Northern Natural Gas Company
Fifth Revised Volume No. 1
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Effective Date: 11/07/2005, Docket: RP06- 14-000, Status: Effective
Third Revised Sheet No. 301B Third Revised Sheet No. 301B : Effective
Superseding: Second Revised Sheet No. 301B
GENERAL TERMS AND CONDITIONS
4. True-up Mechanism
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(i) Mainline
Docket Nos. RP97-275-002 and TM97-2-59-000 provided that during any period, or any portion
of any period, that the Mainline fuel retention percentages are derived by using the PRA
Settlement Averaging Methodology, Northern shall true-up the Mainline fuel on a MID to MID
basis. However, pursuant to the Settlement in Docket Nos. RP98-203, et al., the MID-to-MID
true-up has been converted to a Fuel Section true-up in the Field Area. The Field Area
contains two (2) Fuel Sections consisting of MIDs 1-7 and MIDs 8-16b. Therefore, for the
period commencing June 1, 1999, Northern will true-up mainline fuel as follows:
Northern shall compare the fuel retained for the applicable winter or summer season or
annual time period with the actual fuel consumed for the same period for each of the two
(2) Field Area sections and the Market Area MID derived fuel percentages to determine the
Fuel Adjustment Amount for each fuel percentage. The actual fuel consumed shall be
calculated using the same rules and procedures utilized in calculating the Field Area ML
Fuel Percentages. The Fuel Adjustment Amount will be divided by the applicable Field
section or Market MID throughput to determine each Fuel Adjustment Percent to be
added to each Mainline Field section or Market MID fuel retention percentage for the
applicable winter or summer season or annual period beginning the following winter or
summer season or annual period. Under-retainage will result in a positive Fuel
Adjustment Amount. Over-retainage will result in a negative Fuel Adjustment Amount. For
purposes of determining the Adjustment Amount for years subsequent to the initial year
the Adjustment Amount for the prior year is first added to the actual fuel retained for
the prior year. To determine the Adjustment Amount for the subsequent year, the balance
of the fuel retained will be compared to the fuel consumed. A zero percentage will be
used for any section or MID fuel percentage that is derived to be less than zero.
(ii) Field
Northern shall compare the volume of Field fuel retained for the most recent twelve (12)
months ended December 31 with the volume of Field fuel consumed for the same period on a
MID-by-MID basis to determine the Fuel Adjustment Amounts on a MID-by-MID basis. Each
MID's Fuel Adjustment Amount will be divided by the applicable MID throughput to
determine the Fuel Adjustment Percent to be added to each Field MID fuel retention
percentage for the period beginning the subsequent April 1. To the extent a Field MID
retention percentage is zero, a Fuel Adjustment Amount will not be applicable to that MID
retention factor. Under-retainage will result in a positive MID Fuel Adjustment Amount.
Over-retainage will result in a negative MID Fuel Adjustment Amount. For purposes of
determining the Adjustment Amounts for years subsequent to the initial year of the PRA,
the applicable MID Adjustment Amount for the prior year is first added to the applicable
MID actual fuel retained for the prior year. To determine the Adjustment Amounts for the
subsequent year, the balance of the applicable MID fuel retained will be compared to the
applicable MID fuel consumed. A zero percentage will be used for any MID fuel percentage
that is derived to be less than zero.
(iii) FDD Storage
Northern shall annually compare the volume of FDD Storage fuel retained for the most
recent twelve (12) months ended December 31 with the volume of actual FDD Storage fuel for
the same period to determine the Adjustment Amount. The FDD Storage Adjustment Amount
will be divided by the applicable injection volumes to determine the FDD Storage
Adjustment Percent to be added to the FDD Storage retention percentage for the period
beginning the subsequent April 1. Under-retainage will result in a positive Adjustment
Amount. Over-retainage will result in a negative Adjustment Amount. For purposes of
determining the Adjustment Amount for years subsequent to the initial year, the Adjustment
Amount for the prior year is first added to the actual FDD Storage fuel retained for the
prior year. To determine the Adjustment Amount for the subsequent year, the balance of
the FDD Storage fuel retained will be compared to the actual FDD Storage fuel.