Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 09/01/1993, Docket: RS92- 23-012, Status: Effective

Original Sheet No. 383 Original Sheet No. 383 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

2. Determination of Current RD&D Rate Adjustment

 

2.1 Current RD&D Rate Adjustment: The Current RD&D Rate Adjustment shall be

determined by dividing (1) the sum of (a) RD&D Expenditures Chargeable to

Operations and (b) the Cost of Service for RD&D Expenditures in Rate Base

by (2) Transporter's total system throughput and Gabe Plant deliveries for

the Determination Period. The resulting quotient stated to the nearest

one one-hundredth cent shall be the adjustment applicable to the

commodity, single part, and excess withdrawal rates, and the unauthorized

over-run rate for storage service, in the Rate Schedules in Volume No. 1

of Transporter's FERC Gas Tariff. A Current RD&D Rate Adjustment shall

not be filed unless the amount thereof as thus determined is at least one

one-hundredth cent per Dth. A Current RD&D Rate Adjustment is not

required under this Article to the extent the aggregate reduction of

Transporter's rates thereunder would exceed the aggregate rate increases

allowed thereunder.

 

2.2 Determination Period: The Determination Period shall be a period of

twelve months ending three months prior to the Effective Date of the

Adjustment.

 

2.3 RD&D Expenditures Chargeable to Operations: RD&D Expenditures Chargeable

to Operations shall be the difference between (1) Transporter's actual

RD&D expenditures chargeable to operations during the Determination Period

and (2) Transporter's RD&D expenditures chargeable to operations reflected

in Transporter's then effective Base Tariff Rates or the last prior

adjustment under this Article.

 

2.4 Cost of Service for RD&D Expenditures in Rate Base: The Cost of Service

for RD&D Expenditures in Rate Base shall reflect return and related

current federal and state income taxes on the difference between (1) the

balance in FERC Account No. 188 at the end of the Determination Period and

(2) the balance in FERC Account No. 188 included in rate base in

Transporter's Base Tariff Rates or the last prior adjustment under this

Article. For the purpose of the computation under this Section 2.4, the

balance in FERC Account No. 188 shall be increased by the tax effect of

RD&D Expenditures as recorded in FERC Account No. 190 and shall be reduced

by all amounts which were (1) received from others in payments for rights

and/or benefits received from RD&D Expenditures in FERC Account No. 188,

(2) received by the end of the Determination Period and not used to reduce

the balance in FERC Account No. 188 in any prior filing under this Article

and (3) the tax effect of RD&D Expenditures as recorded in FERC Account

No. 283.