Gas Transportation Service Requirements

(a)In its tariffs, a utility shall establish maximum rates for gas transportation service. In addition, a utility which desires price flexibility shall include its minimum rates in its tariffs. The following apply to transportation tariff rates:#

(I)Maximum rates for transportation shall be based on fully allocated cost methods and shall include an allowance for return on allocated rate base equal to the last rate of return authorized by the Commission for the utility.#

(II)A utility may, at its discretion, offer natural gas transportation standby capacity service or standby supply service. A utility may require separate charges for:#

(A)natural gas transportation standby capacity (if offered);#

(B)standby supply (if offered);#

(C)administration, services and facilities; and#

(D)a utility's avoidable purchased gas commodity costs based on current market-driven gas prices.#

(b)In its tariffs, a utility shall establish terms and conditions for gas transportation service, including at least the following:#

(I)all criteria for determining gas transportation capacity;#

(II)all gas transportation costs;#

(III)all nomination requirements;#

(IV)all measurement and facility requirements;#

(V)as applicable, all gas supply cost provisions;#

(VI)all gas balancing provisions;#

(VII)all quality of gas requirements;#

(VIII)the utility's line extension policy;#

(IX)the gas transportation request form required by paragraph 4206(a);#

(X)the utility's gas transportation standard gas transportation service agreement, which shall include the statements required by paragraph 4206(d); and#

(XI)the utility's standard agency agreement required by paragraph 4206(e).#