Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 02/01/2008, Docket: RP08-131-001, Status: Effective

Fourth Revised Sheet No. 217 Fourth Revised Sheet No. 217 : Effective

Superseding: Third Revised Sheet No. 217







31. Fuel Retention Adjustment (Continued)


(c) (continued)


received by Service Provider for the same twelve (12)

Month period referenced above in order to compute the

redetermined FRP.


(d) Service Provider shall determine for each Month the

difference, positive or negative, between (i) total GRO

quantities actually incurred by Service Provider for

transportation service, and (ii) the total quantities

retained from all Service Requesters for transportation

service in accordance with the applicable FRP. For every

such month, Service Provider shall multiply the foregoing

difference by the currently applicable GRO Index Price, as

defined in Section 31(e) of the General Terms and Conditions

of Seller's FERC Gas Tariff. The resulting product shall be

recorded each Month in a subaccount of Account No. 186 of the

Uniform System of Accounts, which Seller shall designate as a

Deferred GRO Account. Interest shall be computed on the

balance in Seller's Deferred GRO account, positive or

negative, based on the method prescribed in Section

154.403 (7) of the Commission's Regulations.


(e) For any Month, the GRO Index Price shall be the Index

Price used for the purposes of "cashing out" imbalances,

pursuant to Section 23(f)(1) of the General Terms and

Conditions of Seller's FERC Gas Tariff, for the relevant

Month. Such index cash out price shall further be

inclusive of any and all transportation charges assessed

Seller by Transcontinental Gas Pipe Line Corporation.


(f) The Deferred GRO Account Balance shall be incorporated

into each annual FRP filing by dividing (i) the current

balance in the Deferred GRO Account by (ii) the weighted

average value of the GRO Price Index for the deferral period.