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
Original Sheet No. 221C Original Sheet No. 221C : Pending
TRANSPORTATION GENERAL TERMS AND CONDITIONS
35. PIPELINE INTEGRITY PLAN (PIP) SURCHARGE (Continued)
35.4 Filing of the PIP Surcharge (Continued)
under this surcharge mechanism, whether the PIP O&M expenses
related solely to PIP-related O&M costs whether the capital
expenditures are Qualifying Costs, and calculation of the
charges are preserved for protest and resolution in the annual
filings submitted pursuant to this provision.
35.5 Applicability: The PIP Surcharge shall apply to and be paid in
addition to the rates applicable to services provided under
Rate Schedules FTS-1, LFS-1, and ITS-1.
a. The PIP surcharge shall be expressed in dollars per Dth and
may be recovered only in a manner consistent with the ACA
surcharge (that is, only once per Dth transported by
b. To the extent a PIP Surcharge is placed into effect, the
surcharge will remain in effect for one year from April 1
through March 31. The PIP Surcharge will be subject to
refund with interest until approved by FERC.
c. With regard to transportation services that are discounted
by Transporter, the PIP Surcharge will be considered as
being discounted first, before other items included in the
maximum rate levels are impacted. Transporter shall have no
right to re-allocate to or otherwise recover from Shippers
any PIP Surcharges that it may have agreed to discount.
35.6 Calculation of the PIP Surcharge:
a. Transporter shall determine the amount of Net Qualifying
Costs to be recovered through a PIP Surcharge by calculating
actual Qualifying Costs as of each December 31 preceding
each Effective Date, subject to the limitations as set forth
in Section 35.2 above. The PIP related gross plant balance
as of each December 31st shall be reduced by the
corresponding accumulated provisions for depreciation and
deferred income taxes to arrive at a PIP Rate Base. The PIP
Rate Base shall be multiplied by a fifteen percent (15%)
pre-tax return on total invested capital to arrive at a PIP
Pre-Tax Return Amount. The PIP Pre-Tax Return Amount shall
be added to PIP O&M and depreciation expenses incurred
during the previous calendar year.