Kansas Pipeline Company

Original Volume No. 1

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Effective Date: 05/11/1998, Docket: CP96-152-015, Status: Effective

First Revised Sheet No. 288 First Revised Sheet No. 288 : Effective

Superseding: Original Sheet No. 288



24.5 Interruptible Revenue Crediting


Within sixty (60) days of October 1 of each year

following the Implementation date, Kansas Pipeline shall

file a statement with the Commission comparing (1) the

total revenues collected pursuant to Rate Schedule IT

during the twelve (12) month period ending September 30,

against (2) the total cost of service allocated to be

recovered from Rate Schedule IT. To the extent such

revenue exceeds such cost of service allocation, Kansas

Pipeline shall consider any such amounts to be excess

revenues. One Hundred percent (100%) of such excess

revenues, less applicable surcharges, penalties, and

variable costs incurred to provide the service, shall

be credited against the reservation charges paid by

firm shippers served under Rate Schedules FT, FT-NN,

SCT, and SCT-NN. All firm shippers served under Rate

Schedules FT, and FT-NN paying the maximum rate shall

receive a pro-rata share of such credits based on their

contract MDCQ.


For Multiple Rate Periods, allocated costs will be

prorated based on the number of days each cost level

was in effect. Such refunds shall not be given until

the rates Kansas Pipeline Company used to compute the

revenues are no longer subject to refund. Upon

issuance of a final commission order which accepts new

rates under Section 4(e), Kansas Pipeline will

mail any refunds, including interest, pursuant to

Section 154.501 of the Commission's regulations,

accrued from the end of the twelve (12) month

distribution period ending September 30 of each year,

within ten (10) days following a final Commission Order

accepting Kansas Pipeline Company's refund filing.

"Variable Cost" as used in this Section 25.6 will be

the product of all quantities delivered under IT

Service and the minimum rate for such service listed

on Sheet No. 27.