Texas Gas Transmission, LLC
Third Revised Volume No. 1
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Effective Date: 04/01/2009, Docket: RP09-7-001, Status: Suspended
Substitute Second Revised Sheet No. 2102 Substitute Second Revised Sheet No. 2102
Superseding: Original Sheet No. 2102
GENERAL TERMS AND CONDITIONS
9.2.7 Fuel Savings Sharing Mechanism
(a) Capital Investments. In the years 2008 and 2009, Texas Gas shall
install capital projects with a total cost between 2.5 and 6
million dollars that are expected to reduce the amount of fuel
consumed on its system in exchange for a share of system-wide fuel
savings. The costs for such capital projects shall establish
Texas Gas' "Total Capital Investments." For purposes of this
Section 9.2.7, Total Capital Investments shall be limited to the
capital dollars expended and shall not include return, taxes,
depreciation, maintenance, operations, or any other costs or
expenses incurred by Texas Gas with respect to these expenditures.
In addition, Texas Gas shall not be permitted to include Total
Capital Investments in its rates in any future rate proceedings;
such requirement shall survive the expiration of this Section
(b) Calculations. "Fuel Savings Value" shall mean (i) the balance of
the Fuel Sharing Deferred Account for the applicable annual period
("Fuel Sharing Deferred Account Balance"), multiplied by (ii) the
weighted average of the monthly NYMEX close for the annual period.
The annual period shall commence on September 1, with the first
annual period commencing on September 1, 2008, and shall end on
Example: (Fuel Sharing Deferred Account Balance * Average NYMEX) =
Fuel Savings Value
"In-Kind Fuel Savings" shall mean the Fuel Savings Value for the
applicable annual period divided by the weighted average of the
monthly NYMEX close for the annual period.
Example: Fuel Savings Value / Average NYMEX = In-Kind Fuel Savings
(c) Sharing Mechanism. Commencing with the 2009 fuel tracker, if the
Fuel Savings Value for the applicable annual period is positive,
Texas Gas will (i) convert the Fuel Savings Value into the In-Kind
Fuel Savings on an MMBtu basis, and (ii) apply twenty percent (20%)
of the In-Kind Fuel Savings to the FAP. Once Texas Gas recovers its
Total Capital Investments, Texas Gas then will apply fifty percent
(50%) of the In-Kind Fuel Savings to the FAP.
(d) Effective Dates. This Section 16.7 shall be effective on an
experimental basis from September 1, 2008 until September 30, 2011.
This Section 16.7 shall automatically expire on September 30, 2011.