Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 03/01/2000, Docket: RP00-171-000, Status: Effective

Second Revised Sheet No. 265 Second Revised Sheet No. 265 : Effective

Superseding: First Revised Sheet No. 265

GENERAL TERMS AND CONDITIONS (Continued)

32. ANNUAL CHARGE ADJUSTMENT (ACA)

32.1 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-1, FTS-2,

ITS-1 and ITS-2 Rate Schedules, as set forth on the applicable rate tariff sheets 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.

32.2 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. 018 and 019 of this Tariff. Transporter does not intend to recover

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

32.3 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 Section 154.402(b) 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.