Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 56 Original Sheet No. 56 : Superseded







28.1 Purpose


The Pipeline has joined with other gas enterprises in the formation

of, and participation in the activities and financing of Gas

Research Institute (GRI), an Illinois not for profit corporation.

GRI has been organized for the purpose of sponsoring Research,

Development and Demonstration (RD&D) programs in the field of

natural and manufactured gas for the purpose of assisting all

segments of the gas industry in providing adequate, reliable, safe,

economic and environmentally acceptable gas service for the benefit

of gas consumers.


For the purpose of funding for GRI's approved expenditures, this

Section establishes as part of the Pipeline's rate a charge for

RD&D by GRI, said charge to be recovered by a funding charge

adjustment provision applicable to Pipeline's Rate Schedules ITS,

IGS, VTS, VGS, FTS and FGS, provided, however, that such funding

charge for RD&D by GRI shall not be applicable to Customers which

are interstate pipelines and which include in their rates a charge

for RD&D by GRI. Customers with both gathering and transportation

services will be billed the GRI charge on only one service.


28.2 Basis for the GRI Charge


The Rate Schedules ITS, IGS, VTS, VGS, FTS and FGS specified

in Section 28.1 hereof shall include a GRI Funding Charge

Adjustment Provision for such RD&D activities by GRI. The unit

rate of such charge shall be the amount, adjusted to Company's

pressure base and heating value, if required, which has been

approved by Federal Energy Regulatory Commission orders approving

GRI's RD&D expenditures. The current effective GRI charge is

$0.0147 per dth on all applicable nondiscounted commodity units and

nondiscounted one-part rates for transportation service.

Additionally, there will be an $.08 per dth per month demand or

reservation surcharge on all firm delivery entitlements.


28.3 Filing Procedure


The Gas Research Institute Funding Charge Adjustment Provision may

be placed into effect upon not less than 30 days notice unless, for

good cause shown, a lesser notice period is allowed by valid

FERC order. Any such filing shall not become effective unless it

becomes effective without suspension or refund obligation.