18 Crf 284.123

§ 284.123

18 CFR Ch. I (4–1–11 Edition)

of Subpart A of this part, any intrastate pipeline may, without prior Commission approval, transport natural
gas on behalf of:
(1) Any interstate pipeline; or
(2) Any local distribution company
served by an interstate pipeline.
(b) No rate charged for transportation authorized under this subpart
may exceed a fair and equitable rate
under § 284.123.
(c) Any intrastate pipeline engaged
in transportation arrangements authorized under this section must file
reports as required by § 284.126.
(d) Transportation of natural gas is
not on behalf of an interstate pipeline
or local distribution company served
by an interstate pipeline or authorized
under this section unless:
(1) The interstate pipeline or local
distribution company has physical custody of and transports the natural gas
at some point; or
(2) The interstate pipeline or local
distribution company holds title to the
natural gas at some point, which may
occur prior to, during, or after the time
that the gas is being transported by the
intrastate pipeline, for a purpose related to its status and functions as an
interstate pipeline or its status and
functions as a local distribution company.

WReier-Aviles on DSKGBLS3C1PROD with CFR

[Order 436, 50 FR 42495, Oct. 18, 1985, as
amended by Order 537, 56 FR 50245, Oct. 4,
1991; Order 537–A, 57 FR 46501, Oct. 9, 1992;
Order 581, 60 FR 53073, Oct. 11, 1995]

§ 284.123 Rates and charges.
(a) General rule. Rates and charges for
transportation of natural gas authorized under § 284.122(a) shall be fair and
equitable as determined in accordance
with paragraph (b) of this section.
(b) Election of rates. (1) Subject to the
conditions in §§ 284.7 and 284.9 of this
chapter, an intrastate pipeline may
elect to:
(i) Base its rates upon the methodology used:
(A) In designing rates to recover the
cost of gathering, treatment, processing, transportation, delivery or
similar service (including storage service) included in one of its then effective
firm sales rate schedules for city-gate
service on file with the appropriate
state regulatory agency; or

(B) In determining the allowance permitted by the appropriate state regulatory agency to be included in a natural gas distributor’s rates for citygate natural gas service; or
(ii) To use the rates contained in one
of its then effective transportation rate
schedules for intrastate service on file
with the appropriate state regulatory
agency which the intrastate pipeline
determines covers service comparable
to service under this subpart.
(2)(i) If an intrastate pipeline does
not choose to make any election under
paragraph (b)(1) of this section, it shall
apply for Commission approval, by
order, of the proposed rates and
charges by filing with the Commission
the proposed rates and charges, and information showing the proposed rates
and charges are fair and equitable.
Each petition for approval filed under
this paragraph must be accompanied
by the fee set forth in § 381.403 or by a
petition for waiver pursuant to § 384.106
of this chapter. Upon filing the petition
for approval, the intrastate pipeline
may commence the transportation
service and charge and collect the proposed rate, subject to refund.
(ii) 150 days after the date on which
the Commission received an application filed pursuant to paragraph
(b)(2)(i) of this section, the rate proposed in the application will be deemed
to be fair and equitable and not in excess of an amount which interstate
pipelines would be permitted to charge
for providing similar transportation
service, unless within the 150 day period, the Commission either extends
the time for action, or institutes a proceeding in which all interested parties
will be afforded an opportunity for
written comments and for the oral
presentation of views, data and arguments. In such proceeding, the Commission either will approve the rate or
disapprove the rate and order refund,
with interest, of any amount which has
been determined to be in excess of
those shown to be fair and equitable or
in excess of the rates and charges
which interstate pipelines would be
permitted to charge for providing similar transportation service.
(iii) A Commission order approving
or disapproving a transportation rate
under this paragraph supersedes a rate

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WReier-Aviles on DSKGBLS3C1PROD with CFR

Federal Energy Regulatory Commission
determined in accordance with paragraph (b)(1) of this section.
(c) Treatment of revenues. The Commission presumes that all revenues received by an intrastate pipeline in connection with transportation authorized
under § 284.122(a) and computed in accordance with paragraph (b)(1) of this
section have been or will be taken into
account by the appropriate state regulatory agency for purposes of establishing transportation charges by the
intrastate pipeline for service to intrastate customers.
(d) Presumptions. If the intrastate
pipeline is charging a rate computed
pursuant to § 284.123(b)(1), the rate
charged is presumed to be:
(1) Fair and equitable; and
(2) Not in excess of the rates and
charges which interstate pipelines
would be permitted to charge for providing similar transportation service.
(e) Filing requirements. Within 30 days
of commencement of new service, any
intrastate pipeline that engages in
transportation arrangements under
this subpart must file with the Commission a statement that includes the
pipeline’s interstate rates, the rate
election made pursuant to paragraph
(b) of this section, and a description of
how the pipeline will engage in these
transportation arrangements, including operating conditions, such as quality standards and financial viability of
the shipper. If the pipeline changes its
operations, rates, or rate election
under this subpart, it must amend the
statement and file such amendments
not later than 30 days after commencement of the change in operations or the
change in rate election.
(f) Electronic filing of statements, and
related materials—(1) General rule. All
filings made in proceedings initiated
under this part must be made electronically, including rates and charges,
or parts thereof, and material related
thereto,
statements,
and
all
workpapers.
(2) Requirements for signature. All filings must be signed in compliance with
the following:
(i) 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

§ 284.126
signer possesses full power and authority to sign the filing.
(ii) A filing must be signed by one of
the following:
(A) The person on behalf of whom the
filing is made;
(B) An officer, agent, or employee of
the company, governmental authority,
agency, or instrumentality on behalf of
which the filing is made; or,
(C) A representative qualified to
practice before the Commission under
§ 385.2101 of this chapter who possesses
authority to sign.
(iii) 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.
(3) 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.
[44 FR 52184, Sept. 7, 1979, as amended at 44
FR 66791, Nov. 21, 1979; Order 394, 49 FR 35364,
Sept. 7, 1984; Order 436, 50 FR 42496, Oct. 18,
1985; 50 FR 52276, Dec. 23, 1985; Order 581, 60
FR 53073, Oct. 11, 1995; Order 714, 73 FR 57535,
Oct. 3, 2008]

§ 284.124

Terms and conditions.

Contracts for the transportation of
natural gas authorized under this subpart shall provide that the transportation arrangement is subject to the
provisions of this subpart.
§ 284.125

[Reserved]

§ 284.126 Reporting requirements.
(a) Notice of bypass. An intrastate
pipeline that provides transportation
(except storage) under § 284.122 to a customer that is located in the service
area of a local distribution company
and will not be delivering the customer’s gas to that local distribution
company, must file with the Commission within thirty days after commencing such transportation, a statement that the interstate pipeline has

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