Canyon Creek Compression Company
Third Revised Volume No. 1
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Effective Date: 07/01/2003, Docket: RP02-356-003, Status: Effective
First Revised Sheet No. 199 First Revised Sheet No. 199 : Effective
Superseding: Original Sheet No. 199
GENERAL TERMS AND CONDITIONS
37. COST OF SERVICE RATE MECHANISM
37.1 PURPOSE AND APPLICABILITY
The applicable rates for service under Rate Schedule FCS
and Rate Schedule ICS are governed by this Section 37; provided that
calculation of the rate adjustments under this Section 37 shall be
performed in accordance with the Stipulation and Agreement
(Settlement) filed with the Commission on March 2, 2003, in Docket
No. RP02-356, and approved by the Commission on May 23, 2003, 103
FERC Paragraph 61,232, but the calculation of rate adjustments under
this Section 37 shall only be subject to the Settlement during the
term of the Settlement. Such rates are set forth on the currently
effective Sheet No. 6 of this Tariff and shall be subject to semi-
annual revision under this Section 37. Shipper's obligation to pay
its monthly invoices reflecting rates consistent with this Section 37
is not subject to adjustment under any circumstances except as
provided in Canyon's General Terms and Conditions.
(a) "Semi-Annual COS Period" shall mean a six-month
period commencing on June 1 or December 1, respectively.
(b) "Overall Rate of Return" shall mean 8.90%.
(c) "Depreciation Rate" shall mean an annual rate of
(d) "Plant AFUDC - Equity" shall mean an amount equal to
$538,078, subject to adjustment consistent with the Settlement.
37.3 RATE ADJUSTMENT
(a) The rates for Rate Schedules FCS and ICS shall be
revised semi-annually effective each June 1 and December 1,
commencing June 1, 2003. The revised rates shall be the sum of the
Cost of Service Procedure rate calculation (Sections 37.4 through
37.6) and the Deferred Account rate calculation under Section 37.7.
(b) On or before each May 1 and November 1, Canyon
shall make a filing with the FERC to place into effect the revised
rates for the Semi-Annual COS Period commencing on the next
following June 1 or December 1. Such filing shall set forth in
reasonable detail the basis of determining such rates.