Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 01/01/2007, Docket: RP06-407-008, Status: Pending

First Revised Sheet No. 221A First Revised Sheet No. 221A : Pending

Superseding: Original Sheet No. 221A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

35. PIPELINE INTEGRITY PLAN (PIP) SURCHARGE (Continued)

 

35.2 Limitations (continued)

 

Tracker Period, Transporter may file, in the year following the

year the costs are incurred, to establish a PIP surcharge to

recover the Net Qualifying Costs incurred in the prior year.

If, in any given year of the Tracker Period, Transporter incurs

more Qualifying Costs than may be recovered through application

of the PIP Surcharge Rate Cap, the difference between the

Qualifying Costs incurred and the amount recoverable through

application of the PIP Surcharge Rate Cap shall be deemed a

"Cost Threshold Credit." This Cost Threshold Credit may be

applied by Transporter, in a subsequent year of the Tracker

Period, to increase the level of Net Qualifying Costs recovered

via the PIP Surcharge subject to the limit that the total Net

Qualifying Costs recovered in this subsequent year may not

exceed the applicable PIP Surcharge Rate Cap. To the extent

there is a remaining Cost Threshold Credit unrecovered at the

end of the Tracker Period, Transporter may apply such credit in

Year 5 of the PIP Surcharge Period to increase the level of Net

Qualifying Costs recoverable from its customers subject to the

following two limitations: 1) the total Net Qualifying Costs

recovered over the entire PIP Surcharge Period may not exceed

$40 million (Total Surcharge Cost Cap); and 2) the resulting

PIP surcharge for year 5 of the PIP Surcharge Period does not

exceed the Year 5 PIP Surcharge Rate Cap. All remaining Cost

Threshold Credits are extinguished thereafter and the customers

have no further obligation to reimburse Transporter for PIP

costs while the settlement rates of Docket No. RP06-407 are in

effect. To the extent Transporter accelerates the termination

of the Moratorium, as defined and set forth in Article V.C. of

the Docket No. RP06-407 Settlement, customers' obligation to

pay the PIP Surcharge also terminates simultaneously.

 

35.3 PIP Surcharge Rate Cap: To recover PIP costs incurred in year

one of the Tracker Period, Transporter may implement a

surcharge that does not exceed a rate cap of $0.0110 per Dth.

The PIP Surcharge Rate Cap will increase each subsequent year

of the PIP Surcharge Period as follows: $0.0135 for costs

eligible for recovery in year two, $0.0160 for costs eligible

for recovery in year three, $0.0185 for costs eligible for

recovery in year four, and $0.0200 for costs eligible for

recovery in year five of the Tracker Period. The PIP Surcharge

Rate Cap in no way places limits on the determination of Net

 

(Continued)