Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 10/01/1997, Docket: TM98-1-46-000, Status: Effective

Sixth Revised Sheet No. 163 Sixth Revised Sheet No. 163 : Effective

Superseding: Fifth Revised Sheet No. 163







29.1 Purpose


Section 3401 of the Omnibus Budget Reconciliation Act of 1986

provides that the Federal Energy Regulatory Commission (FERC)

establish an annual charge for each fiscal year ending

September 30, in an amount equal to costs incurred to operate

the Federal Energy Regulatory Commission for the fiscal year.


For the purpose of funding of Federal Energy Regulatory

Commission costs incurred in any fiscal year, this Section

establishes as part of Pipeline's rates an Annual Charge

Adjustment (ACA) Provision to be applicable to the Pipeline's

Rate Schedules ITS, VTS, and FTS. The Pipeline does not intend

to recover any annual charges recorded in FERC Account No. 928

in a Natural Gas Act Section 4 rate case. Customers with both

gathering and transportation services will be billed the ACA

charge on only one service.


29.2 Basis of the Annual Charge Adjustment


The Rate Schedules ITS, VTS, and FTS specified in Section

29.1 hereof shall include an increment for an Annual Charge

Adjustment (ACA) for Federal Energy Regulatory Commission

costs. The unit rate of such charge shall be that amount,

adjusted to the Pipeline's pressure base and heating value, if

required, which has been specified by the Federal Energy

Regulatory Commission each year. The current effective Annual

Charge Adjustment is set forth on Sheet Nos. 4 and 5.


29.3 Filing Procedures


The Annual 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 Commission