Opinion ID: 394102
Heading Depth: 2
Heading Rank: 8

Heading: Allocation of Miscellaneous Costs.

Text: 91 In Southern Natural Gas Co., supra, the Commission provided that administrative and general costs connected with transmitting gas and money paid by Southern to others for transmitting and compressing gas should be allocated on a mileage basis. 51 F.P.C. at 345-349. The Commission did not single out the administrative and general costs for special treatment. The Commission did provide that the costs for transmitting and compressing gas purchased from others should be correlated with Southern's mileage method of allocation by imputing a mileage factor to the gas purchased from others at the point Southern took delivery. 51 F.P.C. at 346-347. Mississippi Valley maintains that these costs should continue to be allocated on a mileage factor. The only reason offered by Mississippi Valley's witness to support this conclusion was his perception that the introduction of LNG had wrought no substantial change in Southern's system. (J.A., p. 32). Insofar as the Commission concluded sufficient change had occurred to justify the elimination of the mileage factor, the rationale for allocating these particular costs has disappeared. The Commission acted reasonably in allowing the termination of mileage allocation of these costs.