West Texas Gas, Inc.

First Revised Volume No. 1

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Effective Date: 05/01/1998, Docket: RP98- 25-005, Status: Effective

Original Sheet No. 23A Original Sheet No. 23A : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

19. Effective Gas Rate (Continued)

 

19.6 Annual Purchased Gas Cost Reconciliation

 

(a) On July 1, 1999, and each July 1 thereafter, Seller shall

file with the Commission, furnish to its jurisdictional customers,

and post as defined by Section 154.2 of the Commission's

regulations, a report containing detailed computations showing

the derivation of its actual cost of purchased gas and total gas

costs recovered from its jurisdictional customers for the prior

12-month period ended April 30. Seller's actual cost of purchased

gas shall be determined as set forth in paragraph 19.6(b) below.

Any difference between Seller's actual cost of purchased gas and

the cost of gas recovered from jurisdictional customers, as

determined in paragraph 19.6(b)(2) below, plus interest, shall

either be refunded by Seller to its jurisdictional customers or

paid by customers to Seller, as provided in this paragraph 19.6.

 

(b) Seller shall maintain an account for recording monthly

deferrals of any over-recovery or under-recovery of its actual

gas costs. These monthly deferrals shall be the difference

between:

 

(1) The total actual monthly cost of gas purchased for resale

to customers under Rate Schedules FS-1 and IS-1; and

 

(2) The Total Gas Cost Rate for the month, calculated as set

forth on the effective Sheet No. 4 of Seller's FERC Gas Tariff,

First Revised Volume No. 1, multiplied by the total quantities

of gas sold under Rate Schedules FS-1 and IS-1 during the month.

 

The actual cost of gas purchased for Rate Schedules FS-1 and IS-1

shall be equal to the ratio of total sales volumes under these rate

schedules to the total sales made on the Dalhart System for the

month, multiplied by the total purchased gas cost for the Dalhart

System for that month. The actual cost of purchased gas under this

paragraph shall be attributable to gas quantities purchased and

received in a month, that are paid for, or are for amounts known

within 60 days of the end of the month in which the purchases were

made and received that have not yet been paid.