Scg Pipeline Inc.

Original Volume No. 1

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Effective Date: 11/01/2003, Docket: RP03-611-000, Status: Effective

Original Sheet No.147 Original Sheet No.147 : Superseded







22.2 Fuel Retainage Percentage (FRP). The FRP shall be as quantified

pursuant to this Section 22 and in the currently effective Sheet No. 8 of this

Tariff. The FRP shall be subject to adjustment hereunder for service under

all Rate Schedules unless otherwise explicitly provided in the Rate Schedule.

The FRP shall be equal to the sum of (a) the currently effective FRP and (b)

any increment added during an OFO issued pursuant to Section 9 of these GT&Cs

for any gas used by the Pipeline in operating its system, gas lost in system

operations and unaccounted for gas (including, but not limited to, a natural

disaster, a pipeline rupture or other types of force majeure events).


22.3 Projected FRP. With each filing hereunder, Pipeline shall calculate a

Projected FRP as the quotient obtained by dividing the projected annual

quantities of Fuel Retainage Quantity by the projected annual throughput.


22.4 True Up


(a) FRQ Deferred Account. Pipeline shall determine the monthly difference

between (i) the actual quantity of gas realized as a result of application of

this Section 22, and (ii) the actual quantity of Fuel Retainage Quantity for

the Month less any quantity of gas obtained during the Month pursuant to

Section 9. The under- or over-realization of in-kind compensation gas shall

be recorded as a debit or a credit, as the case may be, each Month in the FRQ

Deferred Account. A monetary value shall be assigned to the volume debited to

the FRQ Deferred Account based on amounts paid by Pipeline in obtaining gas to

support the under-realization of in-kind compensation gas. Furthermore, a

monetary value shall be assigned to the volume credited to the FRQ Deferred

Account utilizing the Daily Gas Index Price plus charges for firm

transportation and fuel.


The FRQ Deferred Account shall be accumulated in twelve-Month accumulation

periods, August 1 to July 31, except for the initial accumulation period,

which will begin on the effective date of this Section 22.4 and extend through

the following July.