18 Cfr 154.501 & 502

Federal Energy Regulatory Commission
(iii) Whether or not the correct information was used in that calculation.
(2) Any other issue raised will be severed from the proceeding and dismissed
without prejudice.
[Order 849, 83 FR 36715, July 30, 2018]

Subpart F—Refunds and Reports

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§ 154.501

Refunds.

(a) Refund Obligation. (1) Any natural
gas company that collects rates or
charges pursuant to this chapter must
refund that portion of any increased
rates or charges either found by the
Commission not to be justified, or approved for refund by the Commission as
part of a settlement, together with interest as required in paragraph (d) of
this section. The refund plus interest
must be distributed as specified in the
Commission order requiring or approving the refund, or if no date is specified, within 60 days of a final order. For
purposes of this paragraph, a final
order is an order no longer subject to
rehearing. The pipeline is not required
to make any refund until it has collected the refundable money through
its rates.
(2) Any natural gas company must
refund to its jurisdictional customers
the jurisdictional portion of any refund
it receives which is required by prior
Commission order to be flowed through
to its jurisdictional customers or represents the refund of an amount previously included in a filing under
§ 154.403 and charged and collected from
jurisdictional customers within thirty
days of receipt or other time period established by the Commission or as established in the pipeline’s tariff.
(b) Costs of Refunding. Any natural
gas company required to make refunds
pursuant to this section must bear all
costs of such refunding.
(c) Supplier Refunds. The jurisdictional portion of supplier refunds (including interest received), applicable
to periods in which a purchased gas adjustment clause was in effect, must be
flowed through to the natural gas company’s jurisdictional gas sales customers during that period with interest
as computed in paragraph (d) of this
section.

§ 154.501
(d) Interest on Refunds. Interest on
the refund balance must be computed
from the date of collection from the
customer until the date refunds are
made as follows:
(1) At an average prime rate for each
calendar quarter on all excessive rates
or charges held (including all interest
applicable to such rates and charges)
on or after October 1, 1979. The applicable average prime rate for each calendar quarter must be the arithmetic
mean, to the nearest one-hundredth of
one percent, of the prime rate values
published in the Federal Reserve Bulletin, or in the Federal Reserve’s ‘‘Selected Interest Rates’’ (Statistical Release G, 13), for the fourth, third, and
second months preceding the first
month of the calendar quarter.
(2) The interest required to be paid
under paragraph (d)(1) of this section
must be compounded quarterly.
(3) The refund balance must be either:
(i) The revenues resulting from the
collection of the portion of any increased rates or charges found by the
Commission not to be justified; or
(ii) An amount agreed upon in a settlement approved by the Commission;
or
(iii) The jurisdictional portion of a
refund the natural gas company receives.
(e) Unless otherwise provided by the
order, settlement or tariff provision requiring the refund, the natural gas
company must file a report of refunds,
within 30 days of the date the refund
was made, which complies with § 154.502
and includes the following:
(1) Workpapers and a narrative sufficient to show how the refunds for jurisdictional services were calculated;
(2) Workpapers and a narrative sufficient to determine the origin of the refund, including step-by-step calculations showing the derivation of the refund amount described in paragraph
(d)(3) of this section, if necessary;
(3) References to any publicly available sources which confirm the rates,
quantities, or costs, which are used to
calculate the refund balance or which
confirm the refund amount itself. If the
rate, quantity, cost or refund does not
directly tie to the source, a workpaper

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§ 154.502

18 CFR Ch. I (4–1–19 Edition)

must be included to show the reconciliation between the rate, quantity, cost,
or refund in the natural gas company’s
report and the corresponding rate,
quantity, cost or refund in the source
document;
(4) Workpapers showing the calculation of interest on a monthly basis, including how the carrying charges were
compounded quarterly;
(5) Workpapers and a narrative explaining how the refund was allocated
to each jurisdictional customer. Where
the numbers used to support the allocation are publicly available, a reference to the source must be included.
Where the allocation methodology has
been approved previously, a reference
to the order or tariff provision approving the allocation methodology must
be included.
(6) A letter of transmittal containing:
(i) A list of the material enclosed;
(ii) The name and telephone number
of a company official who can answer
questions regarding the filing;
(iii) A statement of the date the refund was disbursed;
(iv) A reference to the authority by
which the refund is made, including the
specific subpart of these regulations,
an order of the Commission, a provision of the company’s tariff, or any
other appropriate authority. If a Commission order is referenced, include the
citation to the FERC Reports, the date
of issuance, and the docket number;
(v) Any requests for waiver. Requests
must include a reference to the specific
section of the statute, regulations, or
the company’s tariff from which waiver
is sought, and a justification for the
waiver.
(7) A certification of service to all affected customers and interested state
commissions.
(f) Each report filed under paragraph
(e) of this section must be posted no
later than the date of filing. Each report must be posted to all recipients of
a share of the refund and all state commissions whose jurisdiction includes
the location of any recipient of a refund share that have made a standing
request for such full report.
(g) Recipients of refunds and state
commissions that have not made a
standing request for such full report

shall receive an abbreviated report
consisting of the items listed in
§ 154.501 (e)(5) and (e)(6).
[Order 582, 60 FR 52996, Oct. 11, 1995, as
amended by Order 582–A, 61 FR 9629, Mar. 11,
1996]

§ 154.502

Reports.

(a) When the natural gas company is
required, either by a Commission order
or as a part of a settlement in a proceeding initiated under this part 154 or
part 284 of this chapter, to make a report on a periodic basis, details about
the nature and contents of the report
must be provided in an appropriate section of the general terms and conditions of its tariff.
(b) The details in the general terms
and conditions of the tariff must include the frequency and timing of the
report. Explain whether the report is
filed annually, semi-annually, monthly, or is triggered by an event. If triggered by an event, explain how soon
after the event the report must be
filed. If the report is periodic, state the
dates on which the report must be
filed.
(c) Each report must include:
(1) A letter of transmittal containing:
(i) A list of the material enclosed;
(ii) The name and telephone number
of a company official who can answer
questions regarding the filing;
(iii) A reference to the authority by
which the report is made, including the
specific subpart of these regulations,
an order of the Commission, a provision of the company’s tariff, or any
other appropriate authority. If a Commission order is referenced, include the
citation to the FERC Reports, the date
of issuance, and the docket number;
(iv) Any requests for waiver. Requests must include a reference to the
specific section of the statute, regulations, or the company’s tariff from
which waiver is sought, and a justification for the waiver.
(2) A certification of service to all affected customers and interested state
commissions.
(d) Each report filed under paragraph
(b) of this section must be posted no
later than the date of filing.

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