Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective

Original Sheet No. 445 Original Sheet No. 445

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

38. FUEL RETENTION ADJUSTMENT PROVISION (Continued)

 

38.5 Deferred GRO Account

 

Seller shall maintain the Deferred GRO Account for each Deferral Period in accordance

with the following procedures:

 

(a) Seller shall determine each month the Actual GRO quantities.

 

(b) Seller shall determine each month the actual recovery of GRO quantities by

multiplying, as applicable, Seller's FRP's by the appropriate volume

determinants.

 

(c) Each month, Seller shall determine the difference, positive or negative, between

the quantities computed in Section 38.5(a) and 38.5(b) and multiply such

difference by the currently applicable GRO Index as defined in Section 38.6

herein. The resulting product shall be recorded each month in a subaccount of

Account No. 186 of the Uniform System of Accounts which Seller shall designate

as a Deferred GRO Account. Interest shall be computed on the balance in

Seller's Deferred GRO Account, positive or negative, based on the method

prescribed in Section 154.403(7) of the Commission's Regulations.

 

(d) Seller shall incorporate the Deferred GRO Account balance into each annual FRP

filing by dividing (i) the current balance in the Deferred GRO Account by (ii)

the weighted average value of the GRO Index for the Deferral Period.

 

38.6 GRO Index

 

For any month, the GRO Index shall consist of the simple average of four relevant

price series, expressed in units of $/MMBTU, set forth in the table "Gas Price Report"

published in the first issue in such month of Natural Gas Week (or any succeeding

publication of Oil Daily, Inc.) for the following geographical regions:

 

Texas, Gulf Coast, Offshore, Spot Delivered to Pipeline

 

Texas, Gulf Coast, Onshore, Spot Delivered to Pipeline

 

Louisiana, Gulf Coast, Offshore, Spot Delivered to Pipeline

 

Louisiana, Gulf Coast, Onshore, Spot Delivered to Pipeline

 

38.7 Prior Period Adjustments

 

Except as provided below, prior period adjustments included in the Actual GRO

quantities shall be limited to prior period adjustments that relate to the twenty-four

month period immediately prior to the beginning of the Deferral Period. The twenty-

four month limitation on prior period adjustments shall apply to adjustments in favor

of Buyers and those in favor of Seller; provided that the twenty-four month limitation

associated with adjustments in favor of Buyer shall not apply to adjustments resulting

from Seller's negligence or willful misconduct.