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. 221D Original Sheet No. 221D : Pending

 

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

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

 

35.6 Calculation of the PIP Surcharge (Continued)

 

b. Net Qualifying Costs, plus any available Cost Threshold

Credits, shall be divided by the actual throughput under

Rate Schedules FTS-1, LFS-1, and ITS-1, adjusted for any

known and measurable changes, for the 12-month period ending

December 31st to derive the PIP surcharge to become

effective on April 1st of the following year.

 

 

35.7 Roll-in of PIP Capital Investments: At the time Transporter

files any new base rate case under Section 4 of the Natural Gas

Act, or any time an investigation into Transporter's base rates

is initiated under Section 5 of the Natural Gas Act,

Transporter shall be entitled to propose to include, among

other things, the costs of all PIP capital expenditures

(adjusted for applicable depreciation) as part of its proposed

rate base. Shippers reserve all rights to challenge inclusion

of these costs in any future rate cases. All investment,

associated depreciation, depreciation expense and deferred

income taxes shall be recovered by Transporter in accordance

with the Uniform System of Accounts.

 

35.8 True-up: To the extent Transporter establishes a PIP Surcharge

during the PIP Surcharge Period, within three (3) months

following March 31, 2013, Transporter will submit a filing that

sets forth the (1) the Net Qualifying Costs recovered via the

PIP Surcharges during the PIP Surcharge Period, and (2) PIP

cost detail as provided for in Section 35.4 for each year of

the Tracker Period. If the total Qualifying Costs incurred are

less than $60 million, then Transporter will file to establish

a negative surcharge to return the PIP Surcharges up to the

level of the Net Qualifying Costs recovered. If the total

Qualifying Costs incurred are between $60 million and $100

million, Transporter shall not be entitled to recover more than

the total Qualifying Costs less $60 million through the PIP

surcharge, and Transporter shall establish a negative surcharge

to return amounts recovered in excess of this amount. For

purposes of the True-up, Qualifying Costs do not include costs

that could not be recovered in year five of the PIP Surcharge

Period because the year five PIP Surcharge Rate Cap was

exceeded. In addition, to the extent Transporter has

 

(Continued)