should include spot market purchases in their estimates to the extent they reasonably expect to acquire gas on the spot market. The Commission recognizes the cost of future spot market gas cannot be estimated. However, this does not prevent a pipeline from including in its PGA filing expected purchases on the spot market based upon the most recent prices in effect at the time of the filing. Midwestern is directed to include in its future PGA filings projections of expected spot market gas purchases to the extent such purchases are based on known and measurable changes. See 51 FERC 61,061 and 53 FERC 61,478 (1990). Midwestern made several errors in its submittal of Schedule C1 of FERC Form No. 542-PGA (Revised), which provides data supporting the requested rate changes. These errors are detailed in the Enclosure. Midwestern is directed to correct the errors by filing a revised Schedule C1 within 30 days of this order, along with a Schedule G1 to assist processing of the filing. Acceptance of the instant filing is conditioned upon receipt and review of Midwestern's compliance filing. Notices of intervention and unopposed timely filed motions to intervene are granted pursuant to the operation of Rule 214 of the Commission's Rules of Practice and Procedure (18 C.F.R. section 385.214). Any opposed or untimely filed motion to intervene is governed by the provisions of Rule 214. This acceptance for filing shall not be construed as a waiver of the requirements of section 7 of the Natural Gas Act, as amended, nor shall it be construed as constituting approval of the referenced filing or of any rate, charge, classification, or any rule, regulation, or practice affecting such rate or service contained in your tariff; nor shall such acceptance be deemed as recognition of any claimed contractual right or obligation associated therewith; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against your company. Enclosure Filing Errors in Schedule C1 of FERC Form No. 542-A (Revised) (1) Midwestern reported transfers and refund transfers on separate records. Refund transfers and transfers should be reported on the same record. Midwestern entered a date in the transfer date field for the refund transfer. When reporting refund transfers, no transfer date needs to be reported. The refund transfer is always assumed to take place in the last month of the deferral period. The following example shows how transfers should be recorded: Northwest Pipeline Corporation, Docket Nos. TA91-1-37-000, -001, and -002 (Issued March 29, 1991) By Direction of the Commission: Lois D. Cashell, Secretary. The tariff sheets referenced in Item No. 4 on the Enclosure are accepted, effective April 1, 1991. The tariff sheets in Item Nos. 1, 2, and 3 are rejected. On January 30, 1991, Northwest Pipeline Corporation (Northwest) filed primary (Item No. 1 on the Enclosure) and alternate (Item No. 2 on the Enclosure) tariff sheets in Docket No. TA91-1-37-000 reflecting its annual purchased gas adjustment (PGA) filing pursuant to section 16 of the General Terms and Conditions of its FERC Gas Tariff, and to section 154.305 of the Commission's regulations. Northwest also filed a refund report in Docket No. TA91-1-37-001, detailing all refunds that were distributed to Northwest's jurisdictional sales customers during the deferral period ending November 30, 1990. On February 25, 1991, Northwest filed substitute primary tariff sheets (Item No. 3 on the Enclosure) and substitute alternate tariff sheets (Item No. 4 on the Enclosure) in Docket No. TA91-1-37-002 to change sheet pagination and superseded sheet designations. No further rate changes are proposed on the repaginated sheets. Northwest has filed a decrease of $0.0424 per MMBtu in the commodity component of its rates. Northwest has also filed decreases in its D-1 and D-2 rate components of $0.0113 and $0.0006 respectively. Northwest has proposed a commodity surcharge adjustment of $0.0996 per MMBtu in the filing based upon an Account No. 191 balance of $4,815,825 as of November 30, 1991. Northwest also has proposed D-1 and D-2 surcharges of $0.0768 and $0.0046, based upon Account No. 191 balances of $454,752 and $227,376, respectively. All surcharges are to be effective for 12 months commencing April 1, 1991. Northwest failed its assessment test for the fourth interval period (October and November 1990) by $209,514. In its amended transmittal letter filed February 28, 1991, Northwest requested specific permission to recover its costs above the 103-percent level. The Commission finds Northwest has provided a sufficient explanation for the underrecovery and, therefore, grants Northwest's request for permission to collect the $209,514 of costs above the 103-percent assessment test level in its PGA. Northwest's filing includes in its primary sheets a new footnote no. 2. Northwest's alternate tariff sheets are identical to the primary sheets with the exception of the exclusion of footnote no. 2. The purpose of the footnote is to provide Northwest's customers with notice of a potential future change in Northwest's rates. Northwest is seeking judicial review of the Commission's determination in a November 26, 1990, order in Docket No. CP86-578-031 et al., that Northwest must remove approximately $2.7 million of gas prepayments from the rate base used to calculate base tariff rates in connection with the implementation of Northwest's Gas Inventory Charge on January 1, 1991. It is not appropriate to make the subject rates contingent upon a potential remedy in a pending judicial proceeding. A remedy, if necessary, is appropriately determined as part of the judicial proceeding, or on remand. Therefore the Commission rejects Northwest's tariff sheets containing footnote no. 2. Pursuant to section 154.305 of the Commission's regulations Northwest has filed a refund report in Docket No. TA91-1-37-001. The refund report reflects refunds from Northwest's refund subaccount for the period December 1989 through February 1990. On February 28, 1990, Northwest refunded to its jurisdictional sales customers $872,746.53 ($851,006 principal and $21,740.53 interest). The refund is accepted in satisfactory compliance with the applicable Commission regulations. Northwest's original electronic and paper filing did not contain a Schedule A1. Because of Northwest's inability to submit accurate information on its Schedule A1, it requested waiver to permit it to make a late filing. The Commission grants Northwest's waiver request. Northwest is reminded of the Commission's all electronic PGA filing requirements that become effective with the PGA filings that become effective on or after June 1, 1991, and that its filings must comply with the electronic filing requirements. The annual PGA filing in Docket No. TA91-1-37 was noticed on February 6, 1991, with comments due on or before February 13, 1991. As part of the subject filing, Northwest also filed a request to revise its tariff, which was docketed as RP91-81-000 and which was dealt with by a separate order since it required action in 30 days. On February 27, 1991, Cascade Natural Gas Company filed a limited protest citing both of Northwest's above mentioned docket numbers. However, Cascade only protested Northwest's First Revised Sheet No. 136, which was docketed as RP91-81-000. On March 1, 1991, the Commission issued a letter accepting Northwest's revised tariff language in Docket No. RP91-81-000. Since the protested tariff sheet has already been accepted by the Commission, Cascade's limited protest is denied as moot. Notices of intervention and unopposed timely filed motions to intervene are granted pursuant to the operation of Rule 214 of the Commission's Rules of Practice and Procedure (18 C.F.R. section 385.214). Any opposed or untimely filed motion to intervene is governed by the provisions of Rule 214. This acceptance for filing shall not be construed as a waiver of the requirements of section 7 of the Natural Gas Act, as amended, nor shall it be construed as constituting approval of the referenced filing or of any rate, charge, classification, or any rule, regulation, or practice affecting such rate or service contained in your tariff; nor shall such acceptance be deemed as recognition of any claimed contractual right or obligation associated therewith; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against your company. Item No. 1 Enclosure Sixth Revised Sheet Nos. 10 and 11 to FERC Gas Tariff, Second Revised Volume No. 1. Item No. 2 Alternate Sixth Revised Sheet Nos. 10 and 11 to FERC Gas Tariff, Second Revised Volume No. 1. Item No. 3 Substitute Sixth Revised Sheet Nos. 10 and 11 to FERC Gas Tariff, Second Revised Volume No. 1. Item No. 4 Substitute Alternate Sixth Revised Sheet Nos. 10 and 11 to FERC Gas Tariff, Second Revised Volume No. 1. [¶ 61,371] Northwest Pipeline Corporation, Docket No. TM91-6-37-000 (Issued March 29, 1991) By Direction of the Commission: Lois D. Cashell, Secretary. Reference: Third Revised Sheet No. 13 to FERC Gas Tariff, Second Revised Volume No. 1; First Revised Sheet No. 202 to FERC Gas Tariff, First Revised Volume No. 1-A; Eleventh Revised Sheet No. 2.2, and Twenty-Second Revised Sheet No. 2-B to FERC Gas Tariff, Original Volume No. 2. The tariff sheets referenced above representing Northwest Pipeline Corporation's (Northwest) annual fuel reimbursement percentage (FRP) adjustments are accepted and suspended, effective April 1, 1991, subject to refund and subject to the conditions below. On February 28, 1991, Northwest Pipeline Corporation (Northwest) filed the referenced tariff sheets to reflect a mainline FRP of 1.54 percent and to reflect a gathering FRP of 1.97 percent on its system effective April 1, 1991. The filing represents changes from the currently effective mainline and gathering FRPs of 1.10 percent and 1.40 percent, respectively. Pursuant to Northwest's FERC Gas Tariff, First Revised Volume No. 1-A (section 14.8 of the General Terms and Conditions), the FRP factor is adjusted annually to be effective April 1 of each year. Northwest Natural Gas Company (Northwest Natural) filed a timely protest and motion to intervene. Northwest Natural protests the inclusion of 4,145,296 MMBtu of unaccounted-for losses in the FRP calculation and the exemption of SGS-1 (Option 10) storage services (and other storage-related transportation services) from any requirement to reimburse Northwest Pipeline for mainline transmission fuel. Northwest Natural argues the filing does not include sufficient information to support this level of unaccounted-for gas. Northwest Natural also believes that Northwest has not shown the filing complies with its existing tariff provisions. First, Northwest Natural argues Northwest's tariff requires the FRP be determined "based on the prior calendar year's experience." According to Northwest Natural, the gas balance which Northwest has traditionally used for determining unaccounted-for gas includes retroactive adjustments to volumes for years before the prior calendar year. Because Northwest has not shown its fuel reimbursement calculation is based on calendar year 1990 experience and Northwest Natural also protests Northwest's Northwest's FRP calculation mechanism was the subject of a technical conference in Docket Nos. RP89-97-000 and TM90-3-37-000. In its Order Terminating Technical Conference Proceedings, issued February 21, 1991, 54 FERC 61,169 (1991), the Commission declined to accept a proposed change to Northwest's FRP calculation mechanism, stating that this type of change should be addressed in Northwest's next general rate case. The Commission also found that Northwest was permitted to track the cost of lost and unaccounted-for volumes through its currently effective tariff provisions. To the extent that Northwest Natural's protest questions the structure of the mechanism itself, such protest is denied. Furthermore, with regard to Northwest Natural's arguments that it is inappropriate for Northwest to include any properly supported retroactive adjustments to the lost and unaccounted-for volumes in the FRP calculation, the February 21 order notes Northwest's FRP clause does not prohibit such adjustments. However, in light of the additional concerns raised by Northwest Natural regarding the level of lost and unaccounted-for gas reflected in the instant filing, Northwest is directed to file an answer and, if necessary, revised rates, within 30 days of the date of this order. Except for the issues rejected above, Northwest should fully address the concerns raised by Northwest Natural. Within 15 days of Northwest's answer, intervenors may respond to Northwest's answer. Acceptance herein is conditioned on any additional action taken after the Commission's receipt and review of Northwest's answer and the responses thereto. Notices of intervention and unopposed timely filed motions to intervene are granted pursuant to the operation of Rule 214 of the Commission's Rules of Practice and Procedure (18 C.F.R. section 385.214). Any opposed or untimely filed motion to intervene is governed by the provisions of Rule 214. This acceptance for filing shall not be construed as a waiver of the requirements of section 7 of the Natural Gas Act, as amended; nor shall it be construed as constituting approval of the referenced filing or of any rate, charge, classification, or any rule, regulation, or practice affecting such rate or service contained in your tariff; nor shall such acceptance be deemed as recognition of any claimed contractual right or obligation associated therewith; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against your company. [¶ 61,372] Southern Natural Gas Company, Docket No. TA91-1-7-000 (Issued March 29, 1991) By Direction of the Commission: Lois D. Cashell, Secretary. Reference: 1 Rev. 99 Rev. Sheet No. 4A and First Rev. Eighteenth Rev. Sheet No. 4J to FERC Gas Tariff, Sixth Revised Volume No. 1. The above-referenced tariff sheets reflecting Southern Natural Gas Company's (SNG) annual Purchased Gas Adjustment (PGA) filing are accepted effective April 1, 1991, subject to the conditions discussed below. Because the instant filing was filed 59 days before SNG's proposed effective date of April 1, 1991, the Commission is granting waiver of section 154.22, the notice requirements, to allow the referenced tariff sheets to become effective April 1, 1991. SNG is reminded it is required to file 60 days before the proposed effective date of an annual PGA filing or it must request a waiver of the notice requirements. The subject PGA reflects current adjustments of: (1) a $0.45711 per Mcf decrease in the commodity cost of gas; (2) a $0.363 per Mcf increase in the D-1 demand charge for Zone 1; (3) a $0.018 per Mcf decrease in the D-1 demand charge for Zone 2; and (4) a $0.019 per Mcf decrease in the D-1 demand charge for Zone 3. The subject PGA reflects surcharge adjustments of: (1) a <$0.09897> per Mcf commodity surcharge to return $11,089,339 in overcollected costs in Account No. 191; and (2) a $0.237 per Mcf demand surcharge to collect $4,854,221 in undercollected demand gas costs. The filing reflects a current estimated average unit cost of gas of $2.59456 per Mcf based upon total jurisdictional commodity projected gas costs of $20,702,239 and jurisdictional projected sales for the period of 7,979,089 Mcf. On August 2, 1990, SNG requested authorization from the Commission for PGA treatment of interest payments of $230,687 and $533,280 made by SNG to Joseph H. Fritz et al., and Tesoro Petroleum Company respectively, in resolution of a gas contract pricing dispute between SNG and those two parties. By unpublished OPPR director letter order issued August 27, 1990, in Docket No. RP90-160-000, SNG was advised its request for authorization was premature, and the request should be made in SNG's next annual PGA filing. In accordance with that order, SNG renewed its request for PGA treatment of the aforesaid payments. These costs are solely attributable to the resolution of a dispute concerning the price payable under one of SNG's gas purchase contracts. No portion of these costs represents either punitive damages or payment of buy-out and buy-down costs subject to the terms of SNG's Stipulation and Agreement in Docket No. RP83-58-000 et al. Therefore, SNG's request to use its PGA mechanism to collect these costs is granted. SNG's filing contains several minor filing errors. These errors, listed in the attached Enclosure, have little or no rate impact and |