Valero Interstate Transmission Company

First Revised Volume No. 2

 Contents / Previous / Next / Main Tariff Index

Effective Date: 11/01/1991, Docket: GT91- 42-000, Status: Effective

Original Sheet No. 9 Original Sheet No. 9 : Superseded

PURCHASED GAS ADJUSTMENT CLAUSE

-------------------------------

(continued)

(2) Notice:

-------

Pursuant to Section 154.304(c), Vitco's scheduled effective dates

are June I for annual filings and September 1, December 1, and

March 1 for quarterly filings. Pursuant to Section 154.16 of

the Commission's Regulations, at least sixty (60) days prior to

the effective date of an Annual Filing and at least thirty (30)

days prior to the effective date of a Quarterly Filing Vitco

shall file with the Federal Energy Regulatory Commission and post

a Notice of Purchased Gas Cost Adjustment Rate Change following

the format prescribed for Annual and Quarterly PGA filings in

Section 154.305 and 154.308, respectively, of the Commission's

Regulations. In addition, Vitco may file an Interim Purchased

Gas Cost rate adjustment in accordance with paragraph C hereof.

(3) PGA Period:

-----------

The PGA Period for the computation of the Purchased Gas Cost Rate

Adjustment shall be the 3 month period commencing with the

proposed effective date of a change filed pursuant to this

provision provided that Purchased Gas Cost Rate Adjustments

may be made within the effective PGA period pursuant to

paragraph C hereof.

(4) Computation of Purchased Gas Cost Rate Adjustment

-------------------------------------------------

(a.) Vitco's Purchased Gas Cost Rates to be used in computing

the Purchased Gas Cost Rate Adjustment shall be the rates

applicable to Vendors applicable to Rate Schedule S-3 as

of the effective date of the rate adjustment, provided

that such rate may reflect such changes during the PGA

period as are permitted under the Natural Gas Policy

Act of 1978 and other adjustments permitted pursuant to

Section 154.305(c)(ii) of the Commissions Regulations.

(b.) Computation of Purchased Gas Cost Rate Adjustment Vitco's

Purchased Gas Volumes to be used in computing the change

in Vitco's Purchased Gas Cost shall be the projected quantity

of gas purchased for resale and use in providing service

under Rate Schedule S-3 during the PGA period. The purchased

gas volumes used in this provision shall be those under

Vendors' contracts applicable to each Buyer.