schedules required to be prepared or submitted as part of the filing shall be reported in a separate column or columns All adjustments to book amounts shall also be reported in a separate column or columns so that book amounts, adjustments thereto and adjusted amounts will be clearly disclosed.

(e) Scope and composition of material for major increase-(1) Preparation for hearing. A natural gas company filing for an increase in rates or charges shall be prepared to go forward at a hearing on reasonable notice on the data which have been submitted and sustain the burden of proof imposed by the Natural Gas Act of establishing that its proposed changes are just and reasonable and not unduly discriminatory or preferential. The Commission is desirous of avoiding delay in processing rate filings. To this end, the material relied on in the filing and supporting work papers should be of such composition, scope, and format that it could serve as the company's complete case-in-chief in the event the rate is suspended and the matter is set for hearing to commence on a date within six months from the date of filing. If the rate fixing adjustments presented are not in full accord with a prior Commission decision directly involving the filing company, the company shall include in its working papers alternate material which will reflect the effect of such prior decision. (For purpose of this provision, rate of return is not a rate fixing adjustment.)

(2) Base and test periods. (i) If the natural gas company has been in operation for 12 months at the time of the filing, the Statements A to M, inclusive, and O and P or, L through N inclusive, as appropriate, and supporting schedules, shall be based upon a test period which shall consist of a base period of 12 consecutive months of most recently available actual experience, adjusted for changes in revenues and costs which are known and are measurable with reasonable accuracy at the time of the filing, and which will become effective within nine months after the last month of available actual experience utilized in the filing, but in no event shall such test period extend six months beyond the date of filing: Provided, however. That. for good cause shown, upon application of the natural gas company made to the Commission 30 days in advance of the rate filing, the Commission may allow reasonable deviation from the prescribed

test period; Provided further, That the last day of the 12 months of actual experience shall not be more than four months prior to the date of filing the proposed change in rates and charges. The 12 months of experience shall be adjusted to eliminate nonrecurring items (except minor amounts), but this shall not preclude the filing company from including items which, on the basis of existing facts, it can show will be experienced or from including an appropriate normalizing adjustment, e.g., rate case expenses, in lieu of a nonrecurring item. If the natural gas company has had less than 12 months' experience, the test period may consist of 12 consecutive months ending not more than one year from filing date, provided, however, the adjustments are not included for occurrences anticipated after the one-year period.

(ii) Adjustments to experience, or estimates where 12 months' experience is not available, may include the amounts for facilities for which a permanent or temporary certificate has been granted, provided such facilities will be in service within the test period, but such adjustments or estimates shall not include any amounts for facilities in respect to which a certificate of public convenience and necessity must be obtained but which has not been issued at the date of filing, nor shall adjustments or estimates include any amounts for other facilities associated therewith. The bases and procedures, including the docket number of each such outstanding certificate and other significant data, used in the derivation of adjustments or estimates shall be submitted in sufficient detail on supporting schedules as to permit ready analysis of such adjustments or estimates.

(3) Joint facilities. If the natural gas company operates other departments in addition to the natural gas operations involved in the subject rate increase and has allocated to such natural gas operations any of its investment in joint or other department facilities and the operation, maintenance, depreciation costs or taxes associated therewith, it shall be shown on the statements required to be filed by this section, or the schedules in support thereof, the amounts so allocated together with the methods used in making such allocations: Provided, That if such allocations are recorded in the natural gas company's books on the basis of current accounting procedures

the submittal may be confined to a brief description of the methods followed.

(4) Working papers and supporting data. (i) In the Statements described in paragraph (f) of this section, certain items are designated as being included in working papers. There is to be furnished to the Chief, Pipeline Division (Bureau of Natural Gas) upon filing the rate increase, one set of working papers for use by the staff and six additional copies of such working papers to be available to intervenors according to their needs after intervention, has been approved by the Commission.

(ii) The data in support of the proposed increased rates shall include the required particulars of book data, adjustments and other computations and information on which the company relies to justify the increased rates sought.

(iii) Any data or summaries included in the filing purporting to reflect the books of account shall be supported by accounting working papers, which papers shall set forth all necessary particulars from which an auditor may readily identify the book data included in the filing in separate columns and verify that such data are in agreement with the company's books of account. All statements, schedules, and working papers shall be prepared in accordance with the classifications provided in the Uniform System of Accounts. Working papers prepared in accordance with similar standards and disclosing full particulars properly crossreferenced to the filing and within themselves and indexed shall be available for staff examination in support of all adjustments, computations and other information included in the filing.

(iv) Any company filing for a rate increase shall be responsible for preparing prior to filing and maintaining work papers sufficient to support the filing. Any failure to produce promptly such working papers on request by an authorized representative of the Commission prior to Commission action on the filing shall be cause for rejection of the tendered filing in its entirety. In addition to the working paper support the following specific material related to the base period normally prepared by the filing company shall be available for staff verification and analysis, and a copy shall be furnished on request:

1. Copies of monthly financial reports prepared for management purposes.

2. Copies of accounting analyses of balance sheet accounts.

3. Complete trial balances of all the balance sheet accounts at the beginning and end of the 12 months of actual experience, and revenue and expense accounts for the 12 months of actual experience used for the filing.

4. Analyses of the various miscellaneous revenues and related expenses included in the submitted cost of service.

5. Analyses of surplus and capital surplus accounts.

(5) Representation of chief accounting officer. The filing shall include a narrative statement executed by the chief accounting officer or other authorized accounting representative of the filing company representing that the cost statements and supporting data submitted as a part of the filing, as well as working papers required herein, which purport to reflect the books of the company do, in fact, set forth the results shown by such books.

(6) Opinion of independent public accountants. The filing shall include an opinion obtained from independent public accountants showing that an independent examination of the book amounts and accounting adjustments of the filing company has been made and the results thereof for the base period.

(f) Description of statements. Description of Statements A through P and supporting schedules required to be filed pursuant to the directions set out in paragraph (b) (3) and (4) of this section.

Statement A-Overall cost of service. This statement shall summarize the overall gas utility cost of service (operation and maintenance expenses; depreciation, taxes, credits to cost of service and return) developed from the supporting statements described below.

This

Statement B-Rate base and return. statement shall summarize the overall gas utility rate base from the figures contained in Statement C, D, and E, with an appropriate deduction for Contributions in Aid of Construction, if any. The statement shall also include the claimed rate of return and shall show the application of the claimed rate of return to the overall rate base.

Statement C-Cost of plant. This statement shall show in summary form the amounts of gas utility plant classified by Accounts 101, 102, 103, 104, 105, 106, 107, and 117 as of the beginning of the 12 months of actual experience, the book additions and reductions (in separate columns) during the 12 months, together with the book balances at the end of the 12-month period. In adjoining columns there shall be shown the claimed adjustments, if any, to the book

balances and the total cost of plant. All adjustments shall be fully and clearly explained in the supporting material submitted.

The following schedules and additional material shall be submitted as part of Statement C:

Schedule C-1 in columnar form similar to Statement C showing for each of the above accounts the amounts by detailed plants prescribed by the Commission's Uniform System of Accounts for Natural Gas Companies (Part 201 of this chapter) with subtotals thereof by functional classifications, 1.e. Intangible Plant, Manufactured Gas Production Plant, Natural Gas Production and Gathering Plant, Products Extraction Plant, Underground Storage Plant, Local Storage Plant, Transmission Plant, Distribution Plant and General Plant: Provided, however, That to the extent plant costs are not available by detailed plant accounts they may be shown by functional classifications.

Accounts 101, 105, and 106 shall be adjusted to exclude the cost of major items of plant, the retirement of which is expected by the end of the test period.

Account 107 shall be adjusted to exclude plant in process of construction which is not expected to be in service by the end of the test period.

Schedule C-2 showing major plant addition and retirement projects for the test period, brief descriptions, approximate dates of commercial operation or retirement from service and cost.

Schedule C-3, which is to be part of the working papers showing twelve average monthly book balances, during the 12 months in the base period, for each detailed plant account, each subtotal representing functional classifications and total plant, the sum of such 12 average balances shall be divided by 12; and the effect of proposed adjustments on the average balances: Provided, however, That to the extent plant costs are not available by detailed plant accounts they may be shown by functional classifications.

Schedule C-4, which is to be part of the working papers, summarizing the following by years with respect to the book changes in gas plant in service (Account 101) for the last five calendar years of the operations of the Company or its predecessors and proposed adjustments to such account:

(a) Starting Balance.

(b) Major additions and retirements by work orders (small items grouped) including the following:

(1) Major completed work orders including number, description, and amount.

(11) Month placed in service or retired from service.

(iii) Period of construction.

(iv) Cross reference to FPC certification showing docket number and the dates the certificate was issued and accepted.

(c) Other major transactions recorded such as corrections, transfers, etc. Show suf

ficient detail so that the nature of the major changes will be clearly disclosed. (d) Closing Balance.

Schedule C-5 showing in respect of Accounts 106 and 107, at the beginning and end, respectively, of the 12 months of actual experience a list of uncompleted work orders (small items grouped) claimed in the rate base, giving the work order number, description and amount of each, and the amounts of each type of undistributed construction overheads. As part of the working papers include: a main-line map showing all major projects completed during the base period, with a key system indicating major work orders included in each project and reference to FPC certificate numbers; a list of principal projects certificated by FPC (including temporary certificates for the last five calendar years, ending during the 12 months of actual experience), setting forth the actual or estimated cost of the faciilty and indicating the total increase in contract demand and annual volumes associated with each major certificate.

Schedule C-6, which material may be contained in Company's FPC Form No. 2, and cross-referenced if such report is up to date, giving details of each storage project owned, showing cost by major functions, and base top gas storage volumes for the test period and for the 12 months of actual experience also making reference to any special rate schedules relating thereto, with monthly volumes and associated dollars for the inputs and outputs for the 12 months of actual experience.

Schedule C-7, which is to be part of the working papers, if company produces gas, a map, showing counties in the United States for such producing acreage.

Schedule C-8, which material may be crossreferenced from Company's FPC Form No. 2, summary by producing areas of gas reserves owned and a complete explanation of methods and procedures used in amortizing capitalized well costs.

Schedule C-9, which is to be part of the working papers, summarizing at end of period the cost of gathering facilities by major producing areas and by major type of plant.

Schedule C-10, which is to be part of the working papers, giving full details including docket number of any acquisitions of gas inplace, other than acquisition of leasehold interests, for the last five calendar years, ending during the twelve months of actual experi

ence.

Schedule C-11, which is to be part of the working papers, summary cost of plant in service for each gasoline extraction and major purification (CO2) plant owned or operated by the company.

Schedule C-12, which is to be part of the working papers, and may be cross-referenced if such material is in the company's FPC Form No. 2, complete statement of methods and procedures followed in capitalizing allowance for funds used during construction and other construction overheads,

including any policy changes, effective dates and reasons therefor for the last 5 calendar years, ending during the 12 months of actual experience.

Schedule C-13, which is to be part of the working papers, and may be cross-referenced if such material is in the company's FPC Form No. 2, showing any significant changes in intangible plant for the last five calendar years, ending during the twelve months of actual experience.

Schedule C-14, which is to be part of the working papers, setting forth the cost of plant in service and description thereof carried on the company's books as gas utility plant which was not being used in rendering gas service.

Schedule C-15, which is to be part of the working papers, description of the continuing property records maintained by the company, including methods and procedures used to price retirements, and a list of retirement units used by the company in pricing retirements.

Schedule C-16, which is to be part of the working papers, setting forth any operating units or systems acquired for which Commission approval of the final accounting has not been obtained. For such acquisitions submit summary analysis of the property acquired, proposed journal entries to record the acquisition and the proposed disposition of any difference between cost of acquisition and net original cost.

Statement D-Accumulated provisions for depreciation, depletion, amortization and abandonment. This statement shall show the accumulated provisions for depreciation, amortization, depletion, and abandonment (Accounts 108, 109, 110, 111.1, 111.2, 111.3, 112, 113.1, 113.2), as of the beginning of the 12 months of actual experience, the book additions and reductions during the 12 months, together with the balances at the end of the 12-month period. In adjoining columns there should be shown the adjustments, if any, to the book amounts and the total. adjustments shall be clearly and fully explained in the supporting material submitted.

All

The following schedules and additional material shall be submitted as part of Statement D:

Schedule D-1, which is to be part of the working papers, showing twelve average monthly book balances, during the twelve months in the base perlod, for each account and functional plant classification, the sum of such 12 average balances shall be divided by 12; and the effect of proposed adjustments on the average balances.

Schedule D-2, which is to be part of the working papers and may be cross-referenced from Company's FPC Form No. 2 summarizing the following by years with respect to the book changes in each account set forth in Statement D since the date of the last prior staff review, and proposed adjustments to such accounts.

(a) Starting balance. (b) Annual provision.

(g) Ending balance.

Schedule D-3, which is to be part of the working papers, a description of the methods and procedures followed in depreciating, depleting, or amortizing plant and recording abandonments by the company if any policy change has been made effective since the period covered by the last annual report on FPC Form No. 2 was filed with the Commission.

Schedule D-4, with respect to each allocation of an overall account to obtain the amounts applicable to various functional groups of plant, a complete explanation of the method, procedures and significant data used in making the allocation.

Statement E-Working Capital. This statement shall show the computation of the working capital claimed as a part of the gas utility rate base. The statement shall show the respective components of the claimed working capital and be in such detail as to show how the amount of each component was computed.

The components of working capital may include (a) an amount equivalent to oneeighth of annual operating expenses, as adjusted, exclusive of the cost of gas purchased for resale; fuel gas charged to operating expenses; royalty payments on gas produced; transmission and compression of gas by others; royalty payments on products extracted; products purchased for resale; net of exchanged gas; and noncash operating expenses such as depreciation transferred through clearing accounts to operating expenses; and (b) an allowance for the average of 13 monthly balances of materials and supplies, prepayments, the unrecovered portion of advance payments to suppliers in account 166 made under contracts executed prior to January 1, 1973, and gas for current delivery from underground storage. Also, during the period the corporate tax payment provisions of the Internal Revenue Code of 1954 remain in effect these shall be reflected a credit to the gross working capital an amount equal to 50 percent of the current portion of the claimed federal income tax allowance in the cost of service. Any working capital item claimed which is different from or in addition to those specified herein shall be explained and the reasons for inclusion therein shall be given.

The following schedules and additional material shall be submitted as part of Statement E:

Schedule E-1 setting forth monthly balances for materials and supplies, prepayments, and advance payments 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 the charges included therein.

Schedule E-2 setting forth monthly balances of material and supplies, prepayments, and advance payments on purchased gas for 2 years immediately preceding the 12 months of actual experience used in the filling.

Schedule E-3 showing the quantities and the respective costs of natural gas stored at the beginning of the test period, the input, output and balance remaining in Mcf and associated costs by months, method of pricing input, output and balance, and the claimed adjustments shall be disclosed and clearly and fully explained.

Schedule E-4 showing the computations, cross-references and sources from which the data used in computing claimed working capital are derived.

Statement F(1)-Rate of return claimed. This statement shall show the percentage rate of return claimed and the general reasons therefor.2

Statement F(2)-This statement shall show, based upon the company's capitalization, the cost of debt capital and preferred stock capital and the return on the stockholder's equity resulting from the overall rate of return claimed.

Statement F(3)-Debt capital. This statement shall 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-months' actual experience.

(a) Title.

(b) Date of issuance and date of maturity. (c) Interest rate.

(d) 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.

(e) 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.

2 Where 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 Uniform System of Accounts, then the data required by those statements shall 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 staff a copy of the latest prospectus issued by the natural gas company, any superimposed holding company or subsidiary companies.

(f) If issue is owned by an affiliate, state name and relationship of owner.

Statement F (4)—Preferred stock capital. This statement shall show the weighted average cost of preferred stock capital based 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-months' actual experience.

(a) Title.

(b) Date of issuance.

(c) If callable, call price.

(d) If convertible, terms of conversion. (e) Dividend rate.

(f) 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.

(g) Cost of money:

Dividend rate divided by net proceeds per unit.

(h) Whether issue was offered to stockholders through subscription rights or to the public.

(1) If issue is owned by an affiliate, state name and relationship of owner.

Statement F(5)-Common stock capital. This statement shall show for each sale of common stock during the five-year period preceding the balance sheet as of the end of the 12-months' actual experience: (a) Number of shares sold.

(b) (1) Gross proceeds at offering price. (2) Underwriters' discount or commission: Amount.

Percent gross proceeds.

(3) Proceeds to applicant.

(4) Issuance expenses:

Amount.

Percent gross proceeds.

(5) Net proceeds:

Offering price per share. Net proceeds per share. (c) Book value per share at date immediately prior to issuance:

Closing market price at latest trading date prior to date of issuance.

Latest published earnings per share available at date of issuance.

Dividend rate at date of issuance.

(d) Whether issue was offered to stockholders through subscription rights or to the public; whether common stock was issued for property or for capital stock of others.

The following schedules and additional material shall be submitted as part of Statement F(5):

Schedule F(5)-1. Submit information respecting any stock dividends, stock splits or changes in par or stated value during five