Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 262 Original Sheet No. 262 : Effective

 

GENERAL TERMS AND CONDITIONS

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41. PERIODIC RATE ADJUSTMENT (PRA) - EXPANSION FUEL REIMBURSEMENT

 

41.1 Purpose and Applicability: This Section 41 establishes

an Expansion Fuel Reimbursement (PRA) mechanism for the purpose of

adjusting the Expansion Fuel Reimbursement Percentage as set forth

on Tariff Sheet No. 8. This provision specifies the procedure to be

utilized to adjust such percentage to reflect: (a) changes in the

level of Trailblazer's fuel reimbursement per unit of relevant

service required to recover expansion-related fuel costs, and (b)

amortization of the Unrecovered Expansion Fuel Reimbursement

Accounts provided for in Section 41.5 hereof. All amounts for

reimbursement of Expansion Fuel shall be recovered in-kind by

Trailblazer by applying the Expansion Fuel Reimbursement Percentage

to the volume transported.

 

41.2 DEFINITIONS

 

(a) "AMIP" shall mean the Average Monthly Index Price as

defined in Section 15.3(c) of the General Terms and Conditions in

Trailblazer's FERC Gas Tariff.

 

(b) "Gas Compressor Fuel" shall mean the actual fuel

consumed in Compressor Station 601, which is part of Expansion

2002, as determined under Section 41.4(c).

 

(c) "Electric Compression Costs" shall mean the gas

equivalent of Electric Power Costs, as determined under Section

41.4(b).

 

(d) "Electric Power Costs (EPC)" shall mean the cost, as

determined under Section 41.4(b) hereof, of electric power

purchased by or for Trailblazer to be used in the operation of any

new or expanded electric compressor stations installed as part of

Expansion 2002. Expansion 2002 includes all of the electric

compression at Compressor Station 603 and expanded electric

compression at Compressor Station 602. EPC shall also include any

related stranded costs or other surcharges imposed by electric

power suppliers that may be billed or allocated to Trailblazer.

 

(e) Expansion Fuel is the sum of: (1) Electric

Compression Costs and (2) the Gas Compressor Fuel, expressed in

dekatherms.