18 Cfr 154

Federal Energy Regulatory Commission

PART 154—RATE SCHEDULES AND
TARIFFS
Subpart A—General Provisions and
Conditions
Sec.
154.1 Application; Obligation to file.
154.2 Definitions.
154.3 Effective tariff.
154.4 Electronic filing of tariffs and related
materials.
154.5 Rejection of filings.
154.6 Acceptance for filing not approval.
154.7 General requirements for the submission of a tariff filing or executed service
agreement.
154.8 Informal submission for staff suggestions.

§ 154.1
154.306 Cash working capital.
154.307 Joint facilities.
154.308 Representation of chief accounting
officer.
154.309 Incremental expansions.
154.310 Zones.
154.311 Updating of statements.
154.312 Composition of Statements.
154.313 Schedules for minor rate changes.
154.314 Other support for a filing.
154.315 Asset retirement obligations.

Subpart E—Limited Rate Changes
154.400
154.401
154.402
154.403

Subpart F—Refunds and Reports
154.501
154.502

Subpart B—Form and Composition of Tariff
154.101 [Reserved]
154.102 Requirements for filing rate schedules and tariffs.
154.103 Composition of tariff.
154.104 Table of contents.
154.105 Preliminary statement.
154.106 Map.
154.107 Currently effective rates.
154.108 Composition of rate schedules.
154.109 General terms and conditions.
154.110 Form of service agreement.
154.111 Index of customers.
154.112 Exception to form and composition
of tariff.

Additional requirements.
RD&D expenditures.
ACA expenditures.
Periodic rate adjustments.

Refunds.
Reports.

Subpart G—Other Tariff Changes
154.600 Compliance with other subparts.
154.601 Change in executed service agreement.
154.602 Cancellation or termination of a tariff, executed service agreement or part
thereof.
154.603 Adoption of the tariff by a successor.
AUTHORITY: 15 U.S.C. 717–717w; 31 U.S.C.
9701; 42 U.S.C. 7102–7352.
SOURCE: Order 582, 60 FR 52996, Oct. 11, 1995,
unless otherwise noted.

Subpart C—Procedures for Changing Tariffs
154.201 Filing requirements.
154.202 Filings to initiate a new rate schedule.
154.203 Compliance filings.
154.204 Changes in rate schedules, forms of
service agreements, or the general terms
and conditions.
154.205 Withdrawals and amendments of tariff filings and executed service agreements.
154.206 Motion to place suspended rates into
effect.
154.207 Notice requirements.
154.208 Service of tariff filings on customers
and other parties.
154.209 [Reserved]
154.210 Protests, interventions, and comments.

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Subpart D—Material to be Filed With
Changes
154.301 Changes in rates.
154.302 Previously submitted material.
154.303 Test periods.
154.304 Format of statements, schedules,
workpapers and supporting data.
154.305 Tax normalization.

Subpart A—General Provisions
and Conditions
§ 154.1 Application; Obligation to file.
(a) The provisions of this part apply
to filings pursuant to section 4 of the
Natural Gas Act.
(b) Every natural gas company must
file with the Commission and post in
conformity with the requirements of
this part, schedules showing all rates
and charges for any transportation or
sale of natural gas subject to the jurisdiction of the Commission, and the
classifications, practices, rules, and
regulations
affecting
such
rates,
charges, and services, together with all
contracts related thereto.
(c) No natural gas company may file,
under this part, any new or changed
rate schedule or contract for the performance of any service for which a
certificate of public convenience and
necessity or certificate amendment
must be obtained pursuant to section

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§ 154.2

18 CFR Ch. I (4–1–18 Edition)

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7(c) of the Natural Gas Act, until such
certificate has been issued.
(d) For the purposes of paragraph (b)
of this section, any contract that conforms to the form of service agreement
that is part of the pipeline’s tariff pursuant to § 154.110 does not have to be
filed. Any contract or executed service
agreement which deviates in any material aspect from the form of service
agreement in the tariff is subject to
the filing requirements of this part.
§ 154.2 Definitions.
(a) Contract means any agreement
which in any manner affects or relates
to rates, charges, classifications, practices, rules, regulations, or services for
any transportation or sale of natural
gas subject to the jurisdiction of the
Commission. This term includes an executed service agreement.
(b) FERC Gas Tariff or tariff means a
compilation, on electronic media, of all
of the effective rate schedules of a particular natural gas company, and a
copy of each form of service agreement.
(c) Form of service agreement means
an unexecuted agreement for service
included as an example in the tariff.
(d) Post means: to make a copy of a
natural gas company’s tariff and contracts available during regular business hours for public inspection in a
convenient form and place at the natural gas company’s offices where business is conducted with affected customers; and, to serve each affected customer and interested state Commission
in accordance with § 154.208 of this
Part.
(e) Rate schedule means a statement
of a rate or charge for a particular
classification of transportation or sale
of natural gas subject to the jurisdiction of the Commission, and all terms,
conditions, classifications, practices,
rules, and regulations affecting such
rate or charge.
(f) Filing date means the day on
which a tariff, or part thereof, or a contract is received in the Office of the
Secretary of the Commission for filing
in compliance with the requirements of
this part.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57533, Oct. 3,
2008]

§ 154.3

Effective tariff.

(a) The effective tariff of a natural
gas company is the tariff filed pursuant
to the requirements of this part, and
permitted by the Commission to become effective. A natural gas company
must not directly or indirectly, demand, charge, or collect any rate or
charge for, or in connection with, the
transportation or sale of natural gas
subject to the jurisdiction of the Commission, or impose any classifications,
practices, rules, or regulations, different from those prescribed in its effective tariff and executed service
agreements on file with the Commission, unless otherwise specifically permitted by order of the Commission.
(b) No tariff provision may purport to
change an effective rate or charge except in the manner provided in section
4 of the Natural Gas Act, and the regulations in this part. The tariff may not
provide for any rate or charge to be
automatically changed by an index or
other periodic adjustment, without filing for a rate change pursuant to these
regulations.
§ 154.4 Electronic filing of tariffs and
related materials.
(a) General rule. All filings made in
proceedings initiated under this part
must be made electronically, including
tariffs, rate schedules, service agreements, and contracts, or parts thereof,
and material that relates to or bears
upon such documents, such as cancellations, amendments, withdrawals, termination, or adoption of tariffs, and
motions relating to suspension.
(b) Requirement for signature. All filings must be signed in compliance with
the following:
(1) The signature on a filing constitutes a certification that the contents are true to the best knowledge
and belief of the signer, and that the
signer possesses full power and authority to sign the filing.
(2) A filing must be signed by one of
the following:
(i) The person on behalf of whom the
filing is made;
(ii) An officer, agent, or employee of
the company, governmental authority,
agency, or instrumentality on behalf of
which the filing is made; or,

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Federal Energy Regulatory Commission
(iii) A representative qualified to
practice before the Commission under
§ 385.2101 of this chapter who possesses
authority to sign.
(3) All signatures on the filing or any
document included in the filing must
comply, where applicable, with the requirements in § 385.2005 of this chapter
with respect to sworn declarations or
statements and electronic signatures.
(c) Format requirements for electronic filing. The requirements and formats for electronic filing are listed in
instructions for electronic filing and
for each form. These formats are available on the Internet at http://
www.ferc.gov and can be obtained at
the Federal Energy Regulatory Commission, Public Reference Room, 888
First Street, NE., Washington, DC
20426.
(d) Only filings filed and designated
as filings with statutory action dates
in accordance with these electronic filing requirements and formats will be
considered to have statutory action
dates. Filings not properly filed and
designated as having statutory action
dates will not become effective, pursuant to the Natural Gas Act, should the
Commission not act by the requested
action date.
[Order 714, 73 FR 57533, Oct. 3, 2008, as amended by Order 714–A, 79 FR 29076, May 21, 2014]

§ 154.5

Rejection of filings.

A filing that fails to comply with
this part may be rejected by the Director of the Office of Energy Market Regulation pursuant to the authority delegated to the Director in Part 375 of this
chapter.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 699, 72 FR 45325, Aug. 14,
2007; Order 701, 72 FR 61054, Oct. 29, 2007;
Order 714, 73 FR 57534, Oct. 3, 2008]

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§ 154.6 Acceptance for filing not approval.
The acceptance for filing of any tariff, contract or part thereof does not
constitute approval by the Commission. Any filing which does not comply
with any applicable statute, rule, or
order, may be rejected.

§ 154.7
§ 154.7 General requirements for the
submission of a tariff filing or executed service agreement.
The following must be included with
the filing of any tariff, executed service agreement, or part thereof, or
change thereto.
(a) A letter of transmittal containing:
(1) A list of the material enclosed,
(2) The name of a responsible company official to whom questions regarding the filing may be addressed,
with a telephone number at which the
official may be reached,
(3) The date on which such filing is
proposed to become effective,
(4) Reference to the authority under
which the filing is made, including the
specific section of a statute, subpart of
these regulations, order of the Commission, provision of the company’s tariff,
or any other appropriate authority. If
an order is referenced, the letter must
include the citation to the FERC Reports, the date of issuance, and the
lead docket number of the proceeding
in which the order was issued.
(5) A list of the tariff sheets or sections enclosed,
(6) A statement of the nature, the
reasons, and the basis for the filing.
The statement must include a summary of the changes or additions made
to the tariff or executed service agreement, as appropriate. The statement
must include a quantified summary
comparing the cost of service, rate base
and
throughput
underlying
each
change in rate made to the tariff or executed service agreement compared to
the same information underlying the
last rate found by the Commission to
be just and reasonable. A detailed explanation of the need for each change
or addition to the tariff or executed
service agreement must be included.
The natural gas company also must
note all relevant precedents relied
upon to prepare its filing.
(7) Any requests for waiver. A request
for waiver must include a reference to
the specific section of the statute, regulations, or the company’s tariff from
which waiver is sought, and a justification for the waiver.
(8) Where the natural gas company
proposes a new rate, identification of
the last rate, found by the Commission

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§ 154.8

18 CFR Ch. I (4–1–18 Edition)

to be just and reasonable, that
underlies the proposed rate.
(9) A motion, in case of minimal suspension, to place the proposed rates
into effect at the end of the suspension
period; or, a specific statement that
the pipeline reserves its right to file a
later motion to place the proposed
rates into effect at the end of the suspension period.
(b) A certification of service to all
customers and state commissions pursuant to § 154.2(d).
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582–A, 61 FR 9628, Mar. 11,
1996; Order 714, 73 FR 57534, 57535, Oct. 3, 2008]

§ 154.8 Informal submission for staff
suggestions.
Any natural gas company may informally submit a proposed tariff or any
part thereof or material relating thereto for the suggestions of the Commission staff prior to filing. Opinions of
the Commission staff are not binding
upon the Commission.

Subpart B—Form and Composition
of Tariff

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§ 154.101

[Reserved]

§ 154.102 Requirements for filing rate
schedules and tariffs.
(a) All rates schedules, tariffs, and
service agreements may be filed either
by dividing the rate schedule, tariff, or
agreement into individual tariff sheets,
or tariff sections, or as an entire document except as provided in paragraph
(b) of this section.
(b) Open access transportation tariffs
must be filed either as individual
sheets or sections. If filed as sections,
each section must include only material of related subject matter and must
be of reasonable length and must include at a minimum a section for each
item listed in the table of contents
under § 154.103 of this section and each
topic listed under General Terms and
Conditions of Service.
(c) Individual negotiated rate agreements, non-conforming service agreements, or other agreements that are
included in the tariff may be filed as
entire documents.
(d) The first section or sheet of the
tariff must include:

(1) The FERC Gas Tariff Volume
Number and Name of the Natural Gas
Company, for example
FERC Gas Tariff Volume No. [ ] of
[Name of Natural Gas Company]
(2) The name, title, address, telephone number, e-mail address and facsimile number of a person to whom
communications concerning the tariff
should be sent.
[Order 714, 73 FR 57534, Oct. 3, 2008]

§ 154.103 Composition of tariff.
(a) The tariff must contain sections,
in the following order: A table of contents, a preliminary statement, a uniform resource locator for the Internet
address of a map of the system, currently effective rates, composition of
rate schedules, general terms and conditions, form of service agreement, and
an index of customers.
(b) Rate schedules must be grouped
according to class and numbered serially within each group, using letters
before the serial number to indicate
the class of service. For example: FT–1,
FT–2 may be used for firm transportation service; IT–1, IT–2 may be used
for interruptible transportation service; X–1, X–2 may be used for schedules
for which special exception has been
obtained.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 801, 79 FR 75050, Dec. 17,
2014]

§ 154.104 Table of contents.
The table of contents must contain a
list of the rate schedules, sections of
the general terms and conditions, and
other sections in the order in which
they appear, showing the sheet number
of the first page of each section or the
section number. The list of rate schedules must consist of: The alphanumeric
designation of each rate schedule, a
very brief description of the service,
and the sheet number of the first page
of each rate schedule or the section
number.
[Order 714, 73 FR 57534, Oct. 3, 2008]

§ 154.105 Preliminary statement.
The preliminary statement must contain a brief general description of the
company’s operations and may also
contain a general explanation of its

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Federal Energy Regulatory Commission
policies and practices. General rules
and regulations, and any material necessary for the interpretation or application of the rate schedules, may not
be included in the preliminary statement.
§ 154.106 Map.
(a) The tariff must state a uniform
resource locator on the pipeline’s
Internet Web site, at which the general
public may display and download system map(s).
(b) The map must show the general
geographic location of the company’s
principal pipeline facilities and of the
points at which service is rendered
under the tariff. The boundaries of any
rate zones or rate areas must be shown
and the areas or zones identified. The
entire system should be displayed on a
single map. In addition, a separate map
should be provided for each zone.
(c) The map must be revised to reflect any major change no later than
the end of the calendar quarter that
immediately follows the calendar quarter in which the major change occurred.

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[Order 801, 79 FR 75050, Dec. 17, 2014]

§ 154.107 Currently effective rates.
(a) This section of the tariff must
present the currently effective rates
and charges under each rate schedule.
(b) All rates must be stated clearly in
cents or dollars and cents per thermal
unit. The unit of measure must be stated for each component of a rate.
(c) A rate having more than one part
must have each component set out separately under appropriate headings
(e.g., ‘‘Reservation Charge,’’ ‘‘Usage
Charge.’’)
(d) Where a component of a rate is
adjusted pursuant to a mechanism approved under subpart E of this part, the
adjustment must be stated in a separate column on the rate sheet or section.
(e) Exception to paragraph (d) of this
section. Where the rate component is
an Annual Charge Adjustment surcharge approved by the Commission,
the adjustment or surcharge may be
stated in a footnote on the rate sheet
or section.
(f) A total rate, indicating the sum of
the rate components under paragraph

§ 154.108
(c) of this section plus the adjustments
under paragraph (d) of this section,
must be shown in the last column at
the end of a line for a rate, so that a
reader can readily determine the separate components comprising the total
rate for a service.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57534, Oct. 3,
2008]

§ 154.108 Composition of rate schedules.
The rate schedule must contain a
statement of the rate or charge and all
terms and conditions governing its application, arranged as follows:
(a) Title. Each rate schedule must
have a title consisting of a designation
of the type or classification of service
(see § 154.103(b)), and a statement of the
type or classification of service to
which the rate is applicable.
(b) Availability. This paragraph must
describe the conditions under which
the rate is offered, including any geographic zone limitations.
(c) Applicability and character of service. This paragraph must fully describe
the kind or classification of service to
be rendered.
(d) Summary of rates. This paragraph
must briefly set forth all components
of the rates, refer to the location of the
rates in the Currently Effective Rates,
and provide a description of the calculation of the monthly charges for
each rate component.
(e) Other provisions. All other major
provisions governing the application of
the rate schedule, such as determination of billing demand, contract demand, heat content, and measurement
base, must be set forth with appropriate headings or incorporated by reference to the applicable general terms
and conditions.
(f) Applicable terms and conditions.
This paragraph either states that all of
the general terms and conditions set
forth in the tariff apply to the rate
schedule, or specifies which of the general terms and conditions do not apply.

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§ 154.109

18 CFR Ch. I (4–1–18 Edition)

§ 154.109 General terms and conditions.
(a) This section of the tariff contains
terms and conditions of service applicable to all or any of the rate schedules. Subsections and paragraphs must
be numbered for convenient reference.
(b) The general terms and conditions
of the tariff must contain a statement
of the company’s policy with respect to
the financing or construction of
laterals including when the pipeline
will pay for or contribute to the construction cost. The term ‘‘lateral’’
means any pipeline extension (other
than a mainline extension) built from
an existing pipeline facility to deliver
gas to one or more customers, including new delivery points and enlargements or replacements of existing
laterals.
(c) The general terms and conditions
of the tariff must contain a statement
of the order in which the company discounts its rates and charges. The statement, specifying the order in which
each rate component will be discounted, must be in accordance with
Commission policy.

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§ 154.110 Form of service agreement.
The
tariff
must
contain
an
unexecuted pro forma copy of each
form of service agreement. The form
for each service must refer to the service to be rendered and the applicable
rate schedule of the tariff; and, provide
spaces for insertion of the name of the
customer, effective date, expiration
date, and term. Spaces may be provided
for the insertion of receipt and delivery
points, contract quantity, and other
specifics of each transaction as appropriate.
§ 154.111 Index of customers.
(a) If a pipeline is in compliance with
the reporting requirements of § 284.13(c)
of this chapter, then an index of customers need not be provided in the tariff.
(b) If all of a pipeline’s jurisdictional
transportation and sales are pursuant
to part 157 of this chapter, then an
index of customers must be provided
that contains: a list of the pipeline’s
firm transportation, storage, and sales
customers, and the rate schedule number for the services for which the ship-

pers are contracting; the effective date
of the contract; the expiration date of
the contract; if the service is transportation or sales, the maximum daily
contract demand under the contract;
and, if the service is storage, the maximum storage quantity. Specify units
of measurement when reporting contract quantities.
(c) The index of customers must be
kept current by filing new or revised
sheets or sections, semi-annually. One
filing must coincide with the filing of
the natural gas company’s FERC Form
No. 2 or 2–A with a proposed effective
date of June 1. The other filing must be
made six months later with a proposed
effective date of December 1. The Index
of Customers must contain a list of the
contracts in effect as of the filing date.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 637, 65 FR 10219, Feb. 25,
2000; Order 714, 73 FR 57535, Oct. 3, 2008]

§ 154.112 Exception to form and composition of tariff.
(a) The Commission may permit a
special rate schedule to be filed in the
form of an agreement in the case of a
special operating arrangement, previously certificated pursuant to part
157 of this chapter, such as for the exchange of natural gas. The special rate
schedule must contain a title page
showing the parties to the agreement,
the date of the agreement, a brief description of services to be rendered,
and the designation: ‘‘Rate Schedule X[number].’’ Special rate schedules may
not contain any supplements. Modifications must be made by inserting revised sheets, sections or the entire document as appropriate. Special rate
schedules must be included in a separate volume of the tariff. Each such
separate volume must contain a table
of contents which is incorporated as a
sheet or section in the open access
transmission tariff.
(b) Contracts for service pursuant to
part 284 of this chapter that deviate in
any material aspect from the form of
service agreement must be filed. Such
non-conforming agreements must be
referenced in the open access transmission tariff.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57534, Oct. 3,
2008; 81 FR 51100, Aug. 3, 2016]

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Federal Energy Regulatory Commission

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Subpart C—Procedures for
Changing Tariffs
§ 154.201 Filing requirements.
In addition to the requirements of
subparts A and B of this part, the following must be included with the filing
of any tariff, executed service agreement, or part thereof, that changes or
supersedes any tariff, contract, or part
thereof, on file with the Commission.
(a) A list in the transmittal letter of
the tariff sheets or sections being revised and a marked version of the
sheets or sections to be changed or superseded showing additions and deletions. New numbers and text must be
marked by either highlight, background shading, bold, or underline. Deleted text and numbers must be indicated by strike-through. Only those revisions appropriately designated and
marked constitute the filing. Revisions
to unmarked portions of the rate
schedule or tariff are not considered
part of the filing nor will any acceptance of the filing by the Commission
constitute acceptance of such unmarked changes.
(b) Documentation whether in the
form of workpapers, or otherwise, sufficiently detailed to support the company’s proposed change.
(1) The documentation must include
but is not limited to the schedules,
workpapers, and supporting documentation required by these rules and
regulations and the Commission’s orders.
(2) All rate changes in the filing must
be supported by step-by-step mathematical calculations and sufficient
written narrative to allow the Commission and interested parties to duplicate
the company’s calculations.
(3) Any data or summaries included
in the filing purporting to reflect the
books of account must be supported by
accounting workpapers setting forth
all necessary particulars from which an
auditor may readily verify that such
data are in agreement with the company’s books of account. All statements, schedules, and workpapers must
be prepared in accordance with the
classifications of the Commission’s
Uniform
System
of
Accounts.
Workpapers in support of all adjustments, computations, and other infor-

§ 154.202
mation, properly indexed and cross-referenced to the filing and other
workpapers, must be available for
Commission examination.
(4) Where a rate, cost, or volume is
derived from another rate, cost, or volume, the derivation must be shown
mathematically and be accompanied
by a written narrative sufficient to
allow the Commission and interested
parties to duplicate the calculations. If
the derivation is due to a load factor
adjustment, application of a percentage, or other adjusting factor, the pipeline must also note or explain the origin of the adjusting factor.
(5) Where workpapers show progressive calculations, any discontinuity between one working paper and another
must be explained.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57534, Oct. 3,
2008]

§ 154.202 Filings to initiate a new rate
schedule.
(a) When the filing is to initiate a
new service authorized under a blanket
authority in part 284 of this chapter,
the filing must comply with the requirements of this paragraph.
(1) Filings under this paragraph
must:
(i) Adhere to the requirements of subparts A, B, and C of this part;
(ii) Contain a description of the new
service, including, but not limited to,
the proposed effective date for commencement of service, applicability,
whether the service is interruptible or
firm, and the necessity for the service;
(iii) Explain how the new service will
differ from existing services, including
a concise description of the natural gas
company’s existing operations;
(iv) Explain the impact of the new
service on existing firm and interruptible customers, including but not limited to:
(A) The adequacy of existing capacity, if the proposed service is a firm
service, and
(B) The effect on receipt and delivery
point flexibility, nominating and
scheduling priorities, allocation of capacity, operating conditions, and curtailment, for any new service;

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§ 154.203

18 CFR Ch. I (4–1–18 Edition)

(v) Include workpapers that detail
the computations underlying the proposed rate under the new rate schedule;
or, if the rate is a currently effective
rate, include the appropriate reference
and an explanation of why the rate is
appropriate;
(vi) Give a justification, similar in
form to filed testimony in a general
section 4 rate case, explaining why the
proposed rate design and proposed allocation of costs are just and reasonable;
(vii) If the costs relating to existing
services are reallocated to new services, explain the method for allocating
the costs and the impact on the existing customers;
(viii) Include workpapers showing the
estimated effect on revenue and costs
over the twelve-month period commencing on the proposed effective date
of the filing.
(ix) List other filings pending before
the Commission at the time of the filing which may significantly affect the
filing. Explain how the instant filing
would be affected by the outcome of
each related pending filing;
(2) Any interdependent filings must
be filed concurrently and contain a notice of the interdependence.
(b) If a new service, facility, or rate
is specifically authorized by a Commission order pursuant to section 7 of the
Natural Gas Act, with the filing of tariff sheets or sections to implement the
new rate schedule, the natural gas
company must:
(1) Comply with the requirements of
§ 154.203; and
(2) Where the rate or charge proposed
differs from the rate or charge approved in the certificate order, the natural gas company must: Show that the
change is due to a rate adjustment
under a periodic rate change mechanism previously accepted under § 154.403
which has taken effect since the certificate order was issued; or, show that
the rate change is in accordance with
the terms of the certificate, and provide workpapers justifying the change.

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[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57535, Oct. 3,
2008]

§ 154.203 Compliance filings.
(a) In addition to the requirements of
subparts A, B, and C of this part, fil-

ings made to comply with orders issued
by the Commission, including those
issued under delegated authority, must
contain the following:
(1) A list of the directives with which
the company is complying;
(2) Revised workpapers, data, or summaries with cross-references to the
originally filed workpapers, data, or
summaries;
(b) Filings made to comply with
Commission orders must include only
those changes required to comply with
the order. Such compliance filings may
not be combined with other rate or tariff change filings. A compliance filing
that includes other changes or that
does not comply with the applicable
order in every respect may be rejected.
§ 154.204 Changes in rate schedules,
forms of service agreements, or the
general terms and conditions.
A filing to revise rate schedules,
forms of service agreements, or the
general terms and conditions, must:
(a) Adhere to the requirements of
subparts A, B, and C, of this part;
(b) Contain a description of the
change in service, including, but not
limited to, applicability, necessity for
the change, identification of services
and types of customers that will be affected by the change;
(c) Explain how the proposed tariff
provisions differ from those currently
in effect, including an example showing
how the existing and proposed tariff
provisions operate. Explain why the
change is being proposed at this time;
(d) Explain the impact of the proposed revision on firm and interruptible customers, including any changes
in a customer’s rights to capacity in
the manner in which a customer is able
to use such capacity, receipt or delivery point flexibility, nominating and
scheduling, curtailment, capacity release;
(e) Include workpapers showing the
estimated effect on revenues and costs
over the 12-month period commencing
on the proposed effective date of the
filing. If the filing proposes to change
an existing penalty provision, provide
workpapers showing the penalty revenues and associated quantities under
the existing penalty provision during
the latest 12-month period; and

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Federal Energy Regulatory Commission
(f) List other filings pending before
the Commission which may significantly affect the filing.

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§ 154.205 Withdrawals
and
amendments of tariff filings and executed
service agreements.
(a) Withdrawals of tariff filings or service agreements prior to Commission action.
(1) A natural gas company may withdraw in its entirety a tariff filing or executed service agreement that has not
become effective and upon which no
Commission or delegated order has
been issued by filing a withdrawal motion with the Commission. Upon the
filing of such motion, the proposed tariff sheets, sections or service agreements will not become effective under
section 4(d) of the Natural Gas Act in
the absence of Commission action
making the rate schedule or tariff filing effective.
(2) The withdrawal motion will become effective, and the rate schedule
or tariff filing will be deemed withdrawn, at the end of 15 days from the
date of filing of the withdrawal motion,
if no answer in opposition to the withdrawal motion is filed within that period and if no order disallowing the
withdrawal is issued within that period. If an answer in opposition is filed
within the 15 day period, the withdrawal is not effective until an order
accepting the withdrawal is issued.
(b) Amendments or modifications to tariff sheets, sections or service agreements
prior to Commission action on a tariff filing. A natural gas company may file to
amend or modify a tariff or service
agreement contained in a tariff filing
upon which no Commission or delegated order has yet been issued. Such
filing will toll the notice period in section 4(d) of the Natural Gas Act for the
original filing, and establish a new date
on which the entire filing will become
effective, in the absence of Commission
action, no earlier than 31 days from the
date of the filing of the amendment or
modification.
(c) Withdrawal of suspended tariffs, executed service agreements, or parts thereof. A natural gas company may not,
within the period of suspension, withdraw a proposed tariff, executed service
agreement, or part thereof, that has
been suspended by order of the Com-

§ 154.206
mission, except by special permission
of the Commission granted upon application therefor and for good cause
shown.
(d) Changes in suspended tariffs, executed service agreements, or parts thereof.
A natural gas company may not, within the period of suspension, file any
change in a proposed tariff, executed
service agreement, or part thereof,
that has been suspended by order of the
Commission, except by special permission of the Commission granted upon
application therefor and for good cause
shown.
(e) Changes in tariffs, executed service
agreements, or parts thereof continued in
effect, and which were to be changed by
the suspended filing. A natural gas company may not, within the period of suspension, file any change in a tariff, executed service agreement, or part thereof, that is continued in effect by operation of the order of suspension, and
that was proposed to be changed by the
suspended filing, except:
(1) Under a previously approved tariff
provision permitting a limited rate
change, or
(2) By special permission of the Commission.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57534, Oct. 3,
2008]

§ 154.206 Motion to place suspended
rates into effect.
(a) If, prior to the end of the suspension period, the Commission has issued
an order requiring changes in the filed
rates, or the filed rates recover costs
for facilities not certificated and in
service as of the proposed effective
date, in order to place the suspended
rates into effect, the pipelne must file
a motion at least one day prior to the
effective date requested by the pipeline. The motion must be accompanied
by revised tariff sheets or sections reflecting any changes ordered by the
Commission or modifications approved
by the Commission during the suspension period under § 154.205. The filing of
the revised tariff sheets or sections
must:
(1) Comply with the requirements of
subparts A, B, and C of this part;
(2) Identify the Commission order directing the revision;

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§ 154.207

18 CFR Ch. I (4–1–18 Edition)

(3) List the modifications made to
the currently effective rate during the
suspension period, the docket number
in which the modifications were filed,
and identify the order permitting the
modifications.
(b) Where the Commission has suspended the effective date of a change of
rate, charge, classification, or service
for a minimal period and the pipeline
has not included a motion in its transmittal letter, or has specified in its
transmittal
letter
pursuant
to
§ 154.7(a)(9), that it reserves its right to
file motion to place the proposed
change of rate, charge, classification,
or service into effect at the end of the
suspension period, the change will go
into effect, subject to refund, upon motion of the pipeline.
(c) Where the Commission has suspended the effective date of a change of
rate, charge, classification, or service
for a minimal period and the pipeline
has included, in its transmittal letter
pursuant to § 154.7(a)(9), a motion to
place the proposed change of rate,
charge, classification, or service into
effect at the end of the suspension period, the change will go into effect,
subject to refund, on the authorized effective date.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57535, Oct. 3,
2008]

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§ 154.207 Notice requirements.
All proposed changes in tariffs, contracts, or any parts thereof must be
filed with the Commission and posted
not less than 30 days nor more than 60
days prior to the proposed effective
date thereof, unless a waiver of the
time periods is granted by the Commission.
§ 154.208 Service of tariff filings on
customers and other parties.
(a) On or before the filing date, the
company must serve, upon all customers as of the date of the filing and
all affected state regulatory commissions, an abbreviated form of the filing
consisting of: The Letter of Transmittal; the Statement of Nature, Reason, and Basis; the changed tariff
sheets or sections; a summary of the
cost-of-service and rate base; and, summary of the magnitude of the change.

(b) On or before the filing date, the
company must serve a full copy of the
filing upon all customers and state regulatory commissions that have made a
standing request for such service.
(c) Within two business days of receiving a request for a complete copy
from any customer or state commission that has not made a standing request, the company must serve a full
copy of any filing.
(d) A customer or other party may
designate a recipient of service. The
filing company must serve the designated recipient, in accordance with
this section, instead of the customer or
other party. For the purposes of this
section, service upon the designated recipient will be deemed service upon the
customer or other party.
(e) The company may choose to effect service either electronically or by
paper. Such service must be made in
accordance with the requirements of
Part 385 of this chapter.
(f) Unless it seeks a waiver of electronic service, each customer or party
entitled to service of initial tariff filings under this section must notify the
company of the e-mail address to which
service should be directed. A customer
or party may seek a waiver of electronic service by filing a waiver request under Part 390 of this chapter,
providing good cause for its inability
to accept electronic service.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582A, 61 FR 9628, Mar. 11,
1996; Order 714, 73 FR 57535, Oct. 3, 2008]

§ 154.209

[Reserved]

§ 154.210 Protests, interventions, and
comments.
(a) Unless the notice issued by the
Commission provides otherwise, any
protest, intervention or comment to a
tariff filing made pursuant to this part
must be filed in accordance with
§ 385.211 of this chapter, not later than
12 days after the subject tariff filing. A
protest must state the basis for the objection. A protest will be considered by
the Commission in determining the appropriate action to be taken, but will
not serve to make the protestant a

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Federal Energy Regulatory Commission
party to the proceeding. A person wishing to become a party to the proceeding must file a motion to intervene.
(b) Any motion to intervene must be
filed not later than 12 days after the
subject tariff filing in accordance with
§ 385.214 of this chapter.

Subpart D—Material To Be Filed
With Changes
§ 154.301 Changes in rates.
(a) Except for changes in rates pursuant to subparts E, F and G, of this part,
any natural gas company filing for a
change in rates or charges, except for a
minor rate change, must submit, in addition to the material required by subparts A, B, and C of this part, the
Statements and Schedules described in
§ 154.312.
(b) A natural gas company filing for
a minor rate change must file the
Statements and Schedules described in
§ 154.313.
(c) A natural gas company filing for a
change in rates or charges must be prepared to go forward at a hearing and
sustain, solely on the material submitted with its filing, the burden of
proving that the proposed changes are
just and reasonable. The filing and supporting workpapers must be of such
composition, scope, and format as to
comprise the company’s complete casein-chief in the event that the change is
suspended and the matter is set for
hearing. If the change in rates or
charges presented are not in full accord
with any prior Commission decision directly involving the filing company,
the company must include in its working papers alternate material reflecting the effect of such prior decision.

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[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582–A, 61 FR 9628, Mar. 11,
1996]

§ 154.302 Previously submitted material.
(a) If all, or any portion, of the information called for by this part has already been submitted to the Commission within six months of the filing
date of this application, or is included
in other data filed pursuant to this
part, specific reference thereto may be
made in lieu of resubmission.

§ 154.303
(b) If a new FERC Form No. 2 or 2–A
is required to be filed within 60 days
from the end of the base period, the
new FERC Form No. 2 or 2–A must be
filed concurrently with the rate change
filing. There must be furnished to the
Director, Office of Energy Market Regulation, with the rate change filing,
one copy of the FERC Form No. 2 or 2–
A.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 699, 72 FR 45325, Aug. 14,
2007; Order 701, 72 FR 61054, Oct. 29, 2007]

§ 154.303

Test periods.

Statements A through M, O, P, and
supporting schedules, in § 154.312 and
§ 154.313, must be based upon a test period.
(a) If the natural gas company has
been in operation for 12 months on the
filing date, then the test period consists of a base period followed by an adjustment period.
(1) The base period consists of 12 consecutive months of the most recently
available actual experience. The last
day of the base period may not be more
than 4 months prior to the filing date.
(2) The adjustment period is a period
of up to 9 months immediately following the base period.
(3) The test period may not extend
more than 9 months beyond the filing
date.
(4) The rate factors (volumes, costs,
and billing determinants) established
during the base period may be adjusted
for changes in revenues and costs
which are known and measurable with
reasonable accuracy at the time of the
filing and which will become effective
within the adjustment period. The base
period factors must be adjusted to
eliminate nonrecurring items. The
company may adjust its base period
factors to normalize items eliminated
as nonrecurring.
(b) If the natural gas company has
not been in operation for 12 months on
the filing date, then the test period
must consist of 12 consecutive months
ending not more than one year after
the filing date. Rate factors may be adjusted as in paragraph (a)(4) of this section but must not be adjusted for occurrences anticipated after the 12month period.

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§ 154.304

18 CFR Ch. I (4–1–18 Edition)

(c)(1) Adjustments to base period experience, or to estimates where 12
months’ experience is not available,
may include the costs for facilities for
which either a permanent or temporary
certificate has been granted, provided
such facilities will be in service within
the test period; or a certificate application is pending. The filing must identify facilities, related costs and the
docket number of each such outstanding certificate. Subject to paragraph (c)(2) of this section, adjustments to base period experience, or to
estimates where 12 months’ experience
is not available, may include any
amounts for facilities that require a
certificate of public convenience and
necessity, where a certificate has not
been issued by the filing date but is expected to be issued before the end of
the test period. Adjustments to base
period may include costs for facilities
that do not require a certificate and
are in service by the end of the test period.
(2) When a pipeline files a motion to
place the rates into effect, the filing
must be revised to exclude the costs associated with any facilities that will
not be in service as of the end of the
test period, or for which certificate authorization is required but will not be
granted as of the end of the test period.
At the end of the test period, the pipeline must remove from its rates costs
associated with any facility that is not
in service or for which certificate authority is required but has not been
granted.
(d) The Commission may allow reasonable deviation from the prescribed
test period.

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[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582–A, 61 FR 9629, Mar. 11,
1996]

§ 154.304 Format of statements, schedules, workpapers and supporting
data.
(a) All statements, schedules, and
workpapers must be prepared in accordance with the Commission’s Uniform System of Accounts.
(b) The data in support of the proposed rate change must include the required particulars of book data, adjustments, and other computations and information on which the company re-

lies, including a detailed narrative explanation placed at the beginning of
the specific statement or schedule to
which they apply, explaining each proposed adjustment to base period actual
volumes and costs.
(c) Book data included in statements
and schedules required to be prepared
or submitted as part of the filing must
be reported in a separate column or
columns. All adjustments to book data
must also be reported in a separate column or columns so that book amounts,
adjustments thereto, and adjusted
amounts will be clearly disclosed. All
adjustments must be supported by a
narrative explanation placed at the beginning of the specific statement or
schedule to which they apply.
(d) Certain of the statements and
schedules of § 154.313 are workpapers.
Any data or summaries reflecting the
books of account must be supported by
accounting workpapers setting forth
all necessary particulars from which an
auditor may readily identify the book
data included in the filing and verify
that such data are in agreement with
the company’s books of account.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582–A, 61 FR 9629, Mar. 11,
1996]

§ 154.305

Tax normalization.

(a) Applicability. An interstate pipeline must compute the income tax
component of its cost-of-service by
using tax normalization for all transactions.
(b) Definitions. (1) Tax normalization
means computing the income tax component as if transactions recognized in
each period for ratemaking purposes
are also recognized in the same amount
and in the same period for income tax
purposes.
(2) Commission-approved ratemaking
method means a ratemaking method
approved by the Commission in a final
decision. This includes a ratemaking
method that is part of an approved settlement or arbitration providing that
the ratemaking method is to be effective beyond the term of the settlement
or arbitration.
(3) Income tax purposes means for the
purpose of computing actual income
tax under the provisions of the Internal

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Federal Energy Regulatory Commission
Revenue Code or the income tax provisions of the laws of a State or political
subdivision of a State (including franchise taxes).
(4) Income tax component means that
part of the cost-of-service that covers
income tax expenses allowable by the
Commission.
(5) Ratemaking purposes means for the
purpose of fixing, modifying, accepting,
approving, disapproving, or rejecting
rates under the Natural Gas Act.
(6) Tax effect means the tax reduction
or addition associated with a specific
expense or revenue transaction.
(7) Transaction means an activity or
event that gives rise to an accounting
entry.
(c) Reduction of, and addition to, Rate
Base. (1) The rate base of an interstate
pipeline using tax normalization under
this section must be reduced by the
balances that are properly recordable
in Account 281, ‘‘Accumulated deferred
income taxes-accelerated amortization
property’’; Account 282, ‘‘Accumulated
deferred income taxes—other property’’: and Account 283, ‘‘Accumulated
deferred income taxes—other.’’ Balances that are properly recordable in
Account 190, ‘‘Accumulated deferred income taxes,’’ must be treated as an addition to rate base. Include, as an addition or reduction, as appropriate,
amounts in Account 182.3, Other regulatory assets, and Account 254, Other
regulatory liabilities, that result from
a deficiency or excess in the deferred
tax accounts (see paragraph (d) of this
section) and which have been, or are
soon expected to be, authorized for recovery or refund through rates.
(2) Such rate base reductions or additions must be limited to deferred taxes
related to rate base, construction, or
other costs and revenues affecting jurisdictional cost-of-service.
(d) Special rules. (1) This paragraph
applies:
(i) If the rate applicant has not provided deferred taxes in the same
amount that would have accrued had
tax normalization always been applied;
or
(ii) If, as a result of changes in tax
rates, the accumulated provision for
deferred taxes becomes deficient in, or
in excess of, amounts necessary to
meet future tax liabilities.

§ 154.307
(2) The interstate pipeline must compute the income tax component in its
cost-of-service by making provision for
any excess or deficiency in deferred
taxes.
(3) The interstate pipeline must
apply a Commission-approved ratemaking method made specifically applicable to the interstate pipeline for
determining the cost-of-service provision described in paragraph (d)(2) of
this section. If no Commission-approved ratemaking method has been
made specifically applicable to the
interstate pipeline, then the interstate
pipeline must use some ratemaking
method for making such provision, and
the appropriateness of such method
will be subject to case-by-case determination.
(4) An interstate pipeline must continue to include, as an addition or reduction to rate base, any deficiency or
excess attributable to prior flowthrough or changes in tax rates (paragraphs (d)(1)(i) and (d)(1)(ii) of this section), until such deficiency or excess is
fully amortized in accordance with a
Commission
approved
ratemaking
method.
§ 154.306

Cash working capital.

A natural gas company that files a
tariff change under this part may not
receive a cash working capital adjustment to its rate base unless the company or other participant in a rate proceeding under this part demonstrates,
with a fully developed and reliable
lead-lag study, a net revenue receipt
lag or a net expense payment lag (revenue lead). Any demonstrated net revenue receipt lag will be credited to rate
base; and, any demonstrated net expense payment lag will be deducted
from rate base.
§ 154.307

Joint facilities.

The Statements required by § 154.312
must show all costs (investment, operation,
maintenance,
depreciation,
taxes) that have been allocated to the
natural gas operations involved in the
subject rate change and are associated
with joint facilities. The methods used
in making such allocations must be
provided.

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§ 154.308

18 CFR Ch. I (4–1–18 Edition)

§ 154.308 Representation of chief accounting officer.
The filing must include a statement
executed by the chief accounting officer or other authorized accounting representative of the filing company representing that the cost statements,
supporting data, and workpapers, that
purport to reflect the books of the
company do, in fact, set forth the results shown by such books.
§ 154.309

Incremental expansions.

(a) For every expansion for which incremental rates are charged, the company must provide a summary with applicable cross-references to § 154.312 and
§ 154.313, of the costs and revenues associated with the expansion, until the
Commission authorizes the costs of the
incremental facilities to be rolled-in to
the pipeline’s rates. For every expansion that has an at-risk provision in
the certificate authorization, the costs
and revenues associated with the facility must be shown in summary format
with applicable cross-references to
§ 154.312 and § 154.313, until the Commission removes the at-risk condition.
(b) The summary statements must
provide the formulae and explain the
bases used in the allocation of common
costs to each incremental facility.
§ 154.310

Zones.

If the company maintains records of
costs by zone, and proposes a zone rate
methodology based on these costs, the
statements and schedules in § 154.312
and § 154.313 must reflect costs detailed
by zone.

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§ 154.311

Updating of statements.

(a) Certain statements and schedules
in § 154.312, that include test period
data, must be updated with actual data
by month and must be resubmitted in
the same format and with consecutive
monthly totals for each month of the
adjustment period with a single set of
updates encompassing a 12-month period. The updated statements or schedules must be filed 45 days after the end
of the test period. The updated filing
must be provided to parties specifically
requesting them. The updated filing
must reference the associated docket
number and must be filed in the same

format, form, and number as the original filing.
(b) The statements and schedules in
§ 154.312 to be updated are: Statements
C, D and H–4; Schedules B–1, B–2, C–3,
D–2, E–2, E–4, G–1, G–4, G–5, G–6, H–1
(1)(a), H–1 (1)(b), H–1 (1)(c), H–1 (2)(a)
through H–1 (2)(k), H–2 (1), H–3 (3), I–4,
and I–6.
(c) This requirement to file updates
may be extended by the Secretary pursuant to § 375.302 of this chapter.
[Order 582–A, 61 FR 9629, Mar. 11, 1996]

§ 154.312

Composition of Statements.

(a) Statement A. Cost-of-service Summary. Summarize the overall gas utility cost-of-service: operation and maintenance expenses, depreciation, taxes,
credits to cost-of-service, and return as
developed in other statements and
schedules.
(b) Statement B. Rate Base and Return Summary. Summarize the overall
gas utility rate base shown in Statements C, D, E, and Schedules B–1 and
B–2. Show the application of the
claimed rate of return to the overall
rate base.
(1) Schedule B–1. Accumulated Deferred Income Taxes (Account Nos. 190,
282, and 283). Show monthly book balances of accumulated deferred income
taxes for each of the 12 months during
the base period. List all items for
which the accumulated deferred income taxes are calculated. In adjoining
columns, show additions and reductions for the adjustment period balance
and the total adjusted balance. Separately identify the individual components and the amounts in these accounts that the company seeks to include in its rate base.
(2) Schedule B–2. Regulatory Asset
and Liability. If the pipeline seeks recovery of such balances in rate base,
show monthly book balances of regulatory assets (Account 182.3) and liabilities (Account 254) for each of the 12
months during the base period. In adjoining columns, show additions and
reductions for the adjustment period
balance and the total adjusted balance.

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Federal Energy Regulatory Commission
Separately identify the individual components and the amounts in these accounts that the company seeks to include in its rate base. Identify any specific Commission authority that required the establishment of these
amounts. Regulatory asset or liability
net of deferred tax amounts should be
included. Also, separately state the
gross amounts of the regulatory asset
and liability.
(c) Statement C. Cost of Plant Summary. Show the amounts of gas utility
plant classified by Accounts 101, 102,
103, 104, 105, 106, 107, 117.1, and 117.2 as
of the beginning of the 12 months of actual experience, the book additions and
reductions (in separate columns) during the 12 months, and the book balances at the end of the 12-month period. In adjoining columns, show the
claimed adjustments, if any, to the
book balances and the total cost of
plant to be included in rate base. For
Account 117, also provide the volumes
by subaccount. State the method used
for accounting for system gas recorded
in Account 117.2. Explain all adjustments in the following schedules.
(1) Schedule C–1. End of Base and Test
Period Plant Functionalized. Demonstrate the ending base and test period balances for Plant in Service, in
columnar form, by detailed plant account prescribed by the Commission’s
Uniform System of Accounts for Natural Gas Companies (part 201 of this
chapter) with subtotals by functional
classifications, e.g., Intangible Plant,
Manufactured Gas Production Plant,
Natural Gas Production and Gathering
Plant, Products Extraction Plant,
Storage Plant, Transmission Plant,
Distribution Plant, and General Plant.
Show zones, to the extent required by
§ 154.310, and expansions, to the extent
required by § 154.309. Separately identify those facilities and associated
costs claimed for the test period that
require certificate authority but such
authority has not been obtained at the
time of filing. Give the docket number
of the certificate proceeding.
(2) Schedule C–2. Show, for Accounts
106 and 107, a list of work orders
claimed in the rate base. Give the work
order number, docket number, description, amount of each work order, and
the amounts of each type of undistrib-

§ 154.312
uted construction overhead. Work orders amounting to $500,000 or less may
be grouped by category of items.
(3) Schedule C–3. A cross-reference to
updated information in the company’s
FERC Form No. 2 may be substituted
for this Schedule. Give details of each
storage project owned and storage
projects under contract to the company, showing cost by major functions.
Show base and system gas storage
quantities and associated costs by account for the test period and for the 12
months of actual experience with
monthly inputs and outputs to system
gas.
(4) Schedule C–4. This schedule is part
of the workpapers. State the methods
and procedures followed in capitalizing
the allowance for funds used during
construction and other construction
overheads. This schedule must be provided only in situations when the pipeline has changed any of its procedures
since the last filed FERC Forms No. 2
or 2–A.
(5) Schedule C–5. This schedule is part
of the workpapers. Set forth the cost of
Plant in Service carried on the company’s books as gas utility plant which
was not being used in rendering gas
service. Describe the plant. This schedule must be provided only if there is a
significant change of $500,000 or more
since the end of the year reported in
the company’s last FERC Form No. 2
or 2–A.
(d) Statement D. Accumulated Provisions for Depreciation, Depletion, and
Amortization. Show the accumulated
provisions for depreciation, depletion,
amortization, and abandonment (Account 108, detailed by functional plant
classification, and Account 111), as of
the beginning of the 12 months of actual experience, the book additions and
reductions during the 12 months, and
the balances at the end of the 12-month
period. In adjoining columns, show adjustments to these ending book balances and the total adjusted balances.
All adjustments must be explained in
the supporting material. Any authorized negative salvage must be maintained in a separate subaccount of account 108, and shall not include any
amounts related to asset retirement
obligations. For each functional plant

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§ 154.312

18 CFR Ch. I (4–1–18 Edition)

classification, show depreciation reserve associated with offshore and onshore plant separately. The following
schedules and additional material must
be submitted as part of Statement D:
(1) Schedule D–1. This schedule is part
of the workpapers. Show the depreciation reserve book balance applicable to
that portion of the depreciation rate
not yet approved by the Commission,
the depreciation rates, the docket
number of the order approving such
rate, and an explanation of any difference. Reflect actual end of base period
depreciation
reserve
functionalized and test period depreciation reserve functionalized. Show accumulated depreciation and amortization, in columnar form, for the ending
base and test period balances by functional classifications of Accumulated
Depreciation reserve. (Examples are
provided in Schedule C–1). For each
functional plant classification, show
depreciation reserve associated with
offshore and onshore plant separately.
(2) Schedule D–2. This schedule is part
of the workpapers. Give a description
of the methods and procedures used in
depreciating, depleting, and amortizing
plant and in recording abandonments.
This schedule must be filed only if a
policy change has been made effective
since the period covered by the last annual report on FERC Form No. 2 or 2–
A was filed with the Commission.
(e) Statement E. Working Capital.
Show the components of working capital in sufficient detail to explain how
the amount of each component was
computed. Components of working capital, other than cash working capital,
may include an allowance for the average of 13 monthly balances of materials
and supplies and prepayments actually
expended and gas for resale. To the extent the applicant files to adjust the
average of any 13 monthly balances,
workpapers must be submitted that
support the adjustment(s). Show the
computations, cross-references, and
sources from which the data used in
computing claimed working capital are
derived. The following schedules and
material must be submitted as part of
Statement E:
(1) Schedule E–1. Show the computation of cash working capital claimed as
an adjustment to the gas company’s

rate base. Any adjustment to rate base
requested must be based on a fully-developed and reliable lead-lag study.
The components of the lead-lag study
must include actual total company revenues, purchased gas costs, storage expense, transportation and compression
of gas by others, salaries and wages,
administrative and general expenses,
income taxes payable, taxes other than
income taxes, and any other operating
and maintenance expenses for the base
period. Cash working capital allowances in the form of additions to rate
base may not exceed one-eighth of the
annual operating expenses, as adjusted,
net of non-cash items.
(2) Schedule E–2. Set forth monthly
balances for materials, supplies, and
prepayments in such detail as to disclose, either by subaccounts regularly
maintained on the books or by analysis
of the principal items included in the
main account, the nature of such
charges.
(3) Schedule E–3. For FERC Accounts
117.3, 164.1, 164.2 and 164.3, show the
quantities and the respective costs of
natural gas stored at the beginning of
the test period, the input, output and
balance remaining in Dth and associated costs by months. The method of
pricing input, output and balance, and
the claimed adjustments shall be disclosed and clearly and fully explained.
Pipelines using the inventory method
for system gas should not include any
system gas inventory balances in this
schedule.
(f) Statement F–1. Rate of Return
Claimed. Show the percentage rate of
return claimed and the general reasons
therefor. Where any component of the
capital of the filing company is not primarily obtained through its own financing, but is primarily obtained
from a company by which the filing
company is controlled, as defined in
the Commission’s Uniform System of
Accounts, then the data required by
these statements must be submitted
with respect to the debt capital, preferred stock capital, and common
stock capital of such controlling company or any intermediate company
through which such funds have been secured. Furnish the Commission staff a
copy of the latest prospectus issued by

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Federal Energy Regulatory Commission
the filing natural gas company, any superimposed holding company, or subsidiary companies.
(g) Statement F–2. Show
(1) The capitalization, capital structure, cost of debt capital, preferred
stock capital, and the claimed return
on stockholders’ equity;
(2) The weighted cost of each capital
class based on the capital structure;
and,
(3) The overall rate of return
claimed.
(h) Statement F–3. Debt Capital. Show
the weighted average cost of debt capital based upon the following data for
each class and series of long-term debt
outstanding according to the balance
sheet, as of the end of the 12-month
base period of actual experience and as
of the end of the 9-month test period.
(1) Title.
(2) Date of issuance and date of maturity.
(3) Interest rate.
(4) Principal amount of issue: Gross
proceeds; Underwriters’ discount or
commission: Amount; Percent gross
proceeds; Issuance expense: Amount;
Percent gross proceeds; Net proceeds;
Net proceeds per unit.
(5) Cost of money: Yield to maturity
based on the interest rate and net proceeds per unit outstanding determined
by reference to any generally accepted
table of bond yields. The yield to maturity is to be expressed as a nominal annual interest rate. For example, for
bonds having semiannual payments,
the yield to maturity is twice the semiannual rate.
(6) If the issue is owned by an affiliate, state the name and relationship of
the owner.
(7) If the filing company has acquired, at a discount or premium, some
part of its outstanding debt which
could be used in meeting sinking fund
requirements, or for other reasons, separately show: The annual amortization
of the discount or premium for each series of debt from the date of reacquisition over the remaining life of the debt
being retired; and, the total discount
and premium, as a result of such amortization, applicable to the test period.
(i) Statement F–4. Preferred Stock
Capital. Show the weighted average
cost of preferred stock capital based

§ 154.312
upon the following data for each class
and series of preferred stock outstanding according to the balance
sheet, as of the end of the 12-month
base period of actual experience and as
of the end of the nine-month test period.
(1) Title.
(2) Date of issuance.
(3) If callable, call price.
(4) If convertible, terms of conversion.
(5) Dividend rate.
(6) Par or stated amount of issue:
Gross proceeds; Underwriters’ discount
or commission: Amount; Percent gross
proceeds; Issuance expenses: Amount;
Percent gross proceeds; Net proceeds;
Net proceeds per unit.
(7) Cost of money: Annual dividend
rate divided by net proceeds per unit.
(8) State whether the issue was offered to stockholders through subscription rights or to the public.
(9) If the issue is owned by an affiliate, state the name and relationship of
the owner.
(j) Statement G. Revenues, Credits,
and Billing Determinants.
(1) Show in summary format the information requested below on revenues,
credits and billing determinants for the
base period and the base period as adjusted. Explain the basis for adjustment to the base period. The level of
billing determinants should not be adjusted for discounting.
(i) Revenues. Provide the total revenues, from jurisdictional and non-jurisdictional services, classified in accordance with the Commission’s Uniform
System of Accounts for the base period
and for the base period as adjusted.
Separate operating revenues by major
rate component (e.g., reservation
charges,
demand
charges,
usage
charges, commodity charges, injection
charges, withdrawal charges, etc.) from
revenues received from penalties, surcharges or other sources (e.g., ACA,
GRI, transition costs). Show revenues
by rate schedule and by receipt and delivery rate zones, if applicable. Show
separately the revenues for firm services under contracts with a primary
term of less than one year. For services
provided through released capacity,

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§ 154.312

18 CFR Ch. I (4–1–18 Edition)

identify total revenues by rate schedule and by receipt and delivery rate
zones, if applicable.
(ii) Credits. Show the principal components comprising each of the various
items which are reflected as credits to
the cost-of-service in preparing Statement A, Overall Cost-of-service for the
base period and the base period as adjusted. Any transition cost component
of interruptible transportation revenue
must not be treated as operating revenues as defined above.
(iii) Billing Determinants. Show total
reservation and usage billing determinants for the base period and the
base period as adjusted, by rate schedule by receipt and delivery rate zones,
if applicable. Show separately the billing determinants for firm services
under contracts with a primary term of
less than one year. For services provided through released capacity, identify billing determinants by rate schedule and by receipt and delivery rate
zones, if applicable.
(2) The Schedules G–1 through G–6
must be filed at the FERC and served
on all state commissions having jurisdiction over the affected customers
within fifteen days after the rate case
is filed. Schedules G–1 through G–6
must also be served on parties that request such service within 15 days of the
filing of the rate case.
(i) Schedule G–1. Base Period Revenues. For the base period, show total
actual revenues and billing determinants by month by customer name,
by rate schedule, by receipt and delivery zone, if applicable, by major rate
component (e.g., reservation charges)
and totals. Billing determinants must
not be adjusted for discounting. Provide actual throughput (i.e., usage or
commodity quantities, unadjusted for
discounting) and actual contract demand levels (unadjusted for discounting). Provide this information
separately for firm service under contracts with a primary term of less than
one year. Separate operating revenues
from revenues received from surcharges or other sources (e.g., ACA,
GRI, transition costs). Identify customers who are affiliates. Identify rate
schedules under which costs are allocated and rate schedules under which
revenues are credited for the base pe-

riod with cross-references to the other
filed statements and schedules.
(ii) Schedule G–2. Adjustment Period
Revenues.
(A) Show revenues and billing determinants by month, by customer name,
by rate schedule, by receipt and delivery zone, if applicable, by major rate
component (e.g., reservation charges)
and totals for the base period adjusted
for known and measurable changes
which are expected to occur within the
adjustment period computed under the
rates expected to be charged. Billing
determinants must not be adjusted for
discounting.
Provide
projected
throughput (i.e., usage or commodity
quantities, unadjusted for discounting)
and projected contract demand levels
(unadjusted for discounting). Provide
this information separately for firm
service under contracts with a primary
term of less than one year. Separate
operating revenues from revenues received from surcharges or other
sources (e.g., ACA, GRI, transition
costs). Identify customers who are affiliates. Identify rate schedules under
which costs are allocated and rate
schedules under which revenues are
credited for the adjustment period with
cross-references to the other filed
statements and schedules.
(B) Provide a reconciliation of the
base period revenues and billing determinants and the revenues and billing
determinants for the base period as adjusted.
(iii) Schedule G–3. Specify, quantify,
and justify each proposed adjustment
(capacity release, plant closure, contract termination, etc.) to base period
actual billing determinants, and provide a detailed explanation for each
factor contributing to the adjustment.
Include references to any certificate
docket authorizing changes. Submit
workpapers with all formulae.
(iv) Schedule G–4. At-Risk Revenue.
For each instance where there is a separate cost-of-service associated with
facilities for which the applicant is ‘‘at
risk,’’ show the base period and adjustment period revenue by customer or
customer code, by rate schedule, by receipt and delivery zone, if applicable,
and as 12-month totals. Provide this information by month unless otherwise
agreed to by interested parties and if

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Federal Energy Regulatory Commission
monthly reporting is consistent with
past practice of the pipeline. However,
if seasonal services are involved, or if
billing determinants vary from month
to month, the information must be provided monthly. Provide projected
throughput (i.e., usage or commodity
quantities, unadjusted for discounting)
and projected contract demand levels
(unadjusted for discounting).
(v) Schedule G–5. Other Revenues.
(A) Describe and quantify, by month,
the types of revenue included in Account Nos. 490–495 for the base and test
periods. Show revenues applicable to
the sale of products. Show the principal components comprising each of
the various items which are reflected
as credits to cost-of-service in Statement A.
(B) To the extent the credits to the
cost-of-service reflected in Statement
A differ from the amounts shown on
Schedule G–5, compare and reconcile
the two statements. Quantify and explain each proposed adjustment to base
period actuals. For Account No. 490,
show the name and location of each
product extraction plant processing gas
for the applicant, and the inlet and
outlet monthly dth of the pipeline’s
gas at each plant. Show the revenues
received by the applicant by product by
month for each extraction plant for the
base period and proposed for the test
period.
(C) Separately state each item and
revenue received for the transportation
of liquids, liquefiable hydrocarbon, or
nonhydrocarbon constituents owned by
shippers. For both the base and test periods, indicate by shipper contract: The
quantity transported and the revenues
received.
(D) Separately state the revenues received from the release by the pipeline
of transportation and compression capacity it holds on other pipeline systems. The revenues must equal the revenues reflected on Schedule I–4(iv).
(vi) Schedule G–6. Miscellaneous Revenues. Separately state by month the
base and adjustment period revenues
and the associated quantities received
as penalties from jurisdictional customers; the revenues received from
cash outs and other imbalance adjustments; and, the revenues received from
exit fees.

§ 154.312
(k) Statement H–1. Operation and
Maintenance Expenses. Show the gas
operation and maintenance expenses
according to each applicable account of
the Commission’s Uniform System of
Accounts for Natural Gas Companies.
Show the expenses under columnar
headings, with subtotals for each functional classification, as follows: Operation and maintenance expense by
months, as booked, for the 12 months
of actual experience, and the 12-month
total; adjustments, if any, to expenses
as booked; and, total adjusted operation and maintenance expenses. Provide a detailed narrative explanation
of, and the basis and supporting
workpapers for, each adjustment. The
following schedules and additional material must be submitted as part of
Statement H–1:
(1) Schedule H–1 (1). This schedule is
part of the workpapers. Show the labor
costs, materials and other charges (excluding purchased gas costs) and expenses associated with Accounts 810,
811, and 812 recorded in each gas operation and maintenance expense account of the Uniform System of Accounts. Show these expenses, under the
columnar headings, with subtotals for
each functional classification, as follows: operation and maintenance expenses by months, as booked, for the 12
months of actual experience, and the
12-month total; adjustments, if any, to
expenses as booked; and total adjusted
operation and maintenance expenses.
Disclose and explain all accrual on the
books at the end of the base period or
other normalizing accounting entries
for internal purposes reflected in the
monthly expenses presented per book.
Explain any amounts not currently
payable, except depreciation charged
through clearing accounts, included in
operation and maintenance expenses.
(2) Schedule H–1 (1)(a). Labor Costs.
(3) Schedule H–1 (1)(b). Materials and
Other Charges (Excluding Purchased
Gas Costs and items shown in Schedule
H–1 (1)(c)).
(4) Schedule H–1 (1)(c). Quantities Applicable to Accounts Nos. 810, 811, and
812. Show the quantities for each of the
contra-accounts for both base and test
periods.
(5) Schedule H–1 (2). This schedule is
part of the workpapers. Show, for the

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§ 154.312

18 CFR Ch. I (4–1–18 Edition)

12 months of actual experience and
claimed adjustments: A classification
of principal charges, credits and volumes; particulars of supporting computations and accounting bases; a description of services and related dollar
amounts for which liability is incurred
or accrued; and, the name of the firm
or individual rendering such services.
Expenses reported in Schedules H–1
(2)(a) through H–1 (2)(k) of $100,000 or
less per type of service may be grouped.
(6) Schedule H–1 (2)(a). Accounts 806,
808.1, 808.2, 809.1, 809.2, 813, 823, and any
other account used to record fuel use
or gas losses. Provide details of each
type of expense.
(7) Schedule H–1 (2)(b). Accounts 913
and 930.1. Advertising Expenses. Disclose principal types of advertising
such as TV, newspaper, etc.
(8) Schedule H–1 (2)(c). Account 921.
Office Supplies and Expenses.
(9) Schedule H–1 (2)(d). Account 922.
Administrative Expenses Transferred
Credit.
(10) Schedule H–1 (2)(e). Account 923.
Outside Services Employed.
(11) Schedule H–1 (2)(f). Account 926.
Employee Pensions and Benefits.
(12) Schedule H–1 (2)(g). Account 928.
Regulatory Commission Expenses.
(13) Schedule H–1 (2)(h). Account 929.
Duplicate Charges. Credit.
(14) Schedule H–1 (2)(i). Account 930.2.
Miscellaneous General Expenses.
(15) Schedule H–1 (2)(j). Intercompany
and Interdepartmental Transactions.
Provide a complete disclosure of all
corporate overhead allocated to the
company. If the expense accounts contain charges or credits to and from associated or affiliated companies or
nonutility departments of the company, submit a schedule, or schedules,
as to each associated or affiliated company or nonutility department showing:
(i) The amount of the charges, or
credits, during each month and in total
for the base period and the adjustment
period.
(ii) The FERC Account No. charged
(or credited).
(iii) Descriptions of the specific services performed for, or by, the associated/affiliated company or nonutility
department.

(iv) The bases used in determining
the amounts of the charges (credits).
Explain and demonstrate the derivation of the allocation bases with underlying calculations used to allocate
costs among affiliated companies, and
identify (by account number) all costs
paid to, or received from affiliated
companies which are included in a
pipeline’s cost-of-service for both the
base and test periods.
(16) Schedule H–1 (2)(k). Show all lease
payments applicable to gas operation
contained in the operation and maintenance accounts. Leases of $500,000 or
less may be grouped by type of lease.
(l) Statement H–2. Depreciation, Depletion, Amortization and Negative
Salvage Expenses. Show, separately,
the gas plant depreciation, depletion,
amortization, and negative salvage expenses by functional classifications.
For each functional plant classification, show depreciation reserve associated with offshore and onshore plant
separately. Show, in separate columns:
expenses for the 12 months of actual
experience; adjustments, if any, to
such expense; and, the total adjusted
expense claimed. Explain the bases,
methods, essential computations, and
derivation of unit rates for the calculation of depreciation, depletion, and amortization expense for the 12 months of
actual experience and for the adjustments. The amounts of depreciable
plant must be shown by the functions
specified in paragraph C of Account 108,
Accumulated Provisions for Depreciation of Gas Utility Plant, and Account
111, Accumulated Provision for Amortization and Depletion of Gas Utility
Plant, of the Commission’s Uniform
System of Accounts for Natural Gas
Companies, and, if available, for each
detailed plant account (300 Series) together with the rates used in computing such expenses. Explain any deviation from the rates determined to be
just and reasonable by the Commission. Show the rate or rates previously
used together with supporting data for
the new rate or rates used for this filing. The following schedule and additional material must be submitted as a
part of Statement H–2:
(1) Schedule H–2 (1). Depreciable
Plant.

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Federal Energy Regulatory Commission
(i) Reconcile the depreciable plant
shown in Statement H–2 with the aggregate investment in gas plant shown
in Statement C, and the expense
charged to other than prescribed depreciation, depletion, amortization, and
negative salvage expense accounts.
Identify the amounts of plant costs and
associated plant accounts used as the
bases for depreciation expense charged
to clearing accounts. For each functional plant classification, show depreciation reserve associated with offshore
and onshore plant separately.
(ii) Schedule H–2 (1) must be updated,
as set forth in § 154.310, with actual depreciable plant and reconciled with updated Statement C.
(m) Statement H–3. Income Taxes.
Show the computation of allowances
for Federal and State income taxes for
the test period based on the claimed return applied to the overall gas utility
rate base. To indicate the accounting
classification applicable to the amount
claimed, the computation of the Federal income tax allowance must show,
separately, the amounts designated as
current tax and deferred tax. Section
154.306, Tax Normalization, is incorporated in these instructions by reference. All the requirements of this
section apply to Schedule H–3. The following schedules and additional material must be submitted as a part of
Statement H–3:
(1) Schedule H–3 (1). This schedule is
part of the workpapers. Show the income tax paid each State in the current and/or previous year covered by
the test period.
(2) Schedule H–3 (2). This schedule is
part of the workpapers. Show the computation of an updated reconciliation
between book depreciable plant and tax
depreciable plant and accumulated provision for deferred income taxes, for
the base period or latest calendar or
fiscal year (depending on the company’s reporting period). Regulatory
asset or liability net of deferred tax
amounts should be included in this reconciliation. Also, separately state the
gross amounts of the regulatory asset
and liability.
(n) Statement H–4. Other Taxes. Show
the gas utility taxes, other than Federal or state income taxes, in separate
columns, as follows: Tax expense per

§ 154.312
books for the 12 months of actual experience
(separately
identify
the
amounts expensed or accrued during
the period); adjustments, if any, to
amounts booked; and, the total adjusted taxes claimed. Show the kind
and amount of taxes paid under protest
or in connection with taxes under litigation. Show taxes by state and by
type of tax. The following schedules
and additional material must be submitted as a part of Statement H–4:
(1) Schedule H–4. This schedule is part
of the workpapers. Show the computations of adjusted taxes claimed in
Statement H(4).
(o) Statement I. Statement I consists
of the following Schedules:
(1) Schedule I–1. Functionalization of
Cost-of-service. Show the overall costof-service contained in Statement A as
supported by Statements B, C, D, E, G
(revenue credits), and H:
(i) Schedule I–1(a). Separate overall
cost-of-service by function of facility.
(ii) Schedule I–1(b). Separate the
transmission, storage, and gathering
facilities between incremental and
non-incremental facilities. If the pipeline proposes to directly assign the
costs of specific facilities, it must provide a separate cost-of-service for
every directly assigned facility (e.g.,
lateral or storage field).
(iii) Schedule I–1(c). If the pipeline
maintains records of costs by zone and
proposes a zone rate methodology
based on those costs separately state
transmission, storage, and gathering
costs, for each zone.
(iv) Schedule I–1(d). Show the method
used to allocate common and joint
costs to various functions including
the allocation of A&G. Provide the factors underlying the allocation of general costs (e.g., miles of pipe, cost of
plant, labor). Show the formulae used
and explain the bases for the allocation
of common and joint costs.
(2) Schedule I–2. Classification of
Cost-of-service.
(i) For each functionalized cost-ofservice provided in Schedule I–1 (a), (b),
and (c), show the classification of costs
between fixed costs and variable costs
and between reservation costs and
usage costs. The classification must be
for each element of the cost-of-service

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§ 154.312

18 CFR Ch. I (4–1–18 Edition)

(e.g., depreciation expenses, state income taxes, revenue credits). For operation and maintenance expenses and
revenue credits, the classification must
be provided by account and by total.
(ii) Explain the basis for the classification of costs.
(iii) Explain any difference between
the method for classifying costs and
the classification method underlying
the pipeline’s currently effective rates.
(3) Schedule I–3. Allocation of Cost-ofservice.
(i) If the company provides gas sales
and transportation as a bundled service, show the allocation of costs between direct sales or distribution sales
and the other services. If the company
provides unbundled transportation,
show the allocation of costs between
services with cost-of-service rates and
services with market-based rates, including products extraction, sales, and
company-owned production. If the costof-service is allocated among rate
zones, show how the classified cost-ofservice is allocated among rate zones
by function. If the pipeline proposes to
establish rate zones for the first time,
or to change existing rate zone boundaries, explain how the rate zone boundaries are established.
(ii) Show how the classified costs of
service provided in Schedule I–2 or
Schedule I–3 (i) are allocated among
the pipeline’s services and rate schedules.
(iii) Provide the formulae used in the
allocation of the cost-of-service. Provide the factors underlying the allocation of the cost-of-service (e.g., contract demand, annual billing determinants, three-day peak). Provide the
load factor or other basis for any imputed demand quantities.
(iv) Explain any changes in the basis
for the allocation of the cost-of-service
from the allocation methodologies underlying the currently effective rates.
(4) Schedule I–4. Transmission and
Compression of Gas by Others (Account
858). Provide the following information
for each transaction for the base and
adjustment period:
(i) The name of the transporter.
(ii) The name of the rate schedule
under which service is provided, and
the expiration date of the contract.
(iii) Monthly usage volumes.

(iv) Monthly costs.
(v) The monthly revenues for volumes flowing under released capacity.
The revenues in Schedule I–4 (iv) must
also be reflected, separately, as a credit in Schedule G–5.
(5) Schedule I–5. Gas Balance. Show
by months and total, for the 12 months
of actual experience, the company’s
Gas Account, in the form required by
FERC Form No. 2 pages 520 and 521.
Show corresponding estimated data, if
claimed to be different from actual experience. Provide the basis for any variation between estimated and actual
base period data.
(p) Statement J. Comparison and Reconciliation of Estimated Operating
Revenues With Cost-of-service. Compare the total revenues by rate schedule (Schedule G–2) to the allocated
cost-of-service (Statement I). Identify
any surcharges that are reflected in
Statement N or in Statement I.
(1) Schedule J–1. Summary of Billing
Determinants. Provide a summary of
all billing determinants used to derive
rates. Provide a reconciliation of customers’ total billing determinants as
shown on Schedule G–2 with those used
to derive rates in Schedule J–2. Provide
an explanation of how any discount adjustment is developed. If billing determinants are imputed for interruptible
service, explain the method for calculating the billing determinants.
(2) Schedule J–2. Derivation of Rates.
Show the derivation of each rate component of each rate. For each rate component of each rate schedule, include:
(i) A reference (by page, line, and column) to the allocated cost-of-service in
Statement I.
(ii) A reference to the appropriate
billing determinants in Schedule J–1.
(iii) Explain any changes in the
method used for the derivation of rates
from the method used in developing the
underlying rates.
(q) Statement K. [Reserved]
(r) Statement L. Balance Sheet. Provide a balance sheet in the form prescribed by the Commission’s Uniform
System of Accounts for Natural Gas
Companies as of the beginning and end
of the base period. Include any notes. If
the natural gas company is a member
of a group of companies, also provide a
balance sheet on a consolidated basis.

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Federal Energy Regulatory Commission
(s) Statement M. Income Statement.
Provide an income statement, including a section on earnings, in the form
prescribed by the Commission’s Uniform System of Accounts for Natural
Gas Companies for the base period. Include any notes. If the natural gas
company is a member of a system
group of companies, provide an income
statement on a consolidated basis.
(t) Statement N. [Reserved]
(u) Statement O. Description of Company Operations. Provide a description
of the company’s service area and diversity of operations. Include the following:
(1) Only if significant changes have
occurred since the filing of the last
FERC Form No. 2 or 2–A, provide a detailed system map.
(2) A list of each major expansion and
abandonment since the company’s last
general rate case. Provide brief descriptions, approximate dates of operation or retirement from service, and
costs classified by functions.
(3) A detailed description of how the
company designs and operates its systems. Include design temperature.
(v) Statement P. Explanatory Text and
Prepared Testimony. Provide copies of
prepared testimony indicating the line
of proof which the company would offer
for its case-in-chief in the event that
the rates are suspended and the matter
set for hearing. Name the sponsoring
witness of all text and testimony.
Statement P must be filed concurrently with the other schedules.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582–A, 61 FR 9629, Mar. 11,
1996; Order 631, 68 FR 19622, Apr. 21, 2003]

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§ 154.313 Schedules
changes.

for

minor

rate

(a) A change in a rate or charge that,
for the test period, does not increase
the company’s revenues by the smaller
of $1,000,000 or 5 percent is a minor rate
change. A change in a rate level that
does not directly or indirectly result in
an increased rate or charge to any customer or class of customers is a minor
rate change.
(b) In addition to the schedules in
this section, filings for minor rate
changes must include Statements L, M,
O, P, I–1 through I–4, and J of § 154.312.

§ 154.313
(c) The schedules of this section must
contain the principal determinants essential to test the reasonableness of
the proposed minor rate change. Any
adjustments to book figures must be
separately stated and the basis for the
adjustment must be explained.
(d) Schedules B–1, B–2, C, D, E, H, H–
2, and H–4 of § 154.313, must be updated
with actual data by month and must be
resubmitted in the same format and
with consecutive 12 month running totals, for each month of the adjustment
period. The updated statements or
schedules must be filed 45 days after
the end of the test period. The updated
filing must reference the associated
docket number and must be filed in the
same format, form, and number as the
original filing.
(e) Composition of schedules for
minor rate changes.
(1) Schedule A. Overall Cost-of-service
by Function. Summarize the overall
cost-of-service (operation and maintenance expenses, depreciation, taxes, return, and credits to cost-of-service) developed from the supporting schedules
below.
(2) Schedule B. Overall Rate Base and
Return. Summarize the overall gas
utility rate base by function. Include
the claimed rate of return and show
the application of the claimed rate of
return to the overall rate base.
(3) Schedule B–1. Accumulated Deferred Income Taxes (Account Nos. 190,
281, 282, and 283). Show monthly book
balances of accumulated deferred income taxes for each of the 12 months
during the base period. In adjoining
columns, show additions and reductions for the adjustment period balance
and the total adjusted balance.
(4) Schedule B–2. Regulatory Asset
and Liability. Show monthly book balances of regulatory asset (Account
182.3) and liability (Account 254) for
each of the 12 months during the base
period. In adjoining columns, show additions and reductions for the adjustment period balance and the total adjusted balance. Only include these accounts if recovery of these balances are
reflected in the company’s costs. Identify the specific Commission authority
which required the establishment of
these accounts.

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§ 154.313

18 CFR Ch. I (4–1–18 Edition)

(5) Schedule C. Cost of Plant by Functional Classification as of the End of
the Base and Adjustment Periods.
(6) Schedule D. Accumulated Provisions for Depreciation, Depletion, Amortization, and Abandonment by Functional Classifications as of the Beginning and as of the End of the Test Period.
(7) Schedule E. Working Capital. Show
the various components provided for in
§ 154.312, Statement E.
(8) Schedule F. Show the rate of return claimed with a brief explanation
of the basis.
(9) Schedule G. Revenues and Billing
Determinants.
(i) Show in summary format the information requested below on revenues
and billing determinants for the base
period and the base period as adjusted.
Schedule G must be submitted to all
customers of the pipeline that received
service during the base period or are
expected to receive service during the
base period as adjusted and on State
commissions having jurisdiction over
the affected customers.
(A) Revenues. Provide the total revenues by rate schedule from jurisdictional services, classified in accordance
with the Commission’s Uniform System of Accounts for the base period
and for the base period as adjusted.
Separate operating revenues by major
rate component (e.g., reservation
charges,
demand
charges,
usage
charges, commodity charges, injection
charges, withdrawal charges, etc.) from
revenues received from penalties, surcharges or other sources (e.g., ACA,
GRI, transition costs). For services
provided through released capacity,
identify total revenues by rate schedule and by receipt and delivery rate
zones, if applicable.
(B) Billing Determinants. Show total
reservation and usage billing determinants by rate schedule for the base
period and the base period as adjusted.
For services provided through released
capacity, identify total billing determinants by rate schedule and by receipt and delivery rate zones, if applicable.
(ii) Schedule G–1 must be filed at the
Commission and on all state commissions having jurisdiction over the affected customers within 15 days after

the rate case is filed. Schedule G–1
must also be served on parties that request such service within 15 days of the
filing of the rate case.
(A) Schedule G–1. Adjustment Period
Revenues.
(1) Show revenues and billing determinants by month, by customer name,
by rate schedule, by major rate component (e.g., reservation charges) and totals for the base period adjusted for
known and measurable changes which
are expected to occur within the adjustment period computed under the
rates expected to be charged. Show
commodity billing determinants by
rate schedule. Billing determinants
must not be adjusted for discounting.
Provide projected throughput (i.e.,
usage
or
commodity
quantities,
unadjusted for discounting) and projected
contract
demand
levels
(unadjusted for discounting). Separate
operating revenues from revenues received from surcharges or other
sources (e.g., ACA, GRI, transition
costs). Identify customers who are affiliates. Identify rate schedules under
which costs are allocated and rate
schedules under which revenues are
credited for the adjustment period with
cross-references to the other filed
statements and schedules.
(2) Provide a reconciliation of the
base period revenues and billing determinants and the revenues and billing
determinants for the base period as adjusted.
(10) Schedule H. Operation and Maintenance Expenses. Show the gas operation and maintenance expenses according to each applicable account of
the Commission’s Uniform System of
Accounts for Natural Gas Companies.
The expenses must be shown under appropriate columnar-headings, by labor,
materials and other charges, and purchased gas costs, with subtotals for
each functional classification: Operation and maintenance expense by
months, as booked, for the 12 months
of actual experience, and the total
thereof; adjustments, if any, to expenses as booked; and, total adjusted
operation and maintenance expenses
claimed. Explain all adjustments.
Specify the month or months during
which the adjustments would be applicable.

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Federal Energy Regulatory Commission

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(11) Schedule H–1. Workpapers for Expense Accounts. Furnish workpapers
for the 12 months of actual experience
and claimed adjustments and analytical details as set forth in § 154.312,
Schedule H–1 (3).
(12) Schedule H–2. Depreciation, Depletion, Amortization and Negative
Salvage Expenses. Show, separately,
the gas plant depreciation, depletion,
amortization, and negative salvage expenses by functional classifications.
For each functional plant classification, show depreciation reserve associated with offshore and onshore plant
separately. The bases, methods, essential computations, and derivation of
unit rates for the calculation of depreciation, depletion, amortization, and
negative salvage expenses for actual
experience must be explained.
(13) Schedule H–3. Income Tax Allowances Computed on the Basis of the
Rate of Return Claimed. Show the
computation of allowances for Federal
and State income taxes based on the
claimed return applied to the overall
gas utility rate base.
(14) Schedule H–3 (1). This schedule is
part of the workpapers. Show the computation of an updated reconciliation
between book depreciable plant and tax
depreciable plant and accumulated provision for deferred income taxes, for
the base period or latest calendar or
fiscal year (depending on the company’s reporting period).
(15) Schedule H–4. Other Taxes. Show
the gas utility taxes, other than Federal or state income taxes in separate
columns, as follows: Tax expense per
books for the 12 months of actual experience;) adjustments, if any, to
amounts booked; and, the total adjusted taxes claimed. Provide the details of the kind and amount of taxes
paid under protest or in connection
with taxes under litigation. The taxes
must be shown by states and by kind of
taxes. Explain all adjustments.
§ 154.314 Other support for a filing.
(a) Any company filing for a rate
change is responsible for preparing
prior to filing, and maintaining,
workpapers sufficient to support the
filing.
(b) If the natural gas company has relied upon data other than those in

§ 154.401
Statements A through P in § 154.312 in
support of its general rate change, such
other data must be identified and submitted.
§ 154.315 Asset retirement obligations.
(a) A natural gas company that files
a tariff change under this part and has
recorded an asset retirement obligation
on its books must provide a schedule,
as part of the supporting workpapers,
identifying all cost components related
to the asset retirement obligations
that are included in the book balances
of all accounts reflected in the cost of
service computation supporting the
proposed rates. However, all cost components related to asset retirement obligations that would impact the calculation of rate base, such as gas plant
and related accumulated depreciation
and accumulated deferred income
taxes, may not be reflected in rates and
must be removed from the rate base
calculation through a single adjustment.
(b) A natural gas company seeking to
recover nonrate base costs related to
asset retirement obligations in rates
must provide, with its filing under
§ 154.312 or § 154.313, a detailed study
supporting the amounts proposed to be
collected in rates.
(c) A natural gas company who has
recorded asset retirement obligations
on its books but is not seeking recovery of the asset retirement costs in
rates, must remove all asset retirement obligations related cost components from the cost of service supporting its proposed rates.
[Order 631, 68 FR 19622, Apr. 21, 2003]

Subpart E—Limited Rate Changes
§ 154.400 Additional requirements.
In addition to the requirements of
subparts A, B, and C of this part, any
proposal to implement a limited rate
change must comply with this subpart.
§ 154.401 RD&D expenditures.
(a) Requirements. Upon approval by
the Commission, a natural gas company may file to recover research, development, and demonstration (RD&D)
expenditures in its rates under this
subpart.

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§ 154.402

18 CFR Ch. I (4–1–18 Edition)

(b) Applications for rate treatment approval. (1) An application for advance
approval of rate treatment may be
filed by a natural gas company for
RD&D expenditures related to a project
or group of projects undertaken by the
company or as part of a project undertaken by others. When more than one
company supports an RD&D organization, the RD&D organization may submit an application that covers the organization’s RD&D program. Approval
by the Commission of such an RD&D
application and program will constitute approval of the individual companies’ contributions to the RD&D organization.
(2) An application for advance approval of rate treatment must include
a 5-year program plan and must be
filed at least 180 days prior to the commencement of the 5-year period of the
plan.
(3) A 5-year program plan must include at a minimum:
(i) A statement of the objectives for
the 5-year period that relates the objectives to the interests of ratepayers,
the public, and the industry and to the
objectives of other major research organizations.
(ii) Budget, technical, and schedule
information in sufficient detail to explain the work to be performed and
allow an assessment of the probability
of success and a comparison with other
organizations’ research plans.
(iii) The commencement date, expected termination date, and expected
annual costs for individual RD&D
projects to be initiated during the first
year of the plan.
(iv) A discussion of the RD&D efforts
and progress since the preparation of
the program plan submitted the previous year and an explanation of any
changes that have been made in objectives, priorities, or budgets since the
plan of the previous year.
(v) A statement identifying all jurisdictional natural gas companies that
will support the program and specifying the amounts of their budgeted
support.
(vi) A statement identifying those
persons involved in the development,
review, and approval of the plan and
specifying the amount of effort con-

tributed and the degree of control exercised by each.
(c) Applications must describe the
RD&D projects in such detail as to satisfy the Commission that the RD&D
expenditures qualify as valid, justifiable, and reasonable.
(d) Within 120 days of the filing of an
application for rate treatment approval and a 5-year program plan, the
Commission will state its decision with
respect to acceptance, partial acceptance, or rejection of the plan, or, when
the complexity of issues in the plan so
requires, will set a date certain by
which a final decision will be made, or
will order the matter set for hearing.
Partial rejection of a plan by the Commission will be accompanied by a decision as to the partial level of acceptance which will be proportionally applied to all contributions listed for jurisdictional companies in the plan. Approval by the Commission of a 5-year
plan constitutes approval for rate
treatment of all projects identified as
starting during the first year of the approved plan. Continued rate treatment
will depend upon review and evaluation
of subsequent annual applications and
5-year program plans.
§ 154.402 ACA expenditures.
(a) Requirements. Upon approval by
the Commission, a natural gas pipeline
company may adjust its rates, annually, to recover from its customers annual charges assessed by the Commission under part 382 of this chapter pursuant to an annual charge adjustment
clause (ACA clause). Prior to the start
of each fiscal year, the Commission
will post on its Web site the amount of
annual charges to be flowed through
per unit of energy sold or transported
(ACA unit charge) for that fiscal year.
A company’s ACA clause must be filed
with the Commission and must incorporate by reference the ACA unit
charge for the upcoming fiscal year as
posted on the Commission’s Web site. A
company must incorporate by reference the ACA unit charge posted on
the Commission’s Web site in each of
its rate schedules applicable to sales or
transportation deliveries. The company
must apply the ACA unit charge posted
on the Commission’s Web site to the
usage component of rate schedules

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Federal Energy Regulatory Commission
with two-part rates. A company may
recover annual charges through an
ACA unit charge only if its rates do
not otherwise reflect the costs of annual charges assessed by the Commission under § 382.106(a) of this chapter.
The applicable annual charge, required
by § 382.103 of this chapter, must be
paid before the company applies the
ACA unit charge. Upon payment to the
Commission of its annual charges, the
ACA unit charge for that fiscal year
will be incorporated by reference into
the company’s tariff, effective throughout that fiscal year.
(b) Application for rate treatment authorization. A company seeking authorization to use an ACA unit charge must
file with the Commission a separate
ACA tariff record containing:
(1) A statement that the company is
collecting an ACA unit charge, as calculated by the Commission, applicable
to all the pipeline’s sales and transportation rate schedules,
(2) A statement that the ACA unit
charge, as revised annually and posted
on the Commission’s Web site, is incorporated by reference into the company’s tariff,
(3) For companies with existing ACA
clauses, a proposed effective date of the
tariff change of October 1 of the fiscal
year; for companies seeking to utilize
an ACA clause after October 1 of the
fiscal year, a proposed effective date 30
days after the filing of the tariff
record, unless a shorter period is specifically requested in a waiver petition
and approved), and
(4) A statement that the pipeline will
not recover any annual charges recorded in FERC Account 928 in a proceeding under subpart D of this part.
(c) Changes to the ACA unit charge
must be filed annually, to reflect the
annual charge unit rate authorized by
the Commission each fiscal year.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57535, Oct. 3,
2008; Order 776, 78 FR 19412, Apr. 1, 2013]

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§ 154.403

Periodic rate adjustments.

(a) This section applies to the passthrough, on a periodic basis, of a single
cost item or revenue item for which
passthrough is not regulated under another section of this subpart, and to re-

§ 154.403
visions on a periodic basis of a gas reimbursement percentage.
(b) Where a pipeline recovers fuel use
and unaccounted-for natural gas in
kind, the fuel reimbursement percentage must be stated in the tariff either
on the tariff sheet stating the currently effective rate or on a separate
tariff sheet or section in such a way
that it is clear what amount of natural
gas must be tendered in kind for each
service rendered.
(c) A natural gas company that
passes through a cost or revenue item
or adjusts its fuel reimbursement percentage under this section, must state
within the general terms and conditions of its tariff, the methodology and
timing of any adjustments. The following must be included in the general
terms and conditions:
(1) A statement of the nature of the
revenue or costs to be flowed through
to the customer;
(2) A statement of the manner in
which the cost or revenue will be collected or returned, whether through a
surcharge, offset, or otherwise;
(3) A statement of which customers
are recipients of the revenue credit and
which rate schedules are subject to the
cost or fuel reimbursement percentage;
(4) A statement of the frequency of
the adjustment and the dates on which
the adjustment will become effective;
(5) A step-by-step description of the
manner in which the amount to be
flowed through is calculated and a
step-by-step
description
of
the
flowthrough mechanism, including how
the costs are classified and allocated.
Where the adjustment modifies a rate
established under subpart D of this
part, the methodology must be consistent with the methodology used in
the proceeding under subpart D of this
part;
(6) Where costs or revenue credits are
accumulated over a past period for
periodic recovery or return, the past
period must be defined and the mechanism for the recovery or return must
be detailed on a step-by-step basis.
Where the natural gas company proposes to use a surcharge to clear an account in which the difference between
costs or revenues, recovered through
rates, and actual costs and revenues

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§ 154.403

18 CFR Ch. I (4–1–18 Edition)

accumulate, a statement must be included detailing, on a step-by-step
basis, the mechanism for calculating
the entries to the account and for passing through the account balance.
(7) Where carrying charges are computed, the calculations must be consistent with the methodology and reporting requirements set forth in
§ 154.501 using the carrying charge rate
required by that section. A natural gas
company must normalize all income
tax timing differences which are the
result of differences between the period
in which expense or revenue enters into
the determination of taxable income
and the period in which the expense or
revenue enters into the determination
of pre-tax book income. Any balance
upon which the natural gas company
calculates carrying charges must be
adjusted for any recorded deferred income taxes.
(8) Where the natural gas company
discounts the rate component calculated pursuant to this section, explain on a step-by-step basis how the
natural gas company will adjust for
rate discounts in its methodology to
reflect changes in costs under this section.
(9) If the costs passed through under
a mechanism approved under this section are billed by an upstream natural
gas company, explain how refunds received from upstream natural gas companies will be passed through to the
natural gas company’s customers, including the allocation and classification of such refunds;
(10) A step-by-step explanation of the
methodology used to reflect changes in
the fuel reimbursement percentage, including the allocation and classification of the fuel use and unaccountedfor natural gas. Where the adjustment
modifies a fuel reimbursement percentage established under subpart D of this
part, the methodology must be consistent with the methodology used in
the proceeding under subpart D of this
part;
(11) A statement of whether the difference between quantities actually
used or lost and the quantities retained
from the customers for fuel use and
loss will be recovered or returned in a
future surcharge. Include a step-bystep explanation of the methodology

used to calculate such surcharge. Any
period during which these differences
accumulate must be defined.
(d) Filing requirements. (1) Filings
under this section must include:
(i) A summary statement showing
the rate component added to each rate
schedule with workpapers showing all
mathematical calculations.
(ii) If the filing establishes a new fuel
reimbursement percentage or surcharge, include computations for each
fuel reimbursement or surcharge calculated, broken out by service, classification, area, zone, or other subcategory.
(iii) Workpapers showing the allocation of costs or revenue credits by rate
schedule and step-by-step computations supporting the allocation, segregated into reservation and usage
amounts, where appropriate.
(iv) Where the costs, revenues, rates,
quantities, indices, load factors, percentages, or other numbers used in the
calculations are publicly available, include references by source.
(v) Where a rate or quantity underlying the costs or revenue credits is
supported by publicly available data
(such as another natural gas company’s
tariff or EBB), the source must be referenced to allow the Commission and
interested parties to review the source.
If the rate or quantity does not match
the rate or quantity from the source
referenced, provide step-by-step instructions to tie the rate in the referenced source to the rate in the filing.
(vi) Where a number is derived from
another number by applying a load factor, percentage, or other adjusting factor not referenced in paragraph (d)(1)(i)
of this section, include workpapers and
a narrative to explain the calculation
of the adjusting factor.
(2) If the natural gas company is adjusting its rates to reflect changes in
transportation and compression costs
paid to others:
(i) The changes in transportation and
compression costs must be based on the
rate on file with the Commission. If the
rate is not on file with the Commission
or a discounted rate is paid, the rate
reflected in the filing must be the rate
the natural gas company is contractually obligated to pay;

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Federal Energy Regulatory Commission
(ii) The filing must include appropriate credits for capacity released
under § 284.243 of this chapter with
workpapers showing the quantity released, the revenues received from the
release, the time period of the release,
and the natural gas pipeline on which
the release took place; and,
(iii) The filing must include a statement of the refunds received from each
upstream natural gas company which
are included in the rate adjustment.
The statement must conform to the requirements set forth in § 154.501.
(3) If the natural gas company is reflecting changes in its fuel reimbursement percentage, the filing must include:
(i) A summary statement of actual
gas inflows and outflows for each
month used to calculate the fuel reimbursement percentage or surcharge.
For purposes of establishing the surcharge, the summary statement must
be included for each month of the period over which the differences defined
in paragraph (c) of this section accumulate.
(ii) Where the fuel reimbursement
percentage is calculated based on estimated activity over a future period,
the period must be defined and the estimates used in the calculation must be
justified. If any of the estimates are
publicly available, include a reference
to the source.
(4) The natural gas company must
not recover costs and is not obligated
to return revenues which are applicable
to the period pre-dating the effectiveness of the tariff language setting forth
the periodic rate change mechanism,
unless permitted or required to do so
by the Commission.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57535, Oct. 3,
2008]

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Subpart F—Refunds and Reports
§ 154.501 Refunds.
(a) Refund Obligation. (1) Any natural
gas company that collects rates or
charges pursuant to this chapter must
refund that portion of any increased
rates or charges either found by the
Commission not to be justified, or approved for refund by the Commission as
part of a settlement, together with in-

§ 154.501
terest as required in paragraph (d) of
this section. The refund plus interest
must be distributed as specified in the
Commission order requiring or approving the refund, or if no date is specified, within 60 days of a final order. For
purposes of this paragraph, a final
order is an order no longer subject to
rehearing. The pipeline is not required
to make any refund until it has collected the refundable money through
its rates.
(2) Any natural gas company must
refund to its jurisdictional customers
the jurisdictional portion of any refund
it receives which is required by prior
Commission order to be flowed through
to its jurisdictional customers or represents the refund of an amount previously included in a filing under
§ 154.403 and charged and collected from
jurisdictional customers within thirty
days of receipt or other time period established by the Commission or as established in the pipeline’s tariff.
(b) Costs of Refunding. Any natural
gas company required to make refunds
pursuant to this section must bear all
costs of such refunding.
(c) Supplier Refunds. The jurisdictional portion of supplier refunds (including interest received), applicable
to periods in which a purchased gas adjustment clause was in effect, must be
flowed through to the natural gas company’s jurisdictional gas sales customers during that period with interest
as computed in paragraph (d) of this
section.
(d) Interest on Refunds. Interest on
the refund balance must be computed
from the date of collection from the
customer until the date refunds are
made as follows:
(1) At an average prime rate for each
calendar quarter on all excessive rates
or charges held (including all interest
applicable to such rates and charges)
on or after October 1, 1979. The applicable average prime rate for each calendar quarter must be the arithmetic
mean, to the nearest one-hundredth of
one percent, of the prime rate values
published in the Federal Reserve Bulletin, or in the Federal Reserve’s ‘‘Selected Interest Rates’’ (Statistical Release G, 13), for the fourth, third, and
second months preceding the first
month of the calendar quarter.

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§ 154.502

18 CFR Ch. I (4–1–18 Edition)

(2) The interest required to be paid
under paragraph (d)(1) of this section
must be compounded quarterly.
(3) The refund balance must be either:
(i) The revenues resulting from the
collection of the portion of any increased rates or charges found by the
Commission not to be justified; or
(ii) An amount agreed upon in a settlement approved by the Commission;
or
(iii) The jurisdictional portion of a
refund the natural gas company receives.
(e) Unless otherwise provided by the
order, settlement or tariff provision requiring the refund, the natural gas
company must file a report of refunds,
within 30 days of the date the refund
was made, which complies with § 154.502
and includes the following:
(1) Workpapers and a narrative sufficient to show how the refunds for jurisdictional services were calculated;
(2) Workpapers and a narrative sufficient to determine the origin of the refund, including step-by-step calculations showing the derivation of the refund amount described in paragraph
(d)(3) of this section, if necessary;
(3) References to any publicly available sources which confirm the rates,
quantities, or costs, which are used to
calculate the refund balance or which
confirm the refund amount itself. If the
rate, quantity, cost or refund does not
directly tie to the source, a workpaper
must be included to show the reconciliation between the rate, quantity, cost,
or refund in the natural gas company’s
report and the corresponding rate,
quantity, cost or refund in the source
document;
(4) Workpapers showing the calculation of interest on a monthly basis, including how the carrying charges were
compounded quarterly;
(5) Workpapers and a narrative explaining how the refund was allocated
to each jurisdictional customer. Where
the numbers used to support the allocation are publicly available, a reference to the source must be included.
Where the allocation methodology has
been approved previously, a reference
to the order or tariff provision approving the allocation methodology must
be included.

(6) A letter of transmittal containing:
(i) A list of the material enclosed;
(ii) The name and telephone number
of a company official who can answer
questions regarding the filing;
(iii) A statement of the date the refund was disbursed;
(iv) A reference to the authority by
which the refund is made, including the
specific subpart of these regulations,
an order of the Commission, a provision of the company’s tariff, or any
other appropriate authority. If a Commission order is referenced, include the
citation to the FERC Reports, the date
of issuance, and the docket number;
(v) Any requests for waiver. Requests
must include a reference to the specific
section of the statute, regulations, or
the company’s tariff from which waiver
is sought, and a justification for the
waiver.
(7) A certification of service to all affected customers and interested state
commissions.
(f) Each report filed under paragraph
(e) of this section must be posted no
later than the date of filing. Each report must be posted to all recipients of
a share of the refund and all state commissions whose jurisdiction includes
the location of any recipient of a refund share that have made a standing
request for such full report.
(g) Recipients of refunds and state
commissions that have not made a
standing request for such full report
shall receive an abbreviated report
consisting of the items listed in
§ 154.501 (e)(5) and (e)(6).
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582–A, 61 FR 9629, Mar. 11,
1996]

§ 154.502 Reports.
(a) When the natural gas company is
required, either by a Commission order
or as a part of a settlement in a proceeding initiated under this part 154 or
part 284 of this chapter, to make a report on a periodic basis, details about
the nature and contents of the report
must be provided in an appropriate section of the general terms and conditions of its tariff.
(b) The details in the general terms
and conditions of the tariff must include the frequency and timing of the

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Federal Energy Regulatory Commission
report. Explain whether the report is
filed annually, semi-annually, monthly, or is triggered by an event. If triggered by an event, explain how soon
after the event the report must be
filed. If the report is periodic, state the
dates on which the report must be
filed.
(c) Each report must include:
(1) A letter of transmittal containing:
(i) A list of the material enclosed;
(ii) The name and telephone number
of a company official who can answer
questions regarding the filing;
(iii) A reference to the authority by
which the report is made, including the
specific subpart of these regulations,
an order of the Commission, a provision of the company’s tariff, or any
other appropriate authority. If a Commission order is referenced, include the
citation to the FERC Reports, the date
of issuance, and the docket number;
(iv) Any requests for waiver. Requests must include a reference to the
specific section of the statute, regulations, or the company’s tariff from
which waiver is sought, and a justification for the waiver.
(2) A certification of service to all affected customers and interested state
commissions.
(d) Each report filed under paragraph
(b) of this section must be posted no
later than the date of filing.

Subpart G—Other Tariff Changes

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§ 154.600 Compliance with other subparts.
Any proposal to implement a tariff
change other than in rate level must
comply with subparts A, B, and C of
this part.
§ 154.601 Change in executed service
agreement.
Agreements intended to effect a
change or revision of an executed service agreement on file with the Commission must be in the form of a superseding executed service agreement
only. Service agreements may not contain any supplements, but may contain
exhibits which may be separately superseded. The exhibits may show,
among other things, contract demand
delivery points, delivery pressures,

Pt. 156
names of industrial customers of the
distributor-customer, or names of distributors (with one distributor named
as agent where delivery to several distributors is effected at the same delivery points).
§ 154.602 Cancellation or termination
of a tariff, executed service agreement or part thereof.
When an effective tariff, contract, or
part thereof on file with the Commission, is proposed to be canceled or is to
terminate by its own terms and no new
tariff, executed service agreement, or
part thereof, is to be filed in its place,
the natural gas company must notify
the Commission of the proposed cancellation or termination , at least 30
days prior to the proposed effective
date of such cancellation or termination. With such notice, the company
must submit a statement showing the
reasons for the cancellation or termination, a list of the affected customers
and the contract demand provided to
the customers under the service to be
canceled. A copy of the notice must be
duly posted tariff filing in the electronic format required by § 154.4.
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 714, 73 FR 57535, Oct. 3,
2008]

§ 154.603 Adoption of the tariff by a
successor.
Whenever the tariff or contracts of a
natural gas company on file with the
Commission is to be adopted by another company or person as a result of
an acquisition, or merger, authorized
by a certificate of public convenience
and necessity, or for any other reason,
the succeeding company must file with
the Commission, and post within 30
days after such succession, a tariff filing in the electronic format required
by § 154.4 bearing the name of the successor company.
[Order 714, 73 FR 57535, Oct. 3, 2008]

PART 156—APPLICATIONS FOR ORDERS UNDER SECTION 7(a) OF
THE NATURAL GAS ACT
Sec.
156.1
156.2
156.3

Who may apply.
Purpose and intent of rules.
Applications; general requirements.

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