West Texas Gas, Inc.
First Revised Volume No. 1
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Effective Date: 10/01/1996, Docket: RP96-377-000, Status: Effective
Original Sheet No. 32F Original Sheet No. 32F : Effective
GENERAL TERMS AND CONDITIONS
19.5 Annual PGA filing (Continued):
(b) Treatment of change in cost of gas from various types
of suppliers. Seller shall apply changes in the cost of
purchased gas to its base tariff rates in the following manner:
(1) Producer rate changes shall be applied to the commodity
component of Seller's two-part rates or to the
volumetric rates of its one-part rates.
(2) Pipeline supplier rate changes shall be applied as
billed to Seller's two-part rates or applied to its
volumetric rates in a manner which maintains West
Texas Gas, Inc.'s one-part rate design.
(c) Determining the current adjustment - (1) Method for
projecting cost of purchased gas. Seller shall project its
purchased gas costs based on:
(i) The best estimate of the quantities of natural gas Seller
expects to purchase and to receive in nonconcurrent
exchange transactions during the three months beginning on
the effective date of the PGA; and
(ii) Known and measurable changes in the rate, based on
contractual obligations that are in existence on the date the
PGA is filed.
(2) Limitation on projecting cost of purchased gas. Seller
may only project its purchased gas costs based on gas supply attached
to its system as of the effective date of the PGA.