Columbia Gas Transmission LLC

Third Revised Volume No. 1

Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 380 Original Sheet No. 380

GENERAL TERMS AND CONDITIONS (Cont'd)

34. ANNUAL CHARGE ADJUSTMENT (ACA)

34.1 Purpose.

(a) Pursuant to Section 3401(a)(1) of the Omnibus Budget Reconciliation Act of 1986

(Budget Act), the Commission is required to "assess and collect fees and annual charges in any fiscal

year in amounts equal to all of the costs incurred by the Commission in that fiscal year." Order Nos.

472 and 472-A, issued by the Commission on May 29, 1987, and June 17, 1987, respectively, in Docket No.

RM87-3-000, amend the Commission's regulations to establish annual charges as required by the Budget

Act. Pursuant to those regulations, Transporter is assessed, and pays to the Commission, an allocated

annual assessment (Annual Charge).

(b) For the purpose of reimbursing Transporter for the Annual Charge it pays to the

Commission, this Section establishes, pursuant to Section 154.402 of the Commission's Regulations, an

Annual Charge Adjustment (ACA) rate applicable to: (i) Shippers under Transporter's FTS, NTS, NTS-S,

TPS, SST (when a secondary receipt point is being utilized), GTS, OPT, and ITS Rate Schedules, as set

forth on Sheet Nos. 25 through 28, inclusive, of this Tariff, and (ii) Shippers under those Rate

Schedules set forth in Volume No. 2 of this Tariff that incorporate rates from Volume No. 1 of this

Tariff. The ACA rate shall not be applicable to deliveries to or for a Shipper under Transporter's

above referenced Rate Schedules to the extent the receipt point for such gas is Transporter's storage

facilities.

34.2 Basis of the ACA Rate. Transporter's ACA rate shall be the increment specified by the

Commission for such charge for that fiscal year (October 1 through September 30). The current ACA rate

is set forth at Sheet Nos. 25 through 30, inclusive, of this Tariff. Transporter does not intend to

recover any Annual Charges in an NGA Section 4 rate filing. 1/

34.3 Filing of Annual Charge Adjustment. Transporter shall file rate changes as necessary to

reflect in the ACA rate any changes in the Annual Charge ordered by the Commission. Any such filing

shall become effective without suspension or refund obligation.

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1/ In Order No. 472, the Commission gave natural gas pipelines the choice of implementing an ACA

clause, or including their annual charges in Account 928 (Regulatory Commission Expenses) for

consideration in general rate filings made pursuant to Subpart D of the Commission's

Regulations. While exercising the ACA clause option at this time, Transporter reserves the

right to switch to the general rate filing method at a future date. If Order No. 472 annual

charges are included in the cost of service in any future rate case, Transporter would file

therein to eliminate its ACA rate and Tariff provision.