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schedule the development of the zone rate in Statement E. Instead of 13 monthly baldifferentials proposed.

ances, however, the average may be based Statement K-Comparison of estimated on beginning and ending balances for the revenues with cost of service. This state- test period. ment shall consist of a comparison of the Schedule N-4. Rate of return claimed with total jurisdictional revenues with the allo- a brief statement of the basis therefor. cated cost of service for the test period. Schedule N-5. Operation and maintenance Where zone rates are in existence or are expenses by functional classifications. proposed, this statement shall also include a Schedule N-6. Depreciation, depletion, and comparison of revenues and costs by zones. amortization expense by functional classifi

The following schedule and additional ma. cations. terials shall be submitted as a part of State. Schedule N-7. Income tax allowances comment K:

puted on the basis of the rate of return Schedule K-1 showing the derivation of claimed. each of the increased rates shall be submit Schedule N-8. Other taxes. ted. If the increased rates are predicated on Schedule N-9. Cost of service allocated to costs as classified and allocated, all calcula the sales or services for which the increase tions involved in derivation of the rates in rate, or charge is proposed, including the shall be shown. If in computing the in- principal determinants used for allocation creased rates, weight is given in whole or in purposes. part to value of service, competition, histori. Schedule N-10. Comparison of cost of sery. cal revenue pattern, etc., a full and com ice with revenues under proposed rates for plete explanation and justification therefor the test period. shall be included.

Schedule N-11. A complete description of Statement L-Balance Sheet. A balance amounts, by venture, recorded in Account sheet in the form prescribed by the Com 188, Research, development, and demonstramission's Uniform System of Accounts for tion expenditures, as of the beginning and Natural Gas Companies as of the beginning end of the test period, increased or reduced, and end of the 12 consecutive months of the as appropriate, by the applicable accumulatactual experience utilized for the tested deferred income taxes. This schedule period, including therein the notes, if any, shall also include all related amortization applicable to the balance sheet; similarly, a for the same period. balance sheet on a consolidated basis if the When this group of schedules is filed by a natural gas company is a member of a Class A company pursuant to g 154.63(b)(3) system group of companies.

and the beginning of the 12 consecutive Statement M-Income statement. An months of the most recently available income statement, including a section on actual experience is more than one month earned surplus in the form prescribed by beyond the 12 months of actual data used in the Commission's Uniform System of AC the prior rate increase filing, the natural counts for Natural Gas Companies for the gas company shall also report separately for 12 consecutive months of actual experience the intervening period actual data comparautilized for the test period, including there. ble to that required by Schedules N-1, N-2, in the notes, if any, applicable to the income N-5, N-6, and N-8, above, and total sales volstatement; similarly, an income statement umes and revenues for such period broken on a consolidated basis if the natural gas down between jurisdictional and nonjuriscompany is a member of a system group of dictional sales. companies.

Statement 0-Description of Company Statement N-Cost determinants for Operations. A description of the company's minor changes in rate level. This group of area and diversity of operations including schedules shall contain the principal deter the following: minants essential to test the reasonableness (1) A detailed system map. of the proposed rate or charge. Any adjust (2) A complete rate history showing filing ments to book figures shall be separately and rate levels since the beginning of the stated and the basis for the adjustment company with a brief description of each shall be explained. The following shall be filing. submitted for the test period:

(3) A detailed history of each major exSchedule N-1. Cost of plant by functional pansion, (new service) and major abandonclassification as of the beginning and as of ment certificate filing for the last 5 years of the end of the test period.

the company along with a brief description Schedule N-2. Accumulated provisions for of each filing. depreciation, depletion, amortization, and (4) A digest of contractual provisions with abandonment by functional classifications individual producer suppliers who deliver in as of the beginning and as of the end of the excess of 1 Bcf annually relative to volumes test period.

(minimum and maximum obligations) and Schedule N-3. Working capital, setting term, by contract. Digest should include esforth the various components provided for timated peak day deliverability for reserves

dedicated under each contract as well as contemplated "swings" between sources of supply.

(5) A detailed description of how the company designs and operates its systems, including design temperature or temperatures and the effect of conjunctive billing on design consideration.

Statement P-Explanatory text and prepared testimony. This statement shall contain copies of proposed testimony indicating the line of proof which the company would offer for its case-in-chief in the event the rates should be suspended and the matter set for hearing.

Statement Q-Price stabilization exhibit.

(a) All applications for rate increases shall be accompanied by a special Price Stabiliza. tion Exhibit. This exhibit shall contain by cross reference or otherwise all of the necessary information by the applicant to demon. strate that the applicant's filing is in compliance with the intent and purposes of the Economic Stabilization Act of 1970, as amended, Executive Orders Nos. 11615, 11627, 11640, and with the criteria as hereinafter set out in (b), except as provided in (c), (d), (e), and (f).

(b) These criteria are as follows:

(1) The increase is cost justified and does not reflect future inflationary expectations.

(2) The increase is the minimum required to assure continued, adequate, and safe service or to provide for necessary expansion to meet future requirements.

(3) The increase will achieve the minimum rate of return needed to attract capital at reasonable costs and will not impair the credit of the applicant.

(4) The increase does not reflect labor cost increases in excess of 5.5 percent per annum, unless the increase is required by a contract which becomes binding before November 8, 1972, or unless not allowing the excess cost would work an undue hardship on the employer.

(c) Whenever an applicant is of the opinion that a requested increase is in conformity with the Economic Stabilization Program even though any or all of the criteria in (b) are not met, the exhibit shall:

(1) Set forth the criteria in (b) to the extent possible;

(2) Contain a statement by the applicant justifying its position that the requested increase is in conformity with the goals of the Economic Stabilization Program.

(d) Justification for price increases in conformity with the above criteria shall not be required for price increases resulting from the pass-through of special allowable costs including taxes (except income tax), purchased gas costs, and fuel cost. However, the criteria shall apply to labor cost unless otherwise specified by this Commission.

(e) The requirements for this exhibit shall not apply to any applicant's price increase where the rate base-cost of service criteria are not the basis for assessing a price in. crease under the terms of the Natural Gas Act and the rules, regulations, and orders promulgated thereunder.

(f) Under existing Commission regulations and applicable law, rate increases for producers of natural gas are determined on an area basis utilizing, inter alia, composite cost data after investigation and study of the various gas producing areas. This practice established by Area Rate Proceeding, Docket No. AR 61-1, et al. Opinion No. 468, 34 FPC 159 (1965), and affirmed by the Supreme Court in Permian Basin Area Rate Cases, 390 U.S. 747 (1968). Small producers will not be required to file the exhibit since they are regulated under Order No. 428 (36 FR 5598, March 25, 1971) and its amendments and will be monitored for Price Stabilization purposes by using reports submitted pursuant to Order No. 428 as amended and section 154.104 of the Commission's Regulations Under the Natural Gas Act which requires filing of annual statements. More. over, area maximum rates determined in conformity with the Natural Gas Act and intended to balance all interests are constitutionally permissible according to the U.S. Supreme Court. Ibid. Since the Commission will take into consideration the relationship between establishing an area ceiling and national economic stabilization goals in setting area rates, and because of the Price Commission Regulations, $ 300.16(d)(5), the requirements for filing the Price Stabilization Exhibit shall not apply to producers of natural gas. Staff shall develop Price Stabilization data on a composite basis in all area cases commenced on or before June 1, 1972. (Order 254, 27 FR 9502, Sept. 26, 1962; 27 FR 10157, Oct. 17, 1962, as amended by Order 304, 30 FR 12069, Sept. 22, 1965; Order 410, 35 FR 15910, Oct. 9, 1970; Order 436, 36 FR 15530, Aug. 17, 1971; Order 451A, 37 FR 12064, June 17, 1972; Order 465, 38 FR 1388, Jan. 12, 1973; Order 483, 38 FR 12116, May 9, 1973; Order 488, 38 FR 20068, July 27, 1973; Order 490, 38 FR 23334, Aug. 29, 1973; Order 499, 39 FR 1265, Jan. 7, 1974; Order 488, 39 FR 5312, Feb. 12, 1974; Order 535, 40 FR 43892, Sept. 24, 1975; 41 FR 10424, Mar. 11, 1976; Order 549, 41 FR 24995, June 22, 1976; Order 566, 42 FR 30159, June 13, 1977; Order 567, 42 FR 30615, June 16, 1977)

$154.64 Cancellation or termination.

When a filed tariff, contract or part thereof 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 shall notify the Commission of the proposed cancellation or termination on the form indicated in § 250.2 or §250.3, whichever is applicable, at least thirty days prior to the proposed effective date of such cancellation or termination. A copy of such notice to the Commission shall be duly posted. With such notice, the company shall submit a statement showing the reasons for the cancellation or termination, a list of the affected purchasers to whom the notice has been mailed, the sales made or transportation performed and revenues therefrom, by months, for the twelve months immediately preceding the proposed effective date of the cancellation or termination. Actual data shall be used as far as possible, and any estimated data should be designated as such. Such statement shall be subdivided by rate Schedules, classes of Service, customers and delivery points when more than one is involved: Provided, however, That the filing of such notice shall not be construed as compliance with the requirements of Section 7(b) of the Natural Gas Act.

§ 154.65 Adoption of tariff by successor.

Whenever the tariff or contracts of a natural-gas company are to be adopted by another company or person as a result of an acquisition, or merger, authorized by appropriate certificate of public convenience and necessity, or for any other reason, the succeeding company shall file with the Commission and post within thirty days after such succession a certificate of adoption on the form prescribed in §250.4. Within ninety days after such notice is filed, the succeeding company shall file a tariff with the sheets bearing the correct name of the successor Company, to replace the tariff previously adopted.

§ 154.66 Changes relating to suspended tariffs, executed service agreements or parts thereof.

(a) Withdrawal of suspended tariffs, erecuted service agreements or parts thereof. Where a tariff, executed service agreement or part thereof has been

suspended by the Commission, it may be withdrawn during the period of suspension only by Special permission of the Commission upon application therefor and for good cause shown. (b) Changes in suspended tariffs, erecuted service agreements or parts thereof. A natural-gas company may not, within the period of suspension file any change in a tariff, executed service agreement or part thereof which has been suspended by order of the Commission except by special permission of the Commission granted upon application therefor and for good cause shown. (c) Changes in tariffs, erecuted service agreement 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 continued in effect by operation of the order of suspension, and which was proposed to be changed by the suspending filing, except by Special permission of the Commission granted upon application therefor and for good cause shown.

[Order 159, 16 FR 2389, Mar. 14, 1951]

§ 154.67 Suspended changes in rate schedules; motions to make effective at end of period of suspension; procedure.

(a) If a rate suspension proceeding initiated under section 4(e) of the Natural Gas Act has not been concluded and an Order made at the expiration of the suspension period, the proposed change of rate, charge, classification or Service shall go into effect upon motion of the pipeline company proposing the change and shall be charged, effective as of a date not earlier than the date of receipt of such motion by the Commission or the expiration of the suspension period, whichever is later. Concurrently, with the motion to make the suspended rate effective, the company shall file an undertaking complying with provisions of paragraphs (c) and (e) of this section. Three copies of the motion and undertaking shall be filed. Unless notified to the contrary by the Secretary of the Commission within 30 days from the date of filing, such motion

AGREEMENT AND UNDERTAKING OF (COMPANY)

TO COMPLY WITH THE TERMS AND CONDITIONS OF SECTION 154.67 OF THE COMMISSION'S RULES AND REGULATIONS UNDER THE NATURAL GAS ACT IN RESPECT TO (COMPANY'S) MOTION TO HAVE ITS PROPOSED TARIFF SHEETS IN DOCKET No. RP --PLACED INTO EFFECT

In conformity with the requirements of § 154.67 of the Commission's rules and regulations under the Natural Gas Act (Company) hereby agrees and undertakes to comply with the terms and conditions of said section of the Commission's rules and regulations and has caused this agreement and undertaking to be executed and sealed in its name by its officers thereupon duly author. ized in accordance with the terms of the resolution of its Board of Directors, a certified copy of which is appended hereto this day of ---

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and undertaking shall be deemed to be satisfactory and to have been accepted for filing.

(b) Unless otherwise ordered by the Commission, increased rates or charges shall be charged and collected pursuant to paragraph (a) of this section.

(c) The pipeline company shall refund at such time and in such manner as may be required by final order of the Commission, the portion of any increased rates and charges found by the Commission in that proceeding to be not justified, together with interest at the rate of (1) seven percent per annum on all excessive rates and charges collected prior to October 10, 1974; and (2) nine percent per annum on all excessive rates and charges collected on and after October 10, 1974, and nine percent per annum for all interest accruing on and after October 10, 1974 on refundable amounts collected prior to October 10, 1974, from the date of payment until refunded; shall bear all costs of such refunding; shall keep accurate accounts in detail of all amounts received by reason of the increased rates or charges made effective as provided in this order, for each billing period; and shall report (original and one copy) in writing and under oath to the Commission monthly, for each billing period, by customer, the billing determinants of natural gas sold and transported and the revenues resulting therefrom, as computed under the rates in effect immediately prior to the effective date of change, and under the rates which become effective pursuant to the motion, together with the differences in the revenues so computed.

(d) The pipeline company shall file an undertaking with the Secretary of this Commission to comply with the terms of this section, signed by a respor ible officer of the company, evidenced by proper authority from the Board of Directors, and accompanied by a certificate showing service of copies thereof upon the purchasers under the rate schedules to be made effective by motion of the company, and in conformity to the model undertaking below.

By: ----

(Company) Attest:

(e) If the pipeline company, acting in conformity with the terms and conditions of the undertaking required by this section, makes the refunds as may be required by order of the Commission, the undertaking shall be discharged; otherwise, it shall remain in full force and effect. (Order 442, 36 FR 23524, Dec. 10. 1971. Redesignated at 37 FR 5018, Mar. 9, 1972, and amended by Order 513, 39 FR 37359, Oct. 24, 1974; Order 513-A, 41 FR 30325, July 23, 1976)

RESTATEMENT OF SCHEDULES FILED

PRIOR TO DECEMBER 1, 1948

§ 154.81 Application.

Sections 154.82 through 154.86 apply to effective schedules of rates, charges, classifications, practices, reg. ulations and contracts for the transportation or sale of natural gas subject to the jurisdiction of the Commission filed prior to December 1, 1948 which have not been prepared in accordance with 88 154.31 through 154.41, and for which special exception has not been obtained under § 154.52.

§ 154.82 Requirement for restatement.

All effective schedules of rates, charges, classifications, practices, reg. ulations, and contracts not prepared in accordance with 88 154.31 through

[graphic]

154.41 shall be restated and filed as parts of a Tariff in accordance with said sections on or before the dates specified in § 154.83 and duly posted at the time of filing: Provided, however, That price provisions which cannot be restated in cents or in dollars and cents per unit, as required by § 154.38(d), without effecting a change in rates or charges may be retained in effect without change. Provided, further, That when necessary, pending completion of restatement within the time provided for by § 154.83, schedules may be filed in accordance with this part as in effect prior to December 1, 1948.

§ 154.83 Filing date of restatements.

(a) Natural gas companies shall file, in quintuplicate, restatements of their rate schedules as parts of tariffs on or before the dates Specified below, unless an extension of time is granted by the Commission upon application and for good cause shown:

Companies Making Their Major Sales in and Date

Colorado, Idaho, Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Montana, Nebraska, North Dakota, Ohio, South Dakota, Utah, West Virginia, Wisconsin, Wyoming: On or before March 1, 1949.

Alabama, District of Columbia, Florida, Georgia, Kentucky, Maryland, New York, New Jersey, North Carolina, Pennsylvania, Tennessee, Virginia: On or before April 1, 1949.

Arizona, Arkansas, California, Kansas, Louisiana, Mississippi, New Mexico, Oklahoma, Texas: On or before May 2, 1949.

(b) With the filing of such restatement there shall be included a letter of transmittal containing a list of the material inclosed and a list of the purchasers to whom it has been mailed.

§ 154.84 Plan of restatement.

The restatement shall contain the provisions of schedules of rates, charges, classifications, practices, regulations and contracts effective on the date the tariff is filed. However, Concurrent with the restatement, a natural-gas company may propose changes in rates, charges, classifications, services, practices, rules and regulations in accordance with $154.63 of this part.

Differences in the phraseology of schedules should be reconciled Whenever possible. The effective date to be shown on the tariff sheets shall be that desired by the company, but not less than 30 days nor more than 60 days after filing pursuant to § 154.83.

§ 154.85 Status of contracts filed as rate schedules and restated.

Each contract, which is now filed as an effective rate schedule, may be continued in effect and shall be considered as an executed service agreement to the extent that the provisions thereof are not superseded by or in conflict with other applicable provisions of the rate schedules and general terms and conditions of the tariff, until such contract expires by its presently provided terms or is replaced by an executed service agreement in a form contained in the tariff: Provided, however, That the natural-gas company, concurrent with the filing of the tariff, shall submit, for insertion in front of each such contract, a statement identifying the provisions thereof which are not superseded by or in conflict with other applicable provisions of the rate Schedules and general terms and conditions of the tariff and which are to remain in effect: Provided further, however, That agreements intended to effect a change or annendment in such contract may be made only by the execution of a form of service agreement contained in the tariff.

§ 154.86 Availability of Commission staff for advice prior to formal filing.

Any natural-gas company restating its schedules in accordance with § 154.82 may informally submit a tariff or any part thereof for the suggestions of the staff of the Commission, or may confer with the staff of the Commission to obtain advice on any problem of restatement, prior to submission of the tariff to the Commission for filing and posting.

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