section 154.201  Filing Requirements. The Commission proposes 
Sec. 154.201 as a replacement for current Sec. 154.63(b)(1)(v), Marked 
Versions of Tariff Changes, and current Sec. 154.63(e)(4), Workpapers 
and Supporting Data. The intent of this proposed regulation is to 
ensure that any mathematical calculations are complete and logically 
follow from the first calculation to the last; so that, anyone 
attempting to recreate the calculations can do so, and to ensure that 
any numbers that are not directly from the company's source documents 
are explained.
    Other parts of current Sec. 154.63 are revised and distributed 
elsewhere in proposed part 154 (discussed supra).
    b. Section 154.202  Filings To Initiate a New Rate Schedule. The 
Commission proposes Sec. 154.202 as the replacement for current 
Sec. 154.62. The proposed section does not apply to initial executed 
service agreements. Very little data is currently required to support 
an initial rate schedule or executed service agreement. Because many 
services are now provided under blanket authorizations, there is no 
review prior to the tariff filing. Thus, the current filing 
requirements are no longer consistent with the needs of the Commission 
for reviewing new rate schedules. The proposed section relates to the 
requirements for a new rate schedule under the blanket authority 
granted under part 284 of this chapter as well as to other initial 
filings.
    c. Section 154.203  Compliance Filings. Section 154.203 is a 
proposed new section dealing with filings to comply with a Commission 
order. Filings made to comply with Commission orders must include only 
those changes required to comply with the order. Such compliance 
filings must not be combined with other rate or tariff change filings. 
A compliance filing that includes other changes or that does not comply 
with the applicable order in every respect may be rejected.
    d. Section 154.204  Changes Related to Suspended Tariffs, Executed 
Service Agreements or Parts Thereof. The Commission proposes 
Sec. 154.204 as the replacement for current Sec. 154.66. The proposed 
change adds two exceptions to the ban on tariff filings during a 
suspension period. The exceptions are ``changes made under previously 
accepted tariff provisions permitting periodic limited rate changes'' 
and ``accepted limited rate changes.'' Proposed Sec. 154.204 recognizes 
that the Commission allows periodic limited rate changes pursuant to 
accepted tariff provisions and ACA and GRI surcharge changes to take 
place during the period of suspension. This reflects current Commission 
policy.
    e. Section 154.205  Motion To Place Suspended Rates Into Effect. 
The Commission proposes Sec. 154.205 as the replacement for current 
Sec. 154.67. Current Sec. 154.67(b), Reports, is deleted. The proposed 
section requires that, when rates have been suspended for more than a 
minimal period and the Commission has ordered changes or the rates 
include costs of facilities that are not in service, the motion to 
place suspended tariff sheets into effect must be filed not less than 
30 days nor more than 60 days prior to the date the sheets are to take 
effect. This will allow the Commission sufficient time to ensure 
compliance with its orders and rules before the rates take effect at 
the end of the suspension period. A motion is not required in all 
circumstances; only where the Commission has ordered changes or the 
rates include facilities that are not in service. Further, if the rates 
have been suspended for a minimal period, they will go into effect 
without a motion, as has been the Commission practice.
    f. Section 154.206  Notice Requirements. The Commission proposes 
Sec. 154.206 as the replacement for current Sec. 154.22 and 
Sec. 154.51. The proposed section applies only to proposed changes. 
Reference to Sec. 154.5, which is no longer in part 154, is removed.
    g. Section 154.207  Service on Customers and Other Parties. The 
Commission proposes new Sec. 154.207 to formally require the filing 
company to serve its customers and state regulatory commissions on or 
before the filing date. The Commission invites comments on whether the 
informational needs of customers and state regulatory commissions would 
be adequately fulfilled if the filing company was only required to 
serve the transmittal letter and provide the rest of the filing upon 
request. Some pipelines have used this procedure recently to minimize 
the costs of reproduction and mailing where their lists of shippers are 
quite large.
    h. Section 154.208  Form of Notice for Federal Register. The 
Commission proposes Sec. 154.208, as the replacement for current 
Sec. 154.28. The modified form reflects current practice. The 
Commission invites comments on whether the Federal Register notice is 
useful and should be retained in addition to the Commission's 
electronic notice.
    i. Section 154.209  Protests, Interventions and Comments. The 
Commission proposes Sec. 154.209 as the replacement for current 
Sec. 154.27. The intervention, comment, and protest periods are 
proposed to be standardized as has been the practice with oil pipeline 
tariff filings. Interventions, comments, and protests must be filed 
within 10 days of the filing date and comments must be filed at the 
same time as interventions and protests.
    The Commission intends to continue the practice of liberally 
granting motions for late intervention in the early stages of a 
proceeding.
4. Subpart D--Material To Be Filed With Changes
    a. Section 154.301  Changes in Rate Schedules, Forms of Service 
Agreements, or the General Terms and Conditions. Proposed Sec. 154.301 
provides distinct requirements for filings to change rate schedules, 
forms of service agreements, or the general terms and conditions of a 
tariff. Such [[Page 3117]] filings must explain the necessity for the 
change and the impact on existing customers.
    b. Section 154.302  Changes in Rates. Proposed Sec. 154.302 
establishes that proposed subpart D pertains to rate change filings 
under the cost-of-service methodology; i.e., all rate change filings 
except those filed under subparts E, F, G, H, and I. The Commission 
proposes subpart D to be applicable to both rate increase and decrease 
filings and proposes to eliminate special filing requirements for 
``minor pipelines.'' The Commission proposes Sec. 154.302(c) as the 
replacement for current Sec. 154.63(e)(1). Minor rate increase filings, 
as now covered by Sec. 154.63(b)(4), and rate decreases have reduced 
filing requirements under proposed Sec. 154.314. In addition, the 
Commission proposes that changes other than in rate level be made under 
subpart G, discussed supra.
    c. Section 154.303  Previously Submitted Material. The Commission 
proposes Sec. 154.303 as the replacement for current Sec. 154.63(c)(1) 
and (2). A current FERC Form No. 2 must accompany the filing.
    d. Section 154.304  Test Periods. The Commission proposes 
Sec. 154.304 as a replacement for current Sec. 154.63(e)(2)(i) and 
(ii). The section has been completely rewritten. The Commission 
proposes to clarify that the pipeline must remove from its rates moved 
into effect the cost of any facilities not certificated (where a 
certificate is required) and in service as of the end of the test 
period.
    e. Section 154.305  Format of Statements, Schedules, Workpapers, 
and Supporting Data. The Commission proposes Sec. 154.305 as the 
replacement for current Sec. 154.63(c)(3) and Sec. 154.63(e)(4). The 
Commission proposes to require a narrative explanation of each proposed 
adjustment to base period actual volumes and costs.
    f. Section 154.306  Tax Normalization. The Commission proposes 
Sec. 154.306 to replace current Sec. 154.63a with revisions to clarify 
the section's applicability. Pipelines will continue to be required to 
use tax normalization to compute the income tax component of cost-of-
service and to adjust rate base by accumulated deferred income taxes 
related to jurisdictional activities.
    g. Section 154.307  Cash Working Capital. The Commission proposes 
Sec. 154.307 to replace current Sec. 154.63b.
    h. Section 154.308  Joint Facilities. The Commission proposes 
Sec. 154.308 as the replacement for current Sec. 154.63(e)(3) with 
stylistic changes.
    i. Section 154.309  Representation of Chief Accounting Officer. 
Proposed Sec. 154.309 replaces current Sec. 154.63(e)(5) with only 
stylistic changes.
    j. Section 154.310  Incremental Expansions. Proposed Sec. 154.310 
requires separate statements and schedules for incremental facilities, 
including those with Commission imposed at-risk provisions. In some 
cases, pipelines maintain independent rate schedules (incremental 
rates) that are based on the costs of specific facilities. Separate 
statements and schedules for such facilities need to be provided to 
permit a proper evaluation of the rates based on the costs of those 
facilities. When pipelines have been unable to fully subscribe certain 
construction projects, the Commission has permitted construction to go 
forward with the pipeline placed at-risk for recovery of the 
unsubscribed capacity. Separate statements and schedules for at-risk 
facilities need to be provided so that the Commission can compare the 
revenue generated from the use of the facilities with the cost of the 
facilities, and determine whether to remove the at-risk condition.
    k. Section 154.311  Zones. Proposed Sec. 154.311 requires a cost 
breakdown by zone if the pipeline maintains records of costs by zone.
    l. Section 154.312  Updating of Statements. The Commission proposes 
to require certain Statements and Schedules to be updated, quarterly, 
for each month of the test period. Under this provision, the last 
update would be one month after the end of the test period.
    m. Section 154.313 Composition of Statements. The Commission 
proposes Sec. 154.313 as the replacement for current Sec. 154.63(f) 
with revisions to the statements and schedules as discussed below. Many 
changes are self explanatory or merely editorial and are not discussed 
here.
    In proposed Schedule C-1, End of Base Period Plant Functionalized, 
the Commission proposes to (1) no longer list storage facilities as 
``underground'' or ``local'' and (2) require the showing of plant in 
service by functional classifications.
    Proposed Schedule C-2, Plant in Service as Adjusted, requires the 
test year adjusted plant in service to be set out by function.
    Proposed Schedule C-3 shows, for Account Nos. 106 and 107, a list 
of work orders claimed in the rate base.
    Proposed Schedule D-1 requires actual end of base period 
depreciation, depletion, and amortization by functional 
classifications.
    Proposed Schedule D-2 requires projected end of test year 
depreciation, depletion, and amortization by functional 
classifications.
    Proposed Statement F-2 revises and clarifies the information 
required with respect to the claimed overall rate of return.
    The Commission proposes to remove current Statement F-5.
    Proposed Statement G, Revenues, Credits, and Billing Determinants, 
replaces current Statement G (Gas operating revenues and sales volumes) 
to reflect the need for complete information on all jurisdictional 
services. The sixth paragraph of current Statement G(e), dealing with 
credits, would be moved to Statement G. The Commission proposes to 
require the allocated GSR component of IT rates to be unbundled and 
treated as a separate component for rate case filing purposes in order 
to better compare and reconcile the cost-of-service to revenues.
    Proposed Schedule G-1, Base Period Revenues, requires actual 
revenues for all services and customers rather than solely sales 
revenues, as in present Schedule G(a), or solely aggregate 
transportation revenues, as in present Schedule G(c). The proposed 
Schedule G-1 also requires (1) identification of revenues by customer, 
by rate schedule, by contract, by month and by billing determinant (not 
adjusted for discounting) similar to present Schedule G(e) fifth 
paragraph, (2) separate identification of revenues for short-term firm 
transportation services, (3) capacity release information, (4) an 
identification of affiliated customers, and (5) an identification of 
rate schedules where revenues are credited as in present Schedule G(c).
    The Commission proposes Schedule G-2, Adjustment Period Revenues, 
with information similar to that required in proposed Schedule G-1.
    The Commission proposes Schedule G-3, a description of adjustments 
to the base period, as a replacement for current Schedule G(e) third 
paragraph. The Commission proposes Schedule G-3 in order to require a 
quantification of the impact of each proposed change rather than 
providing only the throughput and contract level differences. The 
Commission believes this requirement is necessary in order for a 
pipeline to meet its burden of proof.
    The Commission proposes Schedule G-4, At-risk Revenue, to compare 
revenues generated by ``at-risk'' facilities to the cost of those 
facilities, as specified in Sec. 154.310.
    The Commission proposes Schedule G-5, Other Revenues, to collect 
revenue data regarding the sale of products [[Page 3118]] extracted 
from natural gas and other activities reported in Account Nos. 490-495. 
New requirements to quantify and explain changes to base period actuals 
and provide information about releases, penalties, cash outs, other 
imbalances, and exit fees are incorporated in this schedule. Revenues 
from miscellaneous services must be reflected in Account No. 495, as is 
currently required. Further, the pipeline must explain the 
circumstances relating to revenues from ``special'' types of ``X'' rate 
schedules. Revenues from the release of Account No. 858 capacity must 
be reflected as a credit to Account No. 858 in both Schedule G-5 and 
the proposed Schedule I-4.
    The Commission proposes Schedule I-1, Functionalization of Cost of 
Service, to replace current Statement I (Allocation of overall cost of 
service). The jurisdictional and nonjurisdictional sales allocation is 
eliminated as no longer needed.
    The Commission proposes Schedule I-2(i) and (ii) as a replacement 
for present Schedule I-2. Proposed Schedule I-2(iii) requires an 
explanation of changes in classification from the currently effective 
rates. This information is required by current Schedule K-2, but is 
often difficult to distinguish from other information.
    The Commission proposes Schedule I-3, Allocation of Cost-of-
Service, to replace current Schedule J. Schedule I-3(ii) bridges the 
gap between the cost of service and rates. The information required is 
now filed under current Schedule K-1. Proposed Schedule I-3(ii) follows 
a more logical order. It also recognizes that there are often several 
allocation steps before rates are actually calculated. Proposed 
Schedule I-3(iii) requires the formulae and allocation determinants. 
Proposed Schedule I-3(iv) requires an explanation of any changes from 
the current methodology as is required under current Schedule K-2.
    The Commission proposes Schedule I-4, Transmission and Compression 
of Gas by Others (Account No. 858), to replace current Schedule I-4. 
The proposed revisions reflect current operations. Proposed Schedule I-
4(i) requires information on the expiration date of each contract with 
an upstream pipeline. This will provide the Commission with information 
about the status of contracts. Proposed Schedule I-4(iii) requires the 
pipeline to report monthly usage volumes and monthly revenues. Proposed 
Schedule I-4(v) requires minimal information about capacity release. It 
does not request any information on the identity of the contracting 
party. The information on revenues for releases is necessary to ensure 
that the pipelines' customers that pay the Account No. 858 costs 
receive a credit for revenue from capacity releases made by the 
pipeline of this upstream capacity.
    Current Schedule I-5, requiring information on meters, is deleted. 
Proposed Schedule I-5, Three-day peak deliveries, replaces current 
Schedule I-6 and clarifies that data on deliveries must be by customer 
by rate schedule. Proposed Schedule I-5 also requires a breakout by 
zone. Current Schedule I-6 requires information on deliveries to non-
jurisdictional customers. Current Schedule I-6 requires information on 
storage withdrawals, line pack fluctuations and temperature. Proposed 
Schedules I-5 (iii), (iv), and (v) require the same information. 
However, proposed Schedule I-5(iii) requires that storage be broken out 
by field and between contract storage and system use. This information 
was not needed when pipelines were primarily in the sales business; 
however, since storage has been unbundled and the pipelines can only 
retain storage for operational purposes, more detail is necessary in 
order to examine how storage is used at peak times.
    The Commission proposes Schedule I-6, Gas Balance, to replace 
current Schedule I-7 with the deletion of that schedule's last 
sentence.
    The Commission proposes Statement J, Comparison and Reconciliation 
of Estimated Revenues With Cost-of-service, as a replacement for 
current Statement K. Proposed Statement J will provide the same type of 
comparison as the current schedule, except that it specifically states 
that Schedule G-2 must be compared to Statement I. It also requires 
surcharges to be reflected and recognizes that they are not derived 
from the cost of service, but are jurisdictional revenues.
    The Commission proposes new Schedule J-1, Summary of Billing 
Determinants, to help correlate the volumes in proposed Schedule G to 
the volumes used to develop rates.
    The Commission proposes Schedule J-2, Derivation of Rates, to 
replace current Schedule K-1. Proposed J-2 more clearly specifies what 
information is required and requires the costs and billing determinants 
to be cross-referenced. Proposed Schedule J-2(iii) requires the same 
information as current Schedule K-2.

xiii. Section 154.314  Schedules for Minor Rate Changes

    The Commission proposes that the filing burden for minor rate 
increases and rate decreases be less than other rate changes. Minor 
rate increases usually relate to a few schedules and are designed to 
bring such schedules into harmony with general tariff policy, to 
eliminate inequities, and to achieve other formal adjustments, in cases 
where any increase in revenue is subordinate to some other purpose. 
They include changes that are not designed to provide general revenue 
increases such as to offset increased costs or otherwise achieve a fair 
return on the overall jurisdictional business. The Commission proposes 
that increases in rates or charges which, for the test period, do not 
exceed the smaller of $1,000,000 or 5 percent of the revenues under the 
jurisdiction of the Commission will be considered minor. A change in 
rate level, no part of which directly or indirectly results in any 
increased charge to a customer or class of customers, will also be 
considered a minor rate change.

xiv. Section 154.315  Other Support for a Filing

    Proposed Sec. 154.315 provides that any company filing for a rate 
change is responsible for preparing prior to filing, and maintaining, 
workpapers sufficient to support the filing. In addition to the 
workpapers, certain other material, related to the test period, must be 
provided such as copies of monthly financial reports prepared for 
management purposes and copies of accounting analyses of balance sheet 
accounts.
6. Subpart E--Limited Rate Changes
    i. Section 154.401  RD&D Expenditures. The Commission proposes 
Sec. 154.401 to replace current Sec. 154.38(d)(5).
    ii. Section 154.402  ACA Expenditures. The Commission proposes 
Sec. 154.402 to replace current Sec. 154.38(d)(6).
    iii. Section 154.403  Periodic Rate Adjustments. The Commission 
proposes new Sec. 154.403 to govern the passthrough on a periodic basis 
of a single cost item or revenue item not otherwise covered by subpart 
E, such as remaining purchased gas adjustment mechanisms, Fuel Loss and 
Unaccounted-For, and transition cost filings. These new regulations are 
consistent with current Commission policy governing these filings and 
generally reflect currently effective tariff provisions.
    The requirements of this section are subdivided into two parts. The 
initial part sets forth the minimum general requirements the Commission 
proposes a pipeline to meet if it proposes, or the Commission requires, 
a periodic [[Page 3119]] passthrough mechanism in the future. 
Significant among the proposed requirements of this section is the 
requirement to include a sample calculation in the tariff provision 
governing the periodic rate change methodology. This sample calculation 
will assist the Commission and interested parties in understanding the 
proposal and ensure that the tariff language adequately explains the 
calculation steps. Further, it will provide a template for future 
filings under the tariff provision.
    The general requirements portion of section 154.503 also includes 
the requirement that all periodic rate change mechanisms include a 
description of the timing and methodology of the adjustments, including 
a description of all mathematical calculations. No steps should be 
excluded. Given the numbers from the source documents, anyone reading 
the tariff should be able to arrive at the rate component by following 
the steps described in the tariff.
    The second portion of proposed section 154.503 is devoted to the 
information to be submitted with each filing. The filings should 
contain working papers which show the calculations described by the 
tariff. The Commission proposes to collect sufficient supporting 
calculations to show a clear path from the source data to the rate 
component.
7. Subpart F--Refunds and Reports
    i. Section 154.501  Refunds. The Commission proposes Sec. 154.501 
to replace current Sec. 154.67(c). The refund carrying charge rule, 
currently Sec. 154.38(d)(4), is proposed to apply to all refunds. The 
proposed section reflects current Commission policy.
    The Commission proposes to add a requirement for refunds of the 
pipeline to be made within 60 days to ensure refunds are disbursed on a 
timely basis. Refunds received by the pipeline must be disbursed within 
30 days of receipt. This period of time should be adequate to disburse 
a refund.
    Proposed Sec. 154.501(c) is added to reflect current Commission 
policy with respect to supplier refunds which apply to the period 
during which the company had a purchased gas adjustment clause in its 
tariff. Instructions regarding the contents of a refund report are 
added to provide guidance.
    ii. Section 154.502 Reports. The Commission proposes new 
Sec. 154.502 to require that the tariff include information about 
reports required by the Commission.
8. Subpart G--Other Tariff Changes
    i. Section 154.601  Change in Executed Service Agreement. The 
Commission proposes Sec. 154.601 to replace current Sec. 154.63(d)(2). 
The proposed section concerns executed service agreements ``on file 
with the Commission'' and does not refer to ``well names.''
    ii. Section 154.602  Cancellation or Termination of a Tariff, 
Executed Service Agreement or Part Thereof. The Commission proposes 
Sec. 154.602 as the replacement for current Sec. 154.64. The proposed 
section does not require sales information. It does require a list of 
the affected customers and the contract demand under the service to be 
canceled.
    iii. Section 154.603  Adopting of a Tariff by a Successor. The 
Commission proposes Sec. 154.603 as the replacement for current 
Sec. 154.65. The proposed section concerns adopted tariffs or contracts 
``on file with the Commission'' as opposed to any tariff or contracts.

IV. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act (RFA)\15\ requires agencies to 
prepare certain statements, descriptions, and analyses of proposed 
rules that will have a significant economic impact on a substantial 
number of small entities. The Commission is not required to make such 
analyses if a rule would not have such an effect.

    \15\5 U.S.C. 601-612.
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    The Commission does not believe that this rule will have such an 
impact on small entities. Most filing companies regulated by the 
Commission do not fall within the RFA's definition of small entity.\16\ 
Further, the filing requirements of small entities are reduced by the 
rule. Therefore, the Commission certifies that this rule will not have 
a significant economic impact on a substantial number of small 
entities.

    \16\5 U.S.C. 601(3), citing to section 3 of the Small Business 
Act, 15 U.S.C. 632. Section 3 of the Small Business Act defines a 
``small-business concern'' as a business which is independently 
owned and operated and which is not dominant in its field of 
operation.
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V. Environmental Statement

    The Commission has excluded certain actions not having a 
significant effect on the human environment from the requirement to 
prepare an environmental assessment or an environmental impact 
statement.\17\ No environmental consideration is raised by the 
promulgation of a rule that is clarifying, corrective, or procedural or 
that does not substantially change the effect of legislation or 
regulations being amended.\18\ The instant rule changes the information 
to be filed, and the manner by which that information is filed, with 
the Commission but does not substantially change the effect of the 
underlying legislation or the regulations being replaced or revised. 
Accordingly, no environmental consideration is necessary.

    \17\18 CFR 380.4.
    \18\18 CFR 380.4(a)(2)(ii).
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VI. Information Collection Statement

    The Office of Management and Budget's (OMB) regulations\19\ require 
that OMB approve certain information and recordkeeping requirements 
imposed by an agency. The information collection requirements in this 
proposed rule are contained in the following:

    \19\5 CFR 1320.13.
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    FERC Form 542 ``Gas Pipeline Rates: Initial Rates, Rate Change and 
Rate Tracking'' (1902-0070); FERC Form 542A Tracking and Recovery of 
Alaska Natural Gas Transportation System'' (1902-0129); FERC Form 543 
``Gas Pipeline Rates: Rate Tracking, Formal Rates'' (1902-0152); FERC 
Form 544 ``Gas Pipeline Rates: Rate Change, Formal Rates'' (1902-0153); 
FERC Form 545 ``Gas Pipeline Rates: Rate Change, Nonformal Rates'' 
(1902-0154); FERC Form 546 ``Certificated Rate Filings: Gas Pipeline 
Rates'' (1902-0155); and, FERC Form 547 Gas Pipeline Rates: Refund 
Report Requirements'' (1902-0084).
    The Commission, in this proposed, rule intends to modernize its 
regulations to reflect the current regulatory environment that it 
instituted with Order No. 636 and the restructuring of the natural gas 
industry. Specifically, the Commission intends to replace its 
regulations in part 154 to focus on transportation services instead of 
pipeline sales activities. The proposed filing requirements will 
improve the internal support of a pipeline's filing, reduce the 
discovery process in rate hearings for all parties and facilitate more 
rapid settlement or adjudication of pipeline rate proposals. The 
Commission's Office of Pipeline Regulation uses the data in its various 
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 these data in its analysis of interstate 
natural gas pipelines.
    The Commission is submitting to the Office of Management and Budget 
a notification of these proposed collections of information. Interested 
persons may obtain information on [[Page 3120]] these reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
941 North Capitol Street, NE., Washington, DC 20426 [Attention: Michael 
Miller, Information Services Division, (202) 208-1415]. Comments on the 
requirements of this rule can be sent to the Office of Information and 
Regulatory Affairs of OMB, Washington, D.C. 20503, (Attention: Desk 
Officer for Federal Energy Regulatory Commission) FAX: (202)395-5167.

VII. Public Comment Procedures

    The Commission invites all interested persons to submit written 
comments on this proposal. An original and 14 copies must be filed with 
the Commission by April 13, 1995. Comments must refer to Docket No. 
RM95-3-000 and be submitted to the Office of the Secretary, Federal 
Energy Regulatory Commission, 825 North Capitol Street, NE., Washington 
DC 20426.
    All written submissions will be placed in the Commission's public 
file and will be available for public inspection, during regular 
business hours, at the Commission's Public Reference Section, Room 
3104, 941 North Capitol Street, NE., Washington DC 20426.

List of Subjects in 18 CFR Part 154

    Natural gas companies, Rate schedules and tariffs.

    By direction of the Commission.
Lois D. Cashell,
Secretary.

    For the reasons set out in the preamble, 18 CFR part 154 is 
proposed to be revised to read as follows.

PART 154--RATE SCHEDULES AND TARIFFS

Subpart A--General Provisions and Conditions

Sec.
154.1  Application; obligation to file.
154.2  Definitions.
154.3  Effective tariff.
154.4  Electronic and paper media.
154.5  Incomplete filings.
154.6  Acceptance for filing not approval.
154.7  General requirements for the submission of a tariff filing or 
executed service agreement.
154.8  Informal submission for staff suggestions.

Subpart B--Form and Composition of Tariff

154.101  Form.
154.102  Title page and arrangement.
154.103  Composition of tariff.
154.104  Table of contents.
154.105  Preliminary statement.
154.106  Map.
154.107  Currently effective rates.
154.108  Composition of rate schedules.
154.109  General terms and conditions.
154.110  Form of service agreement.
154.111  Index of customers.
154.112  Exception to form and composition of tariff.

Subpart C--Procedures for Changing Tariffs

154.201  Filing requirements.
154.202  Filings to initiate a new rate schedule.
154.203  Compliance filings.
154.204  Changes related to suspended tariffs, executed service 
agreements, or parts thereof.
154.205  Motion to place suspended rates into effect.
154.206  Notice requirements.
154.207  Service on customers and other parties.
154.208  Form of notice for Federal Register.
154.209  Protests, interventions, and comments.

Subpart D--Material to be Filed With Changes

154.301  Changes in rate schedules, forms of service agreements, or 
the general terms and conditions
154.302  Changes in rates.
154.303  Previously submitted material.
154.304  Test periods.
154.305  Format of statements, schedules, workpapers and supporting 
data.
154.306  Tax normalization.
154.307  Cash working capital.
154.308  Joint facilities.
154.309  Representation of chief accounting officer.
154.310  Incremental expansions.
154.311  Zones.
154.312  Updating of statements.
154.313  Composition of statements.
154.314  Schedules for minor rate changes.
154.315  Other support for a filing.

Subpart E--Limited Rate Changes

154.400  Additional requirements.
154.401  RD&D expenditures.
154.402  ACA expenditures.
154.403  Periodic rate adjustments.

Subpart F--Refunds and Reports

154.501  Refunds.
154.502  Reports.

Subpart G--Other Tariff Changes

154.600  Compliance with other subparts.
154.601  Change in executed service agreement.
154.602  Cancellation or termination of a tariff, executed service 
agreement or part thereof.
154.603  Adoption of the tariff by a successor.

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

Subpart A--General Provisions and Conditions


Sec. 154.1  Application; Obligation to file.

    (a) The provisions of this part apply to filings pursuant to 
section 4 of the Natural Gas Act.
    (b) Every natural gas company must file with the Commission and 
post in conformity with the requirements of this part, schedules 
showing all rates and charges for any transportation or sale of natural 
gas subject to the jurisdiction of the Commission, and the 
classifications, practices, rules, and regulations affecting such 
rates, charges, and services.
    (c) No natural gas company may file, under this part, any new or 
changed rate schedule or contract for the performance of any service 
for which a certificate of public convenience and necessity or 
certificate amendment must be obtained pursuant to section 7(c) of the 
Natural Gas Act, until such certificate has been issued.
    (d) For the purposes of paragraph (b) of this section, any contract 
that conforms to the form of service agreement that is part of the 
pipeline's tariff pursuant to Sec. 154.110 does not have to be filed. 
Any contract or executed service agreement which deviates in any 
material aspect from the form of service agreement in the tariff is 
subject to the filing requirements of this part.


Sec. 154.2  Definitions.

    (a) Contract means any agreement which in any manner affects or 
relates to rates, charges, classifications, practices, rules, 
regulations, or services for any transportation or sale of natural gas 
subject to the jurisdiction of the Commission. This term includes an 
executed service agreement.
    (b) FERC Gas Tariff or tariff means a compilation, either in book 
form or on electronic media, of all of the effective rate schedules of 
a particular natural gas company, and a copy of each form of service 
agreement.
    (c) Form of service agreement means an unexecuted agreement for 
service included as an example in the tariff.
    (d) Post means: to make a copy of a natural gas company's tariff 
and contracts available during regular business hours for public 
inspection in a convenient form and place at the natural gas company's 
offices where business is conducted with affected customers; and, to 
mail to each affected customer and interested state commission a copy 
of the tariff, or part thereof. Mailing must be accomplished by U.S. 
Mail, unless some other method is agreed to by the parties.
    (e) Rate schedule means a statement of a rate or charge for a 
particular classification of transportation or sale of natural gas 
subject to the jurisdiction of the Commission, and all terms, 
conditions, classifications, practices, [[Page 3121]] rules, and 
regulations affecting such rate or charge.


Sec. 154.3  Effective tariff.

    (a) The effective tariff of a natural gas company is the tariff 
filed pursuant to the requirements of this part, and permitted by the 
Commission to become effective. A natural gas company must not directly 
or indirectly, demand, charge, or collect any rate or charge for, or in 
connection with, the transportation or sale of natural gas subject to 
the jurisdiction of the Commission, or impose any classifications, 
practices, rules, or regulations, different from those prescribed in 
its effective tariff and executed service agreements on file with the 
Commission, unless otherwise specifically permitted by order of the 
Commission.
    (b) No tariff provision may purport to change an effective rate or 
charge except in the manner provided in section 4 of the Natural Gas 
Act, and the regulations in this part. The tariff may not provide for 
any rate or charge to be automatically changed by an index or other 
periodic adjustment, without filing for a rate change pursuant to these 
regulations.


Sec. 154.4  Electronic and paper media.

    (a) General rule. All statements filed pursuant to subpart D of 
this part, and all workpapers in spreadsheet format, and tariff sheets 
other than those in Volume No. 2, must be submitted on electronic 
media. Filings pursuant to part 154 of this chapter must also include 
the prescribed number of paper copies. Tariffs, rate schedules and 
contracts, or parts thereof, and material related thereto, including 
any change in rates, notice of cancellation or termination, and 
certificates of adoption, must be submitted to the Commission in an 
original and 6 paper copies, except that filings pursuant to subpart D 
of this part must be submitted in an original and 12 paper copies.
    (b) All filings must be signed in compliance with the following.
    (1) The signature on a filing constitutes a certification that: the 
signer has read the filing signed and knows the contents of the paper 
copies and electronic media; the paper copies contain the same 
information as contained on the electronic media; the contents as 
stated in the copies and on the electronic media are true to the best 
knowledge and belief of the signer; and, the signer possesses full 
power and authority to sign the filing.
    (2) A filing must be signed by one of the following:
    (i) the person on behalf of whom the filing is made;
    (ii) an officer, agent, or employee of the governmental authority, 
agency, or instrumentality on behalf of which the filing is made; or,
    (iii) a representative qualified to practice before the Commission 
under Sec. 385.2101 of this chapter who possesses authority to sign.
    (c) Electronic media suitable for Commission filings are listed in 
the instructions for each form and filing. Lists of suitable electronic 
media are available upon request from the Commission. The formats for 
the electronic filing and paper copy can be obtained at the Federal 
Energy Regulatory Commission, Division of Public Information, 825 North 
Capitol Street, NE., Washington, DC 20426.
    (d) Where to file. The electronic media, the paper copies and 
accompanying transmittal letter must be submitted in one package to: 
Office of the Secretary, Federal Energy Regulatory Commission, 
Washington, D.C. 20426.
    (e) Waiver. A natural gas company may request a waiver of the 
requirement to submit filings by electronic media, by filing an 
original and 6 copies of a request for waiver. The request must 
demonstrate that the natural gas company does not have, and is unable 
to acquire, the technical capability to file the information on 
electronic media.


Sec. 154.5  Incomplete filings.

    Incomplete filings will not be accepted for filing. If the material 
submitted is incomplete, the Director of the Office of Pipeline 
Regulation will so notify the submitter within 15 days of receipt of 
the material by the Commission. A filing is complete and will be 
accepted for filing, when all supporting cost or other data required to 
be filed by this part is received by the Office of the Secretary. The 
date of receipt stamped on the material by the Secretary is not 
necessarily the filing date and does not fix the date upon which the 
30-day notice requirement of section 4(c) of the NGA begins. The 30-day 
notice period will begin when the filing is complete. The affixing of a 
date stamp is not a determination that the document is in compliance 
with the rules and regulations of the Commission.


Sec. 154.6  Acceptance for filing not approval.

    The acceptance for filing of any tariff, contract or part thereof 
does not constitute approval by the Commission. Any filing which does 
not comply with any applicable statute, rule, or order, may be 
rejected.


Sec. 154.7  General requirements for the submission of a tariff filing 
or executed service agreement.

    The following must be included with the filing of any tariff, 
executed service agreement, or part thereof, or change thereto.
    (a) A letter of transmittal containing:
    (1) A list of the material enclosed,
    (2) The name of a responsible company official to whom questions 
regarding the filing may be addressed, with a telephone number at which 
the official may be reached,
    (3) The date on which such filing is proposed to become effective,
    (4) Reference to the authority under which the filing is made, 
including the specific section of a statute, subpart of these 
regulations, order of the Commission, provision of the company's 
tariff, or any other appropriate authority. If an order is referenced, 
the letter must include the citation to the FERC Reports, the date of 
issuance, and the lead docket number of the proceeding in which the 
order was issued.
    (5) A list of the tariff sheets enclosed,
    (6) A statement of the nature, the reasons, and the basis for the 
filing. The statement must include a summary of the changes or 
additions made to the tariff or executed service agreement, as 
appropriate. A detailed explanation of the need for each change or 
addition to the tariff or executed service agreement must be included. 
The natural gas company also must note all relevant precedents relied 
upon to prepare its filing.
    (7) Any requests for waiver. A request for waiver must include a 
reference to the specific section of the statute, regulations, or the 
company's tariff from which waiver is sought, and a justification for 
the waiver.
    (b) a certification of service to all affected customers and 
interested state commissions.


Sec. 154.8  Informal submission for staff suggestions.

    Any natural gas company may informally submit a proposed tariff or 
any part thereof or material relating thereto for the suggestions of 
the Commission staff prior to filing. Opinions of the Commission staff 
are not binding upon the Commission.

Subpart B--Form and Composition of Tariff


Sec. 154.101  Form.

    The paper copies of the tariff must be printed, typewritten, or 
otherwise reproduced on 8\1/2\ by 11 inch sheets of a durable paper so 
as to result in a clear [[Page 3122]] and permanent record. The sheets 
of the tariff must be ruled to set off borders of 1\1/4\ inches on top, 
bottom, and left sides and \1/2\ inch on the right side, and punched (3 
holes) on the left side.


Sec. 154.102  Title page and arrangement.

    (a) The title page must show on the front cover:

FERC Gas Tariff
[Volume number. For example: ``Original Volume No. 1''] of [Name of 
Natural-Gas Company]
Filed with The Federal Energy Regulatory Commission

    (b) If the tariff consists of two or more volumes, the volumes must 
be identified by ``(Original) Volume No. (1)'', directly below the 
words ``FERC Gas Tariff.''
    (c) When any volume of a tariff is to be superseded or replaced in 
its entirety, the replacing volume must show prominently on the title 
page the volume number being superseded or replaced. For example:

FERC Gas Tariff
First Revised Volume No. 1
(Supersedes Original Volume No. 1)

    (d) The first page must be a title page which must carry the 
information shown in paragraph (b) of this section and, in addition, 
the name, title, and address of the person to whom communications 
concerning the tariff should be sent.
    (e) All sheets must have the following information placed in the 
margins:
    (1) Identification. At the left, above the top marginal ruling, the 
exact name of the company must be shown, under which must be set forth 
the words ``FERC Gas Tariff,'' together with volume identification.
    (2) Numbering of sheets. Except for the title page, at the right 
above the top marginal ruling, the sheet number must appear after the 
words ``(Original) Sheet No. (number).'' All sheets must be numbered in 
the manner set forth in the Tariff Sheet Pagination Guidelines 
contained in the instructions for filing natural gas company tariffs on 
electronic media.
    (3) Issuing officer and issue date. On the left below the lower 
marginal ruling, must be placed ``Issued by'': followed by the name and 
title of the person authorized to issue the sheet. Immediately below 
must be placed ``Issued on'' followed by the date of issue.
    (4) Effective date. On the right below the lower marginal ruling 
must be placed ``Effective'': followed by the specific effective date 
proposed by the company.
    (5) Tariff Sheets filed to comply with Commission orders. Tariff 
sheets which are filed to comply with Commission orders must carry the 
following notation in the bottom margin: ``Filed to comply with order 
of the Federal Energy Regulatory Commission, Docket No. (number), 
issued (date), (FERC Reports citation).''


Sec. 154.103  Composition of tariff.

    (a) The tariff must contain sections, in the following order: a 
table of contents, a preliminary statement, a map of the system, 
currently effective rates, composition of rate schedules, general terms 
and conditions, form of service agreement, and an index of customers.
    (b) Rate schedules must be grouped according to class and numbered 
serially within each group, using letters before the serial number to 
indicate the class of service. For example: FT-1, FT-2 may be used for 
firm transportation service; IT-1, IT-2 may be used for interruptible 
transportation service; X-1, X-2 may be used for schedules for which 
special exception has been obtained.


Sec. 154.104  Table of contents.

    The table of contents must contain a list of the rate schedules, 
sections of the general terms and conditions, and other sections in the 
order in which they appear, showing the sheet number of the first page 
of each section. The list of rate schedules must consist of: the 
alphanumeric designation of each rate schedule, a very brief 
description of the service, and the sheet number of the first page of 
each rate schedule.


Sec. 154.105  Preliminary statement.

    The preliminary statement must contain a brief general description 
of the company's operations and may also contain a general explanation 
of its policies and practices. General rules and regulations, and any 
material necessary for the interpretation or application of the rate 
schedules, may not be included in the preliminary statement.


Sec. 154.106  Map.

    (a) The map must show the general geographic location of the 
company's principal pipeline facilities and of the points at which 
service is rendered under the tariff. The boundaries of any rate zones 
or rate areas must be shown and the areas or zones identified. The 
entire system should be displayed on a single map. In addition, a 
separate map should be provided for each zone.
    (b) The map must be provided on paper only.
    (c) The map must be revised to reflect any major changes. The 
revised map must be filed no later than April 30 of the calendar year 
after the major change.


Sec. 154.107  Currently effective rates.

    (a) This section of the tariff must present the currently effective 
rates and charges under each rate schedule.
    (b) All rates must be clearly stated in cents or in dollars and 
cents per thermal unit. The unit of measure must be stated for each 
component of a rate.
    (c) A rate having more than one part must have each component set 
out separately under appropriate headings (e.g., ``Reservation 
Charge,'' ``Usage Charge.'')
    (d) Where a component of a rate is adjusted by a limited rate 
change, the adjustment must be stated in a separate column on the rate 
sheet.
    (e) A total rate, indicating the sum of the rate components under 
paragraph (c) of this section plus the adjustments under paragraph (d) 
of this section, must be shown in the last column at the end of a line 
for a rate, so that a reader can readily determine the separate 
components comprising the total rate for a service.


Sec. 154.108  Composition of rate schedules.

    The rate schedule must contain a statement of the rate or charge 
and all terms and conditions governing its application, arranged as 
follows:
    (a) Title. Each rate schedule must have a title consisting of a 
designation of the type or classification of service (see 
Sec. 154.103(b)), and a statement of the type or classification of 
service to which the rate is applicable.
    (b) Availability. This paragraph must describe the conditions under 
which the rate is offered, including any geographic zone limitations.
    (c) Applicability and character of service. This paragraph must 
fully describe the kind or classification of service to be rendered.
    (d) Summary of rates. This paragraph must briefly set forth all 
components of the rates, refer to the location of the rates in the 
Currently Effective Rates, and provide a description of the calculation 
of the monthly charges for each rate component.
    (e) Other provisions. All other major provisions governing the 
application of the rate schedule, such as determination of billing 
demand, contract demand, heat content, and measurement base, must be 
set forth with appropriate headings or incorporated by reference to the 
applicable general terms and conditions.
    (f) Applicable terms and conditions. This paragraph either states 
that all of the general terms and conditions set forth in the tariff 
apply to the rate schedule, or specifies which of the general terms and 
conditions do not apply. [[Page 3123]] 


Sec. 154.109  General terms and conditions.

    (a) This section of the tariff contains terms and conditions of 
service applicable to all or any of the rate schedules. Subsections and 
paragraphs must be numbered for convenient reference.
    (b) The general terms and conditions of the tariff must contain a 
statement of the company's policy with respect to the financing or 
construction of laterals including when the pipeline will pay for or 
contribute to the construction cost. The term ``lateral'' means any 
pipeline extension (other than a mainline extension) built from an 
existing pipeline facility to deliver gas to one or more customers, 
including new delivery points and enlargements or replacements of 
existing laterals.
    (c) The general terms and conditions of the tariff must contain a 
statement of the manner in which the company discounts its rates and 
charges. The statement, specifying the order in which each rate 
component will be discounted, must be in accordance with Commission 
policy.


Sec. 154.110  Form of service agreement.

    The tariff must contain an unexecuted pro forma copy of each form 
of service agreement. The form for each service must refer to the 
service to be rendered and the applicable rate schedule of the tariff; 
and, provide spaces for insertion of the name of the customer, 
effective date, expiration date, and term. Spaces may be provided for 
the insertion of receipt and delivery points, contract quantity, and 
other specifics of each transaction as appropriate.


Sec. 154.111  Index of customers.

    (a) If a pipeline is in compliance with the reporting requirements 
of Sec. 284.106 or Sec. 284.223 of this chapter, then an index of 
customers need not be provided in the tariff.
    (b) If all of a pipeline's jurisdictional transportation and sales 
are pursuant to part 157 of this chapter, then an index of customers 
must be provided that contains an alphabetical list of all firm 
transportation, storage, and sales customers under the tariff, and 
show, for each rate schedule or schedules: the execution date, 
effective date, expiration date, and the term of the contract, and the 
contract units (in Mcf, MMBtu, therm, or Dth).
    (c) The index of customers must be kept current by filing new or 
revised sheets semi-annually. The filings must coincide with the 
filings of the company's FERC Form No. 2 or 2-A and FERC Form No. 11.


Sec. 154.112  Exception to form and composition of tariff.

    (a) The Commission may permit a special rate schedule to be filed 
in the form of an agreement in the case of a special operating 
arrangement, previously certificated pursuant to part 157 of this 
chapter, such as for the exchange of natural gas. The special rate 
schedule must contain a title page showing the parties to the 
agreement, the date of the agreement, a brief description of services 
to be rendered, and the designation: ``Rate Schedule X-[number].'' 
Special rate schedules may not contain any supplements. Modifications 
must be by revised or insert sheets. Special rate schedules must be 
included in Volume No. 2 of the tariff. Volume No. 2 must contain a 
table of contents which is incorporated with the table of contents of 
Volume No. 1.
    (b) Contracts for service pursuant to part 284 of this chapter that 
do not conform to the form of service agreement must be filed. Such 
non-conforming agreements must be referenced in Volume No. 1.

Subpart C--Procedures for Changing Tariffs


Sec. 154.201  Filing requirements.

    In addition to the requirements of subparts A and B of this part, 
the following must be included with the filing of any tariff, executed 
service agreement, or part thereof, that changes or supersedes any 
tariff, contract, or part thereof, on file with the Commission.
    (a) A marked version of the pages to be changed or superseded 
showing additions and deletions. All new language must be marked by 
either highlight, background shading, bold text, or underlined text. 
Deleted language must be indicated by strike-through. A marked version 
of the pages to be changed must be included in each copy of the filing 
required by these regulations.
    (b) Documentation whether in the form of worksheets, or otherwise, 
sufficiently detailed to support the company's proposed change.
    (1) The documentation must include but is not limited to the 
schedules, workpapers, and supporting documentation required by these 
rules and regulations and the Commission's orders.
    (2) All rate changes in the filing must be supported by step-by-
step mathematical calculations and sufficient written narrative to 
allow the Commission and interested parties to duplicate the company's 
calculations.
    (3) Any data or summaries included in the filing purporting to 
reflect the books of account must be supported by accounting workpapers 
setting forth all necessary particulars from which an auditor may 
readily verify that such data are in agreement with the company's books 
of account. All statements, schedules, and workpapers must be prepared 
in accordance with the classifications of the Commission's Uniform 
System of Accounts. Workpapers in support of all adjustments, 
computations, and other information, properly indexed and cross-
referenced to the filing and other workpapers, must be available for 
Commission examination.
    (4) Where a rate, cost, or volume is derived from another rate, 
cost, or volume, the derivation must be shown mathematically and be 
accompanied by a written narrative sufficient to allow the Commission 
and interested parties to duplicate the calculations. If the derivation 
is due to a load factor adjustment, application of a percentage, or 
other adjusting factor, the pipeline must also note or explain the 
origin of the adjusting factor.
    (5) Where workpapers show progressive calculations, any 
discontinuity between one working paper and another must be explained.


Sec. 154.202  Filings to initiate a new rate schedule.

    (a) When the filing is to initiate a new service authorized under a 
blanket authority in part 284 of this chapter, the filing must comply 
with the requirements of this paragraph.
    (1) Filings under this paragraph must:
    (i) Adhere to the requirements of subparts A, B, and C of this 
part;
    (ii) Contain a description of the new service, including, but not 
limited to, the proposed effective date for commencement of service, 
applicability, whether the service is interruptible or firm, and the 
necessity for the service;
    (iii) Explain how the new service will differ from existing 
services, including a concise description of the natural gas company's 
existing operations;
    (iv) Explain the impact of the new service on existing firm and 
interruptible customers, including but not limited to:
    (A) The adequacy of existing capacity, if the proposed service is a 
firm service, and
    (B) The effect on receipt and delivery point flexibility, 
nominating and scheduling priorities, allocation of capacity, operating 
conditions, and curtailment, for any new service;
    (v) Include workpapers that detail the computations underlying the 
proposed [[Page 3124]] rate under the new rate schedule; or, if the 
rate is a currently effective rate, include the appropriate reference 
and an explanation of why the rate is appropriate;
    (vi) Give a justification, similar in form to filed testimony in a 
general section 4 rate case, explaining why the proposed rate design 
and proposed allocation of costs are just and reasonable;
    (vii) If the costs relating to existing services are reallocated to 
new services, explain the method for allocating the costs and the 
impact on the existing customers;
    (viii) Include workpapers showing the estimated effect on revenue 
and costs over the twelve-month period commencing on the proposed 
effective date of the filing.
    (ix) List other filings pending before the Commission at the time 
of the filing which may significantly affect the filing. Explain how 
the instant filing would be affected by the outcome of each related 
pending filing;
    (2) Any interdependent filings must be filed concurrently and 
contain a notice of the interdependence.
    (b) If a new service, facility, or rate is specifically authorized 
by a Commission order pursuant to section 7 of the Natural Gas Act, 
with the filing of tariff sheets to implement the new rate schedule, 
the natural gas company must:
    (1) Comply with the requirements of Sec. 154.203; and
    (2) Where the rate or charge proposed differs from the rate or 
charge approved in the certificate order, the natural gas company must: 
show that the change is due to a rate adjustment under a periodic rate 
change mechanism previously accepted under Sec. 154.505 which has taken 
effect since the certificate order was issued; or, show that the rate 
change is in accordance with the terms of the certificate, and provide 
workpapers justifying the change.


Sec. 154.203  Compliance filings.

    (a) In addition to the requirements of subpart A, B, and C of this 
part, filings made to comply with orders issued by the Commission, 
including those issued under delegated authority, must contain the 
following:
    (1) A list of the directives with which the company is complying;
    (2) Revised workpapers, data, or summaries with cross-references to 
the originally filed workpapers, data, or summaries;
    (b) Filings made to comply with Commission orders must include only 
those changes required to comply with the order. Such compliance 
filings may not be combined with other rate or tariff change filings. A 
compliance filing that includes other changes or that does not comply 
with the applicable order in every respect may be rejected.


Sec. 154.204  Changes related to suspended tariffs, executed service 
agreements, or parts thereof.

    (a) Changes in suspended tariffs, executed service agreements, or 
parts thereof. A natural gas company may not, within the period of 
suspension, file any change in a proposed tariff, executed service 
agreement, or part thereof, that has been suspended by order of the 
Commission, except by special permission of the Commission granted upon 
application therefor and for good cause shown.
    (b) Changes in tariffs, executed service agreements, or parts 
thereof continued in effect, and which were to be changed by the 
suspended filing. A natural gas company may not, within the period of 
suspension, file any change in a tariff, executed service agreement, or 
part thereof, that is continued in effect by operation of the order of 
suspension, and that was proposed to be changed by the suspended 
filing, except:
    (1) Under a previously approved tariff provision permitting a 
limited rate change, or
    (2) By special permission of the Commission.


Sec. 154.205  Motion to place suspended rates into effect.

    (a) If a rate proceeding initiated under section 4(e) of the 
Natural Gas Act has not been concluded and an order issued by the 
Commission before the expiration of the suspension period, the filed 
change of rate, charge, classification, or service will go into effect 
upon motion of the pipeline company.
    (b) If, prior to the end of the suspension period, the Commission 
has issued an order requiring changes in the filed rates, or the filed 
rates recover costs for facilities not certificated and in service as 
of the proposed effective date, the pipeline must file a motion to 
place the suspended rates into effect not less than 30 days nor more 
than 60 days prior to the end of the suspension period, or such later 
effective date requested by the pipeline. The motion must be 
accompanied by revised tariff sheets reflecting any changes ordered by 
the Commission or modifications approved by the Commission during the 
suspension period under Sec. 154.204. The filing of the revised tariff 
sheets must:
    (1) Comply with the requirements of subparts A, B, and C of this 
part;
    (2) Identify the Commission order directing the revision;
    (3) List the modifications made to the currently effective rate 
during the suspension period, the docket number in which the 
modifications were filed, and identify the order permitting the 
modifications.
    (c) Where the Commission has suspended the effective date of a 
change of rate, charge, classification, or service for less than one 
day, the proposed change of rate, charge, classification, or service 
will go into effect without a motion, subject to refund, on the 
authorized effective date.


Sec. 154.206  Notice requirements.

    All proposed changes in tariffs, contracts, or any parts thereof 
must be filed with the Commission and posted not less than 30 days nor 
more than 60 days prior to the proposed effective date thereof, unless 
a waiver of the time periods is granted by the Commission.


Sec. 154.207  Service on customers and other parties.

    The company must serve copies of the filing upon the company's 
customers and state regulatory commissions on or before the filing 
date.


Sec. 154.208  Form of notice for Federal Register.

    The company must file a form of notice suitable for publication in 
the Federal Register. The company must also submit a copy of the notice 
on a separate 3\1/2\'' diskette in ASCII format. Each diskette must be 
labelled with the name of the company and the words ``notice of 
filing.'' The notice must be in the following form:

UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION
(Name of Company)
Docket No.
Notice of Proposed Changes in FERC Gas Tariff

    Take notice that on (date), (name of company) tendered for 
filing as part of its FERC Gas Tariff, Volume No. (number), the 
following tariff sheets, to become effective (insert effective 
date). (List tariff sheets) [The following language in the first 
paragraph applies only to rate change filings.] The proposed changes 
would (increase/decrease) revenues from jurisdictional service by 
(dollar amount) based on the 12-month period ending (date), as 
adjusted. [For proposed changes other than changed rates and 
charges, the company must state concisely the nature of these 
changes.]
    [The company must briefly describe the reasons for the proposed 
changes in the second paragraph.]
    Any person desiring to be heard or to protest this filing should 
file a motion to intervene or protest with the Federal Energy 
Regulatory Commission, Washington, DC 20426, in accordance with 
sections 385.214 and 385.211 of the Commission's Rules and 
Regulations. All such motions or protests [[Page 3125]] must be 
filed on or before (insert date 10 days after filing date). Protests 
will be considered by the Commission in determining the appropriate 
action to be taken, but will not serve to make protestants parties 
to the proceeding. Any person wishing to become a party must file a 
motion to intervene. Copies of this filing are on file with the 
Commission and are available for public inspection in the Public 
Reference Room.


Sec. 154.209  Protests, interventions, and comments.

    (a) Unless the notice issued by the Commission provides otherwise, 
any protest, intervention or comment to a tariff filing made pursuant 
to this part must be filed in accordance with Sec. 385.211 of this 
chapter, not later than 10 days after the subject tariff filing. A 
protest must state the basis for the objection. A protest will be 
considered by the Commission in determining the appropriate action to 
be taken, but will not serve to make the protestant a party to the 
proceeding. A person wishing to become a party to the proceeding must 
file a motion to intervene.
    (b) Any motion to intervene must be filed in accordance with 
Sec. 385.214 of this chapter.

Subpart D--Material To Be Filed With Changes


Sec. 154.301  Changes in rate schedules, forms of service agreements, 
or the general terms and conditions.

    A filing to revise rate schedules, forms of service agreements, or 
the general terms and conditions, must:
    (a) Adhere to the requirements of subparts A, B, and C, of this 
part;
    (b) Contain a description of the change in service, including, but 
not limited to, applicability, necessity for the change, identification 
of services and types of customers that will be affected by the change;
    (c) Explain how the proposed tariff provisions differ from those 
currently in effect, including an example showing how the existing and 
proposed tariff provisions operate. Explain why the change is being 
proposed at this time;
    (d) Explain the impact of the proposed revision on firm and 
interruptible customers, including any changes in a customer's rights 
to capacity in the manner in which a customer is able to use such 
capacity, receipt or delivery point flexibility, nominating and 
scheduling, curtailment, capacity release.
    (e) Include workpapers showing the estimated effect on revenues and 
costs over the 12-month period commencing on the proposed effective 
date of the filing. If the filing proposes to change an existing 
penalty provision, provide workpapers showing the penalty revenues and 
associated quantities under the existing penalty provision during the 
latest 12-month period.
    (f) List other filings pending before the Commission which may 
significantly affect the filing.


Sec. 154.302  Changes in rates.

    (a) Except for changes in rates pursuant to subparts E, F, G, and 
H, of this part, any natural gas company filing for a change in rates 
or charges, except for a minor rate change, must submit, in addition to 
the material required by subparts A, B, and C of this part, the 
Statements and Schedules described in Sec. 154.313.
    (b) A natural gas company filing for a minor rate change must file 
the Statements and Schedules described in Sec. 154.314.
    (c) A natural gas company filing for a change in rates or charges 
must be prepared to go forward at a hearing and sustain, solely on the 
material submitted with its filing, the burden of proving that the 
proposed changes are just and reasonable. The filing and supporting 
workpapers must be of such composition, scope, and format as to 
comprise the company's complete case-in-chief in the event that the 
change is suspended and the matter is set for hearing.


Sec. 154.303  Previously submitted material.

    (a) If all, or any portion, of the information called for by this 
part has already been submitted to the Commission within six months of 
the filing date of this application, or is included in other data filed 
pursuant to this part, specific reference thereto may be made in lieu 
of resubmission.
    (b) If a new FERC Form No. 2 or 2-A is required to be filed within 
60 days from the end of the base period, the new FERC Form No. 2 or 2-A 
must be filed concurrently with the rate change filing. There must be 
furnished to the Director, Office of Pipeline Regulation, with the rate 
change filing, one copy of the FERC Form No. 2 or 2-A.


Sec. 154.304  Test periods.

    Statements A through M, O, P, and supporting schedules, in 
Sec. 154.313 and Sec. 154.314, must be based upon a test period.
    (a) If the natural gas company has been in operation for 12 months 
on the filing date, then the test period consists of a base period 
followed by an adjustment period.
    (1) The base period consists of 12 consecutive months of the most 
recently available actual experience. The last day of the base period 
may not be more than 4 months prior to the filing date. The rate 
factors (volumes, costs, and billing determinants) established during 
the base period may be adjusted for changes in revenues and costs which 
are known and measurable with reasonable accuracy at the time of the 
filing and which will become effective within 9 months after the base 
period. The base period factors must be adjusted to eliminate 
nonrecurring items. The company may adjust its base period factors to 
normalize items eliminated as nonrecurring.
    (2) The period of up to 9 months after the base period is the 
adjustment period.
    (3) The test period may not extend more than 9 months beyond the 
filing date.
    (b) If the natural gas company has not been in operation for 12 
months on the filing date, then the test period must consist of 12 
consecutive months ending not more than one year after the filing date. 
Rate factors may be adjusted as above but must not be adjusted for 
occurrences anticipated after the 12-month period.
    (c)(1) Adjustments to base period experience, or to estimates where 
12 months' experience is not available, may include the costs for 
facilities for which either a permanent or temporary certificate has 
been granted, provided such facilities will be in service within the 
test period; or a certificate application is pending. The filing must 
identify facilities, related costs and the docket number of each such 
outstanding certificate. Adjustments to base period experience, or to 
estimates where 12 months' experience is not available, may not include 
any amounts for facilities that require a certificate of public 
convenience and necessity, if a certificate has not been issued by the 
filing date.
    (2) When a pipeline files a motion to place the rates into effect, 
the filing must be revised to exclude the costs associated with any 
facilities not in service as of the earlier of the effective date or 
the end of the test period.
    (d) The Commission may allow reasonable deviation from the 
prescribed test period.


Sec. 154.305  Format of statements, schedules, workpapers and 
supporting data.

    (a) All statements, schedules, and workpapers must be prepared in 
accordance with the Commission's Uniform System of Accounts.
    (b) The data in support of the proposed rate change must include 
the required particulars of book data, adjustments, and other 
computations and information on which the company [[Page 3126]] relies, 
including a detailed narrative explanation of each proposed adjustment 
to base period actual volumes and costs.
    (c) Book data included in statements and schedules required to be 
prepared or submitted as part of the filing must be reported in a 
separate column or columns. All adjustments to book data must also be 
reported in a separate column or columns so that book amounts, 
adjustments thereto, and adjusted amounts will be clearly disclosed. 
All adjustments must be supported by a narrative explanation.
    (d) Certain of the statements and schedules of Sec. 154.313 are 
workpapers. Any data or summaries reflecting the books of account must 
be supported by accounting workpapers setting forth all necessary 
particulars from which an auditor may readily identify the book data 
included in the filing and verify that such data are in agreement with 
the company's books of account.


Sec. 154.306  Tax normalization.

    (a) Applicability. (1) An interstate pipeline must compute the 
income tax component of its cost-of-service by using tax normalization 
for all transactions. This section applies, with respect to rate 
schedules filed under this part, to the ratemaking treatment of the tax 
effects of all transactions for which there are timing differences.
    (2) Except as provided in paragraph (d) of this section, 
application of tax normalization to compute the income tax component of 
the cost-of-service will not be subject to case-by-case adjudication.
    (b) Definitions.
    (1) Tax normalization means computing the income tax component as 
if the amounts of timing difference transactions recognized in each 
period for ratemaking purposes were also recognized in the same amount 
in each such period for income tax purposes.
    (2) Timing differences means differences between amounts of 
expenses or revenues recognized for income tax purposes and amounts of 
expenses or revenues recognized for ratemaking purposes, which 
differences arise in one time period and reverse in one or more other 
time periods so that the total amounts of expenses or revenues 
recognized for income tax purposes and for ratemaking purposes are 
equal.
    (3) Commission-approved ratemaking method means a ratemaking method 
approved by the Commission in a final decision. This includes a 
ratemaking method that is part of an approved settlement providing that 
the ratemaking method is to be effective beyond the term of the 
settlement.
    (4) Income tax purposes means for the purpose of computing income 
tax under the provisions of the Internal Revenue Code or the income tax 
provisions of the laws of a State or political subdivision of a State 
(including franchise taxes).
    (5) Income tax component means that part of the cost-of-service 
that covers income tax expenses allowable by the Commission.
    (6) Ratemaking purposes means for the purpose of fixing, modifying, 
accepting, approving, disapproving or rejecting rates under the Federal 
Power Act or the Natural Gas Act.
    (7) Tax effect means the tax reduction or addition associated with 
a specific expense or revenue transaction.
    (8) Transaction means an activity or event that gives rise to an 
accounting entry that is used in determining revenues or expenses.
    (c) Reduction of, and Addition to, Rate Base. (1) The rate base of 
an interstate pipeline using tax normalization under this section must 
be reduced by the balances that are properly recordable in Account No. 
281, ``Accumulated deferred income taxes--accelerated amortization 
property''; Account No. 282, ``Accumulated deferred income taxes--other 
property'': and Account No. 283, ``Accumulated deferred income taxes--
other.'' Balances that are properly recordable in Account No. 190, 
``Accumulated deferred income taxes,'' must be treated as an addition 
to rate base.
    (2) Such rate base reductions or additions must be limited to 
deferred taxes related to rate base, construction, or any revenue or 
expense item that affects the jurisdictional cost-of-service.
    (3) If an interstate pipeline uses an approved cost tracking 
mechanism, the rate base reductions or additions required under this 
paragraph apply only to the extent that the balances referenced in 
paragraph (c)(1) of this section are not used in calculations of 
carrying charges on amounts subject to the cost tracking mechanism.
    (d) Special rules. (1) This paragraph applies:
    (i) If the rate applicant has not provided deferred taxes in the 
same amount that would have accrued had tax normalization been applied 
for the tax effects of timing difference transactions originating at 
any time prior to the test period; or
    (ii) If, as a result of changes in tax rates, the accumulated 
provision for deferred taxes becomes deficient in or in excess of 
amounts necessary to meet future tax liabilities as determined by 
application of the current tax rate to all timing difference 
transactions originating in the test period and prior to the test 
period.
    (2) The interstate pipeline must compute the income tax component 
in its cost-of-service by making provision for any excess or deficiency 
in deferred taxes.
    (3) The interstate pipeline must apply a Commission-approved 
ratemaking method made specifically applicable to the interstate 
pipeline for determining the cost-of-service provision described in 
paragraph (d)(2) of this section. If no Commission-approved ratemaking 
method has been made specifically applicable to the interstate 
pipeline, then the interstate pipeline must use some ratemaking method 
for making such provision, and the appropriateness of such method will 
be subject to case-by-case determination.
    (4) An interstate pipeline must continue to include, as an addition 
or reduction to rate base, any deficiency or excess attributable to 
prior flow-through or changes in tax rates (paragraphs (d)(1)(i) and 
(d)(1)(ii) of this section), until such deficiency or excess is fully 
amortized in accordance with a Commission approved ratemaking method.


Sec. 154.307  Cash working capital.

    A natural gas company that files a tariff change under this part 
may not receive a cash working capital adjustment to its rate base 
unless the company or other participant in a rate proceeding under this 
part demonstrates, with a fully developed and reliable lead-lag study, 
a net revenue receipt lag or a net expense payment lag (revenue lead). 
Any demonstrated net revenue receipt lag will be credited to rate base; 
and, any demonstrated net expense payment lag will be deducted from 
rate base.


Sec. 154.308  Joint facilities.

    The Statements required by Sec. 154.313 must show all costs 
(investment, operation, maintenance, depreciation, taxes) that have 
been allocated to the natural gas operations involved in the subject 
rate change and are associated with joint facilities. The methods used 
in making such allocations must be provided.


Sec. 154.309  Representation of chief accounting officer.

    The filing must include a statement executed by the chief 
accounting officer or other authorized accounting representative of the 
filing company representing that the cost statements, supporting data, 
and workpapers, that purport to reflect the books of the 
[[Page 3127]] company do, in fact, set forth the results shown by such 
books.


Sec. 154.310  Incremental expansions.

    (a) For every expansion for which incremental rates are charged and 
for every major expansion since the pipeline's last rate case, the 
company must show, on separate statements and schedules under 
Sec. 154.313 and Sec. 154.314, the costs associated with the expansion, 
until the Commission authorizes the costs of the incremental facilities 
to be rolled-in to the pipeline's rates. For every expansion that has 
an at-risk provision in the certificate authorization, the costs 
associated with the facility must be shown on separate statements and 
schedules under Sec. 154.313 and Sec. 154.314, until the Commission 
removes the at-risk condition.
    (b) The statements and schedules must provide the formulae and 
explain the bases used in the allocation of common costs to each 
incremental facility.


Sec. 154.311  Zones.

    If the company maintains records of costs by zone, and proposes a 
zone rate methodology based on these costs, the statements and 
schedules in Sec. 154.313 and Sec. 154.314 must reflect costs detailed 
by zone.


Sec. 154.312  Updating of statements.

    (a) Certain statements and schedules in Sec. 154.313, that include 
test period data, must be updated with actual data by month and must be 
resubmitted in the same format and with consecutive 12 month running 
totals, for each month of the adjustment period. The first updated 
statement or schedule must be submitted to the Commission one month 
after the filing date or one month after the quarter following the base 
period, whichever is later. Subsequent updated statements or schedules 
must be filed, quarterly, one month after the end of the quarter for 
each month of the test period. The updated filings must reference the 
associated docket number and must be filed in the same format, form, 
and number as the original filing.
    (b) The statements and schedules to be updated are: Statements C, D 
and H-4; Schedules B-1, B-2, C-3, D-2, E-2, E-4, G-1, G-4, G-5, G-6, H-
1(1)(a), H-1(1)(b), H-1(1)(c), H-1(3)(a) through H-1(3)(l), H-2(1), H-
3(3), I-4, and I-6.


Sec. 154.313  Composition of Statements.

    (a) Statement A. Cost-of-service Summary. Summarize the overall gas 
utility cost-of-service: operation and maintenance expenses, 
depreciation, taxes, credits to cost-of-service, and return as 
developed in other statements and schedules.
    (b) Statement B. Rate Base and Return Summary. Summarize the 
overall gas utility rate base shown in Statements C, D, and E and 
Schedules B-1 and B-2. Show the application of the claimed rate of 
return to the overall rate base.
    (1) Schedule B-1. Accumulated Deferred Income Taxes (Account Nos. 
190, 282, and 283). Show monthly book balances of accumulated deferred 
income taxes for each of the 12 months during the base period. List all 
items for which the accumulated deferred income taxes are calculated. 
In adjoining columns, show additions and reductions for the adjustment 
period balance and the total adjusted balance. Separately identify the 
individual components and the amounts in these accounts that the 
company seeks to include in its rate base.
    (2) Schedule B-2. Regulatory Asset and Liability. Show monthly book 
balances of regulatory assets (Account No. 182.3) and liabilities 
(Account No. 254) for each of the 12 months during the base period. In 
adjoining columns, show additions and reductions for the adjustment 
period balance and the total adjusted balance. Separately identify the 
individual components and the amounts in these accounts that the 
company seeks to include in its rate base. Identify any specific 
Commission authority that required the establishment of these amounts.
    (c) Statement C. Cost of Plant Summary. Show the amounts of gas 
utility plant classified by Account Nos. 101, 102, 103, 104, 105, 106, 
107, 117.1, 117.2, and 117.3 as of the beginning of the 12 months of 
actual experience, the book additions and reductions (in separate 
columns) during the 12 months, and the book balances at the end of the 
12-month period. In adjoining columns, show the claimed adjustments, if 
any, to the book balances and the total cost of plant to be included in 
rate base. Explain all adjustments in the following schedules.
    (1) Schedule C-1. End of Base Period Plant Functionalized. 
Demonstrate the ending base period balance for Plant in Service, in 
columnar form, by detailed plant account prescribed by the Commission's 
Uniform System of Accounts for Natural Gas Companies (part 201 of this 
chapter) with subtotals by functional classifications, e.g., Intangible 
Plant, Manufactured Gas Production Plant, Natural Gas Production and 
Gathering Plant, Products Extraction Plant, Storage Plant, Transmission 
Plant, Distribution Plant, and General Plant. Show zones, to the extent 
required by Sec. 154.311, and expansions, to the extent required by 
Sec. 154.310.
    (2) Schedule C-2. Plant in Service as Adjusted. Show the proposed 
test period Adjusted Plant in Service by function as in Schedule C-1. 
Separately identify those facilities and associated costs claimed for 
the test period that require certificate authority but such authority 
has not been obtained at the time of filing. Give the docket number of 
the certificate proceeding.
    (3) Schedule C-3. Show, for Accounts 106 and 107, a list of work 
orders claimed in the rate base. Give the work order number, docket 
number, description, amount of each work order, and the amounts of each 
type of undistributed construction overhead.
    (4) Schedule C-4. Give details of each storage project owned, 
showing cost by major functions. Show storage gas quantities and 
associated costs by account for the test period and for the 12 months 
of actual experience.
    (5) Schedule C-5. This schedule is part of the workpapers. State 
the methods and procedures followed in capitalizing the allowance for 
funds used during construction and other construction overheads.
    (6) Schedule C-6. This schedule is part of the workpapers. Set 
forth the cost of Plant in Service carried on the company's books as 
gas utility plant which was not being used in rendering gas service. 
Describe the plant. This schedule must be provided only if there is a 
significant change in such amounts since the end of the year reported 
in the company's last FERC Form No. 2 or 2-A.
    (d) Statement D. Accumulated Provisions for Depreciation, 
Depletion, and Amortization. Show the accumulated provisions for 
depreciation, depletion, amortization, and abandonment (Account No. 
108, detailed by functional plant classification, and Account No. 111), 
as of the beginning of the 12 months of actual experience, the book 
additions and reductions during the 12 months, and the balances at the 
end of the 12-month period. In adjoining columns, show adjustments to 
these ending book balances and the total adjusted balances. All 
adjustments must be explained in the supporting material. Any 
authorized negative salvage must be reflected as a separate part of 
Account 108. For each functional plant classification, show 
depreciation reserve associated with offshore and onshore plant 
separately. The following schedules and additional material must be 
submitted as part of Statement D:
    (1) Schedule D-1. This schedule is part of the work papers. Show 
the [[Page 3128]] depreciation reserve book balance applicable to that 
portion of the depreciation rate not yet approved by the Commission, 
the depreciation rates, the docket number of the order approving such 
rate, and an explanation of any difference. Reflect actual end of base 
period depreciation reserve functionalized. Show accumulated 
depreciation and amortization, in columnar form, for the ending base 
period balances by functional classifications. (Examples are provided 
in Schedule C-1). For each functional plant classification, show 
depreciation reserve associated with offshore and onshore plant 
separately.
    (2) Schedule D-2. Projected End of Test Period Depreciation Reserve 
Functionalized. Show the ending test period balance of Accumulated 
Depreciation Reserve, in columnar form. Show the balance by functional 
classifications. (Examples are provided in Schedule C-1). For each 
functional plant classification, show depreciation reserve associated 
with offshore and onshore plant separately.
    (3) Schedule D-3. This schedule is part of the workpapers. Give a 
description of the methods and procedures used in depreciating, 
depleting, and amortizing plant and recording abandonments. This 
schedule must be filed only if a policy change has been made effective 
since the period covered by the last annual report on FERC Form No. 2 
or 2-A was filed with the Commission.
    (e) Statement E. Working Capital. Show the components of working 
capital in sufficient detail to explain how the amount of each 
component was computed. Components of working capital, other than cash 
working capital, may include an allowance for the average of 13 monthly 
balances of materials and supplies and prepayments actually expended. 
To the extent the applicant files to adjust the average of any 13 
monthly balances, workpapers must be submitted that support the 
adjustment(s). The following schedules and material must be submitted 
as part of Statement E:
    (1) Schedule E-1. Show the computation of cash working capital 
claimed as an adjustment to the gas company's rate base. Any adjustment 
to rate base requested must be based on a fully-developed and reliable 
lead-lag study. The components of the lead-lag study must include 
actual total company revenues, purchased gas costs, storage expense, 
transportation and compression of gas by others, salaries and wages, 
administrative and general expenses, income taxes payable, taxes other 
than income taxes, and any other operating and maintenance expenses for 
the base period. Cash working capital allowances in the form of 
additions to rate base may not exceed one-eighth of the annual 
operating expenses, as adjusted, net of non-cash items.
    (2) Schedule E-2. Set forth monthly balances for materials, 
supplies and prepayments in such detail as to disclose, either by 
subaccounts regularly maintained on the books or by analysis of the 
principal items included in the main account, the nature of such 
charges.
    (3) Schedule E-3. This schedule must be submitted only by 
applicants utilizing an authorized PGA mechanism. Show the quantities 
and the respective costs of natural gas stored at the beginning of the 
test period; the input, output, and balance remaining in storage (on a 
Dth basis); and, associated costs, by months, method of pricing the 
input, output and balance. Any claimed adjustments must be explained.
    (4) Schedule E-4. If gas is priced in and out of storage through 
FERC Account Nos. 164.1, 164.2, and 164.3, the base period's storage 
activity must be reconciled with amounts charged to such accounts and 
any difference must be explained. Companies using the last-in-first-out 
(LIFO) method of storage inventory accounting, must provide the data 
required by this schedule by LIFO ``layers.''
    (5) Schedule E-5. Show the computations, cross-references, and 
sources from which the data used in computing claimed working capital 
are derived.
    (f) Statement F-1. Rate of Return Claimed. Show the percentage rate 
of return claimed and the general reasons therefor. Where any component 
of the capital of the filing company is not primarily obtained through 
its own financing, but is primarily obtained from a company by which 
the filing company is controlled, as defined in the Commission's 
Uniform System of Accounts, then the data required by these statements 
must be submitted with respect to the debt capital, preferred stock 
capital, and common stock capital of such controlling company or any 
intermediate company through which such funds have been secured. 
Furnish the Commission staff a copy of the latest prospectus issued by 
the filing natural gas company, any superimposed holding company, or 
subsidiary companies.
    (g) Statement F-2. Show.
    (1) The capitalization, capital structure, cost of debt capital, 
preferred stock capital, and the claimed return on stockholders' 
equity;
    (2) The weighted cost of each capital class based on the capital 
structure; and,
    (3) The overall rate of return claimed.
    (h) Statement F-3. Debt Capital. Show the weighted average cost of 
debt capital based upon the following data for each class and series of 
long-term debt outstanding according to the balance sheet, as of the 
end of the 12-month base period of actual experience and as of the end 
of the 9-month test period.
    (1) Title.
    (2) Date of issuance and date of maturity.
    (3) Interest rate.
    (4) Principal amount of issue: Gross proceeds; Underwriters' 
discount or commission: Amount; Percent gross proceeds; Issuance 
expense: Amount; Percent gross proceeds; Net proceeds; Net proceeds per 
unit.
    (5) Cost of money: Yield to maturity based on the interest rate and 
net proceeds per unit outstanding determined by reference to any 
generally accepted table of bond yields. The yield to maturity is to be 
expressed as a nominal annual interest rate. For example, for bonds 
having semiannual payments, the yield to maturity is twice the 
semiannual rate.
    (6) If the issue is owned by an affiliate, state the name and 
relationship of the owner.
    (7) If the filing company has acquired, at a discount or premium, 
some part of the outstanding debt which could be used in meeting 
sinking fund requirements, or for other reasons, separately show: the 
annual amortization of the discount or premium for each series of debt 
from the date of reacquisition over the remaining life of the debt 
being retired; and, the total discount and premium, as a result of such 
amortization, applicable to the test period.
    (i) Statement F-4. Preferred Stock Capital. Show the weighted 
average cost of preferred stock capital based upon the following data 
for each class and series of preferred stock outstanding according to 
the balance sheet, as of the end of the 12-month base period of actual 
experience and as of the end of the nine-month test period.
    (1) Title.
    (2) Date of issuance.
    (3) If callable, call price.
    (4) If convertible, terms of conversion.
    (5) Dividend rate.
    (6) Par or stated amount of issue: Gross proceeds; Underwriters' 
discount or commission: Amount; Percent gross proceeds; Issuance 
expenses: Amount; Percent gross proceeds; Net proceeds; Net proceeds 
per unit.
    (7) Cost of money: Annual dividend rate divided by net proceeds per 
unit. [[Page 3129]] 
    (8) State whether the issue was offered to stockholders through 
subscription rights or to the public.
    (9) If the issue is owned by an affiliate, state the name and 
relationship of owner.
    (j) Statement G. Revenues, Credits and Billing Determinants. Show 
the total revenues, from jurisdictional and non-jurisdictional 
services, classified in accordance with the Commission's Uniform System 
of Accounts for the base period and for the base period as adjusted. 
Separate operating revenues (e.g., reservation charges, demand charges, 
usage charges, commodity charges, injection charges, withdrawal 
charges, etc.) from revenues received from penalties, surcharges or 
other sources (e.g., ACA, GRI, transition costs). Show each service 
separately. Show separately the information for firm services under 
contracts with a primary term of less than one year. Show the principal 
components comprising each of the various items which are reflected as 
credits to the cost-of-service in preparing Statement A, Overall Cost-
of-service. Any transition cost component of interruptible 
transportation revenue must not be treated as operating revenues as 
defined above. The following schedules must be submitted as part of 
Statement G:
    (1) Schedule G-1. Base Period Revenues. For the base period, show 
total actual revenues for each customer by rate schedule, by contract, 
by month, by billing determinant and totals. Billing determinants must 
not be adjusted for discounting. Provide actual throughput (i.e., usage 
or commodity quantities, unadjusted for discounting) and actual 
contract demand levels (unadjusted for discounting). Provide this 
information separately for firm service under contracts with a primary 
term of less than one year. For each customer that released capacity 
during the base period, show separately the released usage quantities 
and associated revenues by rate schedule, by contract, by month and 
totals for the base period. Separate operating revenues from revenues 
received from surcharges or other sources (e.g., ACA, GRI, transition 
costs). Identify customers who are affiliates. Identify rate schedules 
under which costs are allocated and rate schedules under which revenues 
are credited for the base period with cross-references to the other 
filed statements and schedules.
    (2) Schedule G-2. Adjustment Period Revenues. Show comparative 
revenues for each customer by rate schedule, by contract, by month, by 
billing determinant, and totals for the base period adjusted for known 
and measurable changes which are expected to occur within the 
adjustment period computed under the rates charged during the base 
period; and computed under the rates expected to be charged. Billing 
determinants must not be adjusted for discounting. Provide projected 
throughput (i.e., usage or commodity quantities, unadjusted for 
discounting) and projected contract demand levels (unadjusted for 
discounting). Provide this information separately for firm service 
under contracts with a primary term of less than one year. For each 
customer that is expected to release capacity, show separately the 
projected released usage quantities (unadjusted for discounting) and 
associated revenues by rate schedule, by contract, by month, and totals 
for the projected period. Separate operating revenues from revenues 
received from surcharges or other sources (e.g., ACA, GRI, transition 
costs). Identify customers who are affiliates. Identify rate schedules 
under which costs are allocated and rate schedules under which revenues 
are credited for the adjustment period with cross-references to the 
other filed statements and schedules.
    (3) Schedule G-3. Specify, quantify, and justify each proposed 
adjustment (discounting, capacity release, plant closure, contract 
termination, etc.) to base period actual billing determinants, and 
provide a detailed explanation for each factor contributing to the 
adjustment. Include references to any certificate docket authorizing 
changes. Submit workpapers with all formulae.
    (4) Schedule G-4. At-Risk Revenue. For each instance where there is 
a separate cost-of-service associated with facilities for which the 
applicant is ``at risk,'' show the base period and adjustment period 
revenue by customer, by rate schedule, by contract, by billing 
determinant and as 12-month totals. Provide projected throughput (i.e., 
usage or commodity quantities, unadjusted for discounting) and 
projected contract demand levels (unadjusted for discounting).
    (5) Schedule G-5. Other Revenues.
    (i) Describe and quantify, by month, the types of revenue included 
in Account Nos. 490-495 for the base and test periods. Show revenues 
applicable to the sale of products. Show the principal components 
comprising each of the various items which are reflected as credits to 
cost-of-service in Statement A.
    (ii) To the extent the credits to the cost-of-service reflected in 
Statement A differ from the amounts shown on Schedule G-5, compare and 
reconcile the two statements. Quantify and explain each proposed 
adjustment to base period actuals. For Account No. 490, show the name 
and location of each product extraction plant processing gas for the 
applicant, and the inlet and outlet monthly dth of the pipeline's gas 
at each plant. Show the revenues received by the applicant by product 
by month for each extraction plant for the base period and proposed for 
the test period.
    (iii) Separately state each item and revenue received for the 
transportation of liquids, liquefiable hydrocarbon, or nonhydrocarbon 
constituents owned by shippers. For both the base and test periods, 
indicate by shipper contract: the quantity transported and the revenues 
received.
    (iv) Separately state the revenues received from the release by the 
pipeline of transportation and compression capacity it holds on other 
pipeline systems. The revenues must equal the revenues reflected on 
Schedule I-4(iv).
    (6) Schedule G-6. Miscellaneous Revenues.
    (i) Separately state by month the base and adjustment period 
revenues and the associated quantities received as penalties from 
jurisdictional customers; the revenues received from cash outs and 
other imbalance adjustments; and, the revenues received from exit fees.
    (ii) Statement G must be submitted to all affected customers and 
State commissions having jurisdiction over the affected customers. The 
submittal to each of the affected customers may exclude the above 
details by months (Schedules G-1 and G-2) with respect to service for 
all other customers. Provided, however, that a copy of Statement G, 
including details by months with respect to service for a particular 
customer, must be promptly submitted to that customer upon request.
    (k) Statement H-1. Operation and Maintenance Expenses. Show the gas 
operation and maintenance expenses according to each applicable account 
of the Commission's Uniform System of Accounts for Natural Gas 
Companies. Show the expenses under columnar headings, with subtotals 
for each functional classification, as follows: Operation and 
maintenance expense by months, as booked, for the 12 months of actual 
experience, and the 12-month total; adjustments, if any, to expenses as 
booked; and, total adjusted operation and maintenance expenses. Provide 
a detailed narrative explanation of, and the basis and supporting 
workpapers for, each adjustment. Specify the month or months during 
which the [[Page 3130]] adjustments would be applied. The following 
schedules and additional material must be submitted as part of 
Statement H-1:
    (1) Schedule H-1(1). This schedule is part of the workpapers. Show 
the labor costs, materials and other charges (excluding purchased gas 
costs) and expenses associated with Account Nos. 810, 811, and 812 
recorded in each gas operation and maintenance expense account of the 
Uniform System of Accounts. Show these expenses, under the columnar 
headings, with subtotals for each functional classification, as 
follows: operation and maintenance expenses by months, as booked, for 
the 12 months of actual experience, and the 12-month total; 
adjustments, if any, to expenses as booked; and total adjusted 
operation and maintenance expenses. Disclose and explain any special 
accrual or other normalizing accounting entries for internal purposes 
reflected in the monthly expenses presented per book. Explain any 
amounts not currently payable, except depreciation charged through 
clearing accounts, included in operation and maintenance expenses.
    (2) Schedule H-1(1)(a). Labor Costs.
    (3) Schedule H-1(1)(b). Materials and Other Charges (Excluding 
Purchased Gas Costs and items shown in Schedule H-1 (1)(c)).
    (4) Schedule H-1(1)(c). Expenses and Associated Quantities 
Applicable to Accounts Nos. 810, 811, and 812. Show the expenses and 
quantities for each of the contra-accounts for both base and test 
periods.
    (5) Schedule H-1(2)(a).
    (i) This schedule is to be filed only by a pipeline which has a 
Commission approved PGA clause in its tariff.
    (ii) Show total system weighted average current unit cost of 
purchased gas reflected in the pipeline's latest effective PGA rate 
adjustment. Explain any adjustments to the volumes of gas taken from 
any source during the 12 months of actual experience. No adjustments 
are to be made to reflect the attachment of new gas supplies unless the 
facilities of the filing company and the supplier are or will have been 
in operation during the test period.
    (iii) In the event adjustments to the volume of gas purchased 
aggregate more than 10 percent of the total volume of gas purchased 
during the 12 months of actual experience, and are due to changes in 
gas purchasing patterns or additional gas supply, show the minimum 
take-or-pay-for quantities for each source of supply applicable at the 
end of the test year period and explain the adjustments.
    (6) Schedule H-1(2)(b).
    (i) This schedule is to be filed only by a pipeline that has a 
Commission approved PGA clause in its tariff.
    (ii) Show the development of the purchased gas costs for the test 
period including volumes, the PGA rate utilized, the filing date, the 
docket number and date of Commission order underlying such unit rate. 
If the company purchases and sells gas under exchange agreements, show 
the methods of recording on the books, total gross volumes exchanged, 
net dollar amounts involved and details of each major exchange.
    (7) Schedule H-1(3). This schedule is part of the workpapers. Show, 
for the 12 months of actual experience and claimed adjustments: a 
classification of principal charges, credits and volumes; particulars 
of supporting computations and accounting bases; a description of 
services and related dollar amounts for which liability is incurred or 
accrued; and, the name of the firm or individual rendering such 
services. Expenses reported in Schedules H-1(3)(a) through H-1(3)(k) of 
$100,000 or less per type of service may be grouped.
    (8) Schedule H-1(3)(a). Account Nos. 806, 808.1, 808.2, 809.1, 
809.2, 823, and any other account used to record fuel use or gas 
losses.
    (9) Schedule H-1(3)(b). Account No. 813. Other Gas Supply Expenses. 
Provide details of each type of expense.
    (10) Schedule H-1(3)(c). Account Nos. 913 and 930.1. Advertising 
Expenses. Disclose principal types of advertising such as TV, 
newspaper, etc.
    (11) Schedule H-1(3)(d). Account No. 921. Office Supplies and 
Expenses.
    (12) Schedule H-1(3)(e). Account No. 922. Administrative Expenses 
Transferred Credit.
    (13) Schedule H-1(3)(f). Account No. 923. Outside Services 
Employed.
    (14) Schedule H-1(3)(g). Account No. 926. Employee Pensions and 
Benefits.
    (15) Schedule H-1(3)(h). Account No. 928. Regulatory Commission 
Expenses.
    (16) Schedule H-1(3)(i). Account No. 929. Duplicate Charges. 
Credit.
    (17) Schedule H-1(3)(j). Account No. 930.2. Miscellaneous General 
Expenses.
    (18) Schedule H-1(3)(k). Intercompany and Interdepartmental 
Transactions. If the expense accounts contain charges or credits to and 
from associated or affiliated companies or nonutility departments of 
the company, submit a schedule, or schedules, as to each associated or 
affiliated company or nonutility department showing:
    (i) The amount of the charges, or credits, during each month and in 
total for the base period and the adjustment period.
    (ii) The FERC Account No. charged (or credited).
    (iii) Descriptions of the specific services performed for, or by, 
the associated/affiliated company or nonutility department.
    (iv) The bases used in determining the amounts of the charges 
(credits) and an explanation for the bases.
    (19) Schedule H-1 (3)(l). Show all lease payments contained in the 
operation and maintenance accounts. Leases of $500,000 or less may be 
grouped by type of lease.
    (l) Statement H-2. Depreciation, Depletion, Amortization and 
Negative Salvage Expenses. Show, separately, the gas plant 
depreciation, depletion, amortization, and negative salvage expenses by 
functional classifications. For each functional plant classification, 
show depreciation reserve associated with offshore and onshore plant 
separately. Show, in separate columns: expenses for the 12 months of 
actual experience; adjustments, if any, to such expense; and, the total 
adjusted expense claimed. Explain the bases, methods, essential 
computations, and derivation of unit rates for the calculation of 
depreciation, depletion, and amortization expense for the 12 months of 
actual experience and for the adjustments. The amounts of depreciable 
plant must be shown by the functions specified in paragraph C of 
Account No. 108, Accumulated Provisions for Depreciation of Gas Utility 
Plant, and Account No. 111, Accumulated Provision for Amortization and 
Depletion of Gas Utility Plant, of the Commission's Uniform System of 
Accounts for Natural Gas Companies, and, if available, for each 
detailed plant account (300 Series) together with the rates used in 
computing such expenses. Explain any deviation from the rates 
determined to be just and reasonable by the Commission. Show the rate 
or rates previously used together with supporting data for the new rate 
or rates used for this filing. The following schedule and additional 
material must be submitted as a part of Statement H-2:
    (1) Schedule H-2 (1). Depreciable Plant.
    (i) Reconcile the depreciable plant shown in Statement H-2 with the 
aggregate investment in gas plant shown in Statement C, and the expense 
charged to other than prescribed depreciation, depletion, amortization, 
and negative salvage expense accounts. Identify the amounts of plant 
costs and associated plant accounts used as the bases for depreciation 
expense charged to clearing accounts. For each functional 
[[Page 3131]] plant classification, show depreciation reserve 
associated with offshore and onshore plant separately.
    (ii) Schedule H-2(1) must be updated, as set forth in Sec. 154.312, 
with actual depreciable plant and reconciled with updated Statement C.
    (m) Statement H-3. Income Taxes. Show the computation of allowances 
for Federal and State income taxes for the test period based on the 
claimed return applied to the overall gas utility rate base. To 
indicate the accounting classification applicable to the amount 
claimed, the computation of the Federal income tax allowance must show, 
separately, the amounts designated as current tax and deferred tax. The 
following schedules and additional material must be submitted as a part 
of Statement H-3:
    (1) Schedule H-3(1). This schedule is part of the work papers. 
Reconcile the book net income with taxable net income as reported to 
the Internal Revenue Service for the most recent year for which a tax 
return was filed. Explain any items appearing in either the 
reconciliation or the tax return but not both.
    (2) Schedule H-3(2). This schedule is a part of the workpapers. If 
tax depreciation differs from book depreciation, show the computation 
of the tax depreciation indicating differences between book and tax 
depreciation on a straight-line basis; and the excess of liberalized 
depreciation over straight-line depreciation for tax purposes for the 
taxable year or years.
    (3) Schedule H-3(3). This schedule is part of the workpapers. Show 
the income tax paid each State in the current and/or previous year 
covered by the test period.
    (4) Schedule H-3(4). This schedule is part of the workpapers. Show 
the computation of an updated reconciliation between book depreciable 
plant and tax depreciable plant and accumulated provision for deferred 
income taxes, for the base period or latest calendar or fiscal year 
(depending on the company's reporting period).
    (n) Statement H-4. Other Taxes. Show the gas utility taxes, other 
than Federal or state income taxes, in separate columns, as follows: 
Tax expense per books for the 12 months of actual experience 
(separately identify the amounts expensed or accrued during the 
period); adjustments, if any, to amounts booked; and, the total 
adjusted taxes claimed. Show the kind and amount of taxes paid under 
protest or in connection with taxes under litigation. Show taxes by 
state and by type of tax. The following schedules and additional 
material must be submitted as a part of Statement H-4:
    (1) Schedule H-4(1). This schedule is part of the workpapers. Show 
the computations of adjusted taxes claimed in Statement H(4).
    (o) Statement I. Statement I consists of the following Schedules:
    (1) Schedule I-1. Functionalization of Cost-of-service. Show the 
overall cost-of-service contained in Statement A as supported by 
Statements B, C, D, E, G (revenue credits) and H:
    (i) Separate overall cost-of-service by function of facility.
    (ii) Separate the transmission, storage and gathering facilities 
between incremental and non-incremental facilities. If the pipeline 
proposes to directly assign the costs of specific facilities, it must 
provide a separate cost-of-service for every directly assigned facility 
(e.g., lateral or storage field).
    (iii) For each zone, separately state transmission, storage, and 
gathering costs.
    (iv) Show the method used to allocate common and joint costs to 
various functions. Provide the factors underlying the allocation of 
general costs (e.g., miles of pipe, cost of plant, labor). Show the 
formulae used and explain the bases for the allocation of common and 
joint costs.
    (2) Schedule I-2. Classification of Costs-of-service.
    (i) For each functionalized cost-of-service provided in Schedule I-
1 (i), (ii), and (iii), show the classification of costs between fixed 
costs and variable costs and between reservation costs and usage costs. 
The classification must be for each element of the cost-of-service 
(e.g., depreciation expenses, state income taxes). For operation and 
maintenance expenses and general and administrative expenses, the 
classification must be provided by account and by total.
    (ii) Explain the basis for the classification of costs.
    (iii) Explain any difference between the method for classifying 
costs and the classification method underlying the pipeline's currently 
effective rates.
    (3) Schedule I-3. Allocation of Cost-of-service.
    (i) If the company provides gas sales and transportation as a 
bundled service, show the allocation of costs between direct sales or 
distribution sales and the other services. If the company provides 
unbundled transportation, show the allocation of costs between services 
with cost-of-service rates and services with market-based rates, 
including products extraction, sales, and company-owned production. If 
the cost-of-service is allocated among rate zones, show how the 
classified cost-of-service is allocated among rate zones by function. 
If the pipeline proposes to establish rate zones for the first time, or 
to change existing rate zone boundaries, explain how the rate zone 
boundaries are established.
    (ii) Show how the classified costs of service provided in Schedule 
I-2 or Schedule I-3 (i) are allocated among the pipeline's services and 
rate schedules.
    (iii) Provide the formulae used in the allocation of the cost-of-
service. Provide the factors underlying the allocation of the cost-of-
service (e.g., contract demand, annual billing determinants, three-day 
peak). Provide the load factor or other basis for any imputed demand 
quantities.
    (iv) Explain any changes in the basis for the allocation of the 
cost-of-service from the allocation methodologies underlying the 
currently effective rates.
    (4) Schedule I-4. Transmission and Compression of Gas by Others 
(Account No. 858). Provide the following information for each 
transaction for the base and adjustment period:
    (i) The name of the transporter.
    (ii) The name of the rate schedule under which service is provided, 
and the expiration date of the contract.
    (iii) Monthly usage volumes.
    (iv) Monthly revenues.
    (v) The monthly revenues for volumes flowing under released 
capacity. The revenues in Schedule I-4(iv) must also be reflected, 
separately, as a credit in Schedule G-5.
    (5) Schedule I-5. Three-day Peak Deliveries. Provide the following 
data for the three continuous days of maximum transmission system 
deliveries during the winter heating season within the 12 months of 
actual experience:
    (i) Deliveries by customer by rate schedule by zone;
    (ii) Deliveries to direct sale and distribution customers;
    (iii) Withdrawals from storage for contract storage customers;
    (iv) Withdrawals from storage for no-notice service;
    (v) Withdrawals from storage for system use including balancing;
    (vi) Fluctuations in line pack or gas stored in the pipeline;
    (vii) Dates and average temperatures;
    (viii) If three-day peak deliveries are used for allocation 
purposes, explain any adjustments to the actual three-day peak 
deliveries.
    (6) Schedule I-6. Gas Balance. Show by months and total, for the 12 
months of actual experience, the company's Gas Account, in the form 
required by FERC Form No. 2 pages 520 and 521. Show 
[[Page 3132]] corresponding estimated data, if claimed to be different 
from actual experience. Provide the basis for any variation between 
estimated and actual base period data.
    (p) Statement J. Comparison and Reconciliation of Estimated 
Operating Revenues With Cost-of-service. Compare the total revenues by 
rate schedule (Schedule G-2) to the allocated cost-of-service 
(Statement I). Identify any surcharges that are reflected in Statement 
G but not in Statement I.
    (1) Schedule J-1. Summary of Billing Determinants. Provide a 
summary of all billing determinants used to derive rates. Provide a 
reconciliation of customers' total billing determinants as shown on 
Schedule G-2 with those used to derive rates in Schedule J-2. Provide 
an explanation of how any discount adjustment is developed. If billing 
determinants are imputed for interruptible service, explain the method 
for calculating the billing determinants.
    (2) Schedule J-2. Derivation of Rates. Show the derivation of each 
rate component of each rate. For each rate component of each rate 
schedule, include:
    (i) A reference (by page, line, and column) to the allocated cost-
of-service in Statement I;
    (ii) A reference to the appropriate billing determinants in 
Schedule J-1.
    (iii) Explain any changes in the method used for the derivation of 
rates from the method used in developing the underlying rates.
    (q) Statement K. [Reserved]
    (r) Statement L. Balance Sheet. Provide a balance sheet in the form 
prescribed by the Commission's Uniform System of Accounts for Natural 
Gas Companies as of the beginning and end of the base period. Include 
any notes. If the natural gas company is a member of a group of 
companies, also provide a balance sheet on a consolidated basis.
    (s) Statement M. Income Statement. Provide an income statement, 
including a section on earnings, in the form prescribed by the 
Commission's Uniform System of Accounts for Natural Gas Companies for 
the base period. Include any notes. If the natural gas company is a 
member of a system group of companies, provide an income statement on a 
consolidated basis.
    (t) Statement N. [Reserved]
    (u) Statement O. Description of Company Operations. Provide a 
description of the company's service area and diversity of operations. 
Include the following:
    (1) Only if significant changes have occurred since the filing of 
the last FERC Form No. 2 or 2-A, provide a detailed system map.
    (2) A list of each major expansion and abandonment since the 
company's last general rate case. Provide brief descriptions, 
approximate dates of operation or retirement from service, and costs 
classified by functions.
    (3) A detailed description of how the company designs and operates 
its systems. Include design temperature.
    (v) Statement P. Explanatory Text and Prepared Testimony. Provide 
copies of prepared testimony indicating the line of proof which the 
company would offer for its case-in-chief in the event that the rates 
are suspended and the matter set for hearing. Name the sponsoring 
witness of all text and testimony. Statement P must be filed 
concurrently with the other schedules.


Sec. 154.314  Schedules for minor rate changes.

    (a) A change in a rate or charge that, for the test period, does 
not increase the company's revenues by the smaller of $1,000,000 or 5 
percent is a minor rate change. A change in a rate level that does not 
directly or indirectly result in an increased rate or charge to any 
customer or class of customers is a minor rate change.
    (b) In addition to the schedules in this section, filings for minor 
rate changes must include Statements L, M, O, P, I-1 through I-4, and J 
of Sec. 154.313.
    (c) The schedules of this section must contain the principal 
determinants essential to test the reasonableness of the proposed minor 
rate change. Any adjustments to book figures must be separately stated 
and the basis for the adjustment must be explained.
    (d) Schedules B-1, B-2, C, D, E, H, H-2, and H-4 of this section 
must be updated with actual data by month and must be resubmitted in 
the same format and with consecutive 12 month running totals, for each 
month of the adjustment period. The first updated statement or schedule 
must be submitted to the Commission one month after the filing date or 
one month after the quarter, whichever is later. Subsequent updated 
statements or schedules must be made, quarterly, one month after the 
end of the quarter being updated. The updated filings must reference 
the associated docket number.
    (e) Composition of schedules for a minor rate changes.
    (1) Schedule A. Overall Cost-of-service by Function. Summarize the 
overall cost-of-service (operation and maintenance expenses, 
depreciation, taxes, return, and credits to cost-of-service) developed 
from the supporting schedules below.
    (2) Schedule B. Overall Rate Base and Return. Summarize the overall 
gas utility rate base by function. Include the claimed rate of return 
and show the application of the claimed rate of return to the overall 
rate base.
    (3) Schedule B-1. Accumulated Deferred Income Taxes (Account Nos. 
190, 281, 282, and 283). Show monthly book balances of accumulated 
deferred income taxes for each of the 12 months during the base period. 
In adjoining columns, show additions and reductions for the adjustment 
period balance and the total adjusted balance.
    (4) Schedule B-2. Regulatory Asset and Liability. Show monthly book 
balances of regulatory asset (Account No. 182.3) and liability (Account 
No. 254) for each of the 12 months during the base period. In adjoining 
columns, show additions and reductions for the adjustment period 
balance and the total adjusted balance. Only include these accounts if 
recovery of these balances are reflected in the company's costs. 
Identify the specific Commission authority which required the 
establishment of these accounts.
    (5) Schedule C. Cost of Plant by Functional Classification as of 
the End of the Base and Adjustment Periods.
    (6) Schedule D. Accumulated Provisions for Depreciation, Depletion, 
Amortization, and Abandonment by Functional Classifications as of the 
Beginning and as of the End of the Test Period.
    (7) Schedule E. Working Capital. Show the various components 
provided for in Sec. 154.313, Statement E.
    (8) Schedule F. Show the rate of return claimed with a brief 
explanation of the basis.
    (9) Schedule G. (i) Show actual throughput and revenues for the 
base period at rates charged during that period classified in 
accordance with the Commission's Uniform System of Accounts and by 
jurisdictional rate schedule.
    (ii) Show total comparative operating revenues by month, by rate 
schedule, by customer, for the base period as adjusted for known and 
measurable changes which are expected to occur within the test period 
computed under the rates charged during the base period and computed 
under the rates expected to be charged. Provide projected throughput 
(i.e., usage or commodity quantities, unadjusted for discounting) and 
projected contract demand levels (unadjusted for discounting). Separate 
operating revenues from revenues received from penalties, surcharges or 
other sources (e.g., ACA, GRI, transition costs). Identify customers 
who are replacement shippers under capacity [[Page 3133]] release. 
Identify customers who are affiliates.
    (iii) Identify rate schedules under which costs are allocated and 
rate schedules under which revenues are credited for the test period 
with cross-references to the other filed statements and schedules.
    (10) Schedule H. Operation and Maintenance Expenses. Show the gas 
operation and maintenance expenses according to each applicable account 
of the Commission's Uniform System of Accounts for Natural Gas 
Companies. The expenses must be shown under appropriate columnar-
headings, by labor, materials and other charges, and purchased gas 
costs, with subtotals for each functional classification: Operation and 
maintenance expense by months, as booked, for the 12 months of actual 
experience, and the total thereof; adjustments, if any, to expenses as 
booked; and, total adjusted operation and maintenance expenses claimed. 
Explain all adjustments. Specify the month or months during which the 
adjustments would be applicable.
    (11) Schedule H-1. Workpapers for Expense Accounts. Furnish 
workpapers for the 12 months of actual experience and claimed 
adjustments and analytical details as set forth in Sec. 154.313, 
Schedule H-1(3).
    (12) Schedule H-2. Depreciation, Depletion, Amortization and 
Negative Salvage Expenses. Show, separately, the gas plant 
depreciation, depletion, amortization and negative salvage expenses by 
functional classifications. For each functional plant classification, 
show depreciation reserve associated with offshore and onshore plant 
separately. The bases, methods, essential computations and derivation 
of unit rates for the calculation of depreciation, depletion, 
amortization and negative salvage expenses for actual experience must 
be explained.
    (13) Schedule H-3. Income Tax Allowances Computed on the Basis of 
the Rate of Return Claimed. Show the computation of allowances for 
Federal and State income taxes based on the claimed return applied to 
the overall gas utility rate base.
    (14) Schedule H-3(1). This schedule is part of the workpapers. Show 
the computation of an updated reconciliation between book depreciable 
plant and tax depreciable plant and accumulated provision for deferred 
income taxes, for the base period or latest calendar or fiscal year 
(depending on the company's reporting period).
    (15) Schedule H-4. Other Taxes. Show the gas utility taxes, other 
than Federal or state income taxes in separate columns, as follows: Tax 
expense per books for the 12 months of actual experience;) adjustments, 
if any, to amounts booked; and, the total adjusted taxes claimed. 
Provide the details of the kind and amount of taxes paid under protest 
or in connection with taxes under litigation. The taxes must be shown 
by states and by kind of taxes. Explain all adjustments.


Sec. 154.315  Other support for a filing.

    (a) Any company filing for a rate change is responsible for 
preparing prior to filing, and maintaining, workpapers sufficient to 
support the filing. In addition to the workpapers accompanying the 
filing, the following material, related to the test period, must be 
provided to the Commission on request:
    (1) Copies of monthly financial reports prepared for management 
purposes.
    (2) Copies of accounting analyses of balance sheet accounts.
    (3) Complete trial balances of all the balance sheet accounts, and 
revenue and expense accounts for each month of actual experience used 
for the base period with updates for the subsequent months of the 
adjustment period.
    (4) Analyses of the miscellaneous revenues (Account No. 495) and 
related expenses included in the submitted cost-of-service.
    (5) Copies of all Office of the Chief Accountant orders, 
instructions, letters, findings, and settlements since the pipeline's 
last rate change.
    (b) If the natural gas company has relied upon data other than 
those in Statements A through P in Sec. 154.313 in support of its 
general rate change, such other data must be identified and submitted.

Subpart E--Limited Rate Changes


Sec. 154.400  Additional requirements.

    In addition to the requirements of subparts A, B, and C of this 
part, any proposal to implement a limited rate change must comply with 
this subpart.


Sec. 154.401  RD&D expenditures.

    (a) Requirements. Upon approval by the Commission, a natural gas 
company may file to recover research, development, and demonstration 
(RD&D) expenditures in its rates under this subpart.
    (b) Applications for Rate Treatment Approval. (1) An application 
for advance approval of rate treatment may be filed by a natural gas 
company for RD&D expenditures related to a project or group of projects 
undertaken by the company or as part of a project undertaken by others. 
When more than one company supports an RD&D organization, the RD&D 
organization may submit an application that covers the organization's 
RD&D program. Approval by the Commission of such an RD&D application 
and program will constitute approval of the individual companies' 
contributions to the RD&D organization.
    (2) An application for advance approval of rate treatment must 
include a 5-year program plan and must be filed at least 180 days prior 
to the commencement of the 5-year period of the plan.
    (3) A 5-year program plan must include at a minimum:
    (i) A statement of the objectives for the 5-year period that 
relates the objectives to the interests of ratepayers, the public, and 
the industry and to the objectives of other major research 
organizations.
    (ii) Budget, technical, and schedule information in sufficient 
detail to explain the work to be performed and allow an assessment of 
the probability of success and a comparison with other organizations' 
research plans.
    (iii) The commencement date, expected termination date, and 
expected annual costs for individual RD&D projects to be initiated 
during the first year of the plan.
    (iv) A discussion of the RD&D efforts and progress since the 
preparation of the program plan submitted the previous year and an 
explanation of any changes that have been made in objectives, 
priorities, or budgets since the plan of the previous year.
    (v) A statement identifying all jurisdictional natural gas 
companies that will support the program and specifying the amounts of 
their budgeted support.
    (vi) A statement identifying those persons involved in the 
development, review, and approval of the plan and specifying the amount 
of effort contributed and the degree of control exercised by each.
    (c) Applications must describe the RD&D projects in such detail as 
to satisfy the Commission that the RD&D expenditures qualify as valid, 
justifiable, and reasonable.
    (d) Within 120 days of the filing of an application for rate 
treatment approval and a 5-year program plan, the Commission will state 
its decision with respect to acceptance, partial acceptance, or 
rejection of the plan, or, when the complexity of issues in the plan so 
requires, will set a date certain by which a final decision will be 
made, or will order the matter set for hearing. Partial rejection of a 
plan by the Commission will be accompanied by a [[Page 3134]] decision 
as to the partial level of acceptance which will be proportionally 
applied to all contributions listed for jurisdictional companies in the 
plan. Approval by the Commission of a 5-year plan constitutes approval 
for rate treatment of all projects identified as starting during the 
first year of the approved plan. Continued rate treatment will depend 
upon review and evaluation of subsequent annual applications and 5-year 
program plans.


Sec. 154.402  ACA expenditures.

    (a) Requirements. Upon approval by the Commission, a natural gas 
pipeline company may adjust its rates, annually, to recover from its 
customers annual charges assessed by the Commission under part 382 of 
this chapter pursuant to an annual charge adjustment clause (ACA 
clause). The ACA clause must be filed with the Commission and indicate 
the amount of annual charges to be flowed through per unit of energy 
sold or transported (ACA unit charge). The ACA unit charge will be 
specified by the Commission at the time the Commission calculates the 
annual charge bills. A company must reflect the ACA unit charge in each 
of its rate schedules applicable to sales or transportation deliveries. 
The company must apply the ACA unit charge to the usage component of 
rate schedules with two-part rates. A company may recover annual 
charges through an ACA unit charge only if its rates do not otherwise 
reflect the costs of annual charges assessed by the Commission under 
Sec. 382.106(a) of this chapter. The applicable annual charge, required 
by Sec. 382.103 of this chapter, must be paid before the company 
applies the ACA unit charge.
    (b) Application for Rate Treatment Approval. A company seeking 
authorization to use an ACA unit charge must file with the Commission a 
separate ACA tariff sheet containing:
    (1) A statement that the company is collecting an ACA per unit 
charge, as approved by the Commission, applicable to all the pipeline's 
sales and transportation schedules,
    (2) The per unit charge of the ACA,
    (3) The proposed effective date of the tariff change (30 days after 
the filing of the tariff sheet, unless a shorter period is specifically 
requested in a waiver petition and approved), and
    (4) A statement that the pipeline will not recover any annual 
charges recorded in FERC Account No. 928 in a proceeding under subpart 
D of this part.
    (c) Changes to the ACA unit charge must be filed annually, to 
reflect the annual charge unit rate authorized by the Commission each 
fiscal year.


Sec. 154.403  Periodic rate adjustments.

    (a) This section applies to the passthrough, on a periodic basis, 
of a single cost item or revenue item for which passthrough is not 
regulated under another section of this subpart, and to revisions on a 
periodic basis of a gas reimbursement percentage.
    (b) Where a pipeline recovers fuel use and unaccounted-for natural 
gas in kind, the fuel reimbursement percentage must be stated in the 
tariff either on the tariff sheet stating the currently effective rate 
or on a separate tariff sheet in such a way that it is clear what 
amount of natural gas must be tendered in kind for each service 
rendered.
    (c) A natural gas company that passes through a cost or revenue 
item or adjusts its fuel reimbursement percentage under this section, 
must state within the general terms and conditions of its tariff, the 
methodology and timing of any adjustments. The following must be 
included in the general terms and conditions:
    (1) A statement of the nature of the revenue or costs to be flowed 
through to the customer;
    (2) A statement of the manner in which the cost or revenue will be 
collected or returned, whether through a surcharge, offset, or 
otherwise;
    (3) A statement of which customers are recipients of the revenue 
credit and which rate schedules are subject to the cost or fuel 
reimbursement percentage;
    (4) A statement of the frequency of the adjustment and the dates on 
which the adjustment will become effective;
    (5) A step-by-step description of the manner in which the amount to 
be flowed through is calculated and a step-by-step description of the 
flowthrough mechanism, including how the costs are classified and 
allocated. Where the adjustment modifies a rate established under 
subpart D of this part, the methodology must be consistent with the 
methodology used in the proceeding under subpart D of this part;
    (6) Where costs or revenue credits are accumulated over a past 
period for periodic recovery or return, the past period must be defined 
and the mechanism for the recovery or return must be detailed on a 
step-by-step basis. Where the natural gas company proposes to use a 
surcharge to clear an account in which the difference between costs or 
revenues, recovered through rates, and actual costs and revenues 
accumulate, a statement must be included detailing, on a step-by-step 
basis, the mechanism for calculating the entries to the account and for 
passing through the account balance.
    (7) Where carrying charges are computed, the calculations must be 
consistent with the methodology and reporting requirements set forth in 
Sec. 154.501 using the carrying charge rate required by that section. A 
natural gas company must normalize all income tax timing differences 
which are the result of differences between the period in which expense 
or revenue enters into the determination of taxable income and the 
period in which the expense or revenue enters into the determination of 
pre-tax book income. Any balance upon which the natural gas company 
calculates carrying charges must be adjusted for any recorded deferred 
income taxes.
    (8) Where the natural gas company discounts the rate component 
calculated pursuant to this section, explain on a step by-step basis 
how the natural gas company will adjust for rate discounts in its 
methodology to reflect changes in costs under this section.
    (9) If the costs passed through under a mechanism approved under 
this section are billed by an upstream natural gas company, explain how 
refunds received from upstream natural gas companies will be passed 
through to the natural gas company's customers, including the 
allocation and classification of such refunds;
    (10) A step-by-step explanation of the methodology used to reflect 
changes in the fuel reimbursement percentage, including the allocation 
and classification of the fuel use and unaccounted for natural gas. 
Where the adjustment modifies a fuel reimbursement percentage 
established under subpart D of this part, the methodology must be 
consistent with the methodology used in the proceeding under subpart D 
of this part;
    (11) A statement of whether the difference between quantities 
actually used or lost and the quantities retained from the customers 
for fuel use and loss will be recovered or returned in a future 
surcharge. Include a step-by-step explanation of the methodology used 
to calculate such surcharge. Any period during which these differences 
accumulate must be defined;
    (d) Filing Requirements.
    (1) Filings under this section must include:
    (i) A summary statement showing the rate component added to each 
rate schedule with workpapers showing all mathematical calculations.
    (ii) If the filing establishes a new fuel reimbursement percentage 
or surcharge, include computations for each fuel reimbursement or 
surcharge calculated, broken out by service, classification, area, 
zone, or other subcategory.
    (iii) Workpapers showing the allocation of costs or revenue credits 
by [[Page 3135]] rate schedule and step-by-step computations supporting 
the allocation, segregated into reservation and usage amounts, where 
appropriate.
    (iv) Where the costs, revenues, rates, quantities, indices, load 
factors, percentages, or other numbers used in the calculations are 
publicly available, include references by source.
    (v) Where a rate or quantity underlying the costs or revenue 
credits is supported by publicly available data (such as another 
natural gas company's tariff or EBB), the source must be referenced to 
allow the Commission and interested parties to review the source. If 
the rate or quantity does not match the rate or quantity from the 
source referenced, provide step-by-step instructions to tie the rate in 
the referenced source to the rate in the filing.
    (vi) Where a number is derived from another number by applying a 
load factor, percentage, or other adjusting factor not referenced in 
paragraph (d)(1)(i) of this section, include workpapers and a narrative 
to explain the calculation of the adjusting factor.
    (2) If the natural gas company is adjusting its rates to reflect 
changes in transportation and compression costs paid to others:
    (i) The changes in transportation and compression costs must be 
based on the rate on file with the Commission. If the rate is not on 
file with the Commission or a discounted rate is paid, the rate 
reflected in the filing must be the rate the natural gas company is 
contractually obligated to pay;
    (ii) The filing must include appropriate credits for capacity 
released under Sec. 284.243 of this chapter with workpapers showing the 
quantity released, the revenues received from the release, the time 
period of the release, and the natural gas pipeline on which the 
release took place; and,
    (iii) The filing must include a statement of the refunds received 
from each upstream natural gas company which are included in the rate 
adjustment. The statement must conform to the requirements set forth in 
Sec. 154.501.
    (3) If the natural gas company is reflecting changes in its fuel 
reimbursement percentage, the filing must include:
    (i) A summary statement of actual gas inflows and outflows for each 
month used to calculate the fuel reimbursement percentage or surcharge. 
For purposes of establishing the surcharge, the summary statement must 
be included for each month of the period over which the differences 
defined in paragraph (c) of this section accumulate.
    (ii) Where the fuel reimbursement percentage is calculated based on 
estimated activity over a future period, the period must be defined and 
the estimates used in the calculation must be justified. If any of the 
estimates are publicly available, include a reference to the source.
    (4) The natural gas company must not recover costs and is not 
obligated to return revenues which are applicable to the period pre-
dating the effectiveness of the tariff language setting forth the 
periodic rate change mechanism, unless permitted or required to do so 
by the Commission.

Subpart F--Refunds and Reports


Sec. 154.501  Refunds.

    (a) Refund Obligation. (1) Any natural gas company that collects 
rates or charges pursuant to this chapter must refund that portion of 
any increased rates or charges either found by the Commission not to be 
justified, or approved for refund by the Commission as part of a 
settlement, together with interest as required in paragraph (d) of this 
section. The refund plus interest must be distributed as specified in 
the Commission order requiring or approving the refund, or if no date 
is specified, within 60 days of the order.
    (2) Any natural gas company must refund to its jurisdictional 
customers the jurisdictional portion of any refund it receives within 
30 days of receipt.
    (b) Costs of Refunding. Any natural gas company required to make 
refunds pursuant to this section must bear all costs of such refunding.
    (c) Supplier Refunds. The jurisdictional portion of supplier 
refunds (including interest received), applicable to periods in which a 
purchased gas adjustment clause was in effect, must be flowed through 
to the natural gas company's jurisdictional gas sales customers during 
that period with interest as computed in paragraph (d) of this section.
    (d) Interest on Refunds. Interest on the refund balance must be 
computed from the date of collection from the customer until the date 
refunds are made as follows:
    (1) At a rate of seven percent simple interest per annum on all 
excessive rates or charges held prior to October 10, 1974;
    (2) At a rate of nine percent simple interest per annum on all 
excessive rates or charges held between October 10, 1974 and September 
30, 1979; and
    (3)(i) At an average prime rate for each calendar quarter on all 
excessive rates or charges held (including all interest applicable to 
such rates and charges) on or after October 1, 1979. The applicable 
average prime rate for each calendar quarter must be the arithmetic 
mean, to the nearest one-hundredth of one percent, of the prime rate 
values published in the Federal Reserve Bulletin, or in the Federal 
Reserve's ``Selected Interest Rates'' (Statistical Release G, 13), for 
the fourth, third, and second months preceding the first month of the 
calendar quarter.
    (ii) The interest required to be paid under paragraph (d)(3)(i) of 
this section must be compounded quarterly.
    (4) The refund balance must be either:
    (i) The revenues resulting from the collection of the portion of 
any increased rates or charges found by the Commission not to be 
justified; or
    (ii) An amount agreed upon in a settlement approved by the 
Commission; or
    (iii) The jurisdictional portion of a refund the natural gas 
company receives.
    (e) Unless otherwise provided by the order, settlement or tariff 
provision requiring the refund, the natural gas company must file a 
report of refunds, within 30 days of the date the refund was made, 
which complies with Sec. 154.502 and includes the following:
    (1) Workpapers and a narrative sufficient to show how the refunds 
for jurisdictional services were calculated;
    (2) Workpapers and a narrative sufficient to determine the origin 
of the refund, including step-by-step calculations showing the 
derivation of the refund amount described in paragraphs (d)(4)(i) or 
(d)(4)(ii) of this section, if necessary;
    (3) References to any publicly available sources which confirm the 
rates, quantities, or costs, which are used to calculate the refund 
balance or which confirm the refund amount itself. If the rate, 
quantity, cost or refund does not directly tie to the source, a 
workpaper must be included to show the reconciliation between the rate, 
quantity, cost, or refund in the natural gas company's report and the 
corresponding rate, quantity, cost or refund in the source document;
    (4) Workpapers showing the calculation of interest on a monthly 
basis, including how the carrying charges were compounded quarterly;
    (5) Workpapers and a narrative explaining how the refund was 
allocated to each jurisdictional customer. Where the numbers used to 
support the allocation are publicly available, a reference to the 
source must be included. Where the allocation methodology has been 
approved [[Page 3136]] previously, a reference to the order or tariff 
provision approving the allocation methodology must be included.
    (6) A letter of transmittal containing:
    (i) A list of the material enclosed;
    (ii) The name and telephone number of a company official who can 
answer questions regarding the filing;
    (iii) A statement of the date the refund was disbursed;
    (iv) A reference to the authority by which the refund is made, 
including the specific subpart of these regulations, an order of the 
Commission, a provision of the company's tariff, or any other 
appropriate authority. If a Commission order is referenced, include the 
citation to the FERC Reports, the date of issuance, and the docket 
number;
    (v) Any requests for waiver. Requests must include a reference to 
the specific section of the statute, regulations, or the company's 
tariff from which waiver is sought, and a justification for the waiver.
    (7) A certification of service to all affected customers and 
interested state commissions.
    (f) Each report filed under paragraph (e) of this section must be 
posted no later than the date of filing.


Sec. 154.502  Reports.

    (a) When the natural gas company is required to make a report on a 
periodic basis, either by Commission order or as a part of a 
settlement, details about the nature and contents of the report must be 
provided in an appropriate section of the general terms and conditions 
of its tariff.
    (b) The details in the general terms and conditions of the tariff 
must include the frequency and timing of the report. Explain whether 
the report is filed annually, semi-annually, monthly, or is triggered 
by an event. If triggered by an event, explain how soon after the event 
the report must be filed. If the report is periodic, state the dates on 
which the report must be filed.
    (c) Each report must include:
    (1) A letter of transmittal containing:
    (i) A list of the material enclosed;
    (ii) The name and telephone number of a company official who can 
answer questions regarding the filing;
    (iii) A reference to the authority by which the report is made, 
including the specific subpart of these regulations, an order of the 
Commission, a provision of the company's tariff, or any other 
appropriate authority. If a Commission order is referenced, include the 
citation to the FERC Reports, the date of issuance, and the docket 
number;
    (iv) Any requests for waiver. Requests must include a reference to 
the specific section of the statute, regulations, or the company's 
tariff from which waiver is sought, and a justification for the waiver.
    (2) A certification of service to all affected customers and 
interested state commissions.
    (d) Each report filed under paragraph (b) of this section must be 
posted no later than the date of filing.

Subpart G--Other Tariff Changes


Sec. 154.600  Compliance with other subparts.

    Any proposal to implement a tariff change other than in rate level 
must comply with subparts A, B, and C of this part.


Sec. 154.601  Change in executed service agreement.

    Agreements intended to effect a change or revision of an executed 
service agreement on file with the Commission must be in the form of a 
superseding executed service agreement only. Service agreements may not 
contain any supplements, but may contain exhibits which may be 
separately superseded. The exhibits may show, among other things, 
contract demand delivery points, delivery pressures, names of 
industrial customers of the distributor-customer, or names of 
distributors (with one distributor named as agent where delivery to 
several distributors is effected at the same delivery points).


Sec. 154.602  Cancellation or termination of a tariff, executed service 
agreement or part thereof.

    When an effective tariff, contract, or part thereof on file with 
the Commission, is proposed to be canceled or is to terminate by its 
own terms and no new tariff, executed service agreement, or part 
thereof, is to be filed in its place, the natural gas company must 
notify the Commission of the proposed cancellation or termination on 
the form indicated in Sec. 250.2 or Sec. 250.3 of this chapter, 
whichever is applicable, at least 30 days prior to the proposed 
effective date of such cancellation or termination. With such notice, 
the company must submit a statement showing the reasons for the 
cancellation or termination, a list of the affected customers and the 
contract demand provided to the customers under the service to be 
canceled. A copy of the notice must be duly posted.


Sec. 154.603  Adoption of the tariff by a successor.

    Whenever the tariff or contracts of a natural gas company on file 
with the Commission are to be adopted by another company or person as a 
result of an acquisition, or merger, authorized by a certificate of 
public convenience and necessity, or for any other reason, the 
succeeding company must file with the Commission, and post within 30 
days after such succession, a certificate of adoption on the form 
prescribed in Sec. 250.4 of this chapter. Within 90 days after such 
notice is filed, the succeeding company must file a revised tariff with 
the sheets bearing the name of the successor company.

    Note: This Appendix will not appear in the Code of Federal 
Regulations.

Appendix

Natural Gas Pipeline Company Tariff Filings

Revised

Docket No. RM95-3-000

    This document replaces the Tariff Filing Record Formats issued 
August 31, 1989.

General Information

I. Purpose

    All companies which maintain a gas tariff with the Federal 
Energy Regulatory Commission (FERC) are required to submit, along 
with the paper copies, an electronic version of all tariff filings 
pursuant to section 385.2011 of the Commission's regulations. 
Companies are required to have an electronic version of their entire 
gas tariff (excluding Volume No. 2 contractual rate schedules) on 
file with FERC on or before June 1, 1995. This form does not modify 
the existing tariff sheet format required in section 154.102 or 
section 385.2003 for tariff sheets filed on paper. Nor does it 
modify the requirement in section 154.201(a) to file a marked paper 
version of the pages to be changed by showing additions and 
deletions using highlighting, background shading, bold text, or 
underlined text.

II. Who Must File

    All companies who are required to maintain a FERC Gas Tariff on 
file with the Commission.

III. What To Submit

    All proposed revisions to the FERC Gas Tariff will be submitted 
in conformance with this form. Such proposed revisions include, but 
are not limited to, rate changes pursuant to a section 4 filing or 
changes in service pursuant to a certificate issued as a result of a 
section 7 proceeding. Upon request of the Secretary of the 
Commission, companies must submit such additional supporting and 
clarifying data and information as may be specified.
    All data will be submitted on diskette(s), preferably 3.5'' High 
Density diskettes, and must conform to the specific instructions 
provided in Exhibit A. The diskette(s) must be accompanied by paper 
copies of the information submitted on the diskette. The paper 
copies must conform in all respects to the requirements of parts 154 
and 157 and will consist of the required number of copies of the 
transmittal letter, the tariff sheets, the certification of service, 
and a form of notice suitable for publication in the Federal 
Register. [[Page 3137]] 
    The letter of transmittal and the service list will be submitted 
on paper only. The letter of transmittal must include the 
subscription provided in section 385.2005(a). The subscription 
provided must state, in addition to the requirement in section 
385.2005(a), that the paper copies contain the same information as 
the diskette(s) and that the signer has read and knows the contents 
of the paper copies and that the contents as stated in the paper 
copies are true to the best knowledge and belief of the signer.
    Respondents claiming that information is privileged must file in 
accordance with section 385.1112; otherwise, all data submitted will 
be considered non-privileged and will be made available to the 
public upon request.

IV. When To Submit

    The tariff sheets should be filed with the Commission at the 
time the company proposes a change in service or rate. The notice 
period should be consistent with the Commission's regulations.

V. Where To Submit

    (1) Submit this report to: Office of the Secretary, Federal 
Energy Regulatory Commission, Room 3110, 825 N. Capitol Street, NE, 
Washington, DC 20426.
    (2) Hand deliveries may be made to the same address.

General Instructions

    (1) Schedule TF. Records TF01 through TF06 and the text line 
records are intended to capture all of the tariff elements which the 
pipeline has historically filed as part of its FERC Gas Tariff. 
Record TF01 identifies the company and the filing date. Record TF02 
captures information about the tariff volume; and Records TF03, 
TF04, TF05, and TF06 contain requisite marginal information for an 
individual tariff sheet. The actual tariff sheet text will follow 
Record TF06.
    Each tariff sheet should be identified by the nature of the 
sheet, and assigned the appropriate ``Text ID'' from among those 
listed in the layout for Record TF03. For example, a tariff sheet 
which includes the table of contents must be assigned Text ID = 
``1''. The text of a tariff sheet should include any footnotes 
applicable to the individual tariff sheet. When filing the tariff 
sheet on paper, footnotes should appear inside the ruled borders 
required by section 154.101.
    All of the marginal information required under 18 CFR 154.102(d) 
is to be included only in the tariff sheet header records. These 
header records will be utilized to print a hard copy with the 
appropriate marginal information.
    If a tariff sheet is filed to be read vertically in hard copy, 
this is referred to hereinafter as ``Portrait'' orientation. If the 
sheet will be read horizontally, the orientation is referred to as 
``Landscape''. The requirements of section 154.102(d) imply that the 
length of a line of actual text is 6.75 inches in Portrait 
orientation, and 10.0 inches in Landscape. The pitch, the number of 
print characters per horizontal inch (cpi); the number of lines per 
vertical inch (lpi); and the page orientation for printing the 
tariff sheet must be given in the first Tariff Sheet Header Record, 
(Record TF03). The number of characters per horizontal inch (cpi) 
must not exceed 17. The acceptable lines per vertical inch are 6 or 
8. The maximum line length and lines per page for Portrait and 
Landscape orientation are as follows:

----------------------------------------------------------------------------------------------------------------
                                                     Maximum line length (characters)         Maximum lines per 
                                               --------------------------------------------         page        
               Page orientation                                                            ---------------------
                                                  10cpi      12cpi      15cpi      17cpi       6lpi       8lpi  
----------------------------------------------------------------------------------------------------------------
Vertical (Portrait)...........................         65         79         98        112         50         70
Horizontal (Landscape)........................         98        118        148        168         31         44
----------------------------------------------------------------------------------------------------------------

    (2) Record Types. Records must be filed in the following order:
    Company Header Record (TF01): One record per dataset.
    Volume Header Record (TF02): One record per volume. All pages 
for the same volume will be grouped together. If more than one 
dataset is required for the filing of a volume, this record must 
appear in each dataset. Note: When more than one dataset is needed 
to accommodate a filing, name the datasets in accordance with the 
instructions in Exhibit A.

    Note: The appropriate tariff sheet header records must precede 
each tariff sheet!

    Sheet Header Record (TF03): One record per sheet.
    Superseded Sheet Header Record (TF04): This record pertains to 
the superseded sheet information. One record per sheet unless there 
is no superseded sheet (e.g., Original and Substitute Original 
sheets). In that case, this record may be omitted.
    Issuing Officer Header Record (TF05): One record per filing, 
unless the filing contains sheets that reference more than one 
issuing officer or the tariff sheets are submitted in more than one 
dataset. Optionally, this record may precede every tariff sheet 
filed.
    Date and Docket Header Record (TF06): One record per filing, 
unless the effective date or other information in this record 
changes from sheet to sheet or the tariff sheets are submitted in 
more than one dataset. Optionally, this record may precede every 
tariff sheet filed.
    Text Line Records: The actual tariff sheet text. Note: any 
special codes placed in the text (such as bold, italic, underline, 
etc.) are removed when converting to ASCII format.
    (3) Numeric Fields. All numeric fields in Records TF01 through 
TF06 must not be left blank, and must be right justified unless 
indicated otherwise. The following conventions should be followed in 
preparing each header record in the filing:
    (A) If a numeric data item is not applicable to the respondent, 
enter the numeric value ``0'' in the field provided for this data 
item.
    (B) Do not include commas in reporting any numeric value.
    (C) Report all dates as six digit numerics (month, day, year, 
MMDDYY).
    (4) Pipeline Company ID. Use the code for the pipeline as 
contained in the Buyer Seller Code List, U.S. Department of Energy's 
publication DOE/EIA-0176. A code may be obtained by calling EIA at 
(202) 586-8841.
    (5) Record Lengths. Do not pad the end of data records with 
blanks.

Specific Instructions

    (1) Effective Date. The date, given as month, day, and year, on 
which the respondent expects the filing to be put into effect 
subject to the concurrence of the Commission.
    (2) Tariff Volume Number. The number of the volume to which the 
tariff sheets belong. For example, if the volume is labeled ``First 
Revised Volume No. 1'', report a ``1'' in this field.
    (3) Tariff Volume Revision Number. Report the number of the 
revision. For example, if the tariff volume is labelled ``Second 
Revised Volume No. 1'', report a ``2'' in this field. If the tariff 
volume is an original volume, report a zero in this field.
    (4) Tariff Volume ID. Report the full tariff volume name in this 
field. For example, if the volume is labelled ``First Revised Volume 
No. 1'', report ``First Revised Volume No. 1'' in this field.
    (5) Sheet Number. Report the number of the tariff sheet being 
filed. For example, if the sheet is numbered ``First Revised Sheet 
No. 3 superseding Original Sheet No. 3'', report a ``3'' in this 
field.
    (6) Sheet Revision Number. Report the number of the revision. 
For example, if the tariff sheet is numbered ``Second Substitute 
Third Revised Sheet No. 4 superseding Second Revised Sheet No. 4'', 
report a ``3'' in this field. If this is an original tariff sheet, 
report a ``0'' in this field.
    (7) Sheet ID. Report the full designation for the tariff sheet 
being reported. For example, if the sheet is designated ``First 
Revised Sheet No. 3 superseding Original Sheet No. 3'', report 
``First Revised Sheet No. 3'' in this field. If the Sheet ID exceeds 
the allowed 40 character positions for this item, use the 
``Abbreviation Conventions List'' at Exhibit C.
    (8) Superseded Sheet ID. Report the full designation for the 
tariff sheet being superseded. For example, if the tariff sheet 
being filed is designated ``First Revised Sheet No. 3 superseding 
Original Sheet No. 3'', report ``Original Sheet No. 3'' in this 
field. If the Superseded Sheet ID exceeds the allowed 40 character 
positions for this item, use the [[Page 3138]] ``Abbreviation 
Conventions List'' at Exhibit C.
    (9) First Superseded Sheet Number. When a single sheet 
supersedes a range of sheets (such as canceling a rate schedule or 
reserving sheets for future use), report the number of the first 
sheet in the range. Otherwise this field may be left blank.
    (10) Last Superseded Sheet Number. When a single sheet 
supersedes a range of sheets (such as canceling a rate schedule or 
reserving sheets for future use), report the number of the last 
sheet in the range. Otherwise this field may be left blank.
    (11) Alternate Sheet ID. When filing primary and alternative 
tariff sheets, the sheets are uniquely identified by reporting 
``00'' in this field for the primary sheet, ``01'' for the first 
alternate, ``02'' for the second alternate, and so on.
    (12) Issuing Officer. Report the name and title of the person 
authorized to issue the tariff sheet.
    (13) Issue Date. The date given as month, day, and year when the 
tariff sheet is issued.
    (14) Order Reference. For tariff sheets which are filed to make 
rate schedules or provisions ordered by the Commission effective, 
report the Docket Number and the date of such order. (If more than 
one docket applies, report the lead docket relating to the filing 
company in the proceeding.)

                                   Electronic Tariff File Layout--Schedule TF                                   
----------------------------------------------------------------------------------------------------------------
                                     Character                                                                  
               Item                  Position        Data Type                        Comments                  
----------------------------------------------------------------------------------------------------------------
                                            (1) Company Header Record                                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................      1-2     Character.........  Sch = TF.                                   
Record ID.........................      3-4     Numeric...........  Code = 01.                                  
Company ID........................     5-10     Numeric...........  Company code from buyer/seller code list,   
                                                                     see general instruction 4.                 
Date Submitted....................    11-16     Numeric...........  Month, day and year report is filed         
                                                                     (mmddyy).                                  
Company Name......................    17-65     Character.........  Name of filing company.                     
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                             (2) Volume Header Record                                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................      1-2     Character.........  Sch = TF.                                   
Record ID.........................      3-4     Numeric...........  Code = 02.                                  
Tariff Volume Number..............      5-8     Character.........  See specific instruction 2.                 
Tariff Volume Revision Number.....     9-11     Numeric...........  See specific instruction 3.                 
Tariff Volume ID..................    12-51     Character.........  See specific instruction 4.                 
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                             (3) Sheet Header Record                                            
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................      1-2     Character.........  Sch = TF.                                   
Record ID.........................      3-4     Numeric...........  Code = 03.                                  
Sheet Number......................     5-12     Character.........  See specific instruction 5.                 
Sheet Revision Number.............    13-15     Numeric...........  See specific instruction 6.                 
Alternate Sheet ID................    16-17     Numeric...........  See specific instruction 11.                
Text ID...........................    18-19     Numeric...........  0 = Title Page.                             
                                                ..................  1 = Table of Contents.                      
                                                ..................  2 = Preliminary Statement.                  
                                                ..................  3 = Rate Sheets.                            
                                                ..................  4 = Rate Schedule Text.                     
                                                ..................  5 = General Terms and Conditions.           
                                                ..................  6 = Form of Service Agreements.             
                                                ..................  7 = Index of Customers.                     
                                                ..................  8 = Other Indices.                          
                                                ..................  9 = Other Tariff Sheets.                    
                                                ..................  10 = Sheets Reserved for Future Use.        
Orientation.......................       20     Character.........  P = Portrait.                               
                                                                    L = Landscape.                              
Pitch.............................    21-22     Numeric...........  Characters per Horizontal Inch = 10, 12, 15,
                                                                     or 17.                                     
Lines Per Inch....................       23     Numeric...........  Lines per Vertical Inch = 6 or 8.           
Sheet ID..........................    24-63     Character.........  See specific instruction 7.                 
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                        (4) Superseded Sheet Header Record                                      
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................      1-2     Character.........  Sch = TF.                                   
Record ID.........................      3-4     Numeric...........  Code = 04.                                  
First Superseded Sheet Number.....     5-12     Character.........  See specific instruction 9.                 
Last Superseded Sheet Number......    13-20     Character.........  See specific instruction 10.                
Superseded Sheet ID...............    21-60     Character.........  See specific instruction 8.                 
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                         (5) Issuing Officer Header Record                                      
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................      1-2     Character.........  Sch = TF.                                   
Record ID.........................      3-4     Numeric...........  Code = 05.                                  
Issued By.........................     5-58     Character.........  Name and title of issuing official; see     
                                                                     specific instruction 12.                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
[[Page 3139]]                                                                                                   
                                                                                                                
                                        (6) Date and Docket Header Record                                       
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Schedule ID.......................      1-2     Character.........  Sch = TF.                                   
Record ID.........................      3-4     Numeric...........  Code = 06.                                  
Date Issued.......................     5-10     Numeric...........  (mmddyy); see specific instruction 13.      
Order Date........................    11-16     Numeric...........  (mmddyy); see specific instruction 14.      
Docket Number.....................    17-36     Character.........  See specific instruction 14.                
Effective Date....................    37-42     Numeric...........  (mmddyy); see specific instruction 1.       
----------------------------------------------------------------------------------------------------------------

    (7) Sheet Text Line Records.
    Each entire record consists of the text of the corresponding 
line of the tariff sheet, without prefix of any kind.

Exhibit A--Diskette Filing Procedures

    Diskette(s) containing the information specified for each record 
ID of the tariff filing filed with the Commission must conform with 
the following requirements:
    (1) The character code for representing all data should be the 
American National Standard Code for Information Interchange (ASCII) 
as defined in FIPS PUB 1-2. An exception will be made for the cents 
( cents) symbol, which should be coded as hexadecimal 8B, or decimal 
155, as defined in the IBM-US (PC-8) symbol set. Note that there are 
symbol sets which define it differently.
    (2) The definitions, instructions, and schedule ID/record ID 
data layouts for this form specify explicitly the data items to be 
reported and the sequence for recording the information on the 
diskette(s). The information required for a tariff filing should be 
recorded on the diskette(s) exactly as specified in the data layout 
for each schedule/record and in accordance with the general 
instructions.
    (3) All tariff sheets filed under a given docket number should 
all be included in the same ``file'' or data set, if possible. 
(Large files may be split as a matter of convenience or diskette 
size limitation). The file should be named: ``TFMMDDYY.ASC'' where 
``TF'' stands for ``Tariff Filing'', and ``MMDDYY'' is the two digit 
month, day, and year the tariff filing is submitted. If more than 
one tariff filing is made on the same day, the subsequent filings 
should be given file names ``TFMMDDYY.BSC'', ``TFMMDDYY.CSC'', etc., 
where ``BSC'' indicates the second filing of the day, ``CSC'' the 
third filing, etc. The file name for each submission should be 
included in the transmittal letter accompanying the respondent's 
filing.
    (4) Each logical record must be terminated by a CR (ASCII 
carriage return--13 decimal, OD hexadecimal). An ASCII line feed 
(LF) following a CR is accepted but not required as part of 
termination. Do Not pad the end of data records with spaces.
    (5) Do not omit any numeric item. Numeric items do not require 
leading zeros unless specifically noted in the description of the 
data item. See the General Instructions of this form for detailed 
instructions for recording numeric data on the diskette(s).
    (6) When refiling a diskette only to correct an electronic data 
error on the electronic version of a tariff sheet and not in the 
paper version, use the same file name, pagination and submittal 
date.
    (7) Each diskette must state on the label that tariff sheets are 
enclosed. If more than one diskette is necessary to accommodate a 
filing, the diskettes should be numbered 1 of N, 2 of N, etc., where 
N is the total number of diskettes.

Exhibit B--Tariff Sheet Pagination Guidelines

    Section 154.102(d)(2) of the Commission's regulations requires 
companies to number their tariff sheets as provided below.
    (1) Original Sheets. Paginate a sheet as ``Original Sheet No. 
______'' when the sheet number has not been used previously in the 
tariff volume. When filing an entire original or revised tariff 
volume, all sheets should be paginated as ``Original Sheet No. 
______'' unless the sheet falls within the exception under Guideline 
(11).
    (2) Revised Sheets. Designate a sheet as ``Revised'' if it is 
(a) filed in a different proceeding than the sheet it is superseding 
or (b) filed in the same proceeding but given a new proposed 
effective date. Each subsequent ``Revised'' pagination should be 
numbered sequentially. (See Examples 1 and 2.)
    (3) Substitute Sheets. Designate a sheet as ``Substitute ______ 
Revised Sheet No. ______'' if it is filed to replace a sheet filed 
in the same proceeding with the same effective date. If a substitute 
sheet needs to be replaced, paginate the new sheet as ``Second 
Substitute,'' and so on. (See Example 1.)
    (4) Superseded Sheets. Designate as the superseded sheet the 
most recent sheet filed in a different proceeding effective or 
proposed to be effective on the same day or on a day prior to the 
new sheet. This means when filing a substitute sheet the designated 
superseded sheet stays the same. Provided that the sheet does not 
fall under the exception in guideline (9). Never designate a 
rejected or suspended sheet as the superseded sheet. However, if a 
sheet designated as superseded is subsequently rejected, it is not 
necessary to refile solely to correct the superseded sheet 
designation. (See Example 1.)
    (5) Rejected Sheets. If a sheet is rejected by order of the 
Commission, do not reuse the pagination of the rejected sheets. 
Designate a sheet ``Substitute'' if it is filed to replace a 
rejected sheet in the same proceeding, but do not designate a 
rejected sheet as the superseded sheet. Refer to Guidelines (3) and 
(4).
    (6) Alternate Sheets. When filing two versions of a proposed 
tariff sheet, designate the sheets ``______ Revised Sheet No. 
______'' and ``Alternate ______ Revised Sheet No. ______.'' Paginate 
a replacement alternate sheet ``Sub Alternate.''
    (7) Inserted Sheets. Designate sheets inserted between two 
consecutively numbered sheets using an uppercase letter following 
the first sheet number (e.g., sheets inserted between sheets 8 and 9 
would be 8A, 8B, etc.). For sheets inserted between two 
consecutively lettered sheets, add a ``.'' followed by a two digit 
number (e.g., sheets inserted between sheets 8A and 8B would be 
8A.01 through 8A.99). For further insertions, add a lowercase letter 
(e.g., between sheets 8A.01 and 8A.02 would be 8A.01a, 8A.01b, 
etc.).
    (8) Pre-dated Sheets. When a sheet is filed with a proposed 
effective date which pre-dates the effective date of a suspended or 
effective sheet with the same number filed in a different 
proceeding, designate the new sheet ``______ Rev ______ Revised 
Sheet No. ______'' where the second and third blanks are numbered 
the same as the sheet with the later effective date and the first 
blank contains ``1st,'' ``2nd,'' etc. Commonly, this situation 
occurs when a sheet is suspended for five months and subsequent 
sheets need to be made effective prior to the date the suspended 
sheet becomes effective. (See Example 3.) Note: When using the ``1st 
Rev'' pagination, drop extraneous words if the superseded sheet 
provides the same information. (See Example 4.)
    (9) Retroactive Sheets. When filing a retroactive change back to 
a certain date, all sheets which are or were in effect from that 
date forward need to be changed. The first sheet should be 
designated either as ``Substitute'' in accordance with Guideline (3) 
above or ``______ Rev'' in accordance with Guideline (8), depending 
on whether the retroactive filing is in the same docket as or a 
different docket from the sheet being replaced. The rest of the 
sheets should be designated as a ``Substitute'' of each sheet 
already on file. For the first new sheet in the series of sheets, 
the superseded sheet shall be designated in accordance with 
Guideline (4) above. However, the remainder of the sheets in the 
series should supersede each other in order, even though they are 
all filed in the same docket. In this way, the ``superseded'' 
designation will reflect the last sheet in effect on each given 
effective date. (See Examples 5 and 6.)
    (10) Canceled Sheets. When filing to cancel a rate schedule, 
file one sheet with a new [[Page 3140]] revision number and the 
sheet number of the first canceled sheet. Designate as superseded 
``Sheet Nos. ______-______'' where the blanks refer to the first and 
last canceled sheet numbers in a series. The specific pagination of 
each individual canceled sheet should be included in the body of the 
tariff sheet. When using the formerly canceled sheet numbers, refer 
to the pagination of the sheets listed in the body of the canceling 
sheet, and paginate each sheet with the next higher revision number. 
See Example 8.
    (11) Sheets Reserved For Future Use. When reserving a number of 
sheets for future use, file one sheet paginated ``Sheet Nos. ______-
______'', where the blanks refer to the first and last reserved 
sheet numbers in series. In the body of the sheet state ``Reserved 
for Future Use.'' (See Example 9.) Note: in the electronic tariff 
sheet records, report the first sheet number in the series in the 
``Sheet No.'' field and the full pagination in the ``Sheet ID'' 
field.
    (12) Abbreviations. Pagination cannot exceed 40 characters. 
Abbreviate from left to right using the Abbreviation Conventions 
List in Exhibit C. Abbreviate only as needed to reduce the 
pagination to 40 characters or less. (See Example 7.) Electronic and 
paper versions of a tariff sheet must be paginated exactly alike, 
including abbreviations.

Example 1

    ``Original Sheet No. 4'' is filed in Docket No. CP94-44-000 to 
be effective January 1, 1994. Subsequently, a sheet filed in Docket 
RP94-1-000 is to be effective February 1, 1994. Paginate that sheet 
``First Revised Sheet No. 4 superseding Original Sheet No. 4.'' A 
mistake is discovered and a corrected sheet needs to be filed in 
Docket No. RP94-1-001. Paginate that sheet ``Substitute First 
Revised Sheet No. 4 superseding Original Sheet No. 4.'' Note the 
superseded sheet is from the prior proceeding.

----------------------------------------------------------------------------------------------------------------
              Docket                   Filed      Effective              Pagination             Superseded sheet
----------------------------------------------------------------------------------------------------------------
CP94-44-000.......................     11/30/93       1/1/94  Original........................                  
RP94-1-000........................     12/31/93       2/1/94  First Revised...................  Original.       
RP94-1-001........................      2/15/94       2/1/94  Sub First Revised...............  Original.       
----------------------------------------------------------------------------------------------------------------

Example 2

    ``Second Revised Sheet No. 4'' is filed in Docket No. TM94-1-77-
000 to be effective April 1, 1994. Subsequently, a sheet is filed in 
Docket No. RS94-1-50-000 to be effective on the same date. Paginate 
that sheet with the next revision number, ``Third Revised Sheet No. 
4'' even though it is to be effective on the same date.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Docket                               Filed      Effective              Pagination                     Superseded sheet        
--------------------------------------------------------------------------------------------------------------------------------------------------------
TM94-1-77-000.............................................      2/28/94       4/1/94  Second Revised..................  Sub First Revised.              
RS94-1-50-000.............................................      3/31/94       4/1/94  Third Revised...................  Second Revised.                 
--------------------------------------------------------------------------------------------------------------------------------------------------------

Example No. 3

    ``Fourth Revised Sheet No. 4'' is filed July 31, 1994, in Docket 
No. RP94-134-000 to be effective September 1, 1994. An order 
suspends this sheet until February 1, 1995. Subsequently two filings 
are to be made effective prior to February 1, 1995. Paginate these 
sheets as ``1st Rev Third Revised Sheet No. 4'' and ``2nd Rev Third 
Revised Sheet No. 4.'' When filing to move the suspended tariff 
sheet into effect, paginate the revised tariff sheet as ``Sub Fourth 
Revised Sheet No. 4''. Note: using the alpha-numeric ``1st, 2nd'' 
for the additional revision number assists in keeping the pagination 
clear.

----------------------------------------------------------------------------------------------------------------
            Docket                 Filed      Effective              Pagination               Superseded sheet  
----------------------------------------------------------------------------------------------------------------
RP94-134-000..................      7/31/94       2/1/95  Fourth Revised..................  Third Revised.      
TM94-2-77-000.................      8/31/94      10/1/94  1st Rev Third Revised...........  Third Revised.      
TM94-3-77-000.................     10/31/94      11/1/94  2nd Rev Third...................  1st Rev Third.      
RP94-134-001..................      1/31/95       2/1/95  Sub Fourth Revised..............  2nd Rev Third.      
----------------------------------------------------------------------------------------------------------------

Example 4

    When needing to insert a sheet between ``Third Revised'' and 
``Sub Alt Second Revised'' with the designation 1st Rev Sub Alt 
Second Revised, paginate the new sheet ``1st Rev Second Revised'' 
(dropping ``Sub Alt'' from the name), and designate the superseded 
sheet ``Sub Alt Second Revised.'' In the alternative, the 
abbreviations in Exhibit C may be used.

Example No. 5

    The sheet given in Example No. 1, ``Sub First Revised Sheet No. 
4'' filed in Docket No. RP94-1-001 is in effect February 1, 1994, 
subject to the resolution of issues. A year later, settlement is 
reached resulting in a restatement of base rates back to that date. 
The revised sheets filed under Docket No. RP94-1-002 (using prior 
examples):

----------------------------------------------------------------------------------------------------------------
          Docket               Filed      Effective                Pagination                 Superseded sheet  
----------------------------------------------------------------------------------------------------------------
RP94-1-002................      4/15/95       2/1/94  2nd Sub First Revised...............  Original.           
                                              4/1/94  Sub Second Revised..................  2nd Sub First.      
                                              4/1/94  Sub Third Revised...................  Sub Second.         
                                             10/1/94  Sub 1st Rev Third Revised...........  Sub Third.          
                                             11/1/94  Sub 2nd Rev Third...................  1st Rev Third.      
                                              2/1/95  2nd Sub Fourth Revised..............  2nd Rev Third.      
----------------------------------------------------------------------------------------------------------------

[[Page 3141]] Example No. 6

    Continuing from Example 5, a subsequent tracker filing 
retroactive to November 1, 1994:

----------------------------------------------------------------------------------------------------------------
       Docket            Filed      Effective                Pagination                    Superseded sheet     
----------------------------------------------------------------------------------------------------------------
TM96-1-77-000.......      4/30/95      11/1/94  3rd Rev Third Revised...............  Sub 2nd Rev Third.        
                                        2/1/95  3rd Sub Fourth Revised..............  3rd Rev Third.            
----------------------------------------------------------------------------------------------------------------

Example No. 7

    Abbreviate ``Fourth Revised Twenty-Third Revised Sheet No. 4'' 
as ``4th Rev Twenty-Third Revised Sheet No. 4.''

Example No. 8

    To cancel Rate Schedule X-26 which consists of Original Sheet 
No. 10, First Revised Sheet Nos. 11 through 36, Substitute First 
Revised Sheet No. 37, and Second Revised Sheet Nos. 38 and 39, file 
``First Revised Sheet No. 10:''

My Pipeline Company
FERC Gas Tariff
Original Volume No. 1
First Revised Sheet No. 10 Superseding
Sheet Nos. 10 Through 39

Notice of Cancellation

Rate Schedule X-26
Exchange Agreement with YOUR Pipeline Company
Dated January 1, 1980

    The following tariff sheets have been superseded:

Original Sheet No. 10
First Revised Sheet Nos. 11 through 36
Substitute First Revised Sheet No. 37
Second Revised Sheet Nos. 38 and 39

Example No. 9

    Your general terms and conditions end on page 75 and you want to 
reserve sheets 76 through 99 for future use:

My Pipeline Company
FERC Gas Tariff
Original Volume No. 1
Sheet Nos. 76 through 99

    Sheet Nos. 76 through 99 are reserved for future use.

Exhibit C--Abbreviation Conventions List

Substitute: Sub
Alternate: Alt
Revised: /
First, Second, etc.: 1st, 2nd, etc.
Sheet No.: (omit these words)

[FR Doc. 95-654 Filed 1-12-95; 8:45 am]
BILLING CODE 6717-01-P