Williams Natural Gas Company
Second Revised Volume No. 1
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Effective Date: 10/01/1993, Docket: RS92- 12-003, Status: Effective
Original Sheet No. 258 Original Sheet No. 258 : Superseded
GENERAL TERMS AND CONDITIONS
14. TRANSITION COSTS AND EXIT FEES (Cont'd)
(c) Costs eligible for recovery under this Article 14.2 could
(1) payments to reform or terminate contracts, or
(2) for contracts where WNG has determined that it can
minimize GSR Costs by continuing to purchase gas under
the contract, the difference between the contract price
and the higher of (a) the price at which WNG resells
gas purchased under the contract(s), or (b) an average
of the spot index prices shown for WNG, Natural Gas
Pipeline Company of America, Northern Natural Gas
Company, ANR Pipeline Company, and Panhandle Eastern
Pipe Line Company, for Texas, Oklahoma, and Kansas, as
reported in the first issue of Inside F.E.R.C.'s Gas
Market Report for the month in which the gas was sold.
The differential calculated in (c)(2) above shall be reduced
by net revenue received under WNG's below-market contracts.
The net revenue will be the differential between the actual
price WNG pays under its below-market contracts and the
higher of (1) the spot market price, as calculated in the
preceding paragraph, or (2) the actual sales price at which
WNG sells the gas purchased under the contract(s).
WNG will file lists of above-market and below-market
contracts with the first filing in which it proposes to
recover GSR Costs under this paragraph (c).
(d) Ninety percent (90%) of such GSR Costs shall be allocated to
WNG's Shippers under Rate Schedules TSS, STS, FTS and SFT
pro rata based on the ratio of the Shipper's aggregate MDTQ
to the total aggregate MDTQ under Rate Schedules TSS, STS,
FTS and SFT and recovered from such Shippers under Rate
Schedules TSS, STS, FTS and SFT by means of a GSR
Reservation Surcharge per MDTQ.