Form 6--Page 700 R Annual Report of OIL Pipeline Companies

REVISED PAGE 700 TO FORM 6 (proposed in RM12-18)

Name of Respondent		This Report Is: □ (1) An Original □ (2) A Resubmission	Date of Report (Mo, Da, Yr) / /		Year/Period of Report End of ________
Annual Cost of Service Based Analysis Schedule
1.) Use footnotes when particulars are required or for any explanations. 2.) Enter on lines 1-9, columns (b) and (c), the value the respondent's Operating & Maintenance Expenses, Depreciation Expense, AFUDC Depreciation, Amortization of Deferred Earnings, Rate Base, Rate of Return, Return, Income Tax Allowance, and Total Cost of Service, respectively, for the end of the current and previous calendar years. The values shall be computed consistent with the Commission's Opinion No. 154-B et al. methodology. Any item(s) not applicable to the filing, the pipeline company shall report nothing in columns (b) and (c). 3.) Enter on line 10, columns (b) and (c), total interstate operating revenue, as reported on page 301, for the current and previous calendar years. 4.) Enter on line 11, columns (b) and (c), the throughput in barrels from the Statistics of Operations schedule, page 601, line 33b, total of items (1) and (2), from the current and previous year's FERC Form No. 6. 5.) Enter on line 12, columns (b) and (c), the throughput in barrel-miles from the Statistics of Operations schedule, page 600, line 33a, total of items (1) and (2), from the current and previous year's FERC Form No. 6. 6.) If the company makes major changes to its application of the Opinion No. 154-B et al. methodology, it must describe such changes in a footnote, and calculate the amounts in columns (b) and (c) of lines No. 1-12 using the changed application. 7.) A respondent may be requested by the Commission or its staff to provide its workpapers which support the data reported on page 700.
Line No.	Item (a)			Current Year Amount (in dollars) (b)		Prior Year Amount (in dollars) (c)
1	Operating and Maintenance Expenses			25,000,000		24,500,000
2	Depreciation Expense			6,500,000		6,450,000
3	AFUDC Depreciation			500,000		510,000
4	Amortization of Deferred Earnings			800,000		840,000
5	Rate Base
5a	Rate Base – Original Cost			90,000,000		94,000,000
5b	Rate Base – Unamortized Starting Rate Base Write-Up
5c	Rate Base – Accumulated Net Deferred Earnings			20,000,000		21,000,000
5d	Total Rate Base –Trended Original Cost – (5a + 5b + 5c)			110,000,000		115,000,000
6	Rate of Return % (10.25% - 10.25)
6a	Rate of Return – Adjusted Capital Structure Ratio for Long Term Debt			36.00		36.00
6b	Rate of Return – Adjusted Capital Structure Ratio for Proprietary Capital			64.00		64.00
6c	Rate of Return – Cost of Long Term Debt Capital			8.00		8.00
6d	Rate of Return – Real Cost of Proprietary Capital			14.25		14.25
6e	Rate of Return – Weighted Average Cost of Capital – (6a x 6c + 6b x 6d)			12.00		12.00
7	Return on Rate Base
7a	Return on Rate Base – Debt Component			3,168,000		3,312,000
7b	Return on Rate Base – Equity Component			10,032,000		10,488,000
7c	Total Return on Rate Base – (7a + 7b)			13,200,000		13,800,000
8	Income Tax Allowance			9,000,000		9,400,000
8a	Composite Tax Rate % (37.50% - 37.50)			37.50		37.50
9	Total Cost of Service			55,000,000		55,500,000
10	Total Interstate Operating Revenues			60,000,000		57,000,000
11	Throughput in Barrels			80,000,000		79,000,000
12	Throughput in Barrel-Miles			40,000,000,000		39,000,000,000