Viking Gas Transmission Company
Original Volume No. 1
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Effective Date: 11/01/1993, Docket: RS92- 52-001, Status: Effective
Original Sheet No. 64 Original Sheet No. 64 : Superseded
GENERAL TERMS AND CONDITIONS (Continued)
(ii) for amounts accrued after the date of reduction or conversion, an amount
calculated at the end of the contract year by multiplying the total
unrecovered amount for that year by the ratio of (1) the amount of the reduced
or converted demand billing units multiplied by the percentage of the
remaining contract year, and (2) the total of Transporter's actual sales
billing units to Transporter's Other Purchasers during such contract year.
The percent of contract year is calculated by dividing the number of days from
each of Transporter's Other Purchasers' partial reduction or conversion until
the end of the contract year, by three hundred and sixty-five (365).
(c) an amount, calculated in accordance with the procedures in (a) and (b) above, of
any out-of-period costs booked following the reduction or conversion and relating
to the period prior to such partial reduction or conversion.
In the event the balance in the unrecovered Purchased Gas Cost Account is a credit
balance, Transporter shall refund a portion of such balance to each of
Transporter's Other Purchasers in accordance with the formula specified in this
Section 2(a), (b) and (c).
The issuance by Transporter of direct bills or refunds pursuant to this Section 2
is subject to Transporter's filing for a receipt of approval from FERC. Within
thirty (30) days after receipt of such approval, Transporter shall issue invoices
for direct-billed amounts or refunds for any credit balances. Within thirty (30)
days after the determination of the out-of-period adjustments, Transporter shall
issue adjusted direct bills or refunds as a result of any out-of-period
adjustments. This Section shall not be construed to affect Transporter's right to
recover from Transporter's Other Purchasers' such transition costs as it may incur
in connection with contracts with suppliers of natural gas or otherwise, such
rights being expressly reserved, subject to applicable Commission regulations and
Transporter shall first bill its Unrecovered Gas Cost Account to converting or
reducing Purchasers in accordance with the formula specified in this Section 2(a),
(b) and (c). Transporter shall then bill the remaining amount in its Unrecovered
Gas Cost Account to all of its Other Purchasers in accordance with the formula
specified in Section 1(a), (b) and (c).
3. An Other Purchaser may challenge the prudence of any amount that is direct billed by
Transporter pursuant to this Article XVII in the FERC proceeding in which Transporter
seeks approval of such direct billing; provided however, that such amounts will be
subject to challenge only to the extent they have not previously been subject to review
in a prior purchased gas adjustment proceeding.