[Federal Register Volume 66, Number 6 (Tuesday, January 9, 2001)]
[Notices]
[Pages 1656-1657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-530]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP01-198-000]


Florida Gas Transmission Company; Notice of Filing of Report of 
Cash-Out Activity

January 3, 2001.
    Take notice that on December 22, 2000 Florida Gas Transmission 
Company (FGT) tendered for filing schedules detailing certain 
information related to the Cash-Out mechanism from October 1, 1999 
through September 30, 2000. No tariff changes are proposed therein.
    FGT states that it has experienced a revenue deficiency of $882,959 
in the current Settlement Period. A total of $515,000 of this 
deficiency is related to the Cash-Out Mechanism. As shown on Schedule 
A, page 2 of 3, lines 1-14, even though the price paid by FGT was less 
than the price received by FGT for each month in the Settlement Period, 
the weighted average price paid by FGT for the Settlement Period was 
$3.1184 while the weighted average price received by FGT was $2.8874. 
This was a result of shippers generally overburning during periods of 
lower prices, thus using FGT as a source of supply, and underburning 
during periods of higher prices, when FGT's cash out indices made FGT a 
relatively attractive market for gas.
    Also, FGT states that the revenue deficiency attributable to the 
Cash-Out Mechanism, there is a revenue deficiency of $367,959 
associated with the Fuel Resolution Mechanism as shown on Schedule A, 
page 1, lines 7-12. FGT believes this deficiency is primarily 
attributable to a $1.47 negative differential in the weighted average 
prices used in the deferred fuel account balances ($3.903/MMBtu paid 
for over retained fuel versus $2.437/MMBtu received for under retained 
fuel, as detailed on Schedule A, page 2 of 3,

[[Page 1657]]

lines 15 through 28). FGT does not believe this deficiency can be 
ascribed to any ``gaming'' behavior on the part of shippers, but is 
instead reflective of the relationship between gas price levels and 
throughput (and the resulting fuel use) on FGT's system. FGT's fuel 
reimbursement percentage is based on average fuel usage during prior 
seasonal periods. Therefore, during periods of relatively high gas 
prices, the reduced throughput and fuel usage may result in an over 
recovery of fuel by FGT, which is then valued at the high gas price 
which led to the reduced throughput and over recovery of fuel. 
Conversely, low gas prices encourage high throughput and fuel 
consumption, resulting in under recovered fuel, which is valued at the 
low gas prices at least partially responsible for increased throughput 
and under recovery of fuel. FGT believes the significant under recovery 
of fuel during the production months of December 1999 and January 2000 
is attributable to higher than projected throughput as a result of low 
gas prices relative to alternate fuels. The negative impact of this 
phenomenon in the annual true-up system balancing costs is directly 
offset, however, in the calculation of the unit fuel surcharges through 
which shippers pay lower prices for undercollections by FGT and receive 
higher prices for overcollections. FGT has discussed this phenomenon 
with shippers at previous Operating Committee meetings and believe 
further discussions are warranted in light of the current data.
    After further analysis by FGT and further discussions with its 
shippers of the issues reflected in the results of this Settlement 
Period, FGT may propose prospective tariff changes at a future time.
    Copied of this filing are on file with the Commission and are 
available for public inspections.
    Any person desiring to protest said filing should file a protest 
with the Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, in accordance with section 385.211 of the 
Commission's Rules and Regulations. All such protests must be filed in 
accordance with section 154.210 of the Commission's Regulations. 
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 proceedings. Copies of this filing are on file with the 
Commission and are available for public inspection in the Public 
Reference Room. This filing may be viewed on the web at http://www.ferc.fed.us/online/rims.htm (call 202-208-2222) for assistance). 
Comments and protests may be filed electronically via the internet in 
lieu of paper. See, 18 CFR 385.2001(a)(1)(iii) and the instructions on 
the Commission's web site at http://www.ferc.fed.us/efi/doorbell.htm.

David P. Boergers,
Secretary.
[FR Doc. 01-530 Filed 1-8-01; 8:45 am]
BILLING CODE 6717-01-M