Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 13-004, Status: Effective

Original Sheet No. 342 Original Sheet No. 342 : Effective

 

GENERAL TERMS AND CONDITIONS (Continued)

 

39. TRANSITION COST RECOVERY MECHANISMS

 

This Section 39 is applicable to filings submitted to the FERC after

full implementation of Order Nos. 636, et. seq., has been achieved on

Transporter's system.

 

39.1 Purpose - This Section 39 establishes the procedures which

will permit Transporter to recover from Shippers one hundred

percent of the costs (hereinafter referred to as "transition

costs") which were prudently incurred and attributable to

Transporter's compliance with Order Nos. 636, et seq.

 

39.2 Definitions - The definitions of terms applicable to this

Section 39 are as follows:

 

39.2.1 Total Recovery Period - The period beginning on the

effective date any new rates become effective under

this Section 39 and continuing until all amounts and

interest thereon have been fully amortized. For

purposes of the Account No. 191 surcharge to be placed

into effect immediately upon termination of

Transporter's Purchased Gas Cost Adjustment as

described in Subsection 39.3 hereof, the Total Recovery

Period shall consist of a reasonable period of no less

than twelve (12) months commencing with the

effectiveness of such surcharge. The length of all

other total recovery period(s) will be determined and

specified by Transporter at the time of filing for

authority to implement such rates reflecting

Transporter's transition costs and all applicable

carrying charges.

 

39.2.2 Transition Costs - Transition costs will include but

not be limited to: Under- or over-recovery amounts in

FERC Account No. 191 related to gas purchases prior to

the termination of Transporter's Purchased Gas Cost

Adjustment Provision; gas supply realignment costs

incurred by Transporter as a result of implementing

Order Nos. 636, et. seq.; stranded facility costs

resulting from implementation of Order Nos. 636, et.

seq., and the elimination of the bundled merchant

function and, the costs associated with new facilities

required by the implementation of Order No. 636

principles.