Transcontinental Gas Pipe Line Company, LLC
Fourth Revised Volume No. 1
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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective
Original Sheet No. 445 Original Sheet No. 445
GENERAL TERMS AND CONDITIONS
38. FUEL RETENTION ADJUSTMENT PROVISION (Continued)
38.5 Deferred GRO Account
Seller shall maintain the Deferred GRO Account for each Deferral Period in accordance
with the following procedures:
(a) Seller shall determine each month the Actual GRO quantities.
(b) Seller shall determine each month the actual recovery of GRO quantities by
multiplying, as applicable, Seller's FRP's by the appropriate volume
(c) Each month, Seller shall determine the difference, positive or negative, between
the quantities computed in Section 38.5(a) and 38.5(b) and multiply such
difference by the currently applicable GRO Index as defined in Section 38.6
herein. 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.
(d) Seller shall incorporate the Deferred GRO Account balance 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 Index for the Deferral Period.
38.6 GRO Index
For any month, the GRO Index shall consist of the simple average of four relevant
price series, expressed in units of $/MMBTU, set forth in the table "Gas Price Report"
published in the first issue in such month of Natural Gas Week (or any succeeding
publication of Oil Daily, Inc.) for the following geographical regions:
Texas, Gulf Coast, Offshore, Spot Delivered to Pipeline
Texas, Gulf Coast, Onshore, Spot Delivered to Pipeline
Louisiana, Gulf Coast, Offshore, Spot Delivered to Pipeline
Louisiana, Gulf Coast, Onshore, Spot Delivered to Pipeline
38.7 Prior Period Adjustments
Except as provided below, prior period adjustments included in the Actual GRO
quantities shall be limited to prior period adjustments that relate to the twenty-four
month period immediately prior to the beginning of the Deferral Period. The twenty-
four month limitation on prior period adjustments shall apply to adjustments in favor
of Buyers and those in favor of Seller; provided that the twenty-four month limitation
associated with adjustments in favor of Buyer shall not apply to adjustments resulting
from Seller's negligence or willful misconduct.