North Penn Gas Company

First Revised Volume No. 1

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Effective Date: 10/01/1992, Docket: RP91-111-006, Status: Effective

Third Revised Sheet No. 15H Third Revised Sheet No. 15H : Effective

Superseding: Second Revised Sheet No. 15H


(a) This section sets forth and establishes the procedures for Seller to

recoup from each Buyer all of Seller's jurisdictional Rate Schedules the

jurisdictional share of all Take-or-Pay charges (direct-billed, volumetric

or other) billed to Seller by its current upstream pipeline suppliers,

together with applicable interest and carrying charges (hereinafter collect-

ively referred to as "TOP costs"). It is understood that such TOP costs

include $460,000 of TOP costs Transco sought to recover directly from Corning

Natural Gas Corporation (Corning), which were discussed in 55 FERC paragraph

61,339 (1991).


(b) For purposes of this Section, each Buyer under Seller's jurisdictional

Rate Schedules shall include any customer receiving service that Seller

provides under 18 CFR 284.224 as that section currently exists or may be

superseded. Seller's current upstream pipeline suppliers are Tennessee Gas

Pipeline Company (Tennessee), Transcontinental Gas Pipe Line Corporation

(Transco) and CNG Transmission Corporation (CNG).



Except as set forth in Section 17.4, Seller will recover TOP costs over an

approximate three-year period through a volumetric surcharge applicable to

all of Seller's rate schedule services.*/ For sales and transportation,

the volumetric surcharge will be applied to each Mcf of gas service. For

contract storage customers, the volumetric surcharge will be applied to each

Mcf of gas injected.



(a) Within 30 days of the effective date of Seller's Settlement offer in

Docket Nos. RP91-111 et al., and each March 1 for the following two years,

Seller shall submit a filing with the Commission to recover TOP costs.

Each such filing will develop a volumetric surcharge to allow Seller to

recover TOP costs from Buyers under all Seller's jurisdictional Rate

Schedules. The surcharge shall be developed based on (1) TOP costs and

obligations of Seller and TOP refunds to Seller, (2) TOP payments recovered

by Seller from its jurisdictional customers, and (3) the projected units of

throughput for Seller's jursidictional services for the upcoming 12-month

period. In addition, the allocation of TOP costs, obligations and refunds

will remain constant throughout the recoveryy period; that is, 42.04% of all

such costs, obligations and refunds will be allocated to Seller's jurisdic-

tional services.


*/ The first year, which may be a partial year, begins as of the

effective date of tariff sheets specified in Article VI of Seller's

March 13, 1992 settlement offer in Docket Nos. RP91-111 et al. The

second and third years are the 12 month periods ending March 31, 1994

and March 31, 1995, respectively.