18 Cfr 342.2

Federal Energy Regulatory Commission
indirectly to the Trans-Alaska Pipeline.
§ 342.1

General rule.

Each carrier subject to the jurisdiction of the Commission under the
Interstate Commerce Act:
(a) Must establish its initial rates
subject to such Act pursuant to § 342.2;
and
(b) Must make any change in existing
rates pursuant to § 342.3 or § 342.4,
whichever is applicable, unless directed
otherwise by the Commission.
§ 342.2

Establishing initial rates.

A carrier must justify an initial rate
for new service by:
(a) Filing cost, revenue, and throughput data supporting such rate as required by part 346 of this chapter; or
(b) Filing a sworn affidavit that the
rate is agreed to by at least one non-affiliated person who intends to use the
service in question, provided that if a
protest to the initial rate is filed, the
carrier must comply with paragraph (a)
of this section.
[Order 561, 58 FR 58779, Nov. 4, 1993, as
amended at 59 FR 59146, Nov. 16, 1994]

WReier-Aviles on DSKGBLS3C1PROD with CFR

§ 342.3

Indexing.

(a) Rate changes. A rate charged by a
carrier may be changed, at any time,
to a level which does not exceed the
ceiling level established by paragraph
(d) of this section, upon compliance
with the applicable filing and notice
requirements and with paragraph (b) of
this section. A filing under this section
proposing to change a rate that is
under investigation and subject to refund, must take effect subject to refund.
(b) Information required to be filed with
rate changes. The carrier must comply
with Part 341 of this title. Carriers
must specify in their letters of transmittal required in § 341.2(c) of this
chapter the rate schedule to be
changed, the proposed new rate, the
prior rate, the prior ceiling level, and
the applicable ceiling level for the
movement. No other rate information
is required to accompany the proposed
rate change.
(c) Index year. The index year is the
period from July 1 to June 30.

§ 342.3
(d) Derivation of the ceiling level. (1) A
carrier must compute the ceiling level
for each index year by multiplying the
previous index year’s ceiling level by
the most recent index published by the
Commission. The index will be published by the Commission prior to June
1 of each year.
(2) The index published by the Commission will be based on the change in
the final Producer Price Index for Finished Goods (PPI-FG), seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the two calendar years immediately preceding the index year. The
index will be calculated by dividing the
PPI-FG for the calendar year immediately preceding the index year, by
the previous calendar year’s PPI-FG.
(3) A carrier must compute the ceiling level each index year without regard to the actual rates filed pursuant
to this section. All carriers must round
their ceiling levels each index year to
the nearest hundredth of a cent.
(4) For purposes of computing the
ceiling level for the period January 1,
1995 through June 30, 1995, a carrier
must use the rate in effect on December 31, 1994 as the previous index year’s
ceiling level in the computation in
paragraph (d)(1) of this section. If the
rate in effect on December 31, 1994 is
subsequently lowered by Commission
order pursuant to the Interstate Commerce Act, the ceiling level based on
such rate must be recomputed, in accordance with paragraph (d)(1) of this
section, using the rate established by
such Commission order in lieu of the
rate in effect on December 31, 1994.
(5) When an initial rate, or rate
changed by a method other than indexing, takes effect during the index year,
such rate will constitute the applicable
ceiling level for that index year. If such
rate is subsequently lowered by Commission order pursuant to the Interstate Commerce Act, the ceiling level
based on such rate must be recomputed, in accordance with paragraph
(d)(1) of this section, using the rate established by such Commission order as
the ceiling level for the index year
which includes the effective date of the
rate established by such Commission
order.

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