Northern Natural Gas Company
Original Volume No. 2
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Effective Date: 04/01/1992, Docket: RP91-181-004, Status: Effective
Seventh Revised Sheet No. 1E Seventh Revised Sheet No. 1E : Effective
Superseding: Substitute Sixth Revised Sheet No. 1E
GENERAL TERMS AND CONDITIONS
1. Rate Adjustment to Reflect Changes in Gas Purchased Costs.
1.2 Definitions. (Continued)
(d) Total System Sales - the sum of all Volume 1 tariff firm sales and
Volume 2 tariff sales on Northern's system including the ethane and
shrinkage sales to Enron Gas Products Company at Bushton, Kansas.
All sales will be determined on a 1,000 Btu equivalent basis.
(e) Monthly Deferrals - each month, Account 191 shall be debited
(underrecovery) or credited (overrecovery) with an amount equal to
the difference between the total gas purchased costs incurred each
month and the total gas purchase expense recovered through sales
revenue. Total commodity gas purchased costs will be adjusted to
reflect storage activity, nonconcurrent exchange activity, gas used
in construction, the effect of concurrent exchange activity and the
cost of ethane and/or ethane mixtures (E/P mix) injected into its
system supply as purchased gas costs.
The demand and commodity amount deferred into account 191 each month
shall be adjusted by the exit fee assessed on any abandonment of
firm sales entitlement as set forth in Section 1.7 of the tariff.
(f) Current Adjustment - is the current weighted average projected
purchased gas costs (as reflected in the current PGA rate) less the
weighted average projected purchased gas costs reflected in the
effective period of the previous scheduled PGA. The cumulative
adjustment is the current weighted average projected purchased gas
costs (as reflected in the current PGA) less the base tariff rate as
defined above in Section 18.2(c).
1.3 Frequency of Change in Base Average Gas Purchased Cost.
(a) Northern's Base Average Gas Purchased Cost will be adjusted on a
quarterly basis according to the following schedule: