04-A TXU Gas Statmt of Intent
Stephen J. Houle
Vice President
TXU Gas Company
1601 Bryan Street
Dallas, Texas 75201
Tel 214 812 4821
Fax 214 812 3221
shoulel @ oncorgroup.com
May 23, 2003
TO THE GOVERNING BODY OF THE CITY OF PARIS
Filed herewith is an original of TXU Gas Company's (the "Company") Statement of Intent to
Change Rates in the Company's Statewide Natural Gas System. While information has been filed
with your municipality regarding the Company's overall cost of service, your municipality only has
original jurisdiction over the Company's Distribution System rates within the city limits of your
municipality.
The Company requests that your municipality either deny the rate request or defer your
municipality's jurisdiction over this request to the Railroad Commission of Texas (the
"Commission") in order to conduct one proceeding regarding the Company's costs of service for the
entire System. If your municipality does not take one of the two actions requested above, the
Company will appeal your municipality's action to the Commission and consolidate your
municipality's appeal with the Company's case already on file with the Commission. The Company
is requesting your municipality to take one of the two actions above in an effort to lower costs
associated with this rate request, costs that will ultimately be borne by the Company's customers.
Please review the Rate Filing Package and take appropriate action for the Company's rate
request. If a representative of your municipality wishes to review any workpapers used to construct
the Rate Filing Package, please contact Ms. Teri Smart at 214-812-4832. If you have any questions,
please feel free to contact me.
Yours truly,
Enclosure
Receipt Acknowledged By:
Name:
Title:
Date:
TXU GAS COMPANY STATEMENT § ~'-.~ ~
OF INTENT TO CHANGE RATES § BEFORE THE CITY OF_
/ ~-~.~/
IN THE COMPANY'S STATEWIDE §
GAS UTILITY SYSTEM §
TABLE OF CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY
STATEMENT OF INTENT
TESTIMONY SUMMARIES
S. J. Houle (Rate Case Overview)
J. A. Greer
R. K. Pruett
D. A. Watson
S. N. Ragland
B. M. Gillespie
M. D. Moseley
B. D. Griffin
T. L. Dubberly
A. L. Warren
B. H. Fairchild
A. D. Anderson
G. L. Goble
S. J. Houle (Cost Allocation & Rate Design)
TARIFF FOR GAS SERVICE
COST OF SERVICE (COS) SUMMARY SCHEDULES - TXU GAS
COS SCHEDULES - TXU GAS DISTRIBUTION
COS SCHEDULES - TXU LONE STAR PIPELINE
-1-
TXU Gas Company
2003 Rate Case
Executive Summary
~I TXU
INTRODUCTION
Since 1909, TXU Gas has been providing natural gas service to homes and
businesses in north central Texas. From the natural gas pipeline built from the
Petrolia field in Clay County ~d growing to over 6,800 miles of pipeline and 26,000
miles of distribution lines existing today, TXU Gas has grown with Texas. The
Company now serves over 1.4 million residential, commercial and industrial
customers in approximately 550 communities with safe, reliable and reasonably
priced natural gas. With this rate case, TXU Gas is taking another bold step to ensure
that our customers will continue to receive the same high quality service they have
come to expect and depend on.
OVERVIEW
TXU Gas has met the challenge of the rapidly growing economy that it serves.
The Company has made the investment and incurred the expenses necessary to keep
the gas flowing to our customers in a safe and efficient manner. We have worked
hard to control O&M expenses and will continue to do so in the future.
TXU Gas has filed this rate case because our rates do not reflect our current
level of reasonable and necessary expenses. Like any investor, investors in TXU Gas
expect to earn a return on their investment and for that investment to be returned to
them over time. Largely because of the infrastructure improvements we have made in
the last five years, we are not earning a reasonable return overall on the TXU Gas
invested capital.
CAPITALINVESTMENT
TXU Gas has invested approximately $721 million in its gas pipeline and
distribution system in the last five years. After taking into account depreciation
during that period, the value of our plant in service has increased over $400 million.
Page 1 of 4
Th.is is a 66% increase in the net plant in service over a five-year period. These
investments were necessary to maintain the safety and reliability of the system. Much
of the investment was to replace pipe and other facilities that had reached the end of
their service lives. The investments were also made in response to the rapid
economic growth in our servfce area, which required the replacement of pipe as
development encroached on high pressure lines, relocations of pipe as roads and
freeways were built or expanded, and extensions of pipe and increases in capacity as
the population expanded into outlying areas.
OPERATING AND MAINTENANCE EXPENDITURES
Despite the rapid growth in the economy and the increased capital investment,
TXU Gas has been able to closely control its operating and maintenance (O&M)
expenses. Between 2001 and 2002, expenses in the field have slightly decreased.
Operating expenses over all have slightly increased as a result of increased pension
funding requirements and employee benefits, areas of expense that have been rapidly
rising across the national economy and are largely outside of the Company's control.
TXU Gas is continuing to take steps to limit increases in O&M expenses. This rate
case contains several adjustments reflecting additional steps that have been taken to
reduce O&M after the close of the recent calendar year. As a result of our WINS
program, for example, O&M expenses have been adjusted downward in the rate case
from actual costs by $6.7 million.
SIMPLIFIED RATES
We have taken great care in developing this rate case. We have simplified our
approach so that it will be much easier for our customers and our regulators to
understand our business. For instance, in this case we are proposing rates for only six
customer classes: Four classes of service from the inlet of our system through both
Page 2 of 4
pipeline and distribution facilities and two classes of service for customers that only
use the pipeline facilities. All of our customers will have only one rate to pay.
RATE FILING PACKAGE
We have improved and updated the rate filing package in many areas. We
have a new detailed cost of service study and a newly designed Tariff for Gas
Service. We have prepared a new depreciation study for both the Pipeline and
Distribution assets and a new lead/lag study to determine the need for cash working
capital. The filing package itself has been made much simpler and is presented in a
format that we feel will be easier to use. Finally, we have spent many hours ensuring
the connection between our books and records and the filing package is transparent
and accurate. Our various accounting teams have spent a lot of time trying to make
sure the financial presentations are as straightforward as possible. We are preparing to
answer any questions that may arise over the course of the case as expeditiously as
possible.
RATEINCREASE
Overall, TXU Gas is asking for approximately a 7.2% rate increase.
Residential rates would increase approximately 10% even though our analysis shows
that an increase well in excess of this amount could be justified. For residential
customers, this will increase their typical bill approximately $3.59. As a matter of
policy, we believe that the increase in Residential rates should be limited to 10%.
There is a slight increase for the commercial class and no increases for other classes
of customers.
Page 3 of 4
TARIFF IMPROVEMENTS
We are requesting, in addition to a rate increase, a number of other changes to
our tariff. The two most important are to provide a capital investment adjustment
factor (CIAF) and we are al£o seeking to revise the gas cost recovery mechanism.
Both of these proposals are meant to reduce future rate case expenses and to provide
more timely recovery of costs, thus reducing regulatory expenses and improving the
Company's financial future. As our service area grows and our facilities continue to
age, we expect that our investment in the system will continue to exceed depreciation
for the foreseeable future. This will make it highly likely that we will have to
continue to file rate cases on a regular basis if the CIAF is not approved. We are also
proposing changes in the gas cost recovery procedures, which will limit future rate-
case expenses while enhancing the TRC's and City's ability to monitor and review
those costs. Rate cases are expensive for all concerned, especially for our ratepayers.
A broad consensus exists that steps Should be taken to limit those costs. We believe
our proposals will accomplish that end.
CONCLUSION
TXU Gas is proud of its achievements since 1909, and especially in the last
five years. We have maintained a safe and reliable gas system through the hard work
of our employees and the investment of a tremendous amount of capital. Reducing
our field operating expenses has not been easy but we have done it. Through our rate
activities of the last few years we have gained a better understanding of what the
Cities and TRC want to see in a rate filing. While areas of disagreement may remain
over policy, we are confident that our hard work in preparing this package will allow
the process to focus on those policy differences. We expect the result of this effort to
produce a fair treatment of our request that will allow us to continue to provide safe
and reliable service to our customers.
Page 4 of 4
0
TXU GAS COMPANY STATEMENT OF § BEFORE THE RESPECTIVE
INTENT TO CHANGE RATES IN THE § GOVERNING BODY OF THE TXU
COMPANY'S STATEWIDE GAS § GAS SYSTEM CITIES AND TOWNS
UTILITY SYSTEM §
TXU GAS COMPANY STATEMENT OF INTENT TO CHANGE RATES IN THE
STATEWIDE GAS UTILITY SYSTEM
TO THE HONORABLE CITY OR TOWN COUNCIL:
COMES NOW TXU Gas Company ("TXU Gas" or the "Company"), a natural gas utility
under Subtitles A and B of Title 3 of the Texas Utilities Code (Vernon 1998, Supp. 2003) (the
"Utilities Code"), and files this its Statement of Intent to Change Rates in the Company's
statewide gas utility system (the "System") pursuant to Utilities Code §§ 104.101-104.111. Also
filed herewith and made a part of hereof for all purposes, is the Tariff for Gas Service in the
System (the "Tarif£') and the supporting Cost of Service Schedules (the "Schedules") as well as
all items listed in Section II of this Statement of Intent. All of these items together constitute the
Company's Rate Filing Package. The Company would show as follows:
I.
JURISDICTION
TXU Gas is filing a rate case on behalf of the Company's entire System. The new rates
will affect all of TXU Gas' customers on the System. The Company's Rate Filing Package
includes Schedules for the Company's Distribution System and the Company's Pipeline System.
The Distribution System is the local distribution system that provides gas utility service inside
the city limits of approximately 440 incorporated cities (the "Cities") in the State of Texas.~ The
Pipeline System is the transmission component of the Company's gas system that transports
~ The Distribution System also serves environs customers outside of the city limits of the approximately
440 incorporated cities. The Distribution System serves approximately 550 incorporated cities, towns, and
unincorporated areas in the System.
STATEMENT OF INTENT- PAGE
natural gas to local distribution companies, certain industrial customers, and other customers for
on and off-system usage. The Company is requesting approval of its cost of service for both the
Pipeline System and the Distribution System. Rates have been developed that present statewide
rates for gas service to Pipeline System and Distribution System customers. Pursuant to Utilities
Code § 103.001, the Cities have exclusive original jurisdiction to set rates to be charged by local
distribution customers inside of the city limits of the Cities. Thus, the Cities have original
jurisdiction over the proposed Distribution System rates within their respective city limits only,
unless they cede their jurisdiction to the Commission pursuant to Utilities Code § 103.003.
The Railroad Commission of Texas (the "Commission") has exclusive original
jurisdiction over this Statement of Intent and authority to fix a schedule of rates to be charged to
customers served by the Pipeline System pursuant to Utilities Code § 102.001(a), all rates to be
charged to environs customers, and rates for any city that cedes its jurisdiction over a gas
utility's rates, operations, or services to the Commission pursuant to Utilities Code § 103.003.
The Commission also has jurisdiction over the Company's gas costs pursuant to the Final Order
issued in Gas Utilities Docket No. 8664.2 Additionally, the Commission has exclusive appellate
jurisdiction of any municipal decision regarding this Statement of Intent pursuant to Utilities
Code § 102.001(b).
This Statement of Intent applies solely to the Distribution System's rates within your
city's jurisdiction.
2 As set forth in the Tariff, the Company is requesting a new gas cost recovery factor and
procedures to accompany the recovery factor.
STATEMENT OF INTENT- PAGE
II.
DESCRIPTION OF RATE FILING PACKAGE
The following items are included in the Rate Filing Package:
1. Table of Contents
2. Executive Summary
3. Statement of Intent
4. Testimony Summaries of Company Witnesses
5. Tariff for Gas Service
6. Cost of Service Schedules
III.
PROPOSED TARIFFS AND SCHEDULES
The Company proposes to change its rates in accordance with the Tariff, which includes,
but is not limited to, an Index of Rates and List of System Cities,3 rates for all classes of gas
utility service, all rate adjustments, all charges, and all surcharges being sought in this filing.
The Tariff also presents the Company's Service Rules and Regulations. The Company's Service
Rules and Regulations will become effective upon filing with this case in accordance with
Commission Rule 7.45 as set forth in Title 16 of the Texas Administrative Code § 7.45. As set
forth in the Rate Filing Package, the Tariff supersedes all previous tariffs on file in the Cities and
in areas served by TXU Gas outside of the Cities, for the specific services mentioned therein.
IV.
DETAILS OF PROPOSED CHANGES
A. Test Year
The Company's proposed cost of service for the System as set forth in this Statement of
Intent and Rate Filing Package is based on the twelve-month period ending December 31, 2002,
updated for known changes that are measurable with reasonable accuracy.
3 This Index does not include a list of unincorporated communities, but the Company is
seeking new rates for these environs customers.
STATEMENT OF INTENT - PAGE 3
B. Compliance with Rule 7.205
As required by Commission Rule 7.205 as set forth in Title 16 of the Texas
Administrative Code § 7.205, details of each proposed rate increase are contained in Schedules A
thi-ough L of the Cost of Service Schedules, which are filed herewith. The effect of the proposed
increase in revenues of the utility is set forth in Schedule A. All customers within the System
will be affected by this change. The class and number of affected customers is set forth in
Schedule J-I of the Schedules. The specific affects of the rate changes in your city are described
in the attached Exhibit A.
C. Reason for Rate Change
Under current rates, the Company is not recovering its reasonable and necessary costs
associated with operating the System. The Company has invested more than $721 million in
gross new capital in the System between December 31, 1997, and December 31, 2002.
Primarily, the Company invests new capital in the System for the following reasons: (1) to
promote safety and reliability through the replacement of pipelines and other facilities that have
reached the end of their service lives; (2) to accommodate government entities by relocating
pipelines and other facilities to promote increased economic activities; (3) to provide service to
new customers; and (4) to comply with regulatory requirements set by federal, state, and
municipal authorities. The Company is currently earning a rate of return on net capital
investment of only 4.31% in the System. TXU Gas is therefore not earning a reasonable return
on its capital investment in the System, nor does it have a reasonable opportunity to do so.
Accordingly, the rates currently in effect in the System are not just and reasonable, in violation
of Utilities Code § 104.003. In this filing, TXU Gas proposes a revenue requirement that will
permit it the opportunity to earn a reasonable rate of return of 8.99%.
STATEMENTOFtNTENT-PAGE4
Estimated total increase in annual revenue is $69.5 million or 7.24% based upon Current
Annual Revenue from all customers. The filing is based on a Test Year ended December 31.
2002, and reflects present annual revenue under present rates of $960.5 million and Estimated
Annual Revenue under the proposed rates of $1,030.0 million. The proposed changes will result
in a major change as that term is defined in Utilities Code § 104.101. As set forth in the Rate
Filing Package, the Tariff supersedes all previous tariffs on file in the Cities and in areas served
by TXU Gas outside of the Cities, for the specific services mentioned therein.
V.
NOTICE
Included with this Statement of Intent is a copy of the public notice for this proceeding.
The notice is attached to this Statement of Intent as Exhibit B.4 The notice will be published in
ne~vspapers of general circulation in 111 counties encompassing the geographical area of the
System. A list of these counties is included in the Tariff. In accordance with Utilities Code §
104.103, the notice will be published for four successive weeks.
VI.
AUTHORIZED REPRESENTATIVES
TXU Gas' business address and telephone number for the purposes of this filing are:
TXU Gas Company
1601 Bryan Street
Dallas, Dallas County, Texas 75201
214.812.2323
4 The average bill for residential and commercial customers indicated on the notice is
derived from the calculation found on WP/L-3/4.
STATEMENT OF INTENT- PAGE 5
TXU Gas' authorized representatives are:
Stephen J. Houle
Vice President
TXU Gas Company
1601 Bryan Street
Dallas, Dallas County, Texas 75201
214.812.2323
and
John E. Moeller, Jr.
Hunton & Williams LLP
1601 Bryan Street, 30th Floor
Dallas, Dallas County, Texas 75201-3402
214.979.3000
General inquiries concerning this Statement of Intent should be directed to Mr. Houle at
the above-stated address and telephone number. All pleadings, motions, orders, and other
documents filed in this proceeding should be served upon Mr. Moeller, at the above stated
address.
WHEREFORE, PREMISES CONSIDERED, TXU Gas prays that your city (1) deny the
rate request or (2) defer jurisdiction to the Commission regarding this rate request pursuant to
Utilities Code § 103.003, and award TXU Gas such other and further relief to which it may be
entitled.
STATEMENT OF INTENT- PAGE 6
Respectfully submitted,
HUNTON & WILLIAMS LLP
~John E. Moeller. Jr. /
State Bar No. 14246950
Myles F. Reynolds
State Bar No. 24033002
1601 Bryan Street, 30t~ Floor
Dallas, TX 75201
214.979.3000
214.880.0011 (fax)
ATTORNEYS FOR
TXU GAS COMPANY
STATEMENT OF INTENT- PAGE 7
EXHIBIT A
TXU Gas Rate Case
Paris, Texas Case Summary
Impact of Rate Filing in Paris Increase
Residential Revenue $ 213,014 or 8.50%
Commemial Revenue 71,730 or 5.56%
Industrial Sales/Transportation -44,814 or -16.13%
Service Charges 31,976 or 93.58%
Total Revenue Change $ 271,906 or 6.62%
Impact of Rate Filing on Typical Customer Bills in Paris
· Typical residential customer's bill using 6 MCF per month will be $ 41.69 or an increase of
approximately $2.96 per month
· Typical commercial customer's bill using 30 MCF per month will be $173.04 or an increase of
approximately $6.39 per month
Number of Customers in Paris
· 6,824total customers
~ 5,924 residential customers
~* 890 commercial customers
~ 10 industrial sales/transportation customers
Page I of I
Exhibit B
NOTICE OF GAS RATE INCREASE REQUEST
TXU Gas Company (the "Company"), in accordance with the Gas Utility Regulatory Act as set
forth in the Texas Utilities Code, hereby gives notice of its intent to implement a new schedule of
rates for natural gas service to be charged to all of the customers served by the Company in the
incorporated municipalities and unincorporated areas in the Company's statewide gas utility
system (the "System"). The proposed revisions to the respective rate schedules will impact all
classes of service and all fees and charges presently being assessed by the Company on its
transmission and distribution systems. As of the filing date of the Company's Statement of
Intent to change rates, the proposed rates are expected to approximately produce a $69,524,311
or a 7.24 percent increase in the Company's annual revenues from customers in the System. The
proposed change will affect approximately 1,344,030 residential, 125,603 commercial, and 1,441
industrial sales and transportation customers in the System. The proposed change constitutes a
"major" change as that term is defined by Section 104.101 of the Texas Utilities Code. The
proposed changes will have differing impacts on individual customers, depending on
consumption and current applicable rate schedules. The proposed changes in rates will not
become effective for environs customers until similar changes have become effective within the
nearest incorporated city or town. A residential customer receiving a bill for 6 Mcr will see a bill
of approximately $41.69, which would constitute an average increase of approximately $3.59 per
month or a 9.4% increase. A commercial customer receiving a bill for 30 Mcr will see a bill of
approximately $173.04, which would constitute an average increase of approximately $13.91 per
month or a 8.7% increase. The effect of the proposed changes to rates and services for industrial
sales and transportation customers, which may be significant for individual customers, will vary
depending on type of service and consumption. The proposed change would constitute an
increase of $0.00 or a 0% increase in annual revenues to the Company for industrial sales and
transportation customers. A complete copy of the Statement of Intent, filed with the Railroad
Comm/ssion of Texas and all of the System cities and towns on May 23, 2003, is available for
inspection in the Company business office located at 1601 Bryan St., Dallas, Texas 75201.
Persons with specific area questions or who want information about this filing may contact TXU
Gas Company at 1-800-460-3030. Any affected persons located inside of the city limits of a
municipality served by the Company may file written comments or protest concerning the
proposed change in rates with their respective municipality. Any affected persons located
outside of the city limits of a municipality served by the Company may file written comments or
protest concerning the proposed change in rates with Docket Services Section of the Legal
Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967, but have
a limited time to do so. Pursuant to the Rules of the Railroad Commission of Texas, Title 16 of
the Texas Administrative Code Section 7.230, any affected persons may file written comments
or a protest concerning the proposed change in the environs rates with the Docket Services
Section of the Railroad Comm/ssion of Texas, at any time within 30 days following the date on
which the change would or has become effective. The Company is proposing to have these
proposed rates become effective on June 27, 2003.
Este es un aviso para informar a los clientes de TXU Gas Company (la "Compafi~a") que la
Compafifa estt~ solicitando un aumento en la tarifa de gas. Este aumento afectara a todos los
consurnidores de gas de la Compafiia en el estado de Texas. Si usted tiene alguna pregunta con
respecto a este aumento, por favor llame a TXU Gas Company al 1-800-460-3030.
S. J. HOULE
(RATE CASE OVERVIEW)
SUMMARY OF TESTIMONY
Witness: Stephen J. Houle
Background: Recei~/ed a Bachelor of Science degree in Electrical Engineering
in 1977 and a Master of Business Administration in 1979.
Employed by Dallas Power & Light in 1977. Worked in
Engineering Department, Regulatory Service Department, and
Rate Department through 1983. Became Supervisor of Rate
Design for Texas Utilities Electric Company in 1984 and
Supervisor-Rate and Cost Analysis in 1987. Named Rate
Manager in 1990. Assumed responsibility for rates and
regulatory affairs for both gas and electric companies in 1998 and
was elected to current position of Vice President, Rates &
Regulation in May 1999.
Purpose of Testimony:
(1) Provide case overview; (2) discuss policy considerations; (3)
describe the Rate Filing Package; and (4) describe the TXU Gas
legal and operational organization and relationship to certain
affiliates.
Key Points/Issues:
1. TXU Gas is not currently eaming a reasonable rate of
return. New rates need to take into account increased
capital investment and increased costs.
2. TXU Gas is proposing fully allocated system-wide rates
set forth in a standardized Tariff for Gas Service.
Revenues from ol~)portunity transactions will be credited
against the Company's overall revenue requirement.
3. TXU Gas will consolidate jurisdiction over all rates and
services in the Commission by way of de novo appeal of
municipal ordinances or through cities ceding jurisdiction
as permitted by the Texas Utilities Code.
4. TXU Gas will propose a capital investment adjustment
factor and eamings monitoring report to insure that rates
will remain just and reasonable for the Company and all
customers.
Houle - Summary of Testimony (Policy & Rate Case Overview) Page 1 of 2
Key Points/Issues (cont.)
5. TXU Gas is proposing the adoption of a Tariff for gas
service that contains rates for all services provided by TXU
Gas and the terms and conditions of service under which
those services will be provided.
Summary/Recommendations:
Setting rates on a system-wide basis for all customer classes is
appropriate and reasonable. The proposed Tadff provides a
comprehensive set of rates for all services provided by TXU Gas
and the terms and conditions under which those services will be
provided, and should be approved.
Houle - Summary of Testimony (Policy & Rate Case Overview) Page 2 of 2
J. A. GREER
SUMMARY OF TESTIMONY
Witness: James A. Greer
Background: Mr. Greer is the Director of Asset Management for pipeline and
distribution assets for the Company. He has a B.S. in Electrical
Engineering from the University of Texas at Arlington and a
M.B.A. from Texas Christian University. Mr. Greer has held
various engineering, project management, and asset
management positions over a 19-year affiliation with TXU Corp.
and its subsidiaries and predecessors.
Purpose of Testimony:
(1) Explain the Company's capital investment policy, processes,
and investment; (2) explain the Company's O&M expenditures
policy, processes, and levels of expense; (3) explain increased
regulatory oversight over the Company's operations and impacts
on expense; and (4) explain the Company's Safety Compliance
Program instituted in 2000.
Key Points/Issues:
1. The Company's management and design process
regarding capital expenditures is prudent.
2. The Company's capital investment is reasonable and
necessary, and is used and useful.
3. The Company's O&M expenditures and processes
involved are reasonable and necessary.
3. The historical costs and future estimated costs associated
with the Pipeline Integrity Program are reasonable and
necessary.
4. The costs and efforts associated with the Safety
Compliance Program were reasonable and necessary and
have been accounted for in a reasonable manner.
Summary/Recommendations:
Affirm all levels of capital and O&M expense incurred, affirm
future levels of Pipeline Integrity Program costs, and affirm
Safety Compliance Program expenditures.
Greer- Summary of Testimony Page 1 of I
R. K. PRUETT
SUMMARY OF TESTIMONY
Witness: R. Keith Pruett
Background: Received a Bachelor of Business Administration degree in
Accounting from the University of Texas at Arlington in 1982.
Licensed as a Certified Public Accountant in the state of Texas
in 1988. Employed by Dallas Power & Light Company in 1974.
Currently employed as Corporate Accounting Manager for the
Oncor Group since November 2001.
Purpose of Testimony:
(1) Support the integrity of the Company's financial data; (2)
Support compliance with Commission Rules 7.310, 7.503,
7.501, 7.5414; (3) Define Operation and Maintenance
Expenses; (4) Support Ratemaking Adjustments; (5) Support
shared services provided by Oncor Electric to TXU Gas.
Key Points/Issues:
1. TXU Gas complies with Commission Rules and accounts for
its costs consistent with NARUC.
2. The filing is based upon the twelve-month period ended
December 31, 2002 adjusted for known changes and
conditions that are measurable with reasonable accuracy.
Adjustments are shown on Schedule G-5 and detailed on
various supporting schedules contained within the rate filing
package. These adjustments reflect the normal ongoing
cost of gas utility operations.
3. Oncor Electric affiliate transactions involving Distribution and
Pipeline meet the standards set forth in Section 104.55 of
the Texas Utilities Code. These transactions are
reasonable, necessary and billed at actual cost, with no
profit or margin added to the billings. The methodologies
used in billing are appropriate for each service provided.
Summary/Recommendation:
TXU Gas has complied with applicable Commission Rules
relative to a rate filing proceeding. Total O&M for Distribution
has been adjusted to $176,419,172 and represents the ongoing
normal expenses for operating the Distribution System. Total
O&M for Pipeline has been adjusted to $72,813,539 and
represents the ongoing, normal expense for operating a Pipeline
Pruett - Summary of Testimony Page I of 2
Summary/Recommendation (cont.):
System. The O&M affiliate expense from Oncor Electric to
Distribution and Pipeline in the approximate amount of $22.1
million is reasonable and necessary to support the ongoing
operating activities of a Distribution and Pipeline System.
These-amounts have been appropriately documented and
disclosed in this filing.
Pruett - Summary of Testimony Page 2 of 2
D. A. WATSON
SUMMARY OF TESTIMONY
Witness: Dane A. Watson
Background: Bachelor of Science degree in Electrical Engineering from the
University of Arkansas at Fayetteville and a Master's Degree in
Business Administration from Amberton University (formerly
Amber University). Completed depreciation courses offered by
Depreciation Programs, Inc. Joined the TXU System in 1985,
and began working in the area of depreciation and valuation
within the Texas Utilities Generating Company. Responsible
for, among other things, conducting valuation and depreciation
studies for the majority of the domestic TXU System
companies. Currently employed by TXU Business Services and
responsible for the management of Depreciation, Records, and
Property Accounting for various areas within the TXU Corp.
(formerly Texas Utilities Company) system of companies,
including TXU Gas ("Company").
Purpose of Testimony:
1. Provide and support the components of invested capital for
TXU Gas that is used to establish the retum components of
the Company's rate request.
2. Discuss the results of the recent depreciation studies
completed for TXU Gas Distribution and TXU Lone Star
Pipeline.
3. Support and justify the recommended depreciation rate
changes for TXU Gas Distribution and TXU Lone Star
Pipeline.
4. Discuss the accounting treatment of Safety Compliance
Program costs.
Key Points/Issues:
1. TXU Gas' total depreciable plant has significantly increased
from December 31, 1999 to December 31,2002.
2. Removal costs associated with pipe and other facilities
located on the distribution system have dramatically increased
in recent years while at the same time gross salvage
proceeds have diminished significantly.
3. The Safety Compliance Program costs are being accounted
for in the most equitable way for the customers as well as the
Company.
Watson - Summary of Testimony Page 1 of 2
Summary/Recommendations:
The rate base for TXU Gas is a true and accurate
representation of rate base for the period December 31, 2002.
All appropriate additions and deductions to rate base have been
made.
The depreciation studies of TXU Gas depreciable property as of
December 31,2002 describes the extensive analysis performed
and the resulting rates that are now appropriate for their
respective property. The depreciation rates should be set at the
recommended amounts in order to recover the Company's total
investment in property over the estimated remaining life of the
assets. The rates are designed to recover the significant
increase in removal costs for distribution property the Company
has experienced in recent years. These removal costs are
projected to continue to increase in future years due to more
stringent regulation.
The inclusion of costs for the Safety Compliance Program in
rates is an equitable way for the Company to recover the costs
of complying with the Commission's directive in GUD No. 9151
and 9186.
Watson - Summary of Testimony Page 2 of 2
S. N. RAGLAND
SUMMARY OF TESTIMONY
Witness: Stephen N. Ragland
Background: Received a Bachelor of Science degree in Business
Administration in 1977. Certified Public Accountant in the State of
Texas. Employed by Dallas Power & Light in 1979. Held
numerous financial and accounting positions since this time and
assumed my present position of Affiliate Transaction and
Regulatory Financial Manager in July 2002. Have previously
testified before the Railroad Commission of Texas and the Public
Utility Commission regarding affiliate transactions.
Purpose of Testimony:
(1) Discuss the business relationships and the services
provided by TXU Business Services, TXU Receivables
Company, and TXU Vermont Insurance Company to the
vadous subsidiaries and divisions of TXU Corp., including
TXU Gas.
(2) Support the conclusion that all charges between these
parties are in compliance with the affiliate standard set out
in GURA Section 104.055(b).
Key Points/Issues:
(1) The costs charged by TXU Business are for support
services (accounting, information technology, human
resources, etc.) that would be required of any business
and are therefore necessary. The cost of each service is
assigned to each subsidiary or division based on the
principal of cost-causation. The services were provided at
cost with no equity return or profit. Proper cost control
mechanisms ara in place to ensure reasonableness. The
prices charged to TXU Gas were no higher than the prices
charged to others for the same item or class of items.
(2) TXU Receivables Company is a wholly-owned bankruptcy
remote subsidiary of TXU Gas Company which sells
undivided interests in accounts receivable it purchases
from various TXU Corp. subsidiaries and divisions to
financial institutions. Those TXU Corp. subsidiaries
participating in this program benefit by (1) expediting cash
flow, thereby reducing cash working capital requirements;
(2) having access to a lower cost source of funds; and (3)
Ragland - Summary of Testimony Page 1 of 2
Key Points/issues (cont.):
lowering the amount of debt on their balance sheet,
thereby maintaining a better debt rating than they might
otherwise have. The cost of this service is assigned to
each subsidiary or division based on the principal of cost-
-.causation and the price charged to TXU Gas was no
higher than the price charged to others for the same item
or class of item.
(3) TXU Vermont Insurance Company is a wholly-owned
single-parent captive insurance company that provides
varying levels of insurance for various TXU Corp.
subsidiaries or divisions. Those TXU Corp. subsidiaries
participating in this program benefit by (1) minimizing the
impact of insurance deductible expenses and (2) having
access to a commercial reinsurance market to which they
might otherwise not have. The cost of this service is
assigned to each subsidiary or division based on the
principal of cost-causation and the price charged to TXU
Gas was no higher than the price charged to others for the
same item or class of item.
(4) Those costs described above have been adjusted for
known and measurable changes.
Summary/Recommendations:
The costs described above and billed to TXU Gas Distribution
and TXU Lone Star Pipeline during the test year ended
December 31, 2002 were reasonable and necessary; reasonably
reflect the actual cost of services to these entities, and were no
higher than the prices charged to other subsidiaries, divisions, or
to other unaffiliated companies for the same item or class of
items. As such, these costs should be included in the cost of
service for these two entities as proposed.
Ragland - Summary of Testimony Page 2 of 2
B. M. GILLESPIE
SUMMARY OF TESTIMONY
Witness: Brian M. Gillespie, President, Destination Excellence, Inc.
Background: Brian M. Gillespie has over 20 years of customer service
experience including five years since founding Destination
Excellence. From 1999 to early 2001, Mr. Gillespie was acting
President and CEO of Utilipro, a utility billing and customer care
outsoume company. In his role, Mr. Gillespie analyzed the
utility billing and customer service industry, competitively
positioned Utilipro, established contract pricing and negotiated
contracts and pricing with clients. Prior to founding Destination
Excellence, Mr. Gillespie was Vice President of I'1-1' Sheraton
Reservations and was employed by AT&T for ten years where
he had a number of assignments including customer care
operations in consumer services and business products. Mr.
Gillespie received a Bachelor of Civil Engineering from Purdue
University in 1979 and a Masters of Business Administration
from the University of Michigan in 1981.
Purpose of Testimony:
(1) To review the process used to determine the best method of
providing billing and customer care services to TXU Gas'
customers, (2) To demonstrate why the option of contracting
with TXU Energy was reasonable and necessary; and (3) To
demonstrate that the price charged by TXU Energy to TXU Gas
for the contracted services is not higher than prices charged by
TXU Energy to any other party for the same services.
Key Points/issues:
The project considered three operational alternatives to support
TXU Gas' needs for a Customer Information System (CIS), Bill
Processing and Presentment, Bill Payment Processing and
Customer Care Services: (1) contract services with an
outsource company, (2) contract services from TXU Energy, or
(3) build and operate dedicated TXU Gas customer service
facilities. Each option was evaluated in terms of quality,
operating cost, capital investment, and risk to TXU Gas.
Gillespie - Summary of Testimony Page 1 of 2
Summary/Recommendations:
it was determined that contracting services with TXU Energy
would be the option that provided the best balance between
quality, operating cost, capital investment, and risk. The option
of using TXU Energy would likely result in cost savings to TXU
Gas of between $4 million and $12.5 million per year over the
outsourcing option (total operating savings of $48 million over
five years), and between $3.5 million and $8 million per year
over the company-owned and operated system option (total
operating savings of $30 million over five years). In addition,
TXU Energy is a proven provider, the agreement requires no
capital investment and, since there will be no immediate change
in systems, personnel or processes, the risk is minimal.
Gillespie - Summary of Testimony Page 2 of 2
M. D. MOSELEY
SUMMARY OF TESTIMONY
Witness: Marc D. Moseley
Background: Received Bachelor of Business Administration degree in
Accounting in 1972 and is a Certified Public Accountant in the
State of Texas. Employed by Dallas Power & Light in 1974.
Worked in Corporate Accounting, General Accounting,
Regulatory Accounting, and Accounting Services departments.
Held positions of Assistant Controller and Controller prior to
being elected Vice President in the Regulatory department in
1996. Became Vice President of Accounting Support for the
Oncor Group in March 2003. Has previously provided testimony
before the Public Utility Commission of Texas on accounting-
related matters in Docket Nos. 25230, 22350, 21527, 18490,
15195, 11735, 9300, 5640, 5330, and 5256.
Purpose of Testimony:
(1) Discuss the appropriate accounting under Generally
Accepted Accounting Practices ("GAAP") for regulatory assets
in general; (2) Describe the Company's regulatory assets and
the specific accounting treatment that is being requested for
these assets; (3) Demonstrate that these regulatory assets were
created and are being amortized in accordance with GAAP; and
(4) Show that the regulatory treatment proposed by the
Company enables it to recover its regulatory assets in a way
that is fair to the Company and its customers.
Key pOints/Issues:
The Company, in this proceeding, has identified and should be
able to recover through rates the costs related to:
· the transition obligation related to Other Post
Employment Benefits,
· the 1997 Enhanced Retirement Plan,
· the 1999 Early Retirement and Voluntary Severance
Plans,
· the Winning Innovative Services Program
· the Safety Compliance Program, and
Moseley - Summary of Testimony Page 1 of 2
Summary/Recommendation:
The Company's request for the recovery of various regulatory
assets included in this proceeding is reasonable, and recovery
of these regulatory assets is fair, reasonable, and consistent
with precedent established by this and other regulatory bodies.
Moseley - Summary of Testimony Page 2 of 2
B. D. GRIFFIN
SUMMARY OF TESTIMONY
Witness: Bill D. Griffin
Background: Received a Bachelor of Business Administration in 1980.
Became a Certified Public Accountant in 1986. Employed by
Texas Electric Service Company in 1980. Joined the Corporate
Tax Department in 1988. Currently serve as Income Tax
Director.
Purpose of Testimony:
(1) The purpose of my testimony is to present the level of
federal income tax expense to be included in the Company's
cost of service and (2) Sponsor Schedules E-7, E-7.1, E-7.2,
and G-7 of the Rate Filing Package.
Key Points/Issues:
The federal income tax expense, investment tax credit and
accumulated deferred federal income taxes included in this
case was determined pursuant to applicable federal income tax
laws and regulations, state law and regulations and generally
accepted accounting principles.
Summary/Recommendation:
The federal income tax expense, investment tax credit and
accumulated deferred income taxes incurred by TXU Gas
represent a normal level of expense, are just and reasonable and
should be included in the company's cost of service.
Griffin - Summary of Testimony Page I of 1
T. L. DUBSERLY
SUMMARY OF TESTIMONY
Witness: Tommy L. Dubbedy
Background: Received a Bachelor and Master of Business Administration.
Certified Public Accountant. Employed by TXU organization
since 1976. Currently Director of Corporate Tax.
Purpose of Testimony:
Support non-income tax expense included in cost of service.
Sponsor schedule G-6 of the Rate Filing Package.
Key Points/issues:
Tax expense related to payroll, ad valorem, gross receipts, and
franchise.
Summary/Recommendations:
The non-income tax expense incurred by TXU Gas was pursuant
to applicable law and is therefore, just and reasonable and
should be included in the company's cost of service.
Dubberly- Summary of Testimony Page 1 of 1
A. L. WARREN
SUMMARY OF TESTIMONY
Witness: Autryb Warren, Jr.
Background: Received a Bachelor of Business Administration degree in
Accou. nting in 1980 and is a Certified Public Accountant ("CPA")
in the State of Texas. Employed by Dallas Power & Light
Company in 1980. Worked in Corporate Accounting, Customer
Services, and Rates & Regulatory departments. Held positions
of Supervisor of Financial and Operations Reports, Budgets
Supervisor, General Accounting Manager, Customer Service &
Marketing Manager, Regulatory Financial Manager, and Rates
Manager. Became Director, Gas Regulatory in November
2002. Has previously provided testimony before the Railroad
Commission of Texas ("RRC") on accounting-related matters in
GUD 9225, GUD 9299, and GUD 9313; and before the Public
Utility Commission of Texas ("PUC") in Docket No. 20200.
Purpose of Testimony:
(1) Sponsor the results of lead/lag studies for measuring the
cash working capital ("CWC") allowance required for TXU Gas;
and (2) Present the Company's proposal for the recovery of
rate case expenses associated with the filing.
Key Points/Issues:
The Company, in this proceeding, has identified and should be
able to recover through rates the following:
· The CWC requirement for Distribution and Pipeline; and
· Reasonable rate case expenses through the application of
a surcharge according to the tariff as proposed by the
Company.
After the proceedings and hearings have concluded in this filing,
there should be a short hearing for the purpose of presenting rate
case expenses.
Summary/Recommendations:
The CWC requirement for Distribution is ($53,763,162), and the
CWC requirement for Pipeline is ($3,224,772). The CWC
amounts are negative primarily because Distribution and Pipeline
both sell receivables, and this results in the overall receipt of
revenues ahead of the payment of the associated expenses.
The Company's calculation of CWC requirements is fair and
reasonable and appropriately included in rate calculations. The
Warren - Summary of Testimony Page I of 2
Summary/Recommendations (cont.):
calculation is consistent with the guidelines provided in the PUC
Substantive Rule 25.231 and the final order from the RRC in
GUD 9145.
The Company's proposal for the recovery of rate case expenses
is fair, ~reasonable, and consistent with precedent established by
this and other regulatory bodies.
Warren - Summary of Testimony Page 2 of 2
B. H. FAIRCHILD
SUMMARY OF TESTIMONY
Witness: Dr. Bruce Faimhild, consultant with FINCAP, Inc.
Background: M.B.A. and Ph.D. in finance, accounting, and economics;
Certified Public Accountant. Extensive consulting
experience involving regulated industries, valuation of
closely-held businesses, and other economic analyses.
Previously held managerial and technical positions in
government (PUCT), academia, and business, and taught
at the undergraduate, graduate, and executive education
levels. Broad experience in technical research, computer
modeling, and expert witness testimony.
Purpose of Testimony:
Recommend a fair rate of retum to apply to the TXU Gas' net
invested capital, based on appropriate capital structure ratios
and costs of debt, preferred stock, and common equity.
Key Points/issues:
1. The Company's capital structure ratios should be based
on Local Distribution Company (LDC) industry group
averages. This approach is consistent with economic and
legal principles underlying a fair rate of return, reflects the
mix of capital required to accommodate the business risks
associated with providing transmission and distribution
services, allows the ROE to be based directly on estimates
for comparable utilities, and follows precedent established
in previous Commission-approved dockets.
2. The Company's costs of debt and preferred stock should
reflect the average rates of the same group of companies
from which the capital structure ratios were derived.
3. The ROE estimate reflects the application of the
Discounted Cash Flow (DCF) model and the risk premium
methods to the same group of LDCs used to determine
the capital structure and debt and preferred stock costs.
The DCF approach revealed a ROE range between 10.4%
and 11.4%, and the risk premium approach revealed a
ROE range between 10.74% and 12.14%.
Fairchild - Summary of Testimony Page I of 2
Key Points/Issues (cont.):
4. The inclusion of the TXU Gas transmission business in
this rate case introduces additional business risk, which is
not reflected in the ROE estimates derived from LDC
industry group. There are currently few publicly traded
-"pure play" pipelines not in financial distress available to
serve as benchmarks in setting capital structure ratios, so
an upward adjustment to ROE will be necessan/to reflect
this additional risk.
5. An upward ROE adjustment for equity flotation costs is
reversed as a result of a downward adjustment from the
reduced risk associated with Mr. Goble's recommended
rate structures.
6. Dr. Fairchild recommends an authorized rate of return on
common equity of 11.5%. If Mr. Goble's proposed rate
structures and Rate CIT are not approved, then Dr.
Fairchild recommends a return on equity of at least
11.75%.
Summary/Recommendations:
The appropriate return should be as follows:
Percent Component Weighted
Capital Component of Total Cost Cost
Long-term Debt 51.0 6.71% 3.42%
Preferred Stock 1.1 5.53% 0.06
Common Equity 47.9 11.50% 5.51
Total 100,0% 8,99%
Faimhild - Summary of Testimony Page 2 of 2
A. D. ANDERSON
SUMMARY OF TESTIMONY
Witness: Alan D. Anderson
Background: Mr. Anderson has a B.A. from Rice University and a Ph.D. in
Economic History from Johns Hopkins University; he has testified
as and has been qualified an expert in many areas of the natural
gas industry and is currently the President of the consulting firm
Energy Planning, Inc.
Purpose of Testimony:
(1) Explain the current gas cost recovery mechanism; (2) offer a
proposal for a new gas cost recovery factor; and (3) offer a
proposal for a new reconciliation and review procedure to
accompany the new gas cost recovery mechanism
Key Points/issues:
1. The present gas cost recovery mechanism does not take
into account all gas costs.
2. Lost and unaccounted for gas will be included in the gas
cost recovery mechanism, not base rates.
3. Changes in the carrying cost of working gas in storage will
be included in gas costs going forward.
4. Gas costs will be the same for all classes of sales
customers.
5. New reconciliation and review procedures will replace the
twelve-month reconciliation and three-year prudence
review.
Summary/Recommendations:
Adopt the new gas cost recovery factor in all respects and adopt
new reconciliation and review procedures to supplant the lengthy
and expensive procedures presently in place.
Anderson - Summary of Testimony Page 1 of 1
G. L. GOBLE
SUMMARY OF TESTIMONY
Witness: Gan/L. Goble
Background: Received Bachelor of Science degree in 1974 and a Master
of Business Administration degree in 1980. Employed by
the Arkansas Public Service Commission from 1974 to 1978,
including serving as Chief of Rates. Employed by the Public
Utility Commission of Texas from 1978 to 1980 as Manager
of Electric and Water Rates. Became a consultant for the
firm of Gilbert Associates in 1980 and became a Manager in
the firm's Austin, Texas office in 1981. Became a principal
in the firm of Management Applications Consulting, Inc. in
1984. Previously testified before the Railroad Commission
of Texas, the Public Utility Commission of Texas, and other
regulatory or municipal agencies.
Purpose of Testimony:
Present and demonstrate the reasonableness of (1) the
adjustments to volumes, customers and revenues resulting
from the impact of the weather normalization and year-end
customer adjustments; (2) the development of test year
Maximum Daily Usage by class; (3) the development of
allocation factors; (4) the development of the class cost of
service study computations; (5) the development of the
proposed rates; and (6) the development of the proposed
miscellaneous charges. Sponsors Schedules J-l, K-1
through K-7, and L-1 through L-3. Co-sponsors Schedules A
and A-I.
Key Points/Issues:
1. Company made adjustments to sales and customers
to reflect changes in the number of customers
occurring during the test year so that costs and
revenues related to changes in the number of
customers are presented at a level that more
accurately depicts the anticipated costs and revenues
during the period in which rates will be in effect.
2. Because gas sales to Residential and Commercial
Sales customers are greatly influenced by
temperature conditions, the test year sales volumes
used as the basis for setting future rates for those
Goble - Summary of Testimony Page 1 of 3
Key Points/Issues (cont.):
classes will be overstated or understated depending
upon whether test year temperatures have been
higher or lower than normal. Thus, it is necessary to
normalize test year sales so that there is no
understatement or overstatement of sales.
3. The Company made adjustments to industrial and
Transportation customers, sales, and revenues to
remove customers from the Distribution data who
were not served by the Distribution system and to
recognize the effects of customers moving between
classes or leaving the Distribution system.
4. Capacity costs are allocated to classes using each
class' contribution to the system volumes delivered
during the days of Maximum Daily Usage ("MDU")
occurring during the months of December, January,
February, and March of the test year. The 4 MDU
method correctly and accurately reflects the manner
in which capacity costs are incurred by the Company.
5. The allocation factors chosen for the cost of service
study best represent the cost drivers that produce the
cost being allocated.
6. The results of the Pipeline Cost of Service Study
indicate that the present rates for City Gate customers
are below their allocated costs to serve and that the
rates for Pipeline Transportation customers are
significantly above their allocated costs to serve. The
results of the Distribution cost of service study
indicate that the rates for Residential Sales produce
revenues substantially below the Residential costs to
serve, that the rates for Commercial Sales are higher
than their costs to serve and that the rates to
Industrial Sales and Transportation customers are
substantially higher than their costs to serve.
7. Under the proposed rates, the City Gate relative rate
of return increases from 79% to 86% and the Pipeline
Transportation relative rate of return decreases from
187% to 160%. The proposed rate for City Gate
Service consists of a meter fee, a capacity charge,
and a volume charge. The proposed Pipeline
Transportation rate is similar in design except that a
portion of the capacity costs are recovered in the
Goble - Summary of Testimony Page 2 of 3
Key Points/Issues (cont.):
volumetric charge by means of a declining block rate
design.
§, The Company is proposin9 four unbundled gas
distribution rates: Residential Sales, Commercial
Sa~es, industrial Sales, and Transportation.
9. The Company is proposing a two-step declining block
rate with a monthly Customer Charge for the
Residential Sales class. In addition, the Company
proposes to continue the three-step Commercial
Sales rate design along with its monthly Customer
Charge, but to change the block breaks to better
reflect the base and heating Icad profiles of the class.
The Company further proposes to continue the
existing four-step declining block rate design with a
monthly Meter Charge for the Industrial Sales and
Transportation classes.
10. The Company is proposing to standardize its charges
for services other than Pipeline transportation service
as either Miscellaneous Service rates subject to
uniform application or as Ancillary Service charges
subject to variable market conditions.
Summary/Recommendations:
The adjustments to volume, customers, and revenues that were
made to reflect the effects of changes in the test year number of
customers and weather effects are reasonable and necessary to
reflect the usage characteristics and applicable rates of affected
customers. The Maximum Daily Usage values employed by the
Company in allocating capacity costs to the classes of service are
reasonable, accurate, and fairly measure the impact that each
customer class places upon the capacity-related portions of the
Company's system.
The overall class cost of service study presented in this proceeding
allocates costs to customer classes in a fair and reasonable
manner and is not biased in favor of or against any particular class.
In designing the proposed rates, the Company has appropriately
considered the impact of that rate design on customers. The
Company has also designed the proposed rates in a manner that
ensures that the customers who impose costs on the system are
responsible for paying those costs.
Goble - Summary of Testimony Page 3 of 3
S. J. HOULE
(COST ALLOCATION & RATE DESIGN)
SUMMARY OF TESTIMONY
Witness: Stephen J. Houle
Background: Received a Bachelor of Science degree in Electrical Engineering
in 1977 and a Master of Business Administration in 1979.
Employed by Dallas Power & Light in 1977. Worked in
Engineering Department, Regulatory Service Department, and
Rate Department through 1983. Became Supervisor of Rate
Design for Texas Utilities Electric Company in 1984 and
Supervisor-Rate and Cost Analysis in 1987. Named Rate
Manager in 1990. Assumed responsibility for rates and regulatory
affairs for both gas and electric companies in 1998 and was
elected to current position of Vice President, Rates & Regulation
in May 1999.
Purpose of Testimony:
(1) Explain generally the purpose of cost allocation and describe
the cost allocation study performed in this case; (2) Explain the
rate classes and types of services proposed in this case; (3)
Describe generally the proposed Tariff for Gas Service.
Key Points/issues:
1. TXU Gas is proposing the adoption of a Tariff for gas
service that contains rates for all services provided by TXU
Gas and the terms and conditions of service under which
those services will be provided.
2. TXU Gas is proposing a standard set of rates applicable on
a systemwide basis to all customers receiving service from
TXU Gas' distribution and pipeline system. For the
pipeline, we are proposing two types of service: City Gate
Service and Transportation Service. For the distribution
system, we are proposing four types of service: Residential
Sales, Commercial Sales, Industrial Sales, and
Transportation Service.
3. The Company's objective in this case is to move every
rate class to 100% relative rate of return subject to no
class receiving either a rate decrease or an increase of
greater than 10%. In this case, that objective results in
Houle - Summary of Testimony (Cost Allocation & Rate Design) Page 1 of 2
Key Points/issues (cont.):
no increase for the Rate PT - Pipeline Transportation,
Rate I - Industrial Sales, and Rate T - Transportation rate
classes; a 2% increase for the Rate C - Commercial
Sales rate class; and a 10% increase for the Rate R -
Residential Sales rate class and the Rate CGS - City
Gate Service rate class.
4. Service on the TXU Gas System is provided to six principal
customer classes. On the pipeline portion of the TXU Gas
system, those classes are: (1) city gate and (2) pipeline
transportation. On the distribution portion of the system,
those classes are: (1) residential sales; (2) commemial
sales; (3) industrial sales; and (4) transportation.
5. Fixed costs should be allocated using the average of the
peak daily usage occurring during the peak months of
December through March, which is referred to as the Four
Maximum Daily Usage method ("4MDU").
6. A Cost Allocation Study is an accounting and engineering
analysis that allocates plant investment, revenues, and
expenses to the various ctasses of customers served by
the utility. The allocation of a utility's costs to the various
customer classes based on their individual characteristics
results in the identification of the cost responsibility of each
customer class.
Summary/Recommendations:
The cost allocation methodology used by TXU Gas is reasonable.
The proposed rate design is reasonable, provides greater price
transparency for customers, and ensures the opportunity for cost
recovery by TXU Gas. The proposed Tariff provides a
comprehensive set of rates for all services provided by TXU Gas
and the terms and conditions under which those services will be
provided.
Houle - Summary of Testimony (Cost Allocation & Rate Design) Page 2 of 2
0
m
m
Tariff for Gas Service
TXU Gas Company
500 N. Akard St.
Dallas, Texas 75201
-1-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: I TABLE OF CONTENTS
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
I. UTILITY OPERATIONS ...................................................................................................................... 3
I1. CITIES AND COUNTIES SERVED BY TXU GAS COMPANY .......................................................... 4
Ill. DEFINITIONS .................................................................................................................................... 8
IV. GAS SERVICE RATES: .................................................................................................................... 11
Rate CGS - City Gate Service ......................................................................................................... 12
Rate PT - Pipeline Transportation ................................................................................................... 15
Rate R - Residential Sales ............................................................................................................... 18
Rate C - Commercial Sales ............................................................................................................. 19
Rate I - Industrial Sales ................................................................................................................... 20
Rate T - Transportation ................................................................................................................... 22
Rider GCR - Gas Cost Recovery .................................................................................................... 25
Rider FF - Franchise Fee Adjustment ............................................................................................. 26
Rider SUR - Surcharges .................................................................................................................. 27
V. MISCELLANEOUS SERVICE RATES: ............................................................................................ 28
Rate ANS - Ancillary Services ......................................................................................................... 29
Rate LEP - Line Extension Policy .................................................................................................... 31
Rate M - Miscellaneous Charges .................................................................................................... 34
Rider CT - Competitive Transportation Service ............................................................................... 37
Rider CIAF- Capital Investment Adjustment Factor ........................................................................ 38
Rider RA - Retention Adjustment .................................................................................................... 40
Rider TAX - Tax Adjustment ........................................................................................................... 41
VI. SERVICE RULES AND REGULATIONS ......................................................................................... 42
VII. STANDARD AGREEMENTS FOR SERVICE .................................................................................. 74
Standard Transportation Agreement - City Gate Service ................................................................ 75
Standard Transportation Agreement - Pipeline ............................................................................... 76
Standard Transportation Agreement - Distribution ..........................................................................77
General Transportation Contract Terms and Conditions ................................................................. 78
City Gate Transportation Terms and Conditions .............................................................................91
Pipeline / Distribution Transportation Terms and Conditions .......................................................... 94
VIII. CURTAILMENT ORDER .................................................................................................................. 96
-2-
I. UTILITY OPERATIONS
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 2 Utility Operations
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 1
I. UTILITY OPERATIONS:
TXU Gas Company owns and operates a natural gas pipeline and distribution system that provides natural
gas service in 111 counties in Texas.
The following will respond to inquiries regarding provisions of this Tariff for Gas Service:
Mr. Autry Warren
Director, Gas Regulatory
TXU Gas Company
1601 Bryan Street, 32nd Floor
Dallas, Texas 75201
Telephone: 214-812-3863
Email Address: AWARREN1 @TXU.COM
Regulatory Support Hotline: 214-812-2323
-3-
II. CITIES AND COUNTIES SERVED BY TXU GAS COMPANY
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 3 Cities and Counties Served by TXU Gas Company
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 4
II, CITIES AND COUNTIES SERVED BY TXU GAS COMPANY:
CITIES SERVED BYTXU GAS COMPANY:
Abbott Bowie Coolidge
Abilene Boyd Cooper
Addison Bremond Coppell
Alba Bridgepor~ Copper Canyon
Albany Bronte Copperas Cove
Allen Brownsboro Corinth
Alma Brownwood Corral City
Alvarado Bruceville-Eddy Corsicana
Alvord Bryan Covington
Angus Buckholts Crandall
Anna Buffalo Crawford
Annona Buffalo Gap Cross Roads
Anson Burkburnett Crowley
Archer City Burleson Cumby
Argyle Burner Dallas
Arlington Byers Dalworthington Gardens
Athens Caddo Mills Dawson
Aubrey Caldwell Decatur
Aurora Calvert DeLeon
Austin Cameron Denison
Avery Campbell Denton
Azle Canton Deport
Baird Carbon DeSoto
Balch Springs Carrollton Detroit
Ballinger Cashion Community Dodd City
Bandera Cedar Hill Double Oak
Bangs Cedar Park Dublin
Bardwell Celeste Duncanville
Barry Celina Eady
Bartlett Centerville Eastland
Bedford Chandler Ector
Bellevue Chico Edgecliff Village
Bellmead Childress Edom
Bells Chillicothe Electra
Belton Cisco Emhouse
Benbrook Clarksville Emory
Benjamin Cleburne Ennis
Bertram Clifton Euless
Bevedy Hills Clyde Eustace
Blackwell Cockrell Hill Evant
Blanket Coleman Everman
Blooming Grove College Station Fairfield
Blossom Colleyville Fairview
Blue Mound Collinsville Farmers Branch
Blue Ridge Colorado City Farmersville
Blum Comanche Fate
Bogata Commerce Ferris
Bonham Como Flower Mound
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 3 Cities and Counties Served by TXU Gas Company !1
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 4
Forest Hill Hurst Lorena
Forney H. utchins Lott
Fort Worth Hutto Lueders
Franklin Impact Mabank
Frankston Iowa Park Madisonville
Fredericksburg Iredell Malakoff
Frisco Irving Malone
Frost Italy Manor
Gainesville Itasca Mansfield
Garland Jewett Marble Falls
Garrett Josephine Marlin
Gatesvilie Joshua Marshall Creek
Georgetown Justin Mart
Glen Rose Kaufman Maypearl
Glenn Heights Keene McGregor
Godley Keller McKinney
Goldthwaite Kemp Megargel
Goodlow Kennedale Melissa
Gordon Kerens Meridian
Goree Kerrville Merkel
Gorman Killeen Mesquite
Granbury Knollwood Mexia
Grand Prairie Knox City Midlothian
Grandview Kosse Midway
Granger Krum Mildred
Grapevine Kurten Miles
Greenville Lacy-Lakeview Milford
Groesbeck Ladonia Mobile City
Gunter Lake Dallas Moody
Gustine Lake Worth Moran
Haltom City Lakeport ' Morgan
Hamilton Lakeside Muenster
Hamlin Lampasas Munday
Harker Heights Lancaster Murchison
Haskell Lavon Murphy
Hasler Lawn Nevada
Hawley Leander New Chapel Hill
Hearne Leona Newark
Heath Leonard Newcastle
Henrietta Lewisville Nocona
Hewitt Lexington Nolanville
Hickory Creek Lincoln Park Normangee
Hico Lindsay North Richland Hills
Highland Park Lipan Northlake
Highland Village Little Elm Novice
Hillsboro Little River Academy O'Brien
Holland Llano Oakwood
Holliday Lometa Oglesby
Honey Grove Lone Oak Olney
Howe Longview Ovilla
Hubbard Loraine Palestine
-5-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 3 Cities and Counties Served by TXU Gas Company
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 OF 4
Palmer Ross Thrall
Pantego Rotan Throckmor[on
Paradise Round Rock Tioga
Paris Rowlett Toco
Parker Roxton Tom Bean
Pecan Gap Royse City Trent
Pecan Hill Rule Trenton
Penelope Runaway Bay Trinidad
Petrolia Sachse Trophy Club
Pflugerville Sadler Troy
Pilot Point Saginaw Tuscola
Piano Saint Jo Tye
Pleasant Valley San Angelo Tyler
Point San Saba University Park
Ponder Sanctuary Valley Mills
Pottsboro Sanger Valley View
Powell Sansom Park Van Alstyne
Poynor Santa Anna Venus
Princeton Savoy Vernon
Prosper Seagoville Waco
Putnam Seymour Walnut Springs
Quanah Shady Shores Watauga
Quinlan Sherman Waxahachie
Quitman Snyder Weinert
Ranger Somerville West
Ravenna South Mountain Westlake
Red Oak Southlake Westminster
Reno (Lamar County) Southmayd Westover Hills
Rer~o (Parker County) Springtown Westworth Village
Retreat Stamford White Settlement
Rhome Star Harbor Whitehouse
Rice Stephenville Whitesboro
Richardson Strawn W hitewright
Richland Streetman Whitney
Richland Hills Sulphur Springs Wichita Falls
Riesel Sun Valley Wilmer
Rio Vista Sunnyvale Windom
River Oaks Sunset Winters
Roanoke Sweetwater W ixon Valley
Robe~l Lee Talty Wolfe City
Robinson Taylor Woodway
Roby Teague Wortham
Rochester Tehuacana Wylie
Rockdale Temple Yantis
Rockwall Terrell
Rogers The Colony
Roscoe Thomdale Total Cities: 437
Rosebud Thornton
-6-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 3 Cities and Counties Served by TXU Gas Company
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 4 OF 4
COUNTIES SERVED BY TXU GAS COMPANY:
Anderson Gregg Pecos
Archer Grimes Rains
Bandera Hamilton Red River
Baylor Hardeman Reeves
Bell Harris Robertson
Bosque Harrison Rockwall
Brazos Haskell Runnels
Brown Henderson Rusk
Burleson Hill San Saba
Burnet Hood Schleicher
Callahan Hopkins Scurry
Cherokee Houston Shackelford
Childress Hunt Smith
Clay Jack Somervell
Coke Johnson Stephens
Coleman Jones Sterling
Collin Kaufman Stonewall
Comanche Kendall Tarrant
Cooke Kerr Taylor
Con/ell Knox Throckmorton
Crane Lamar Tom Green
Dallas Lampasas Travis
Delta Lee Upton
Denton Leon Upshur
Eastland Limestone Van Zandt
Edwards Llano Walker
Ellis Madison Waller
Erath McLennan Ward
Falls Midland Wichita
Fannin Milam Wilbarger
Fisher Mills Williamson
Foard Mitchell Winkler
Fort Bend Montague Wise
Franklin Navarro Wood
Freestone Nolan Young
Gillespie Palo Pinto
Glasscock Panola Total Counties: 111
Grayson Parker
-7-
III. DEFINITIONS
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 4 t Definitions
APPLICABLE TO: Entire System I REVISION: 0
J
DATE:
EFFECTIVE DATE: PAGE: 1 OF 3
II1. DEFINITIONS:
AGREEMENT FOR GAS SERVICE A written contract between Company and Customer uncter which
Company provides Gas Service.
APARTMENT HOUSE. A building or buildings containing more than four Dwelling Units all of which are
rented primarily for nontransient use, with rental paid at intervals of one week or longer. Apartment House
includes residential condominiums, whether rented or owner occupied.
APPLICANT. A person or entity who requests Gas Service from Company. The inauguration of Gas
Service to an Applicant by Company does not indicate that Company has inspected Customer's gas piping
or appliances or determined the piping and appliances to be safe or adequate.
BULK TRANSMISSION. The large diameter, high pressure pipeline from the Waha Hub to the Katy Hub,
including the large diameter lateral pipeline connecting to the Bethel storage.
CITY GATE CUSTOMER. A customer who purchases City Gate Service under Rate CGS.
CODES. Codes governing gas installations.
COMMERCIAL CUSTOMER. A customer who has a North American Industry Classification System
Code beginning with 11, 22 (other than electric generation), 23, 41-46, 48, 49, 51-56, 61, 62, 71, 72,
81, or 91-93 or any other end-use customer to which no other rate schedule applies.
COMMISSION. The Railroad Commission of Texas.
COMPANY. TXU Gas Company, its successors, and its assigns.
CUSTOMER. An individual, partnership, association, joint Venture, corporation, etc., or governmental
agency who is receiving or who is receiving the benefit of gas service at a specified point of delivery.
CUSTOMER'S GAS INSTALLATION. All pipes, equipment, or facilities of any kind on Customer's side of
the Point of Delivery, except Company's metering equipment, used by Customer in taking Gas Service.
DISTRIBUTION SYSTEM. That portion of the TXU Gas System that is comprised of distribution
pipelines, Main Lines, and Service Lines that are located on the load side of city gates.
DWELLING UNIT. A room or rooms suitable for occupancy as a residence containing kitchen and
bathroom facilities.
GAS DAY. The period beginning at 9:00 a.m. on one calendar day and ending at 9:00 a.m. on the
following calendar day.
GAS MAINS. Company's distribution pipelines that receive natural gas from city gate stations and
transport such natural gas to Service Lines.
GAS SERVICE. The transportation and provision of natural gas made available by Company at the Point
of Delivery.
-8-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 4 Definitions
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 3
INDUSTRIAL CUSTOMER. A customer who has a North American Industry Classification System Code
beginning with 21, 22 (electric generati6n only), 31,32, or 33.
LOCAL DISTRIBUTION COMPANY. An entity that operates a retail gas distribution system other than
TXU Gas Company,
MAKE-UP VOLUMES. The quantity of gas specifically and separately nominated by customer and
confirmed by Company to resolve, either in whole or in part, any imbalance under Rate CGS, Rate PT, or
Rate T.
MAIN LINE. A distribution line that serves as a common source of supply for more than one Service Line.
METER. A device, or devices, together with any required auxiliary equipment, for measuring Gas Service.
NETWORK TRANSMISSION. Lines that connect the Bulk Transmission pipeline, pipelines from other
sources of gas supply, and other transmission pipelines, and smaller lower pressure lines that integrate
Bulk Transmission and storage into a delivery network.
NORMAL SOIL. Soil that can be excavated with a trenching machine and that does not require the use of
special rock wheels or buckets.
PIPELINE SYSTEM. That portion of the TXU Gas System that provides Bulk Transmission, and Network
Transmission. The Pipeline System is upstream from city gates and feeds into the Distribution System.
POINT OF DELIVERY. Point at which natural gas leaves the Company's facilities. At Company's option,
locations where the gas installat~.~a has multiple connections to Company's facilities may be considered
one point of delivery for billing purposes.
RATE SCHEDULE. A statement of the method of determining charges for Gas Service, including the
conditions under which such method applies.
RECEIPT NOMINATION. The dai¥ quantity of gas requested by a shipper to be delivered into the
Pipeline System by the shipper as specified in the associated Transportation Agreement between the
shipper and TXU Gas Company.
REGULATORY AUTHORITY. An incorporated city or town, or an agency of the county, state, or federal
government.
RESIDENTIAL CUSTOMER, Unless otherwise specified in the rate schedule, a customer whose service
is separately and individually metered in an individual private Dwelling Unit or in an individually metered
apartment and who uses natural gas primarily for Residential End Uses and occupies the building.
RESIDENTIAL END USES. Heating, space heating, cooking, water heating, and other similar type uses
in a building or dwelling.
RESIDENTIAL SALES SERVICE. Gas service provided to any customer whose service is separately and
individually metered and who uses natural gas primarily for Residential End Uses and occupies the building.
-9-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 4 Definitions I
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 OF 3
SERVICE LINE. A distribution line that transports gas from a common source of supply to a customer's
meter. A distribution line that extends c~nto private property; serves no more than two adjacent, private,
single-family residences separated by a property line; and terminates at a customer's meter is considered
a Service Line.
STATE AGENCY. (A) a department, commission, board, office, or other agency that:
(i) is in the executive branch of state government;
(ii) has authority that is not limited to a geographical portion of the state; and
(iii) was created by the Texas Constitution or a statute of this state;
(B) a university system or institution of higher education as defined by Section
61.003, Education Code, other than a public junior college; or
(C) a river authority created under the Texas Constitution or a statute of this state.
TEMPORARY GAS SERVICE. Gas Service provided to Customer for a single, continuous period of time,
which is less than twelve consecutive months, except that Gas Service provided dunng construction
activities, even though provided for a continuous period of time in excess of twelve months, is considered
to be Temporary Gas Service.
TRANSPORTATION SERVICE CUSTOMER. Customers who procure their own gas supplies and for whom
the Company provides delivery service on the TXU Gas System.
UTILIZATION CONTRACT. A contract by which the Customer estimates and communicates to Company
the amount of gas usage required for the Company's extension. If such usage materializes and is verified
within a specified period of time, Company will reimburse Customer all or a portion of the installation costs
as outlined in the contract.
-10-
IV. GAS SERVICE RATES
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: Gas Service Rates
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
IV. GAS SERVICE RATES:
-11-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 5 I Rate CGS - Cit~ Gate Service
APPLICABLE TO: Entire System I REVISION: 0
I
DATE:
EFFECTIVE DATE: PAGE: 1 OF 3
RATE CGS - CITY GATE SERVICE
Application
Applicable, in the event that Company has entered into a Transportation Agreement - City Gate Service, to
a Local Distribution Company (Customer) directly connected to the TXU Gas System for the transportation
of all natural gas supplied by Customer to one Point of Delivery.
Type of Service
Where service of the quantity and type required by Customer is not already available at the Point of
Delivery, additional charges and special contract arrangements between Company and Customer may be
required prior to service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following meter, capacity, and MMBtu charges to
the amounts and quantities due under the riders listed below:
Charge Amount
Bulk Transmission Network Transmission Distribution System
Meter $200.00 per meter $200.00 per meter $200.00 per meter
Capacity $ 0.2710 per MDU $ 1.0405 MDU $ 1.0405 per MDU
All MMBtu $ 0.0795 per MMBtu $ 0.2182 per MMBtu $ 0.7553 per MMBtu
Capital Investment Adjustment Factor: Plus an amount for capital improvements calculated in
accordance with Rider CIAF.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for sumharges calculated in accordance with the applicable rider(s).
MDU Determination
MDU is the maximum daily usage of natural gas delivered in MMBtu to a Point of Delivery,
MDU for the calculation of the monthly bill is the highest of:
1) Current month MDU;
2) Maximum Daily Quantity as specified in the associated Transportation Agreement - City Gate
Service; or
3) Highest annual MDU occurring in the 12-month period ended with current month.
-12-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 5 Rate CGS - City Gate Servlce
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 3
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in P/aCs Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Daily Imbalance Fees
Company may, upon prior written notice, begin billing Customer for Excess Daily imbalance Quantities
during each month. "Excess Daily imbalance Quantities" means the portion of Customer's daily
imbalance that exceeds 10% of Customer's receipt quantities for such Gas Day. Customer shall pay
Company for each MMBtu of any Excess Daily Imbalance Quantities incurred during a month at the
greater of: (i) $0.10 per MMBtu, or (ii) 150% of the difference between the highest and the lowest
"midpoint" price for the Katy point listed in P/arts Gas Daily in the table entitled "Daily Price Survey~' during
such month.
Hourly Imbalance Fees
For a Customer whose maximum daily quantity established in the applicable Transportation Agreement is
10,000 MMBt~J or greater, Company will bill such Customer each month for Excess Hourly imbalance
Quantities. "Excess Hourly Imbalance Quantities" means that portion of the difference between the
quantity delivered to Customer during any hour, and the average hourly confirmed Receipt Nomination for
such Gas Day, which exceeds 10% of such average confirmed Receipt Nomination. Customer shall pay
Company for each MMBtu of any Excess Hourly Imbalance Quantities incurred during a month a fee of
$0.50 per MMBtu.
Operational Flow Order Imbalance Fee
In the event Company has notified Customer that an Operational Flow Order (OFO) is in place, Customer
shall pay Company a fee on Excess Hourly OFO Imbalance Quantities during any Operational Flow Order
event. "Excess Hourly OFO Imbalance Quantities" means:
(a) In the event Company notifies Customer that receipt point quantities should be equal to or
greater than detivery point quantities, Excess Hourly OFO Imbalance Quantities is that portion of
the positive difference between (i) the quantities delivered to Customer during any hour, less (ii)
the average hourty confirmed Receipt Nomination for such Gas Day, which exceeds 10% of such
confirmed Receipt Nomination; or
(b) In the event Company notifies Customer that receipt point quantities should be less than
or equal to delivery point quantities, Excess Hourly OFO Imbalance Quantities is that portion of
the positive difference between (i) the average hourly confirmed Receipt Nomination for the
applicable Gas Day, less (ii) the quantities delivered to Customer during any hour of such Gas
Day, which exceeds 10% of such Receipt Nomination.
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 5 Rate CGS - City Gate Service
:APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 OF 3
Customer shall pay Company for each MMBtu of any Excess Hourly OFO Imbalance Quantities incurred
during a month at 150% of the highest "~,ommon" price for the Katy point listed in Platts Gas Daily in the
table entitled "Daily Price Survey" during the time the Operational Flow Order is in place.
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Pla~ts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey,"
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Pla~ts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A Transportation Agreement - City Gate Service is required. A standard Transportation Agreement - City
Gate Service is found in Section VII of the Tariff for Gas Service.
Notice
Service hereunder and the rates for service provided are subject to the orders of regulatory bodies having
jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate CGS, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
-14-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 6 Rate PT - Pipeline Transportation
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 3
RATE PT - PIPELINE TRANSPORTATION
Application
Applicable, in the event that Company has entered into a Transpor[ation Agreement -Pipeline, to a customer
directly connected to the TXU Pipeline System (Customer) for the transportation of ali natural gas supplied
by Customer or Customer's agent at one Point of Delivery.
Not applicable for service to City Gate Service customers.
Type of Service
Where service of the quantity and type desired by Customer is not already available at the Point of Delivery,
additional charges and special contract arrangements between Company and Customer may be required prior
to service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following meter, capacity, and MMBtu charges to
the amounts and quantities due under the riders listed below:
Charge Amount
Bulk Transmission Network Transmission
Meter $200.00 per Meter $200.00 per Meter
Capacity $ 0.3910 per MDU $ 0.9160 per MDU
First 12 MMBtu per Billing MDU $ 0.0770 per MMBtu $ 0,1038 per MMBtu
All Additional MMBtu $ 0.0700 per MMBtu $ 0.0800 per MMBtu
Capital Investment Adjustment Factor: Plus an amount for capital improvements calculated in
accordance with Rider CIAF.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF, if applicable.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calcutated in accordance with the applicable rider(s).
-15-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 6 Rate PT - Pipeline Transportation
APPLICABLE TO: Entire System I REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 3
MDU Determination
MDU is the maximum daily usage of natural gas delivered in MMBtu to a Point of Delivery.
MDU for the calculation of the monthly bill is the highest of:
1) Current month MDU;
2) 75% of Maximum Daily Quantity as specified in the associated Transportation Agreement
- Pipeline; or
3) 75% of highest MDU occurring in the most recent months of December, January,
February, and March.
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey'' during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Daily Imbalance Fees
Company may, upon prior written notice, begin billing Customer for Excess Daily Imbalance Quantities
during each month. "Excess Daily Imbalance Quantities" means the portion of Customer's daily
imbalance that exceeds 10% of Customer's receipt quantities for such Gas Day. Customer shall pay
Company for each MMBtu of any Excess Daily Imbalance Quantities incurred during a month at the
greater of: (i) $0.10 per MMBtu, or (ii) 150% of the difference between the highest and the lowest
"midpoint" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey'' during
such month.
Hourly Imbalance Fees
For a Customer whose maximum daily quantity established in the applicable Transportation Agreement is
10,000 MMBtu or greater, Company will bill such Customer each month for Excess Hourly Imbalance
Quantities~ "Excess Houdy Imbalance Quantities" means that portion of the difference between the
quantity delivered to Customer during any hour, and the average hourly confirmed Receipt Nomination for
such Gas Day, which exceeds 10% of such average confirmed Receipt Nomination. Customer shall pay
Company for each MMBtu of any Excess Hourly Imbalance Quantities incurred during a month a fee of
$0.50 per MMBtu.
Operational Flow Order Imbalance Fee
In the event Company has notified Customer that an Operational Flow Order (OFO) is in place, Customer
shall pay Company a fee on Excess Hourly OFO Imbalance Quantities during any Operational Flow Order
event. "Excess Hourly OFO Imbalar'~ce Quantities" means:
-16-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 6 I Rate PT - Pipeline Transportation
APPLICABLE TO: I Entire System REVISION: 0
I
DATE:
EFFECTIVE DATE: PAGE: 3 OF 3
(a) In the event Company rrotifies Customer that receipt point quantities should be equal to or
greater than delivery point quantities, Excess Hourly OFO imbalance Quantities is that portion of
the positive difference between (i) the quantities delivered to Customer during any hour, less (ii)
the average hourly con[irmed Receipt Nomination for such Gas Day, which exceeds 10% of such
confirmed Receipt Nomination; or
(b) In the event Company notifies Customer that receipt point quantities should be less than
or equal to delivery point quantities, Excess Hourly OFO Imbalance Quantities is that portion of
the positive difference between (i) the average hourly confirmed Receipt Nomination for the
applicable Gas Day, less (ii) the quantities delivered to Customer during any hour ol such Gas
Day, which exceeds 10% of such Receipt Nomination.
Customer shall pay Company for each MMBtu of any Excess Hourly OFO Imbalance Quantities incurred
during a month at 150% of the highest "common" price for the Katy point listed in Platts Gas Daily in the
table entitled "Daily Price Survey'' during the time the Operational Flow Order is in place.
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer wilt, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" pr[ce for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A Transportation Agreement - Pipeline is required. A standard Transportation Agreement * Pipeline is
found in Section VII of the Tariff for Gas Service.
Notice
Service hereunder and the rates for service provided are subject to the orders of regulatory bodies having
jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate PT, Customer must have the type of meter required by Company.
Customer must pay Company ail costs associated with the acquisition and installation of the meter.
-17-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 7 Rate R - Residential Sales
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 1
RATE R- RESIDENTIAL SALES
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the
amounts due under the riders listed below:
Charge Amount
Customer $12.00 per month
First 0 Mcf to 3 Mcf $ 1.4533 per Mcr
All Additional Mcf $ 1.2032 per Mcf
Gas Cost Recovery: Plus an amount for gas costs calculated in accordance with Rider GCR.
Capital Investment Adjustment Factor: Plus an amount for capital improvements calculated in
accordance with Rider CIAF,
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX~
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s),
Agreement
Service is provided and received pursuant to the terms and conditions in the Company's Tariff for Gas
Service. An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
-18-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 8 Rate C - Commercial Sales
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
RATE C - COMMERCIAL SALES
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to ~ndustrial Customers with an average annual usage of less than 3,000 Mcr.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to service
being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the
amounts due under the riders listed below:
Charge Amount
Customer $20.00 per month
First 0 Mcf to 30 Mcf $ 1.5327 per Mcr
Next 320 Mcf $ 1.2827 per Mcf
All Additional Mcf $ 1.0329 per Mcf
Gas Cost Recovery: Plus an amount for gas costs calculated in accordance with Rider GCR.
Capital Investment Adjustment Factor: Plus an amount for capital improvements calculated in
accordance with Rider ClAF.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
Service is provided and received pursuant to the terms and conditions in the Company's Tariff for Gas
Service. An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
-19-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 9 Rate I - Industrial Sales
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 2
RATE I - INDUSTRIAL SALES
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day for
all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial
Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Company's sole
option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to service
being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following meter and MMBtu charges to the amounts
due under the riders listed below:
Charge Amount
Meter $150.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.7879 per MMBtu
Next 3,500 MMBtu $ 0.6414 per MMBtu
Next 45,000 MMBtu $ 0.4949 per MMBtu
All Additional MMBtu $ 0.3485 Der MMBtu
Gas Cost Recovery: Plus an amount for gas costs calculated in accordance with Rider GCR.
Capital Investment Adjustment Factor: Plus an amount for capital improvements calculated in
accordance with Rider ClAF.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for sumharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer
will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200%
of the midpoint price for the Katy point listed in Platls Gas Daily published for the applicable Gas Day in the
table entitled "Daily Price Survey."
-20-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 9 Rate I - Industrial Sales
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 2
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled
"Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a
daily price index recognized as authoritative by the natural gas industry and most closely approximating the
applicable index.
Agreement
Service is provided and received pursuant to the terms and conditions in the Company's Tariff for Gas
Service. An Agreement for Gas Service may be required,
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having
jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company al~ costs associated with the acquisition and installation of the meter,
-21-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 10 I Rate T - Transportation
APPLICABLE TO: Entire System I REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 3
RATE T - TRANSPORTATION
Application
Applicable, in the event thai Company has entered into a Transportation Agreement - Distribution, to a
customer directly connected to the TXU Distribution System (Customer) for the transportation of all natural
gas supplied by Customer or Customer's agent at one Point of Delivery for use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to service
being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following meter and MMBtu charges to the amounts and
quantities due under the riders listed below:
Charge Amount
Meter $150.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.7879 per MMBtu
Next 3,500 MMBtu $ 0.6414 per MMBtu
Next 45,000 MMBtu $ 0.4949 per MMBtu
All Additional MMBtu $ 0.3485 per MMBtu
Capital Investment Adjustment Factor: Plus an amount for capital improvements calculated in
accordance with Rider CIAF.
Retention Adjustment: Plus a quantib/of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
-22-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 10 I Rate T - Transportation
APPLICABLE TO: I Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 3
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Daily Imbalance Fees
Company may, upon prior written notice, begin billing Customer for Excess Daily imbalance Quantities
during each month. "Excess Daily Imbalance Quantities" means the portion of Customer's daily
imbalance that exceeds 10% of Customer's receipt quantities for such Gas Day. Customer shall pay
Company for each MMBtu of any Excess Daily Imbalance Quantities incurred during a month at the
greater of: (i) $0.10 per MMBtu, or (ii) 150% of the difference between the highest and the lowest
"midpoint" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Surve~/' during
such month.
Hourly Imbalance Fees
For a Customer whose maximum daily quantity established in the applicable Transportation Agreement is
10,000 MMBtu or greater, Company will bill such Customer each month for Excess Hourly Imbalance
Quantities. "Excess Hourly imbalance Quantities" means that portion of the difference between the
quantity delivered to Customer during any hour, and the average hourly confirmed Receipt Nomination for
such Gas Day, which exceeds 10% of such average confirmed Receipt Nomination. Customer shall pay
Company for each MMBtu of any Excess Hourly Imbalance Quant[ties incurred during a month a fee of
$0.50 per MMBtu.
Operational Flow Order Imbalance Fee
In the event Company has notified Customer that an Operational Flow Order (OFO) is in place, Customer
shall pay Company a fee on Excess Hourly OFO Imbalance Quantities during any Operational Flow Order
event. "Excess Hourly OFO Imbalance Quantities" means:
(a) In the event Company notifies Customer that receipt point quantities should be equal to or
greater than delivery point quantities, Excess Hourly OFO Imbalance Quantities is that portion of
the positive difference between (i) the quantities delivered to Customer during any hour, less
the average hourly confirmed Receipt Nomination for such Gas Day, which exceeds 10% of such
confirmed Receipt Nomination; or
(b) In the event Company notifies Customer that receipt point quantities should be less than
or equal to delivery point quantities, Excess Hourly OFO Imbalance Quantities is that portion of
the positive difference between (i) the average hourly confirmed Receipt Nomination for the
applicable Gas Day, less (ii) the quantities delivered to Customer during any hour of such Gas
Day, which exceeds 10% of such Receipt Nomination.
Customer shall pay Company for each MMBtu of any Excess Hourly OFO Imbalance Quantities incurred
during a month at 150% of the highest ~common" price for the Katy point listed in Platts Gas Daily in the
table entitled "Daily Price Survey" during the time the Operational Flow Order is in place.
-23-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 10 I Rate T - Transportation
APPLICABLE TO: I Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 OF 3
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated [evet of curtailmen[ or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Dai~y Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A Transportation Agreement - Distribution is required. A Transportation Agreement - Distribution is found
in Section Vii of the Tariff for Gas Service.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
-24-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: 11 I Rider GCR - Gas Cost Recovery
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
RIDER GCR - GAS COST RECOVERY
Application
Applicable to Rate R, Rate C, and Rate I for all gas sales made by Company The amount due for gas cost
recovery is determined by multiplying the Gas Cost Recovery Factor (GCRF) by the Customer's monthly
volume. For Customers receiving service under Rata R and Rate C, monthly volume will be calculated on an
Mcf basis. For Customers receiving service under Rate I, monthly volume will be calculated on an MMBtu
basis and the quantities will be adjusted as necessary to recover actual costs.
Method of Calculation
The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor (GCRF), as
determined with the following formula:
GCRF = Estimated Gas Cost Factor (EGCF) + Reconciliation Factor (RF) + Taxes (TXS) +
Adjustments (AD J)
EGCF = Estimated cost of gas, including lost and unaccounted for gas attributed to residential,
commercial, and industrial sales, and any reconciliation balance of unrecovered gas costs, divided
by the estimated total residential, commercial, and industrial sales.
RF = Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of interest,
over the preceding twelve-month period ended June 30 and the Actual Gas Cost Billed over that
same twelve-month period by the estimated total residential, commercial, and industrial sales for the
succeeding October through June billing months.
Actual Gas Cost Incurred = The sum of the costs booked in TXU Gas account
numbers 800 through 813 and 858 of the NARUC Uniform
System of Accounts, including the net impact of injecting
and withdrawing gas from storage. Aisc includes a credit
or debit for any out-of-period adjustments or unusual or
nonrecurring costs typically considered gas costs and a
credit for amounts received under Rate CGS, Rate PT, and
Rate T as Imbalance Fees or Curtailment Overpull Fees.
Actual Gas Cost Billed = EGCF multiplied by the monthly volumes billed to
customers receiving service under Rate R, Rate C, and
Rate I.
TXS = Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by the
estimated total residential, commercial, and industrial sales.
ADJ = Any surcharge or refund ordered by a regulatory authority, inclusive of interest, divided by the
estimated total residential, commercial, and industrial sales.
Any differences between the amount actually collected under Rider GCR and the amount of Rider GCR plus
interest on the remaining monthly total balance will be maintained in the reconciliation balance and included
in the EGCF in the calculation of the succeeding Rider GCR amount.
-25-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: 12 I Rider FF - Franchise Fee Adjustment
APPLICABLE TO: I Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 1
RIDER FF- FRANCHISE FEE ADJUSTMENT
Application
Applicable to Customers inside the corporate limits of an incorporated municipality that imposes a
municipal franchise fee upon Company for the Gas Service provided to Customer.
Monthly Adjustment
Company will adjust Customer's bill each month in an amount equal to the municipal franchise fees
payable for the Gas Service provided to Customer by Company. Municipal franchise fees are determined
by each municipali~s franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees.
From time to time, Company will make further adjustments to Customer's bill to account for any over- or
under-recovery of municipal franchise fees by Company.
-26-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: 13 I Rider SUR - Surcharges
APPLICABLE TO: I Entire System REVISION: 0
J
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
RIDER SUR - SURCHARGES
Application
Applicable to customer classes as authorized by the state or any governmental entity, a municipality, or a
regulator~ authority pursuant to any statute, ordinance, order, rule, contract, or agreement.
Monthly Calculation
Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract, or
agreement.
-27-
V. MISCELLANEOUS SERVICE RATES
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: I Miscellaneous Service Rates I
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 1
V. MISCELLANEOUS SERVICE RATES:
-28-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 14 I Rate ANS - Ancillary Services I
Entire System ]
APPLICABLE TO: REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 2
RATE ANS - ANCILLARY SERVICES:
Application
Applicable, in the event Company has entered into an agreement for one or more ancillary services, to
shippers, operators, gas marketers, and other similar customers utilizing Company services and facilities
to (1) transport third-party gas to points of delivery for ultimate delivery to customers that are not located
on the Company's system or (2) supplement or enhance the ability of such parties to engage in pipeline
transactions. Fees for such services are determined by individual contract. These services are provided
at the sole discretion of Company.
Ancillary Services
Ancillary Services include but are not limited to:
OFF Transportation for Off-System Customers
Transportation service for marketers, producers, suppliers, and other similar customers who wish
to have their gas supplies transported from a point of interconnection with the TXU Gas Pipeline
System to another point of interconnection with the TXU Gas Pipeline System for gas supplies
leaving the TXU Gas Pipeline System. Not applicable in conjunction with service provided under
Rate PT or Rate T.
CMP Compression
Charged to operators or shippers for compression services utilized to enhance the deliverability of
gas into the TXU Gas System.
PAR Parking
Utilized to compensate Company for holding gas volumes for an agreed upon length of time.
Parking and unparking must occur at the same agreed upon interconnect point.
LND Lending
Utilized to compensate Company for allowing customer to take gas volumes and return an equal
quantity of gas to Company at a later date. Lending and return of lent volumes must occur at the
same agreed upon interconnect point.
STO Storage
Storage is available on an interruptible basis through an open season bid process, Bids include
demand payment, commodity fee for transportation and injection, commodity fee for withdrawal
and transportation, and a retention pementage assessed on quantities received for injection.
BLN Blending
Charged for accepting gas that does not meet current gas quality specifications, but can be
blended with other compliant gas quantities to the extent that pipeline conditions trom time to time
permit. Blending components consist of BTU, CO2, and/or total inerts.
-29-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 14 I Rate ANS - Ancillary Services
APPLICABLE TO: Entire System REVISION; 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 2
POL Pooling
Charged for gas delivered from the party's pool for the month in order to facilitate party's
aggregation of its gas supply.
HUB Hub (Header)
For intrastate transportation service involving short distance transportation within a limited
geographic area.
FCA Facility Construction and/or Operation
Installation and/or maintenance of equipment at the point of delivery or receipt by the Company for
the provision of new natural gas supplies into the Company's pipeline system or delivered to the
applicable Customer through the Company's pipeline system.
XCH Exchange
The receipt of gas from a customer in exchange for the delivery of gas to the customer, where
receipt and delivery of such gas is not complete during the accounting period.
Charges
Charges applicable to customers are also subject to fees for Iow volume meter, meter and/or meter
measurement, minimum deficiency, swing, and/or capacity enhancement and will be included in the
applicable contract.
Charges for Ancillary Services not listed above are also determined by individual contract.
-30-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 15 I Rate LEP - Line Extension Policy
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 3
RATE LEP- LINE EXTENSION pOLICY
Application
This Line Extension Policy addresses the requirements associated with the extension of Company's system
facilities at the request of a Customer in the following situations:
(1) Installation of standard distribution facilities;
(2) Installation of non-standard distribution facilities;
(3) Upgrades of distribution facilities; and
(4) Installation of pipeline facilities.
Company is responsible for the construction of its system facilities necessary to connect customer Points of
Delivery to the Company's system. Payments in the form of a contribution in aid of construction (ClAC) or an
advance for construction may be required prior to the commencement of construction from the customer who
requested the construction service.
For the purpose of this Rate LEP, "Bona-fide Residential Customer" means a single Residential Customer
with minimum installed facilities consisting of (1) unsupplemented gas space heating or gas water heating and
(2) at least one other gas outlet.
Type of Extension
Single Residential Main and Service Line Extension
Applicable to extension of standard distribution facilities to a single Bona-fide Residential Customer.
Company will provide a standard allowance of up to 20 feet of Main Line and 10 feet of Service Line extension
in Normal Soil at no cost.
If the Main Line or Service Line extension exceeds the standard allowance, the Residential Customer ( or the
Residential Customer's authorized agent) will be responsible for reimbursing the Company the excess cost
pnor to construction as a one-time non-refundable ClAC and any related franchise fees.
Residential Developer Main Line Extension
Applicable to extension of standard distribution facilities to two or more Bona-fide Residential Customers from
the same extension.
The developer will install the Main Line facilities utilizing a Company-approved Contractor, or pay the Company
to install the Main Line facilities.
Company will refund the developer's installation cost or an amount equivalent to the Company's cost to install
the standard allowance of up to 20 feet of Main Line in Normal Soil, whichever is tess, for each Bona-fide
Residential Customer requesting and receiving service within three years of the installation date.
The Company's cost of installation for refund purposes will be based on the Company-approved contractor's
cost for the actual length of Main Line installed at the time of installation.
-31-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 15 Rate LEP - Line Extension Policy
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 3
If the length of the Main Line extension exceeds the standard allowance, then prior to construction, the
developer will be responsible for reimbursing Company the excess cost as a one-time non-refundable CIAC
together with any related franchise fees,
Residential Development Service Line Extension
Applicable to extension of service line to a Bona-fide Residential Customer (or Residential Customer's
authorized agent) in a residential development. Company will provide a standard allowance of up to 10 feet
of Service Line in Normal Soil at no cost to each Bona-fide Residential Customer. If the Service Line
extension exceeds the standard allowance, the Customedbuilder will be responsible for reimbursing the
Company the excess cost prior to construction as a one-time non-refundable CIAC together with any related
franchise fees.
Commercial Main and Service Line Extension
Applicable to extension of standard distribution facilities to a permanent Commercial Customer.
Subject to refund for permanent Commercial Customers, Customer will install the Main Line and Service Line
facilities utilizing a Company-approved contractor or pay Company to install the Main Line and Service Line
facilities.
Company will refund to Customer the lesser of Customer's installation cost or an amount not to exceed
Company's Standard Allowance as determined by the formula below.
All refunds are predicated on Customer's estimated annual Mcr being attained within two years of the
installation date. The Standard Allowance is calculated based on the estimated data (e.g., annual Mcf, MMBtu,
equipment installed) supplied by Customer. Prior to any refunds to Customer, Company will conduct a review
of the actual annual Mcr to determine the accuracy of the estimated data supplied by the Customer. If at the
end of two years after Company has completed the extension of Distribution System facilities, the estimated
usage has not materialized, Company will recalculate the Standard Allowance based upon actual data.
Refunds, if any, will be based on the recalculation.
If Company installs the Distribution System facilities, then the amount of the CIAC for Distribution System
facilities will be determined by the formula below, if the amount calculated below is zero or negative, then
a non-refundable CIAC is not required for provision of the requested Distribution System facilities and
Customer will be eligible for a refund of the entire Standard Allowance. All calculations and component
costs used in the determination of the CIAC will be provided to a Commercial Customer upon request.
Customer will also be responsible for any franchise fees related to the CtAC.
CIAC Amount = Direct Cost - Standard Allowance
. Direct Cost = Company's current average cost of each component of
Distribution System facilities necessary to provide Distribution
Service to a Commercial customer, determined by an estimate of
all necessary expenditures, including, but not limited to Main
Lines, Service Lines, and rearrangement of the existing
Distribution System facilities. The Direct Cost includes the cost
of the.above-mentioned facilities that are to be installed, any
applicable taxes or fees, and overheads, and may include the
costs of facilities necessary to meet future Icad growth
anticipated to develop in the area within two (2) years
-32-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 15 Rate LEP - Line Extension Policy
APPLICABLE TO: Entire System I REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 OF 3
Standard Allowance = $5.00 x Annual Mcf
Annual Mcr = Company's estimate of Commercial Customer's annual Mcr
based on expected usage patterns and equipment data supplied
by Commercial Customer. In no event shall Annual Mcr exceed
3,000 Mcf for purposes of determining the Standard Allowance.
Industrial Extensions
If Company, in its sole discretion, agrees to the requested extension, then Customer will (1) install all
facilities required by Company that are necessary to provide service to Customer utilizing a Company-
approved contractor, or (2) pay Company to install the necessary facilities.
Extension of Pipeline Facilities
If Customer wishes to connect directly to the TXU Pipeline System, then, if Company in its sole discretion
agrees to the requested connection, Customer will pay all costs associated with the connection as
determined by Company.
Special Conditions
In those areas governed by an existing franchise, nothing in this tariff is intended to supersede a provision
of such franchise.
If the Company installs facilities, then Customer/developer must provide, without cost to Company,
suitable space on Customer's premises for installation of facilities and a cleared right-of-way or easement
for the installation of the facilities. If the Main Line or Service Line extension exceeds the allowable
footages as outlined in this Rate, or the soil is other than Normal Soil, then Customer/developer will be
responsible for additional costs associated with excess footage and/or non-Normal Soil conditions. The
additional costs associated with excess footage and non-Normal Soil conditions will be as calculated by
Company and will be reviewed periodically and updated accordingly.
All extensions are made to minimize the cost of such extension.
If facilities in excess of those necessary to serve Customer are installed, then a refund mechanism may
be instituted by Company to reimburse Customer for the difference between the cost of the facilities
needed to serve Customer's request and those actually installed, provided service in the area meets the
estimated usage levels furnished by Customer at the time of installation.
A Utilization Contract must be executed by the Customer/developer to be eligible for any refund.
-33-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 16 I Rate M - Miscellaneous Char~les ~
LEFFECTIVE DATE: PAGE: 1 OF 3
RATE M - MISCELLANEOUS CHARGES:
Application
The service charges listed below are in addition to any other charges made under Company's Tariff for
Gas Service and will be applied for the condition described. Other services not covered by these standard
conditions will be charged on the basis of an estimate for the job or the Company's cost plus appropriate
adders.
Applicable Charges:
Charge No. Name and Description
1 Connection Charge
The following connection charges apply:
Schedule Charqe
business hours $ 65.00
after hours $ 97.00
For each reconnection of gas service where service has been discontinued at the same
premises for any reason, for the initial inauguration of service, and for each inauguration
of service when the billable party has changed, with the following exceptions:
(a) For a builder who uses gas temporarily during construction or for display
purposes.
(b) Whenever gas service has been temporarily interrupted because of
System outage or service work done by Company; or
(c) For any reason deemed necessary for ComPany operations.
2 Field Read of Meter
A read for change charge of $19.00 is made when it is necessary for the
Company to read the meter at a currently served location because of a change
in the billable party.
3 Returned Check Charges
A returned check handling charge of $20.00 is made for each check returned
to Company for any reason.
-34-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 16 Rate M - Miscellaneous Char~les
APPLICABLE TO: Entire System t REVISION: 0
EFFECTIVE DATE:I PAGE: 2 OF 3
Charge No. Name and Description
4 Charge for Installing~and Maintaining
an Excess Flow Valve
A customer may request the installation of an excess flow valve provided that
the service line will serve a single residence and operate continuously
throughout the year at a pressure of not less than 10 psig. The customer will
pay the actual cost incurred to install the excess flow valve. That cost will
include the cost of the excess flow valve, the labor cost required to install the
excess flow valve, and other associated costs. The estimated total cost to
install an excess flow valve is $50.00. This cost is based on installing the
excess flow valve at the same time a service line is installed or replaced. The
excess flow valve will be installed on the service line upstream of the
customer's meter and as near as practical to the main.
A customer requiring maintenance, repair, or replacement of an excess flow
valve will be required to pay the actual cost of locating and repairing or
replacing the excess flow valve. The cost to perform this service will normally
range from $200.00 to $2,000.00, depending on the amount of work required.
This cost will be determined on an individual project basis.
This tariff is being filed in accordance with the U.S. Department of
Transportation rule requiring the installation of an excess flow valve, if
requested by a customer, on new or replaced service lines that operate
continuously throughout the year at a pressure of not less than 10 psig and
that serve a single residence. The rule further states that the customer will
bear all costs of installing and maintaining the excess flow valve.
5 Recovery of Connection Costs Associated
with Certain Stand-By Gas Generators
Commercial customers installing stand-by gas generators to provide service in
the event of an interruption in electric service in facilities where gas service is
not otherwise provided will reimburse the Company for the actual cost of
acquiring and installing the regulator, service line, and meter required to
provide gas service for the stand-by generators. Gas service provided for the
stand-by generators will be billed at the applicable commercial rate.
6 Charge for Temporary
Discontinuance of Service - Residential
Whenever service under this rate schedule has been temporarily disconnected
at the request of the customer, a charge of $65.00 plus the appropriate
Connection Charge will be made to reestablish such service for that customer
at the same address.
-35-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 16 Rate M - Miscellaneous Charges
APPLICABLE TO: Entire System REVISION: 0
EFFECTIVE DATE: PAGE: 3 OF 3
Charge No. Name and Description
7 Charge for Tempora~
Discontinuance of Service - Non-Residential
Whenever service under this rate schedule has been temporarily disconnected
at the request of the customer, a charge of $107,00 plus the appropriate
Connection Charge will be made to reestablish such service for that customer
at the same address.
8 Charge for Meter Testing
The Company shall, upon request of a customer, make a test of the accuracy
of the meter serving that customer. The Company shall inform the customer of
the time and place of the test and permit the customer or his authorized
representative to be present if the customer so desires, tf no such test has
been performed within the previous four (4) years for the same customer at the
same location, the test shall be performed without charge. If such a test has
been performed for the same customer at the same location within the
previous four (4) years, the Company will charge a fee of $15.00. The
customer must be properly informed of the result of any test on a meter that
serves him.
9 Charge for Service Calls
A Service Call Charge is made for responding to a service call that is
determined to be a customer re~ated problem rather than a Company or
Company facilities problem.
$26.00 business hours
$40.00 after hours ·
10 Tampering Charge
No Company Meters, equipment, or other property, whether on Customer's
premises or elsewhere, are to be tampered with or interfered with for any
reason. A Tampering Charge is made for unauthorized reconnection or other
tampering with Company metering facilities, or a theft of gas service by a
person on the customer's premises or evidence by whomsoever at customer's
premises. An additional cost for the cost of repairs and/or replacement of
damaged facilities and the installation of protective facilities or relocation of
meter are made at cost plus appropriate charges as detailed in Company's
Service Rules and Regulations.
$125.00
-36-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: '17 I Rider CT - Competitive Transportation Service --
EFFECTIVE DATE: PAGE: 1 OF 1
RIDER CT - COMPETITIVE TRANSPORTATION SERVICF
Application
Applicable at Company's sole discretion to any Customer that otherwise qualifies for se~ice under Rate
PT or Rate T and that in Company's sole judgement would not be served by Company but for the pdcing
provided pursuant to this Rider.
Applicable only to Points of Delivery that meet the requirements of the previous paragraph,
Monthly Rate
At Company's sole discretion, a discount to the otherwise applicable monthly rate may be offered to any
qualifying Customer subject to the special conditions set forth herein.
The discounted rate applicable to transportation service under this provision shall be specified in the
associated Transportation Agreement.
Customer must furnish Company a notarized affidavit and supporting information confirming to the
satisfaction of the Company that Customer qualifies for discounted service pursuant to TUC 104.003(b).
Agreement
A Transportation Agreement is required.
-37-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: 18 Rider ClAF - Capital Investment Adiustment Factor
Entire System REVISION: 0
APPLICABLE TO: DATE:
EFFECTIVE DATE: PAGE: I OF 2
RIDER ClAF - CAPITAL INVESTMENT ADJUSTMENT FACTOR
Applicability
This adjustment is applicable to customers taking service under Rate CGS, Rate PT, Rate R, Rate C,
Rate I, and Rate T. The long-term incremental cost of service related to net utility plant invested by
Company during the year is added to the stated customer or meter charge in each rate schedule. The
long-term incremental costs are collected to cover the costs of capital improvements to repair, replace,
and improve Company's natural gas system. This is done by determining a Gas Reliability Infrastructure
Program Adjustment as described below.
Method of Calculation
A Gas Reliability Infrastructure Program Adjustment (GRIPA) is calculated annually in Mamh of each year
for each major rate class. The formula for the GRIPA is:
Distribution System
GRIPA = (APl * FCR ' CAF) / S
APl = Annual change in net utility plant investment from prior year as of December 31.
FCR= Monthly Fixed Charge Rate of 1,288%.
CAF= Capacity Allocation Factor for the major rate classes from Company's cost allocation study
approved in the most recent rate case as follows:
Capacity Allocation
Distribution Rate Class Rate Schedule Factor (CAF)
Residential Rate R 0.573869
Commercial Rate C 0.292377
Industrial & Transportation Rate I & Rate T 0.133754
S = The number of customers for Rate R and Rate C at the end of the prior year and the number of
meters for Rate I and Rate T at the end of the prior year.
Pipeline System
GRIPA = (APl ' FCR * CAF)/S
APl = Annual change in net utility plant investment from prior year as of December 31.
FCR= Monthly Fixed Charge Rate of 1.151%.
CAF= Capacity Allocation Factor for the major rate classes from Company's cost allocation study
approved in the most recent rate case as follows:
-38-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: 18 I Rider ClAF - Capital Investment Adjustment Factor
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 2
Capacity Allocation
Pipeline Rate Class Rate Schedule Factor (CAF)
City Gate Rate CGS 0.804520
Pipeline Transportation Rate PT 0.195480
S = The number of meters for each major rate class at the end of the prior year.
Notice
Service hereunder is subject to the orders of regulatory bodies having jurisdiction and to Company's Tariff
for Gas Service.
-39-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: 19 Rider RA - Retention Adjustment
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
RIDER RA - RETENTION ADJUSTMENT
Application
The Retention Adjustment, as determined from time to time, is applicable to Customers taking service
under Rate CGS, Rate PT, and Rate T.
Monthly Rate
Retention percentage for Rate CGS and Rate PT is 1.00% (applied to gas received into TXU Gas Pipeline
System).
Retention percentage for Rate T is 3.56% (applied to gas received into TXU Gas System).
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RIDER: 20 Rider TAX - Tax Adjustment
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
RIDER TAX - TAX ADJUSTMENT
Application
Applicable to Customers taking service under Rate R. Rate C, Rate I, Rate T, Rate CGS, and Rate PT, except
for exempt State Agency Customers, to the extent of state gross receipts taxes only.
Each monthly bill shall be adjusted for state gross receipts taxes imposed by Sections 182-021 -
182-025 of the Texas Tax Code.
Each monthly bill shall also be adjusted by an amount equivalent to the amount of all applicable taxes and any
other governmental impositions, rentals, fees. or charges (except state, county, city. and special district ad
valorem taxes and taxes on net income) levied, assessed, or imposed upon or allocated to Company with
respect to the Gas Service provided to Customer by Company. and any associated facilities in,~olved in the
performance of such Gas Service. Each monthly bill shall also be adjusted by an amount equivalent to the
proportionate part of any increase or decrease of any tax and any other governmental imposition, rental, fee,
or charge (except state, county, city, and special district ad vatorem taxes and taxes on net income) levied,
assessed, or imposed subsequent to the effective date of this tariff, upon or allocated to Company's
operations, by any new or amended law, ordinance, or contract.
VI. SERVICE RULES AND REGULATIONS
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: Service Rules and Re~lu!ations
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 1
VI. SERVICE RULES AND REGULATIONS
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 21 Service Rules and Regulations - Forward
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
1, Foreword
These Service Rules and Regulations (the "Service Regulations") will govern the supplying of Gas
Service by Company. These Service Regulations are effective upon filing with the applicable Regulatory
Authority and replace all such regulations, by whatever term designated, which may heretofore have
governed the supplying of Company's Gas Service. Unless otherwise specified in an executed
Agreement for Gas Service, these Service Regulations are applicable to all Customers who receive Gas
Service from Company. In case of conflict between the provisions of an Agreement for Gas Service and
these Service Regulations, the provisions of the Agreement for Gas Service will control. These Service
Regulations are subject to change, from time to time, by Company and RegulatoW Authorities having
jurisdiction, and are on file at Company's business offices at 500 N. Akard Street in Dallas, Texas, and
with various Regulatory Authorities. These Service Regulations are intended to satisfy the requirements
of Commission Substantive Rule 7.45 (Quality of Service), and the content and requirements in Rule 7.45
are expressly incorporated herein. If there is any conflict between these Service Regulations and Rule
7.45, then the provisions of Rule 7.45 will control as to such conflict.
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 of 10
Gas Service
A. Availability of Gas Service
Customer requests for Gas Service of the character and type provided by Company are granted
within the limitations of the applicable Rate Schedule for Gas Service, the availability of Company
facilities and capacity, and these Service Regulations. Company may require special contractual
arrangements, which may include additional charges, prior to Company's providing Gas Service if
the Gas Service requested by Customer is not available at the Point of Delivery, is other than that
which Company usually provides, or if the service requested is not adequately compensated for
by the applicable Rate Schedule.
B. Gas Service to Apartment Houses, Mobile Homes, or Other Multiple-Party Points
(1) Apartment House
Company will provide Gas Service through an individual Meter to each Dwelling Unit or
through one Meter at each Point of Delivery for any number of Dwelling Units in the same
Apartment House. Where Gas Service is provided using individual metering for each
Dwelling Unit, Customer will group and identify Meters in a manner and at locations
suitable to Company.
(2) Mobile Homes
Company may provide Gas Service through an individual Meter to each space in a
mobile home park and Customer will group and identify Meters in a manner and at
locations suitable to Company.
(3) Other Multiple-Party Points
Company may provide Gas Service to a new Customer through gas facilities owned by
an existing Customer, with the consent of the existing Customer. In such event, the
metered gas usage registered on the existing Customer's Meter will be reduced by an
appropriate amount to recognize the usage of the new Customer.
Under this method of service, the new Customer, the existing Customer, and Company
will complete an agreement setting forth the responsibilities of each party.
C, Maine and Service Lines
(1) Company's Mains
Company will extend its Gas Mains for Customer in accordance with Rate LEP - Line
Extension Policy.
(2) Service Lines
Company will extend its Service Lines for Customer in accordance with Rate LEP - Line
Extension Policy. Company will furnish, install, and maintain the Service Lines
connecting Company's distribution system to the Meter at the Point of Delivery. Where
Customer installs or plans to install obstructions (asphalt or concrete walk, driveway,
retaining wall, paved parking lot, etc.) in the path of Company's Service Lines, Company
may require Customer to reimburse Company for any additional costs incurred in the
installation or relocation of the Service Lines as a result of any such obstruction.
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 of 10
(3) New Construction
(a) Company will construct, install, operate, and maintain its plant,
structures, equipment, and lines in accordance with the provisions of such Codes
and standards as are generally accepted by the industry, as modified by rule or
regulation of the applicable Regulatory Authority, or otherwise by law, and in
such manner to best accommodate the public and to prevent interference with
service furnished by other public utilities insofar as practical.
(b) Company will seek to serve each qualified Applicant for service within its
service area as rapidly as practical. As a general policy, those applications not
involving line extensions or new facilities will be filled within seven (7) working
days, and those applications for individual residential service requiring line
extensions will be filled within ninety (90) days. unless unavailability of materials
or other causes beyond the control of Company result in unavoidable delays.
Do Meters
(1) General
(a) Unless otherwise authorized by the applicable Regulatory Authority,
Company will provide and install, and will continue to own and maintain, all
Meters necessary for the measurement of gas delivered to its Customers.
Customer will provide space, without cost to Company, which is suitable for
installation of Company's Meter and metering equipment. Company will instalt,
or cause to be installed, communications equipment to allow for the electronic
monitoring of metering equipment for each Point of Derivery to an Industrial
Customer. Industrial Customers will reimburse Company, within ten days from
receipt of Company's invoice, for any such communications or related metering
equipment and associated equipment, and all labor and overhead expenses
attributable to such equipment. Failure to reimburse Company, as provided
herein, will allow Company to suspend Gas Service to the Industrial Customer at
the applicable Point of Delivery. No metering equipment may be by-passed for
any reason, without prior approval of Company.
(b) All gas sold or transported by Company will be charged for by Meter
measurements, except where otherwise provided for based upon applicable
laws, regulation of the Regulatory Authority, or this Tariff for Gas Service.
(c) Company will not furnish, set up, or put in use any Meter that is not
reliable and of a standard type that meets generally accepted industry standards;
provided, however, special Meters not necessarily conforming to such standard
types may be used for investigation, testing, or experimental purposes.
(2) Location of Meter
Meters and associated equipment will be installed in a location suitable to Company and
in such a way that a clear working space is provided on all sides. Meters for Residential
Customers are to be located outside the building. Meter locations for nonresidential
Customers normally will be outside the building at the property line. Inside locations may
be permitted with prior written approvat of Company. Additional charges may be required
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 of 10
for Meters installed inside a building or in a location that does not have a clear working
space on all sides.
Meters will not be installed:
(a) in any hazardous location;
(b) in any place where vibration, moisture, fumes, or dust may damage the
Meter or interfere with its operation;
(c) directly over any stairway, ramp, or steps;
(d) at any location that probably at a later date will be enclosed to make the
Meter inaccessible;
(e) in any location accessible only through a hatchway, trapdoor, or by
means of a ladder; or
(f) on or recessed in the external surface of any wall that is within three feet
of any property line, or that is over the edge of any walk, alley, or drive way,
which provides access to commercial or industrial property except with the
written consent of Company.
Company will assist in determining Meter locations upon request and may waive certain
of these requirements for good cause as determined in Company's sole discretion.
(3) Relocation of Meter
Company may, at its option, relocate any Meter. In case of a relocation made at the
request of Customer, or made necessary due to inaccessibility, hazardous location, or
dangerous conditions for which Customer is responsible, or in order to prevent a
recurrence of unauthorized use of gas or tampering with Company equipment, Customer
will be required to pay the cost to relocate the metering equipment to a location
agreeable to Company.
Under no circumstance may any Meter be moved or relocated except as authorized by
Company.
(4) Testing of Meter
(a) Company will, upon written request of Customer, make a test of the accuracy
of the Meter serving Customer. Company will inform Customer of the time and
place of the test and permit Customer or Customer's authorized representative to
be present if Customer so desires. The Meter may be tested at either
Customer's premises or a Company test facility at Company's discretion.
Following any such requested test, Customer will be advised of the date of the
removal of the Meter, the date of the test, and the result of the test. Customer
may be required to pay for the Meter testing in accordance with Rate M -
Miscellaneous Charges, Charge for Meter Testing.
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 4 of 10
(b) Notwithstanding Paragraph (a) above, if the Meter is found to be more
than nominally defective, to either Customer's or Company's disadvantage, then
any fee charged for a Meter test will be refunded to Customer. More than
nominally defective means a deviation of more than two percent (2%) from
accurate registration.
(5) Meter Records
Company will keep the following records for all Meters serving Residential or Commercial
Customers:
(a) A record of all Meters, showing each Customer's address and date of the
last test.
(b) A record of each Meter test made on request of Customer, showing the
identifying number and constants of the Meter, the standard Meter and other
measuring devices used, the date and kind of test made, by whom made, the
error (or percentage of accuracy) at each load tested, and sufficient data to
permit verification of all calculations.
(6) Meter readings
In general, each Meter will indicate clearly the units of service for which a charge is made
to Customer.
(7) Bill Adjustments Due to Meter Error
(a) If any Meter test requested by a Residential or Commercial Customer
reveals a Meter to deviate by more than two pement (2%) from accurate
registration, then Company will correct previous readings consistent with the
inaccuracy found in the Meter for the period of either:
(i) the last six (6) months, or
(ii) the last test of the Meter, whichever is shorter.
Any resulting under billings or over billings will be corrected in subsequent bitls,
unless service is terminated, in which event a monetary adjustment will be made.
This requirement for a correction may be waived by Company if the error is to
Company's disadvantage.
(b) If a Meter is found not to register for any period of time, then Company
may make a charge for units used but not metered for a period not to exceed
three (3) months previous to the time the Meter is found not to register. The
determination of amounts used but not metered will be based on consumption
during other like periods by the same Customer at the same location. If this
information is not available, then the determination of amounts used but not
metered will be based on consumption under similar conditions at the same
location or of other similarly situated Customers.
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 5 of 10
E. Continuity and Quality of Gas Service
(1) Company will make all reasonable efforts to prevent interruptions of service to
Residential and Commercial Customers. When residential and/or commercial
interruptions occur, Company will re-establish service within the shortest reasonable time
consistent with prudent operating principles so that the smallest number of Residential
and Commercial Customers is affected. Company will make reasonable provisions to
meet emergencies resulting from failure of .residential and commercial service and will
issue instructions to its employees covering procedures to be followed in the event of an
emergency in order to prevent or mitigate interruption or impairment of service to
Residential and Commercial Customers. In the event of national emergency or local
disaster resulting in disruption of normal service, Company may, in the public interest,
interrupt service to other Customers to provide necessary service to civil defense or other
emergency service agencies on a temporary basis until normal service to these agencies
can be restored.
(2) When any Customer is notified by Company to do so, such Customer will curtail,
interrupt, reduce, limit, terminate, or discontinue the use of Gas Service in accordance
with Company's curtailment program approved by the applicable Regulatory Authority. In
the event of any such curtailment, interruption, reduction, limitation, termination, or
discontinuation of Gas Service, Company personnel may enter Customer's premises and
physically turn off the gas or reduce the quantity of gas serving Customer, and no one
other than Company's personnel will thereafter be permitted to increase the quantity of
gas or turn the Gas Service back on. Customer will assume any and all risks, including,
but not limited to, lost profits, damaged or destroyed facilities, lost or damaged
production, damaged or destroyed machinery and/or equipment, and the failure of a
facility or equipment of Customer and/or Customer's business due to a curtailment,
interruption, reduction, limitation, termination, or discontinuation of Customer's Gas
Service in accordance with Company's curtailment program approved by the applicable
Regulatory Authority. Customer will indemnify and hold Company harmless from
and against any and all damages, costs, losses, and expenses (including
reasonable attorneys' fees) that may be sustained by Customer due to any claim,
demand, suit, or action brought against Company (whether or not the claim,
demand, suit, or action is found to be valid) by any person or entity arising out of,
resulting from, or connected, in whole or in part, with, a curtailment, interruption,
reduction, limitation, termination, or discontinuation of Gas Service in accordance
with Company's curtailment program approved by the applicable Regulatory
Authority.
(3) Customer will be responsible for installing and maintaining protective devices as
are necessary to protect Customer's equipment or processes during irregular or
interrupted service, or the failure of part or ale of the Gas Service. in those instances
where Customer experiences interruptions to all or part of the Gas Service of an
undetermined cause and the report of the same to Company prompts a visit to
Customer's premises at Customer's request and it is determined that the interruption or
irregularity resulted from Customer's facilities, Company may charge Customer an
amount based on the cost to Company for such a visit.
-48-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: .... L PAGE: 6 of 10
F. Interruption of Gas Service
Company may, without notice and without incurring liability to Customer, interrupt Gas Service to
Customer when, in Company's sole judgment, such interruption:
(1) will prevent or alleviate an emergency threatening to disrupt the operation of
Company's system;
(2) will lessen or remove possible danger to life or property;
(3) will aid in the restoration of Gas Service; or
(4) is required to make necessary repairs to, tests of, or changes in Company's
facilities;
(5) is authorized elsewhere in this Tariff for Gas Service;
(6) is conducted in accordance with Company's curtailment program approved by
the applicable Regulatory Authority; or
(7) is justified because the applicable Agreement for Gas Service has expired or has
been terminated, and Customer has not executed a new Agreement for Gas Service.
G. Record of Interruption
Except for interruptions that do not cause a major disruption of service, Company will keep a
complete record of all interruptions of residential and commercial Gas Service, both emergency
and schedule<~. Where the interruption lasts more than four (4) hours or affects the entire system.
this record will show the cause for interruptions, date, time, duration, location, approximate
number of Customers affected, and, in cases of emergency interruptions, the remedy and steps
taken to prevent recurrence.
H. Report to Regulatory Authority
The appropriate Regulatory Authority shall be notified in writing within forty-eight (48) hours of
interruptions resulting in total cessation of residential and commercial Gas Service affecting the
entire system or any major segment thereof lasting more than four (4) hours. The notice will also
state the cause of such interruptions. If any residential or commercial service interruption is
reported to the Regulatory Authority for other reasons (for example, as a curtailment report or
safety report), such other report will be sufficient to comply with the terms of this paragraph.
I. Liability and Responsibility for Damage or Injury and Disclaimer of Warranties
(1) Company Liability and Responsibility
Company will be responsible for the design, installation, operation, and
maintenance of gas facilities up to and including the Point of Delivery. Company
will not be responsible for any damage or loss due to the escape of gas from or in
Customer's piping, appliances, or equipment.
Company may perform voluntary or emergency acts to gas facilities that are the
responsibility of Customer but will have no liability for damages or injuries
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 7 of 10
resulting from said acts except to the extent that said damages or injuries are
proximately caused by acts or omissions of Company, which are found to be
wanton or willful with intent to cause injury.
In any claim or cause of action relating to the provision of Gas Service asserted by
a Customer or any other person against Company, Company will not be liable for
any damages resulting from or growing out of defective piping, appliances,
equipment, or other gas facilities belonging to Customer, or the leakage of gas
from, or incomplete combustion of gas by, Customer's appliances. Nor will
Company be liable for damage or loss caused by interruptions, fluctuations, or
stoppage or curtailment in service caused by acts of God, vandalism, strikes, riots,
diminutions or failure of supply of gas, or pursuant to order of a governmental
agency having jurisdiction over Company or Company's suppliers, or, without
limitation by enumeration herein, other events and contingencies that could not in
the ordinary course of commercial, prudent management have been reasonably
foreseen and prevented by Company. In no event will Company be liable to
Customer for any consequential, special, or non-direct damages, including, but not
limited to, loss of use of equipment, lost profits, extra expense due to the use of
temporary or replacement equipment, loss of business revenue, costs of capital, or
any other cost not part of necessary repair to or reasonable replacement of
Customer's gas equipment, whether the claim or cause of action is based upon
contract, tort, negligence, products liability, or any other theory of recovery.
(2) Customer Liability and Responsibility
Customer will be responsible for the design, installation, operation, and
maintenance of gas facilities on Customer's side of the Point of Delivery.
Customer will grant to or secure for Company, at Customer's expense, any rights-
of-way on property owned or controlled by Customer, which are necessary to
provide Gas Service to Customer.
Customer assumes full responsibility for natural gas furnished to Customer at and
past the Point of Delivery and will indemnify Company against and hold Company
harmless from all claims for damage to property or injury to persons resulting from
natural gas or the utilization of natural gas on Customer's property.
Customer must protect Company facilities located on Customer's property.
Customer will indemnify Company against damage to or loss of Company-owned
property located on Customer's premises proximately arising out of, or caused by,
the negligence, carelessness, or willful act of Customer, or Customer's servants,
agents, employees, household members, or any person or persons upon
Customer's premises by authority of Customer's consent or sufferance.
In the event Customer suspects a gas leak, Customer must take all appropriate
actions to prevent ignition of the escaping gas and immediately notify Company
via Company's Emergency Notification number of the suspected gas leak. in
addition, Customer should:
-50-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 8 of 10
(a) exit the premises if the odor is inside a building, leave the door
open for ventilation, and stay away from the suspected source of the leak if
outside;
(b) refrain from operating any electrical switch or device as a spark
could ignite the gas; and
(c) refrain from smoking, striking a match, or causing a spark.
(3) Disclaimer of Warranties
COMPANY MAKES NO WARRANTIES WHATSOEVER WITH REGARD TO THE
PRO¥1SlON OF GAS SERVICE AND DISCLAIMS ANY AND ALL WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
J. Customer Complaints
Upon receipt of a complaint, either by letter or by telephone, from any Residential or Commemial
Customer or Regulatory Authority on behalf of a Residential or Commercial Customer, requiring
further action, Company will make a suitable investigation and advise the Regulatory Authority
and complainant of the results thereof. An initial response acknowledging the receipt of the
complaint will be made by the next working day. Company will make a final and complete
response within fifteen (15) days from the date notice of the complaint is received, unless
additional time is granted within such fifteen (15) day period. All Residential and Commercial
Customer complaints should be made in writing to assist in maintaining records on the quality of
service of Company; however, telephone communications will be acceptable. Company will keep
a record of all Residential and Commercial Customer complaints that will show the name and
address of the complainant, the date and nature of the complaint, and the adjustment or
disposition thereof for a period of one (1) year subsequent to the final disposition of the complaint.
K. Location of Point of Delivery
Customer's installation must be arranged so that the location of the Point of Delivery is
acceptable to Company, taking into consideration the location of existing Company facilities and
construction needed to connect Customer to Company's system.
Any change from a Company-designated Point of Delivery is subject to an additional payment by
Customer based on any added costs to reach the new designated point.
L. Space Requirements
Customer must provide, without cost to Company, suitable space on Customer's premises for the
installation of facilities necessary to provide Gas Service to Customer and for installation of
Company's metering facilities.
M, Customer's Gas Installation
Customer's Gas Installation for receiving Gas Service is to be installed in accordance with
Company's specifications for Gas Service, which are available to Customer at Company's offices
located at 500 N. Akard Street in Dallas, Texas.
N. Inspection and Approval of Customer's Gas Installation
In those locations where an ordinance requires Customer to obtain a certificate of inspection and
-51- :
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 9 of 10
acceptance or a permit, Company will not provide Gas Service to Customer until Company
receives notification of approval of Customer's Gas Installation from the proper authority.
Company does not assume any duty of inspecting Customer's Gas installation and appliances
and will not be responsible therefor. Without limiting the foregoing, Company may decline to
provide Gas Service to any Customer's Gas Installation that Company considers hazardous or of
such character that satisfactory service cannot be given.
The providing of Gas Service by Company does not indicate that Company has inspected
Customer's Gas Installation and pronounced it safe or adequate.
O. Charges for Providing Temporary Gas Service
Customer must pay Company prior to Company's providing Temporary Gas Service the
Connection Charge as set forth in Rate M - Miscellaneous Charges, plus an amount equal to the
estimated cost of removing any necessary facilities, and plus the estimated costs of materials to
be used, which are unsalvageable after removal of the installation.
P. Installation and Maintenance of Company Facilities
Company owns all gas lines and equipment on Company's side of the Point of Delivery and
Customer must not tamper or interfere therewith. In addition, Company owns the Meter
regardless of its location and Customer must not tamper or interfere therewith. Company may
require Customer to install auxiliary metering equipment, furnished by Company, in conjunct[on
with Customer's Gas Installation.
Company will install all gas lines and equipment on Company's side of the Point of Delivery,
unless Company has entered into a written agreement with another party for the installation of
such gas lines and/or equipment. Only personnel authorized by Company may make
connections to Company facilities.
Q. Protection of Company's Facilities On Customer's Premises
Customer must use reasonable diligence to protect Company facilities on Customer's premises
and to permit only personnel authorized by Company or by law to have access to such facilities.
R. Admittance to Customer's Premises
Company shall have access to its property and equipment located upon Customer's premises at
all reasonable times for any purposes connected with or in furtherance of its business operations,
and may remove such property from Customer's premises. If Customer refuses to give Company
access to Company's property and equipment located upon Customer's premises, then Company
may discontinue Gas Service until Customer provides to Company such access. Company is
under no duty or obligation to inspect, maintain, or repair Customer's Gas Installation or
appliances and will not be liable for damages thereto or arising therefrom.
S. Dismantling of Company's Facilities
Company may, upon discontinuation of Gas Service to Customer, dismantle and remove all
pipes, equipment, and other facilities that Company may have installed to provide Gas Service to
Customer. Company may, however, in its sole discretion, abandon in place in whole or in part its
underground lines and equipment in lieu of removing such facilities.
-52-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 22 Service Rules and Regulations - Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 10 of 10
T. Attachments to Company's Facilities
Company does not permit any attachments (such as wires, ropes, signs, banners, or radio
equipment) to Company facilities by others except when authorized in writing by Company.
Company may without notice and without liability remove unauthorized attachments to Company
facilities.
-53-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 23 Service Rules and Regulations - Obtaining Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I of 6
3. Obtaining Gas Service
A. Application for Gas Service
Company has the right to require written application for Gas Service.
(1) Reasons for Refusal of Application for Gas Service
Company may decline service to an Applicant for whom service is available from
previously installed facilities until such Applicant has complied with the state and
municipal regulations and approved rules and regulations of Company on file with the
applicable Regulatory Authority governing the service applied for or for the following
reasons:
(a) solely at the discretion of Company, if the Applicant's installation or
equipment is known to be hazardous, potentially hazardous, or of such character
that satisfactory or accurately metered service cannot be given;
(b) if the Applicant is indebted for the same kind of service previously
provided, including but not limited to unauthorized usage; however, in the event
the indebtedness of the Applicant for service is in dispute, the Applicant will be
served upon complying with the applicable deposit requirement;
(c) for refusal to make a deposit if Applicant is required to make a deposit
under these Service Regulations;
(d) for refusal to provide verifiable identification; or
(e) for changing Customer identity to avoid or evade payment of a utility bill.
Company may require an Applicant to establish that the Applicant is not the
same person who owes the debt to Company for service at the address or
another address and that said person no longer is an occupant of the premises if
one of the following conditions exists:
(i) service has been disconnected st the address within the
preceding thirty (30) days, or a longer period of time after March 31 and
before October 31 of each year, and there is a debt owing to Company
for non-payment of service at said address,
(ii) a past due bill is owing at said address although service has not
yet been terminated, or
(iii) service has been terminated at said address because the utility's
pipe, Meter, or equipment has been bypassed or tampered with, or has
been determined, at the sole discretion of Company, to be inadequate to
provide the total service potential of Customer.
Company may withhold service to the Applicant at said address until the required
information is furnished to Company. If an application for residential or commercial
service is made on or after October 31 and before April 1 and more than thirty (30) days
after disconnection of service, Company will initiate service unless it obtains substantial
-54-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
IRATE SCHEDULE: 23 Se dice Rules and Regulations - Obtaining Gas Service
APPLICABLE TO: Distribution System DATE:REVISION: 0
! EFFECTIVE DATE: PAGE: 2 of 6
evidence that the Applicant is the customer who owes the debt or that the change of
Customer identity is being made to avoid or evade the debt. If service is initiated,
Company may terminate service at any time it acquires the evidence necessary to retuse
service.
(2) Applicant's Recourse
in the event Company refuses to serve a residential or commercial Applicant under the
provisions of these Service Regulations, Company will inform the Applicant of the basis
of its refusal and that the Applicant may file a complaint with the applicable Regulatory
Authority.
(3) Reasons Application for Gas Se~ice Cannot be Refused
The following will not constitute sufficient cause for refusal of service to a present
Residential or Commercial C.stomer or an Applicant for residential or commercial
service:
(a) delinquency in payment for service by a previous occupant of the
premises to be served;
(b) failure to pay for memhandise or charges for non-utility service
purchased from Company;
(c) failure to pay a bill to correct previous under billing due to misapplication
of rates more than six (6) months prior to the date of application;
(d) violation of Company's rules pertaining to operation of nonstandard
equipment or unauthorized attachments, which interfere with the service of
others unless the C,stomer has first been notified and been afforded a
reasonable opportunity to comply with said rules;
(e) failure to pay a bill of another Customer as guarantor thereof unless the
guarantee was made in writing to Company as a condition precedent to service;
or
(f) failure to pay the bill of another Customer at the same address except
where the change of Customer identity is made to avoid or evade payment of a
utility bill.
B. Agreement for Gas Service
Customer may be asked to sign an Agreement for Gas Service, which may include additional
charges, before Company takes act[on to provide Gas Service, In some cases Customer may be
asked to sign an Agreement for Gas Service after Gas Service has been provided.
(1) Default on or Breach of Agreement for Gas Service
In case of conflict between the provisions of an Agreement for Gas Service and the Rate
Schedule specified in such agreement, the provisions of the Agreement for Gas Service
apply. Company may terminate an Agreement for Gas Service for any default or breach
by Customer of such Agreement for Gas Service, these Service Regulations, or
Company's Rate Schedule specified in such Agreement for Gas Service.
-55-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 23 Service Rules and Regulations - Obtaining Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 of 6
Failure of Company to terminate an Agreement for Gas Service at any time after default
or breach by Customer of such Agreement for Gas Service or to resort to any other legal
remedy or its exercise of any one or more of such remedies will not affect Company's
right to resort thereafter to any one or more of such remedies for the same or any future
default or breach by Customer.
If Customer unjustifiably terminates an Agreement for Gas Service, or Company
terminates such Agreement due to a default or breach by Customer, in addition to the
amount then due Company, there immediately will become due and payable to Company
as liquidated damages, and not as a penalty, a further sum equal to the minimum amount
specified in the applicable Rate Schedules or guaranteed in the Agreement for Gas
Service for the un-expired term of the Agreement for Gas Service.
(2) Length of Agreement for Gas Service
An Agreement for Gas Service under any Rate Schedule, except as otherwise therein
provided, will be for a term of not less than one year.
C. Customer Deposits
Company may require an Applicant for Gas Service to provide a deposit or establish credit in a
manner that is satisfactory to Company, in Company's sole discretion, but such establishment of
credit will not relieve any Customer from complying with rules for prompt payment of bills.
(1) Deposit for Residential Applicants
A deposit for residential service required under these Service Regulations will not exceed
an amount equivalent to one-sixth (1/6th) of the estimated annual billings. If actual use is
at least twice the amount of the estimated billings, a new deposit requirement may be
calculated and an additional deposit may be required within ten (10) days. If such
additional deposit is not made, then Company may disconnect service under the
standard disconnection procedure for failure to comply with deposit requirements.
(2) Deposits for Temporary or Seasonal Service
Company may require a deposit sufficient to reasonably protect it against the assumed
risk of temporary or seasonal service and for weekend or seasonal residences, provided
such a policy is applied in a uniform and nondiscriminatory manner.
(3) Deposits for Commercial and Industrial Applicants
Company may require a deposit from commercial and industrial Applicants sufficient to
reasonably protect Company, but such deposit wilt not exceed the sum of Customer's
estimated highest two (2) months billing. If additional gas equipment is installed, a new
deposit requirement may be calculated and an additional deposit may be required.
(4) Residential Exemption
A residential Applicant will not be required to make a deposit if:
(a) the residential Applicant has been a Customer of any utility for the same
kind of service within the last two (2) years, is not delinquent in payment of any
such utility service account, during the last twelve (12) consecutive months of
-56-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 23 ! Service Rules and Regulations - Obtaining Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 4 of 6
service, did not have more than one occasion in which a bill for utility service was
paid after becoming delinquent, and never had service disconnected for
nonpayment; or
(b) the residential Applicant furnishes in writing a satisfactory credit
reference from another utility; or
(c) the residential Applicant furnishes a satisfactory credit rating by a
national credit reporting agency, a surety bond from an institution approved by
Company, or a satisfactory irrevocable letter of credit issued by a bank
acceptable to Company; or
(d) the Applicant is sixty-five (65) years of age or older and such Applicant
has not had a delinquent account balance with Company within the last two (2)
years. Company may require that an Applicant for residential service who claims
a deposit exemption under this part provide to Company proof of age.
(5) Commercial or Industrial Exemption
A commercial or industrial Applicant will not be required to make a cash deposit if:
(a) the Applicant is an existing Customer of Company with an account of
similar usage, is not delinquent in payment on the existing account, during the
last twelve (12) consecutive months of service did not have more than one
occasion in which a bill for utility service was paid after becoming delinquent, and
never had the existing service disconnected for nonpayment; or
(b) the Applicant has been a Customer of any utility for the same class of
service with a similar Icad within the last two (2) years, is not delinquent in
payment of any such utility service account, during the last twelve (12)
consecutive months of service did not have more than one occasion in which a
bill for utility service was paid after becoming delinquent, and never had service
disconnected for nonpayment; or
(c) the Applicant furnishes a satisfactory credit rating by a national credit
reporting agency, a surety bond from an institution approved by Company, or a
satisfactory irrevocable letter of credit issued by a bank acceptable to Company.
(6) Re-establishment of Credit
Every Applicant who has previously been a Customer of Company and whose service
has been discontinued for nonpayment of bills, before service is re-established, must pay
all delinquent amounts due Company, a connect charge, and a deposit as required by
these Service Regulations, or execute a written deferred payment agreement, if offered
by Company, and must re-establish credit as provided in these Service Regulations. In
case of discontinuance of service for nonpayment of bills or any violation of or non-
compliance with any rule or regulation of Company, Customer must pay Company a
reconnect charge in advance for re-establishing Gas Service on Customer's premises.
-57-
TARIFF FOR GAS '~ '"RVICE TXU GAS COMPANY
RATE SCHEDULE: 23 Service Rules and Regulations - Obtaining Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 5 of 6
(7) Interest on Deposits
Company will pay a minimum interest on any deposits required to be made by its
Residential or Commercial Customers according to the rate as established by the
Commission for interest on deposits, if a refund of a deposit is made within thirty (30)
days of receipt of the deposit, then no interest will be paid to the applicable Customer. If
Company retains a deposit more than thirty (30) days, payment of interest will be made
retroactive to the date of deposit.
(a) Payment of the interest to Customer will be made at the time the deposit
is returned or credited to Customer's account.
(b) A deposit will cease to draw interest on the date it is returned or credited
to Customer's account.
(8) Historical Information on Deposits
(a) Company will keep records to show:
(i) the name and address of each depositor;
(ii) the amount and date of the deposit; and
(iii) each transaction concerning the deposit.
(b) A record of each unclaimed residential or commercial deposit will be
maintained for four (4) years, during which time Company will make a reasonable
effort to return the deposit, consistent with these Service Regulations, forwarding
it to the most recent address provided by Customer.
(9) Refund of Deposits
(a) If service is not connected after a deposit is made by an Applicant,
Company will promptly and automatically refund the Applicant's deposit plus
accrued interest on the balance, if applicable. Upon discontinuance of service at
the request of Customer or otherwise, Company will deduct from the amount
owing to Company Customer's deposit, if any, plus accrued interest and issue a
final bill to Customer. The transfer of service from one premise to another within
the service area of Company will not be deemed a disconnection within the
meaning of these Service Regulations, and no additional deposit will be
demanded unless permitted by these Service Regulations.
(b) When Customer has paid bills for service for twelve (12) consecutive
residential billings without having service disconnected for nonpayment of bills
and without having more than two occasions in which a bill was delinquent, and
when the Residential Customer is not delinquent in the payment of the current
bills, Company will promptly and automatically refund the deposit plus accrued
interest to the Residential Customer in the form of cash or credit to the
Residential Customer's bill.
-58-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 23 Service Rul(' ~ and Regulations · Obtaining Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 6 of 6
(10) Upon Sale or Transfer of Company
Upon the sale or transfer ot Company or an operating unit of Company, Company will file
with the Regulatory Authority under oath, in addition to other information, a list showing
the names and addresses of all Residential and Commercial Customers served by
Company, or the operating unit sold or transferred, who have a deposit, the date such
deposit was made, the amount of the deposit, and the unpaid interest on the deposit.
(11) Complaint by Applicant or Customer
Company will direct its personnel engaged in initial contact with a residential or
commercial Applicant for service or Residential or Commercial Customer seeking to
establish or re-establish credit under the provisions of these Service Regulations to
inform the Residential or Commercial Applicant or Customer, if dissatisfaction is
expressed with Company's decision, of the Applicant's or Customer's right to file a
complaint with the applicable Regulatory Authority.
-59-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 24 Service Rules and Regulations - Use of Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: [PAGE: I of 2
4. Use of Gas Service
A. Limitations On Use of Gas Service
(1) Resale of Company's Gas Service
Customer may not use Gas Service provided by Company except for the purposes
specified in the Rate Schedule under which Customer receives Gas Service. Customer
may not resell or otherwise dispose of Gas Service unless as provided by statute or as
specifically provided for in the Rate Schedule or Agreement for Gas Service.
(2) Intrastate Gas Service Limitations
Company will not provide Gas Service to Customer where any part of Customer's Gas
Installation is located outside the State of Texas or is connected directly or indirectly to
any other gas lines, all or part of which are located outside the State of Texas.
(3) Parallel Operation
Customer may not connect its lines to another source of natural gas in a manner that
may permit natural gas to flow into Company's system from such source without written
consent of Company.
(4) Extension of Customer's Installation
Customer may not extend Customer's installation across or under a public street or alley,
or other lands not owned or leased by Customer without the written consent of Company.
B. Tampering With Company's Meters, Equipment, or Other Property
No Company Meters, equipment, or other property, whether on Customer's premises or
elsewhere, shall be tampered with or intedered with for any reason. Company is not liable for
injury to Customer, Customer's employees, the general public, or others resulting from
tampering with or attempting to repair or maintain any of Company's facilities, and
Customer will indemnify and hold Company harmless therefrom.
C. Unauthorized Use of Gas Service
In the event of use, or evidence of attempted use, of Company's Gas Service, without Company's
authorization, whether by tampering with Company's Meter or equipment or by any other means,
Gas Service may be discontinued by Company. Customer will pay the charge for restoring
service as provided in Company's Rate Schedules under which Customer receives Gas Service
and Customer will be required to pay all charges, including the following, before service is
resumed:
(1) Charges for Unauthorized Use of Gas Service
(a) Company will charge Customer for the estimated amount of gas used
without Company authorization, which may be estimated based on amounts used
under similar conditions during preceding years. Where no previous usage
history exists or is considered unreliable, consumption may be estimated on the
basis of usage levels of similar Customers under similar conditions.
(b) In addition, where unauthorized use of Gas Service has occurred,
~60-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 24 Service Rules and Regulations - Use of Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 of 2
Company may charge Customer the cost of replacement or repair of any
damaged Meter or associated equipment, and the cost of installing protective
facilities or of relocation of any Meter, if determined necessary by Company.
(2) Discontinuance of Gas Service
If Gas Service is restored by persons other than authorized Company personnel after
being discontinued by Company, Company may discontinue Gas Service and dismantle
and remove all lines, equipment, or other facilities that Company installed to provide Gas
Service to Customer. Company may, however, in its sole discretion, abandon in place, in
whole or in part, its underground lines and equipment in lieu of removing such facilities.
(3) Restoration of Gas Service
If it is shown to the satisfaction of Company that Customer had no connection with or
knowledge of unauthorized use, Gas Service will be restored after the condition causing
or permitting the unauthorized use of Gas Service is corrected. Notwithstanding
Customer's lack of knowledge of unauthorized use, Company may charge Customer for
the estimated amount of unauthorized Gas Service used.
-61-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 25 Service Rules and Regulations - Charges for Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 of 5
5. Charges for Gas Service
A. Rate Schedules For Gas Service
Company has available at each of its business offices Company's Rate Schedules for Gas
Service, and will provide Customer, at Customer's request and at reproduction costs, a copy of
the Rate Schedule under which Customer is billed. Customer is solely responsible for selecting
the applicable Rate Schedule most favorable to Customer.
(1) Selection of Rate Schedule
Company, at Customer's request, will assist in selecting the Rate Schedule best adapted
to existing or anticipated Gas Service requirements as defined by Customer, but
Customer is solely responsible for the choice between two or more applicable Rate
Schedules.
Customer, having selected a Rate Schedule under an Agreement for Gas Service, may
not change to another Rate Schedule during the applicable contract term without
Company's consent. Where Customer is receiving Gas Service from Company without
an Agreement for Gas Service, Customer may not, without the consent of Company,
receive Gas Service under a different Rate Schedule for at least one year from the
commencement of Gas Service. Where a written Agreement for Gas Service is in effect
between Company and Customer and Customer elects to change to another Rate
Schedule that is applicable to Customer's class of service, and Company consents to
such change, billing and Gas Service will continue under the Rate Schedule in effect until
the Agreement for Gas Service on the new Rate Schedule has been properly executed
by both Customer and Company, and Company consents to such change.
(2) Changes in Customer's Operation
Company may not know of changes that occur in Customer's operating conditions or gas
requirements. Therefore, Company does not assume responsibility that Customer
receives Gas Service under the most favorable Rate Schedule. After Customer selects a
Rate Schedule, if a change occurs that would make Customer eligible for a more
favorable Rate Schedule, it is Customer's responsibility to notify Company in writing of
such change. Company is not required to bill, or provide Gas Service to, Customer under
the more favorable Rate Schedule until a written Agreement for Gas Service is in effect
between Customer and Company specifying the new Rate Schedule and Company
consents to such change. When Customer selects a Rate Schedule, or changes
installation to be eligible for selection of a new Rate Schedule, and Company consents to
such change, Company is not required to make any refunds covering the difference
between the charges under the Rate Schedule in effect and those under any other Rate
Schedule that would be applicable to the service.
B. Billing
Notwithstanding any provisions in the Rate Schedules to the contrary, all bills rendered to "State
Agencies," as that term is defined in Chapter 2251 of the Texas Government Code, will be due
and will bear interest if overdue as provided in Chapter 2251 of the Texas Government Code.
The due date of all other bills for Gas Service will not be less than fifteen (15) days after issuance
or such other period of time as may be provided by order of the Regulatory Authority or agreed to
by Customer and Company. A bill for utility service is delinquent if unpaid by the due date.
-62-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 25 Service Rules and Regulations - Charges for Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 of 5
Company may, but is not required to, offer an inducement for prompt payment of Residential or
Commercial Customer bills by allowing a discount in the amount of five percent (5%) for payment
of bills within ten (10) days after their issuance. This provision will not apply where it conflicts
with existing orders or ordinances of the appropriate Regulatory Authority.
(1) Billing Period
Bills for Gas Service will be rendered monthly, unless otherwise authorized or unless
service is rendered for a period tess than a month. Bills will be rendered as promptly as
reasonable following the reading of Meters. Bills may be prorated for any partial months
based upon the actual number ol= days during which Gas Service was received in relation
to the number of days in the billing cycle.
(2) Bill Format
A Residential or Commercial Customer's bill will show all of the following information:
(a) if the Meter is read by Company or its agent, the date and reading of the
Meter at the beginning and end of the period for which the bill is rendered;
(b) the number and kind of units billed;
(c) the applicable Rate Schedule title or code;
(d) the total base bill;
(e) the total of any adjustments to the base bill and the amount of
adjustments per billing unit;
(f) the date by which Customer must pay the bill to get a prompt payment
discount, if applicable;
(g) the total amount due before and after any discount for prompt payment, if
applicable, within a designated period; and
(h) a distinct marking to identify an estimated bill.
The above information will be arranged and displayed in such a manner as to allow the
Residential or Commercial Customer to compute Customer's bill in accordance with the
applicable Rate Schedule.
(3) Estimates
Bills may be estimated provided that an actual Meter reading is taken at least every six
(6) months. If the Meter reader is unable to gain access to the premises to read the
Meter on regular Meter reading trips, Company may request that Customer read the
Meter and provide the Meter reading to Company. If the Meter reading is not received by
Company in time for billing, Company may estimate the Meter reading and render the
accordingly.
(4) Residential Alternate Payment Plans
-63-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 25 Service Rules and Regulations o Charges for Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 3 of 5
Company may, but is not required to, offer a deferred payment plan for delinquent
accounts, and a level or average payment plan to all Residential Customers. If Company
offers any alternate payment plan, Company will consider the following:
(a) the size of the delinquent account;
(b) Customer's ability to pay;
(c) Customer's payment history;
(d) the time that the debt has been outstanding;
(e) reasons why the debt has been outstanding; and
(f) any other relevant factors concerning the circumstances of Customer.
Company will not refuse Customer participation in any payment plan offered by Company
on the basis of race, color, creed, sex, marital status, age, or any other form of
discrimination prohibited by law.
(a) Delayed Payment of Bills by Elderly Persons
(i) On request of a person who is 60 years of age or older, who is a
Residential Customer, and who occupies the entire premises for which a
delay is requested, Company will delay, without penalty, the payment
date of a bill for providing Gas Service to that person until the 25th day
after the date on which the bill is issued. The requested delay may be
for either the most recent bill or for the most recent bill and each
subsequent bill.
(ii) Company may require the requesting person to present
reasonable proof that the person is 60 years of age or older.
(iii) Company will notify its Customers of this delayed payment
option no less often than yearly. Company may include this notice with
other information provided pursuant to these Service Regulations.
(b) Residential Deferred Payment Plan
If a deferred payment plan is offered, it will conform to the following guidelines.
(i) Every deferred payment plan will provide that service will not be
discontinued if Customer pays current bills and a reasonable amount of
the outstanding bill and agrees to pay the balance in reasonable
installments until the bill is paid.
(ii) A deferred payment plan will be reduced to writing and will state
immediately preceding the space provided for Customer's signature and
in bold-face print at least two sizes larger than any other used, that "If
-64-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 25 Service Rules and Regulations - Charges for Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 4 of 5
you are not satisfied with this agreement, do not sign. If
you are satisfied with this agreement, you give up your
right to dispute the amount due under the agreement
except for the utility's failure or refusal to comply with
the terms of this agreement."
(iii) A deferred payment plan may include a one-time five percent
(5%) penalty for late payment on the original amount of the outstanding
bill with no prompt payment discount allowed except in cases where the
outstanding bill is unusually high as a result of Company's error (such as
an inaccurate estimated bill or an incorrectly read Meter). A deferred
payment plan will not include a finance charge.
(iv) If Customer has not fulfilled terms of a deferred payment
agreement, or does not fulfill the terms and obligations of a level or
average payment plan, then Company will have the right to disconnect
service to Customer pursuant to the Discontinuance of Gas Service
provisions in these Service Regulations; and, under such circumstances,
Company will not be required to offer a subsequent negotiation of a
payment agreement prior to disconnection.
(c) Residential Level Payment Plan
Company may offer a level payment plan, which, if offered, will allow Residential
Customers to pay one-twelfth of the Customer's estimated annual charges (or,
for a new Customer, an estimate) at the appropriate Customer class rates each
month, with provisions for annual adjustments as may be determined based on
actual gas use.
(d) Residential Average Payment Plan
Company may offer an average payment plan, which, if offered, will allow
Residential Customers to pay one-twelfth of the sum of the Customer's current
month's charges plus the previous 11 months' charges (or, for a new Customer,
an estimate) at the appropriate Customer class rates for each month, plus a
portion of any unbilled balance.
(e) Deposits for Level and Average Payment Plans
Company may require a deposit from all Residential Customers entering into
level or average payment plans pursuant to the requirements of these Service
Regulations. Company will include the amount already deposited by Customer in
calculating a deposit required under this paragraph. Company will pay interest
on the deposit as provided for in these Service Regulations, and may retain the
deposit for the duration of the level or average payment plan.
(5) Disputed Bills
(a) In the event of a dispute between Customer and Company regarding any
bill, Company will make such investigation as is reasonably required by the
particular case and report the results thereof to Customer. In the event the
dispute with a Residential or Commercial Customer is not resolved, Company will
-65-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 25 Service Rules and Regulations. Charges for Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 5 of 5 ~
inform Customer of Customer's right to file a complaint with the appropriate
Regulatory Authority.
(b) If a Residential or Commercial Customer notifies Company of the dispute
prior to the date the bill becomes delinquent, Customer will not be required to pay
the disputed poilion of the bill that exceeds the amount of Customer's average
usage for the billing period at current rates until the earlier of the following:
resolution of the dispute or the expiration of a 60-day period beginning on the day
the disputed bill is issued. For purposes of this section only, Customer's average
usage for the billing period will be the average of Customer's usage for the same
billing period during the preceding two years. Where no previous usage history
exists, the average usage will be estimated on the basis of usage levels of similar
Customers under similar conditions.
(6) Overcharges and Undercharges
If a billing is found to be in error, a billing adjustment will be calculated by Company. If
Customer is found to be due a refund, the billing adjustment, if not made within three (3)
billing cycles of the bill in error, will include interest applied to the amount of overcharge.
If Customer was undemharged, Company may backbill to collect such undercharges for
billings not older than six (6) months for Residential and Commercial Customers, and not
older than twenty-five (25) months for Industrial Customers, unless the undercharge is
the result of Meter tampering or unless Company produces records justifying additional
backbilling. If the undemharge to a Residential Customer is $25 or more and not related
to Meter tampering, then Company may offer the Residential Customer a deferred
payment plan for the same length of time as that of the underbilling. Interest will be
applied to the undercharged amount only in cases of Meter tampering.
-66~
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 26 Service Rules and Regulations - Discontinuance of Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I of 5
6. Discontinuance of Gas Service
Company, in addition to all other legal remedies, may discontinue Gas Service to Residential and
Commercial Customers without liability as provided in these Service Regulations.
A. Customer Discontinues Gas Service
Company will have the right to require written notice from Customer requesting discontinuance of
Gas Service. Customer will be held responsible for all gas consumed until written notice to
discontinue Gas Service is received by Company and the final Meter reading is made, for which
purpose forty-eight (48) hours will be allowed.
Unless Customer requests otherwise, within seventy (70) days after discontinuing service, any
credit balance of less than one dollar will be donated to a qualified energy assistance program.
B. Company Discontinues Gas Service
(1) Disconnection With Notice
Upon notice to Customer, Customer's Gas Service may be disconnected for any of the
following reasons:
(a) failure to pay a delinquent account for service previously provided,
without regard to the amount of Customer's security deposit;
(b) failure to enter into a deferred payment agreement, if offered by
Company, pursuant to these Service Regulations within five (5) working days
after the bill has become delinquent; or
(c) failure to comply with deposit or guarantee arrangements where required
by these Service Regulations.
Any such notice will be placed in the United States mail, postage prepaid, or hand
delivered to Customer or to Customer's premises at least five (5) working days prior to
the date after which Customer is eligible for termination, with the words "Termination
Notice" or similar language prominently displayed on the notice. The notice will be
provided in English and Spanish as necessary to adequately inform Customer, and will
include the date after which service may be terminated, a toll free telephone number for
the hours and address of locations where payment may be made, and a statement that if
a health or other emergency exists, Company may be contacted concerning the nature of
the emergency and the relief available, if any, to meet such emergency.
Restoration of disconnected service will be scheduled based on existing workload
following either receipt of all delinquent amounts due Company, a connect charge, and a
deposit as prescribed in these Service Regulations, or an agreement on special
arrangements if such agreement is offered by Company.
(2) Disconnection Without Notice
Gas service may be disconnected without notice for any of the following reasons:
(a) failure to comply with the terms of a deferred payment plan for
installment payment of a delinquent account;
-67-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 26 Service Rules and Regulations o Discontinuance of Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 of 5
(b) violation of Company's rules pertaining to the use of service in a manner
that interferes with the service of others or the operation of nonstandard
equipment, if a reasonable attempt has been made to notify Customer and
Customer is provided with a reasonable opportunity to remedy the situation;
(c) where a known dangerous condition exists for as long as the condition
exists;
(d) tampering with Company's Meter or equipment including unauthorized
usage or bypassing the same. If service is disconnected pursuant to this
subsection, Customer may be required to pay for a protective device for, or the
relocation of, Company facilities;
(e) failure or refusal of Customer to repair or replace or to have repaired or
replaced any of Customer's piping, appliances, or equipment when notified by
Company, at Company's sole determination and discretion, of a hazardous
condition, potentially hazardous condition, or any condition of such character that
satisfactory or accurately metered service cannot be provided;
(f) fraudulent representation relating to the consumption of gas;
(g) for selling, delivering to, or furnishing gas or Gas Service, without written
permission from Company, to other persons either on or off Customer's
premises;
(h) for using gas for purposes other than as represented;
(i) for failure to provide Company access as provided in these Service
Regulations, after reasonable notice under the circumstances. If service is
disconnected pursuant to this subsection, Customer may be required to pay for a
protective device for, or the relocation of, Company facilities; or
(j) upon wdtten request by a governmental entity regarding a known
dangerous condition on the premises.
(3) Prohibition of Disconnection of Gas Service
(a) Gas Service may not be disconnected to a Residential or Commercial
Customer for any of the following reasons:
(i) delinquency in payment for service by a previous occupant of the
premises;
(ii) failure to pay for merchandise or charges for non-utility service
purchased from Company;
(iii) failure to pay for a different type or class of utility service unless
the fee for such service is included on the same bill;
-68-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 26 Service Rules and Regulations - Discontinuance of
Gas
Service
APPLICABLE TO: Distribution System DATE:REVISION: 0
!~~ PAGE: 3 of 5
(iv) failure to pay the account of another Customer as guarantor
thereof, unless Company has, in writing, the guarantee as a condition
precedent to the subject Customer's service;
(v) failure to pay charges arising from an under billing occurring due
to any misapplication of rates more than six (6) months prior to the
current billing, subject to (vi) below;
(vi) failure to pay charges arising from an under billing due to any
faulty metering, unless the Meter has been tampered with or unless such
under billing charges are properly due; or
(vii) failure to pay an estimated bill unless estimated pursuant to the
provisions of these Service Regulations, or Company is unable to read
the Meter due to circumstances beyond its control.
(b) Company will not discontinue service to a delinquent Residential
Customer permanently residing in an individually metered Dwelling Unit when
that Customer affirmatively establishes, at the time the delinquency occurs, that
discontinuance of service will result in some person residing at that residence
becoming seriously ill or more seriously ill if the service is discontinued. A
Customer seeking to avoid termination of service under this subsection must
make a written request supported by a written statement from a licensed
physician. Both the request and the statement must be received by Company
not more than five (5) working days after the date of delinquency of the bill. The
prohibition against service termination provided by this subsection shall last
twenty (20) days from the date of receipt by Company of the request and
statement or such lesser period as may be agreed upon by Company and the
Customer. The Customer who makes such request must enter into a payment
plan agreement providing for payment of the delinquent amount as well as
subsequent monthly billings.
(c) Except where there is a known dangerous condition or a use of Gas
Service in a manner that is dangerous or unreasonably interferes with service to
others, Company will not disconnect Gas Service to a delinquent Residential
Customer:
(i) on a day when the previous day's temperature at the approved
National Weather Station for the county where the Customer takes
service fell below 32 degrees Fahrenheit and the National Weather
Service predicts that the temperature in that county will fall below that
level during the next 24 hours;
(ii) for a billing period in which Company receives a written pledge,
letter of intent, purchase order, or other written notification from an
energy assistance provider that it is forwarding sufficient payment to
continue service; or
-69-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 26 Service Rules and Regulations - Discontinuance of Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 4 of 5
(iii) on a day, or on a day immediately preceding a day, when
personnel or agents of Company are not available for the purpose of
receiving payment or making collections and reconnecting service,
(4) Abandonment of Customer
Company will not abandon a Residential or Commercial Customer without written
approval from the appropriate Regulato~ Authority.
(5) Notice
In the September or October billing periods, Company will give not[ce to Residential and
Commercial Customers as follows:
(i) Company will provide a copy of the portion of these Service Regulations
related to Discontinuance of Service to the social services agencies that
distribute funds from the Low Income Home Energy Assistance Program within
its service area;
(ii) Company will provide a copy of the portion of these Service Regulations
related to Discontinuance of Service to any other social service agency of which
it is aware that provides financial assistance to Iow income Customers in its
service area; and
(iii) Company will provide a copy of the portion of these Service Regulations
related to Discontinuance of Service to all its Residential Customers and
Customers who are owners, operators, or managers of master metered systems
in its service area, and will instruct owners, operators, or managers of master
metered systems to provide a copy of the portion of these Service Regulations
related to Discontinuance of Service to all their Customers.
(6) Date of Disconnection of Gas Service
Unless a dangerous condition exists, or unless Customer requests disconnection, service
will not be disconnected on a day, or on a day immediately preceding a day, when
personnel or agents of Company are not available to the public for the purpose of making
collections and reconnecting service.
(7) Company Rights and Remedies for Disconnection of Gas Service
Failure of Company to discontinue Gas Service at any time after default or breach of
these Service Regulations, the Rate Schedule under which Customer is receiving Gas
Service, the Agreement for Gas Service, or an agreement for payment in lieu of
discontinuation, or to resort to any legal remedy or its exercise of any one or more of
such remedies, does not affect Company's right to resort thereafter to any one or more of
such remedies for the same or any other default or breach by Customer.
(8) Customer Responsibility for Restoration of Gas Service
When Company discontinues Gas Service to Customer for failure in the performance of
Customer under the provisions of these Service Regulations, the Rate Schedule under
which Customer is receiving Gas Service, the Agreement for Gas Service, or an
agreement for payment in lieu of discontinuation, before Company restores Gas Service,
-70-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 26 Service Rules and Regulations - Discontinuance of Gas Service
APPLICABLE TO: Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 5 of 5
Customer must correct to the satisfaction of Company all defaults that caused Gas
Service to be discontinued and pay any additional charge for restoring Gas Service as
provided in Company's Rate Schedules.
When Company discontinues Gas Service to Customer, Customer's obligation specified
in these Service Regulations, the Rate Schedule under which Customer was receiving
Gas Service, or the Agreement for Gas Service, is not lessened or changed, nor is the
amount of money due and payable to Company affected in any manner.
-71-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 27 Service Rules and Regulations - Information to Customers
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 of 2
7. Information to Customers
Company will:
(A) maintain a current set of maps showing the physical locations of its facilities. All
distribution facilities will be labeled to indicate the size or any per[inent information that will
accurately describe Company's facilities. These maps, or such other maps as may be required
by the Regulatory Authority, will be kept by Company in a central location and will be available for
Regulatory Authority inspection only during normal working hours. Subject to Company's right to
protect the security of its facilities, Company will make available up-to-date maps, plans, or
records of its immediate area, with such other information as may be necessary to advise
Applicants and others entitled to the information as to the facilities available for serving that
locality;
(B) in compliance with applicable law or regulations, notify Customers affected by a change
in rates or schedule or classification;
(C) upon request, inform Customer as to the method of reading Meters;
(D) inform or provide to new Residential and Commercial Customers, at the time service is
requested or initiated, or provide as an insert in the first billing, a pamphlet or information packet
containing the following information. This information will be provided in English and Spanish to
adequately inform Customer; provided, however, the Regulatory Authority, upon application and a
showing of good cause, may exempt Company from the requirement that the information be
provided in Spanish.
(1) Customer's right to information concerning rates and services and Customer's
right to inspect or obtain, at reproduction cost, a copy of the applicable tariffs and service
rules.
(2) Customer's right to have his or her Meter checked without charge under these
Service Regulations (relating to Meters), if applicable.
(3) The time allowed to pay outstanding bills.
(4) Grounds for termination of service.
(5) The steps Company must take before terminating service.
(6) How Customer can resolve billing disputes with Company and how disputes and
health emergencies may affect termination of service.
(7) Information on alternative payment plans if offered by Company.
(8) The steps necessary to have service reconnected after involuntary termination.
(9) The appropriate Regulatory Authority with whom to register a complaint and how
to contact such authority.
-72-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 27 Service Rules and Regulations - Information to Customers
APPLICABLE TO: Entire System REVISION: 0
DATE:
~EFFECTIVE DATE: [ t PAGE: 2 of 2
(10) A toll-free telephone number where information may be obtained concerning the
hours and addresses of locations where bills may be paid.
(11) Customer's right to be instructed by Company how to read Customer's Meter.
(F) At least once each calendar year, notify Residential and Commercial Customers that
information is available upon request, at no charge to Customer, unless otherwise stated in these
Service Regulations, concerning the items listed in Paragraph (E)(1-11) of this subsection. This
notice may be accomplished by use of a billing insert or a printed statement upon the bill itself.
-73-
VII. STANDARD AGREEMENTS FOR SERVICE
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: Standard Agreements for Service
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
VII. STANDARD AGREEMENTS FOR S~RVICE:
-74-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
! Standard Transportation Agreement - City Gate Service
BATE
SCHEDULE:
28
APPLICABLE TO: Entire System i REVISION: 0
! DATE:
EFFECTIVE DATE: j I PAGE: 1 of 1
TR-XNSPORTATION AGREEMENT - CITY GATE SERVICE
This Agreement is entered into effecti',e the 1st da) of .20 Ithe "Effective Date"l.
CUSTOMER: CO~,IPANY: TXL' GAS COMPANY
FOR NOTICES: FOR D4',, OICES: FOR NOTICES: FOR PAYMENTS:
TXU Gas Compan? TXU Gas Compan?
301 S. Harv. ood Street P.O Box 910255
· Texas ___ . Texas __ Suite 801-North Dallas, Texas 75391-0255
Atteatton: Attention: __ Dallas, Texas 75201
Fax: Fax: Atm: Contract
E-mail: E-mail: Adrmnistration
QUAN-FITY: Winter (Ccc-Feb) Winter Shoulder (No~ & Mar I Surnfaet iMa?-Sep~ Summer Shoulder ~ Apr & OcI)
MHQ = __ MMBCu I MHQ = ~ MMB~ MHQ = ~ MMBru MHQ =~ MMBm
LNJECTIONS: hereunder Normnatlons for thjecuon to storage must designate the quanoues to be injected inlo the Pnma~ and S~co~da~
Storage Facdities Customer will have the right to ,nject each Day thio the Pnma~ and SecondaO Storage Facflit:,e~
up to __ Mcfas sol ~'orth on Exhibit ~'C." attached here~o and incorporated herein b? reference
STORAGE Cuslomer v. tiI nonunate volumes of Gas for w~thdva~al from storage utalizang ~ts capact~ nght~ hereunder Customer's ~,~thdra~.aJ
WITHDKx.'a, ALS: rights v. fil be detemuned by then-exisang m~entor? at' Customer's Gas tn the PrimaO and Secondary Storage Facdines as
forth on Ex~ubits "D" and "E." attached hereto and incorporated herein by reference
TER.M: Th~s Agreement will be effecuve as of the Effecn~e Date and v, ill. subject to the towns and provisions ot· this A~reemen(. remain
,n fl.,ti force and effect for a ~nma~. ierm of one ye.u', and Month to Month thereafter unul cancelled h? e~the~'pam ~smg the
other pact~ 30 Days' prior wnnen nonce No~v, ithsta~ding an~xhing contorted in th~s Agreement to the cona-ar), if an ,mb&anco
dehvered to the Deliver~ Poinus). then the term o~' tht~ A~eement will be extended (or a period of nme to allo~ the pa.r~? ~ho~e
Agreement v, ill not exunguish any obligation thai accrued before ~uch tenmnation or cancellation
DELI'*~RY POIN-I-{S): Gas transl:~rted by Company hereunder will be delivered to Customer at the ~ointls) or' mterconnectton between Com~n!, s
facdiues and Customer's ~'acititaes at the nuclei of the teeter, hsted on Exhibit "A." attached hereto and thcon~orated hereto h?
RECEIFT POLN'F(S): Ga~ receivefl by Company for transpotxauon hereunder ~ fil be received at the potht(sl listed on Exhibtt "B." attached hereto and
incorp~raled herein by reference
I~-kTE SCHEDL~£S: The following rate schedules apply to the service pro~,ded hereunder and ave mco,~porated bereln by reffrence
Rate Schedule: CGS - City Gat~ Scr'Hce. including all applicable riders
Rat,~ Schedule: City Gate Tramsportation Terrc~ and Conditions
Rate Schedule: General Tra~portation Contract Tetras and Conditions
TXU GAS COMPANY
By: By:
Name: Name:
Title: Title:
-75-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 29 Standard Transpo~tation Agreement - Pipeline ]
APPLICABLE TO: Pipeline System REVISION: 0
DATE:
EFFECTIVE
DATE:
[ PAGE:loll
TIL-kNSPORTAq ION' AGREEMENT - PIPELINE
This Agreement is entered into effective the 1st da.~ of _. 20__ ~the "Effective Date"/.
CUSTOMER: COMPANY: TXU GAS COMPANY
FOR NOTICES: FOR ENWOICES: FOR NOTICES: FOR PAYMENTS:
TXU Gas Company TXU Gas Compan?
301 S. Harwood Sn-eet P.O, Box 910255
· Texas , Texas __ Suite 801-North Dallas, Texas 75391-0255
Attention: Attention: Dallas. Texas 75201
Fax: Fax: Arm: Contract
E-mail: E-mail: Administration
QUAN-rlTY: Ma.'rMnum Transportation Quantifies: P~ant Protection Quanti~ Finn Electric Load Quantit~
MHQ = __ MMBm __ MMBrWDay __ MMBtwDay
Customer's faciliaes are located instde the city lirmu __ Yes -- No
TXU GAS COMPANY
By: By:
Name: Name:
Title: Title:
-76-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 30 Standard Transportation Agreement - Distribution
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: i PAGE: 1 of 1
TRANSPORTATION AGREEMENT - DISTRIBUTION
This Agreement is entered into effective the 1st day of ,20__ Ithe "Effective Date"l.
CUSTOMER: COMPANY: TXU GAS COMPANY
FOR NOTICES: FOR INVOICES: FOR NOTICES: FOR PAYMENTS:
TXU Gas Company TXU Gas Compan?
500 N..~ard Street P.O. Box 910255
_, Texas ___ , Texas __ 9th Floor Dallas. Texas 75391-0255
Attention: Attention: Dallas, Texas 75201
Fa_x: Fax: Ann: Contract
E-mail: E-mad: Adnunistrauon
QUANTIT't: 5La:dmum Transportation Quantities; Plant Protection Quantity Firm Electric Load Quandt?
~ [~dusmal Customers On[> ) ~ Elecm¢ Cenerat~on Customer, On;5 ~
TXU GAS COMPANY
By: By:
Name: Name:
Title: Title:
-77-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
A~RATE Transportation Contract Terms and Conditions
SCHEDULE:
31
General
LICABLE TO: Entire System DATE:REVISION: O
E~~ PAGE: 1 of 13
1. Definitions
(a) "Btu" means British Thermal Unit and. where appropr,a(e, the plural thereof.
(b) "Company" means TXU Gas Company, its successors and assigns.
(c) "Cumulative Imbalance" means the absolute value of the difference betwee'q the
cumulative quantities of Gas received at the Receipt PoinI(s) during the ~erm of the applicac)le
Transportation Agreement, less the Retention Volumes, and the cumulative quanbties of Gas delivered at
the Delivery Point(s) during the term of the applicable Transportation AgreemenL
(d) "Customer" means the party identified as the "Customer" in the applicable Transportat,on
Agreement.
(e) "Customer's Designee" means the person or entity who owns the facilities at the Receipt
Point(s) through which Gas is delivered to Company under the applicable Transportation Agreement, or
who owns the facilities at the Delivery Point(s) into which Gas is redelivered by Company under the
applicable Transportation Agreement, unless another person or entity ~s specifically identified by
Customer in writing to act as Customer's Designee for the purposes of the applicable Transportation
Agreement.
(f) "Day" means the period beginning at 9:00 &m. on one calendar day and ending at 9:00
a.m. on the following calendar day. Unless otherwise noted, all times used in this Tariff for Gas Service
are central clock times,
(g) "Delivery Point(s)" means the point(s) of interconnection between Company's facilities
and Customer's or Customer's Designee's facilities at the outlet of the meter at Customer's facilities, or
Customer's or Customer's Designee's pipeline, as more specifically identified and set forth in the
Transportation Agreement executed by Customer and Company.
(h) "Electric Generation Customer" means a customer who utifizes the Gas delivered by
Company as fuel to generate electricity at Customer's power plant at or near the Delivery Point.
(i) "Gas" means natural gas produced from gas wells, gas produced in association with oil
(casinghead gas), and/or the residue gas resulting from processing casinghead gas and/or gas w¢l gas.
(j) "Heating Value" or "Heat Content" means the total heating value expressed in Btu per
cubic foot (gross heating value) of the Gas delivered under a Transpodation Agreement, and will be
determined at a temperature of 60 degrees Fahrenheit, saturated with water vapor and under a pressure
equivalent to that of 30 inches of mercury at 32 degrees Fahrenheit converted to base conditions of 60
degrees Fahrenheit and a pressure of 14.65 psia and adjusted to reflect actual water vapor content. (k) "Industrial Customer" has the meaning contained in Rate Schedule - Definitions.
(I) "Make-up Volumes" means the quantity of gas specifically and separately nominated by
Customer and confirmed by Company to resolve any imbalance under the applicable Transportation
Agreement.
(m) "Maximum Daily Quantity" or "MDQ" means the maximum quantity of Gas that Customer
may receive from Company under the applicabIe Transportation Agreement in the aggregate at the
Delivery Point(s) during any Day, as may be adjusted pursuant to the Rate Schedules applicable to the
type of service provided by Company.
(n) "Maximum Hourly Quantity" or "MHQ" means the maximum quantity of Gas that
Customer may receive from Company under the applicable Transportation Agreement in the aggregate at
the Delivery Point(s) during any clock hour, at an instantaneous flow rate over the entire hour. (o) "Mci" means 1,000 cubic feet.
(p) "MMBtu" means one mitlion Btu. Additionally, one MMBtu will equal one decatherm, and
any reference to decatherms will equate to MMBtus.
(q) "Month" means the period beginning at 9:00 a.m. on the first Day of a calendar month
and ending at 9:00 a.m. on the first Day of the succeeding calendar month.
(r) "Psia" means pounds per square inch absolute.
-78-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 I General Tran..__~sportation Contract Terms and Conditions !
APPLICABLE TO: Entire System I REVISION: 0
I~ DATE:
EFFECTIVE DATE: I i PAGE: 2 of 13
(s) "Receipt Point(s)" means the point(s) of interconnection between Compar~y's facilities
and Customer's or Customer's Designe.e's p~peline facilities, as more specifically ident~hec aha set forth ~n
the TransportaIion Agreement executed by Customer and Company.
(t) "Retention Volumes" means the quantity of Gas re~ained by Company, as compensation
for fuel used, and for lost and unaccounted for quantities of Gas, equal to (he percentage specified in the
Rate Schedules applicable to the type of service provided by Company, as the same may be changed
from time to t~me.
(u) "Transportation Agreement" means the written agreement executed by Customer and
Company, which establishes the rights and obligations of Customer and Company related to natural gas
transportation service provided by Company.
(v) "Year" means a period of 12 consecutive Months beginning at 9:00 a.m. on the first Day
of a calendar Month and ending at 9:00 a.m. on the same date of each succeeding year during tr~e Ierm
of any Transportation Agreement.
2. Quantity
The quantities of Gas to be transported under any Transportation Agreement will not exceed
during any Day the Maximum Daily Quantity, or during any hour the Maximum Hourly Quantity, as set
forth in the applicable Transportation Agreement. The calculation of all quantities of Gas received and
delivered under any Transportation Agreement will be on an MMBtu basis for alt purposes, including, but
not limited to, calculating imbalance charges and Retention Volumes.
3. Laws and Regulations
(a) Transportation Agreements Subject to Applicable Laws. All Transportation Agreements are
subject to applicable state and federal laws, and orders, directives, rules, and regulations of any
governmental body, official, or agency having jurisdiction over the transportation of Gas under the
Transportation Agreement; therefore, Company's obligations and liabilities under all Transportation
Agreement will be limited accordingly.
(b) Intrastate Transportation. Customer's and/or Customer's Designees' fac. ilities utilized
for the delivery and acceptance of Gas under any Transportation Agreement shall not be subject
to the Natural Gas Act of 1938, as amended (the "NGA"). Customer and Customer's Designees
will take no action nor commit any act of omission that will subject any transaction under a
Transportation Agreement or Company's facilities to jurisdiction of the Federal Energy Regulatory
Commission ("FERC") or any successor governmental agency under the terms of the NGA. The
Gas delivered and accepted under any Transportation Agreement shall not have been nor sha# be
sold, transported, or otherwise utilized in a manner that will subject Company to the terms of the
NGA. In addition to and without excluding any remedy Company may have at law or in equity,
Customer will be liable to Company for all damages, injuries, and reasonable expenses Company
may sustain by reason of any breach of the provisions of this paragraph.
4. Nominations
(a) Customer will provide Company with Customer's nomination [or the first Day of each
Month no later than 2:00 p.m. on the second business Day prior to the first Day of such Month. Each
such nomination will contain Customer's nominated quantities for the Delivery Point(s) and the Receipt
Point(s), designation of the appropriate contract(s) covering such Gas, and the identity by name and
telephone number of individual(s) who have authority to confirm the nominated Gas quantities at each
Receipt Point and Delivery Point. Customer may change nominated quantities on any business Day.
prowded such nomination change must be received by Company prior to 11:30 a.m. of any business (Day
to be effective the next Day. Additional intra-day nominations may be made upon mutual agreement of
Customer and Company. If Customer fails to furnish nominations as required above for any Day during
the term of any Transportation Agreement, then Company may suspend transportation service under the
-79-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 I General Transportation Contract Terms and Conditions
PLICABLE TO: Entire System DATE:REVISION: 0
appticabte Transportation Agreement for such Day and such interruption of serwce will not prevent
enforcement by Company of any other qf its legal rights or remedies, including imbalance resorutions, nor
be construed as a breach of Company's obligations under any Transportation Agreement If Customer
fails to nominate quantities for three consecutive Months during the term of any Transportation
Agreement, then Company, upon 30 Days' pnor written notice to Customer, may term,nate the applicable
Transportation Agreement; provided, however, the obligation to make payment for mon~es due ur~der
such Transportation Agreement will not be extinguished. Company at any time and from t~me to time and
for any specified or unspecified time period(s), may for operational reasons prorate and/or totally refuse to
accept new nominations or honor then existing nominations at certain then existing Rece=pt Point(s);
however, Company will endeavor to notify Customer or Customer's Designee of such refusal as soon as
practicable, but Company will not be liable for any failure to do so. Notwithstanding the foregoing,
Customer will not attempt to utilize the nomination process set forth above to reserve or gain additional
p~peline capacity by over nomination, and in the event Company, in its reasonable discretion, determines
that Customer has attempted to do so, then Company will have the right, with or without prior nobce, to:
ti) revise the nomination; or (ii) suspend service under the applicable Transportation Agreement.
(b) If Customer fails to furnish transportation nominations as required herein for any month
during the term of the applicable Transportation Agreement, and Customer receives Gas from Company
at the Delivery Point(s), then Company may charge Customer for each Day that Customer does not have
a confirmed nomination in place, 150% of difference ~n the highest and lowest "midpoint" price for the
Katy point listed in Plat'ts Gas Daily in the table entitled "Daily Price Survey" for the applicable Month. If
Customer fails to furnish transportation nominations as required herein for any Day or Month, then
Customer's transportation nomination for such Day or Month will be deemed to be zero MlvIBtu
5. Imbalances
(a) Customer's Balancing Obligations. Customer will balance, on a simultaneous basis,
between the quantities of Gas received by Company at the Receipt Point(s), less the Retention Volumes
and Make-up Volumes, and the quantities of Gas delivered at the Detivery Point(s). An imbalance will
exist under any Transportation Agreement when, during any designated time period during the term
thereof, there ~s a numerical difference between the quantity of Gas delivered by Company to Customer
at the Delivery Point and the quantity of Gas received by Company from Customer (or Customer's
Designee) at the Receipt Point(s), exclusive of Retention Volumes and Make-up Volumes. Customer wilt
be solely responsible to monitor actual deliveries and receipts under each Transportation Agreement.
Customer must adjust its nominations, deliveries, and receipts to maintain a simultaneous balance
between the quantities of Gas received at the Receipt Point(s) and the quantities of Gas delivered at the
Delivery Point(s), and must notify Company of any imbalances or situations that may cause imbalances
If Company is unable to receive Gas at any Receipt Point in the quantities nominated, or deliver Gas at
any Delivery Point in the quantities nominated, as provided for herein, Company will notify Customer as
soon as reasonably practicable.
(b) Company will have no obligation, during any designated time period during the term of
any Transportation Agreement, to deliver Gas to Customer under the applicable Transportation
Agreement in excess of the quantity received by Company at the applicable Receipt Point(s), less
Retention Volumes, nor will Company have any obligation, during any designated time period during the
term of any Transportation Agreement, to receive from Customer at the applicable Receipt Point(s)
quantities of Gas under any Transportation Agreement that exceed the quantities of Gas delivered by
Company to Customer under such Transportation Agreement, plus applicable Retention Volumes.
(c) Imbalance Charges. In the event of an imbalance under any Transportation Agreement.
Company may charge Customer the applicable imbalance charges specified in the Rate Schedules
applicable to the type of service provided by Company.
(d) Operational Flow Orders. Upon at least one hour prior notification by Company that
operational conditions exist on Company's system that, in Company's sole open,on, may adversely affect
-80-
TARtFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 i General Transportation Contract Terms and Conditions
APPLICABLE TO: ! Entire System REVISION: 0
DATE:
EFFECTIVE DATE: I ! PAGE: 4 of 13
service to other Customers or otherwise impact system integrity (an "Operational Flow Order"), Customer
will be responsible to ensure that quantities of gas delivered at the Delivery Point(s) during each hour are
either: i) less than or equal to, or ii) greater than or equal to the confirmed nominated receft quantities of
gas for such hour at the Receipt Point(s), as notified by Company.
(e) Compafy May Restrict Receipts and Delivenes to Maintain Balance. Notwithstanding
anything contained herein or in any Transportation Agreement, Company will always have the total and
unrestricted right, but no obligation whatsoever, to at any time and from time to time restrict, ~nterrupt. or
reduce its receipt and/or delivery of Gas under any Transportation Agreement in order to mamlain a
simultaneous balance for each Delivery Point or to correct any prior imbalance under any Transportabon
Agreement.
(f) Remaining Imbalances after Contract Expires or Is Terminated. Notwithstanding
anything contained herein or in any Transportation Agreement, in the event there ~s an *mbalance ~n
Customer's Imbalance Account 90 days after the applicable Transportation Agreement expires or ~s
terminated, Company will have the right to invoice Customer for the product of: (i) the MMBtu in
Customer's Imbalance Account and (ii) the highest "midpoint" price for the Katy point listed ~n Pla~'s Gas
Daffy, in the table entitled "Daily Price Survey," published on any Day during the 90 Days preceding such
expiration or termination of the applicable Transportation Agreement. Customer must pay the amount
contained in such invoice within 10 Days after receipt of such invoice, or such longer period as prescribed
by applicable law.
6. Rates
(a) Rates. Customer will receive and pay for Gas transportation service under the terms and
conditions of any Transportation Agreement, commencing with initial deliveries of Gas under the
applicable Transportation Agreement, and during each Month, at the rates and fees set fort~ in the
applicable Rate Schedule identified in the applicable Transportation Agreement.
(b) Regulatory Revision. Company's rates and terms and conditions of service may be
revised or replaced from time to time in the future by a regulatory authority with jurisdiction. Any such
rewsed or new rates or terms and conditions of service, when lawfully established, will immediately
become effective and be applicable to Gas service under any Transportation Agreement commenong
with Gas delivered upon and after the effective date of such change. If any new or different rates, and/or
terms and conditions of service, that affect any service under any Transportation Agreement are
established by a regulatory authority with jurisdiction, such rate(s) and/or terms and conditions of service
will supersede conflicting provisions of the applicable Transportation Agreement. Company will give
Customer notice of any such change, together with a copy of the revised rates and/or terms and
conditions of service. Such notice may be mailed by Company separately or included in Customer's
billing statement.
(c) Other Fees. The use of certain Receipt Point(s) may require that Customer also pay a
compression fee, third-party meter fee, and/or additional retention. Any such fee(s) will be charged m
addition to all other applicable rates and fees under any Transportation Agreement and/or Company wiIt
retain an additional percentage of such Gas over the Retention Volumes identified under the applicable
Transportation Agreement; provided that Company has notified Customer of such fee(s) and/or additional
retention percentage.
7. Receipt Point(s) and Delivery Point(s}
(a) Receipt Point(s). Gas delivered by Customer (or Customer's Designee) to Company under
any Transportation Agreement will be delivered at the Receipt Point(s) identified in the applicable
Transportation Agreement. Notwithstanding anything contained herein to the contrary, in the event of
unfavorable operating conditions (as determined by Company in its sole opinion), or a change of
ownership of specific Receipt Point(s) or appurtenant facilities, or if, in Company's sole op~n~on, the
receipt of Gas from a specific Receipt Point under any Transportation Agreement ever becomes
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uneconomical for any reason whatsoever, then Company will have the right (i) to ~mmediately discontinue
the recegt of Gas from any such Receipt Point(s) and/or (ii) upon 30 Days' prior written notice to
Customer, to delete any such Receipt Point(s) from all Transportation Agreements. Notwithstanding the
foregoing, if, in Company's reasonable opinion, it becomes necessary for operational reasons. Company
will have the right, at any time and from time to time, to require Customer to deliver the Gas to be
transported under any Transportation Agreement at Receipt Point(s) located in a particular geographic
region(s).
(b) Delivery Point(s). Gas transported by Company under any Transportation Agreement
wilt be delivered to Customer at the Delivery Point(s) identified in the applicable Transportation
Agreement.
(c) Allocations. It is recognized that Gas deliveries from one or more parties other than
Customer may also be received at any particular Receipt Point. If that occurs, Gas received at such
Receipt Point may be allocated among the parties delivering and receiving the Gas. As between
Company and Customer, Company will, in its sole discretion, determine the allocation of ail receipts at
such Receipt Point, and the resulting quantities received under any Transportation Agreement. Each
party will furnish the other party all data required to accurately account for all Gas delivered to, and
received by, Company at the Receipt Point(s) under any Transportation Agreement.
8. Pressures at Points of Receipt and E)eiivew
(a) Pressures at Receipt Point(s). Customer (or Customer's Designee) will deliver Gas to
Company at the Receipt Point(s) at pressures sufficient to enter Company's pipeline system at such
point(s); provided, however, that Customer's delivery pressure into Company's system at the Receipt
Point(s) may not exceed Company's maximum allowable operating pressure, as such may vary from bme
to time, at any such point(s) or cause the pressure at such point(s) to exceed Company's maximum
allowable operating pressure.
(b) Pressures at Defivery Point(s). Company will deliver Gas to Customer or Customer's
Designee at the Delivery Point(s) at Company's operating pressure, as such may vary from time to time.
9. Measurinq Equipment and Testing
(a) Metering Party and Non-Metering Party. The Gas delivered to Company at the Receipt
Point(s), and delivered to Customer at the Delivery Point(s), will be measured by measunng devices of
standard type, which, unless otherwise mutually agreed by Customer and Company, will be owned,
installed, operated, and maintained by Company (or its designee). Measurement devices and equipment
will be tested and adjusted for accuracy in accordance with industry standards. For the purposes of these
General Transportation Contract Terms and Conditions, the party metering the Gas, or whose designee
meters the Gas, at a particular Receipt Point or Delivery Point is referred to as the "Metering Party" and
the other party is referred to as the "Non-Metering Party."
(b) Additional Facilities. If adequate metering facilities are already in existence at the Receipt
and Delivery Point(s) under any Transportation Agreement, such existing metering facilities will be used
for so long as, in Company's reasonable opinion, they remain adequate and the party having title to such
facilities will retain title to such facilities.
(c) Access to Equipment. The Non-Metering Party may have access to the Metering Party's
metering equipment at all times, to the extent such access does not interfere with the Metering Party's
operations, but the maintenance, calibration, and adjustment thereof will be done only by the employees
or agents of the Metering Party. Records from such metenng equipment will remain the property of the
Metering Party and must be kept on file by said party for a period of not less than two Years. However,
upon request of the Non-Metering Party, the Metering Party will make available to the Non-Metering Party
quantity records from its metering equipment, together with calculations therefrom, for inspection and
verification, subject to return to the Metering Party within 30 Days after receipt thereof.
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RATE SCHEDULE: 31 I General Transportation Contract Terms and Conditions 1
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: ! I PAGE: 6 of 13
(d) Check Meters The Non-Metering Party may, at its option and expense, install and operate
meters, ~nstruments, and equ~pment,_m a manner that wdl not interfere w~th the Meter,ng Party's
equipment, to check the Metering Party's meters, ~nstruments, and equipment, but the measurement of
Gas for the purpose of any Transportalion Agreement will be by the Metering Party's meter only, except
as hereinafter specifically provided. The meters, check meters, instruments, and equipment ~ns~alied by
each par~y will be subject at all reasonable times to inspection or exam~nalion by the other party, but the
calibration and adjustment thereof will be done only by the installing party.
(e) Meter Tests. At the request of the Non-Me~er~ng Party, the Metering Party will give notice to
the Non-Metering Party, or its properly-designated agent, of the time of all tests of the Recerp~ and
Delivery Point meter(s) sufficiently in advance of such tests so that the Non-Metering Party may
convenientIy have its representatives present; provided, however, that if the Metering Party has g~ven
such notice to the Non-Metering Party and the Non-Metering Party's representative is not present at the
time specified, then the Metering Party may proceed with the test as though the Non-Metering Party's
representative were present.
(f) Meter Errors. Meter measurements computed by the Metering Party will be deemed to be
correct except where the meter is found to be inaccurate by more than 1%, fast or slow, or to have failed
to register, in either of which cases the Metering Party will repair or replace the meter. The quantity of
Gas delivered while the meter was inaccurate or failed to register will be determined by the readings of
the Non-Metering Party's check meter, if installed and in good operating condition, or by correcting the
error if the percentage of error is ascertainable by calibration or mathematical calculation. If not so
ascertainable, then it will be determined by estimating the quantity on a basis of deliveries under similar
conditions when the meter was reg*stering accurately. Such adjustment or correction will be made only
for the last V2 of the period that has elapsed since the previous test.
(g) Measured Quantities. Measured quantities computed by the Metering Party will be
deemed to be correct except where the meter quantity, for a specified Month, is found to be inaccurate by
the lesser of: (i) 50 MMBtu, or (ii) 1%, above or below, the quantity previously determined for the specified
Month.
(h) Measurement D¢Sputes. In the event of a measuremenl dispute between Company and
Customer under a Transportation Agreement, the measured quantities computed by the Metering Party
will be deemed to be correct and relied upon for gas imbalance accounting until such dispute is resolved.
(i) Remote Monitoring and Data Acquisition. Company will install, or cause to be installed,
communications equipment to allow for the remote monitoring and meter data retrieval of metering
equipment at all Delivery Point(s) under any Transportation Agreement. Customer will reimburse
Company, within ten days from receipt of Company's invoice, for any such communications or related
metering equipment and associated equipment, and all labor and overhead expenses attributable to such
equipment. Failure to reimburse Company as provided herein, will allow Company to suspend services
with respect to the applicable Delivery Point(s).
10. Measurements
(a) Temperature Measurements. For metering points for which the daily quantity is expected to
exceed 5,000 MMBtu per Day, the Metering Party will, at Customer's expense, properly instatl and
operate a device of standard make to continuously determine or record flowing temperature. The
temperature values will be used in Gas measurement computations. With respect to relative density
(specific gravity) of the Gas, such will be determined by (1) "on-site" sampling and laboratory analysis, or
(2) any other method that is of standard industry practice (provided, however, that either party may at its
own expense properly install and operate a recording relative density instrument of standard make and in
this event the relative density as recorded will be used in the Gas measurement computations).
(b) Standards. The meters for measurement of quantities at the Receipt and Delivery PoinI(s)
will be installed and operated, and Gas measurement computations will be made, in accordance with
current industry standards. Orifice metering will be performed m accordance with the latest version of
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TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 i General Transportation Contras.~ Terms and Conditions
APPLICABLE TO: ! Entire System ! REVISION: 0
i DATE:
EFFECTIVE DATE: ! i PAGE: 7 of 13
A.G.A. Report No. 3 - ANSI/APl 2530. Positive displacement will be performed in accordar~ce with the
latest version of ANSI Bt09.1, B1092, or B1093. Turbine metering will be performed ~n acccrdance w~th
the latest vers=on of A.G.A. Report No~ 7. Ultrasonic metering will be performed m accordance w~th the
latest version of A.G.A, Report No. 9. Electronic Gas Measurement (EGM) will be performed m
accordance with the ~atest version of APl Manual of Petroleum Measurement Standards Chapter 21 -
Flow Measurement Using Electronic Metering Systems. The unit of measurement of Gas will be 1,000
cubic feet at a base pressure of 14.65 psia and a temperature base of 60 degrees Fahrenheit. Meter
measurements will be computed by the Metering Party into such units in accordance with the Ideal Gas
Laws for quantity variations due to metered pressure and corrected for deviation using average values of
recorded relative density and flowing temperature, or by using the calculated relative density determined
by the method mentioned in paragraph (c) below. In no c~rcumstance will the average value o~ flowing
temperature be determined for a period of less than one Day.
(c) Heating Value and Relative Density, The average heating value (Btu) and retative density of
the Gas delivered under any Transportation Agreement by either party may be determined by the use of
recording instruments of standard type, which may be installed and operated by the Metering Party at the
metering point, or at such other point or points as are mutually agreeable to both parties; provided,
however, if there is no Btu/relative density instrument at a particular Receipt or Delivery Point specified m
the applicable Transportation Agreement, then the heating value and relative density of the Gas at such
point may be determined by "on-site" sampling and laboratory analysis or other reasonable industry
standard methods.
(d) Measurements Made Only Wh#e Gas Flowing. In Gas measurement computations the
determinations for the average values for meter pressure, relative density, and flowing temperature
values will be determined only during periods of time when Gas is actually flowing through the meter(s).
(e) Gas Industry Standards. Gas industry standards are in the process of being developed by
the North American Energy Standards Board, subject to FERC approval. To the extent that Company
reasonably deems it necessary, from time to time and at any time, to implement any or all of such
standards, Company will have the right to add such standards hereto and/or modify or change the
provisions contained herein in order to effect such changes if such changes do not have a material
adverse effect on the rights of Customer under any Transportation Agreement.
11. Quality
(a) Quality. Each party will deliver to the other party under a Transportation Agreement Gas that
is of merchantable quality and is commercially free from water, hazardous substances, hydrocarbon
liquids, bacteria, and other objectionable liquids, solids, and/or Gas components. In addition, the Gas
delivered by each party under a Transportation Agreement will specifically contain not more than:
(i) 0.05% oxygen,
(ii) five grains of total sulphur consisting of not more than ¥~ grain of hydrogen sulphide and
one grain of mercaptan sulphur per 100 cubic feet of Gas,
(iii) 2% by volume of carbon dioxide,
(iv) 4% by volume total non-hydrocarbon and inert gases, and
(v) seven pounds of water vapor per one million cubic feet of Gas; provided, however, if
Customer tenders Gas for transportation upstream of a dehydration plant, Company may,
at its option, waive Customer's obligation to deliver dehydrated Gas, subject to
Company's continuing right to withdraw such waiver at any time in the future.
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TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 ! General Transportation Contract Terms and Conditions
APPLICABLE TO: Entire System I REVISION: 0--
I DATE:
EFFECTIVE
DATE:
i PAGE: 8 of 13
The Gas will be at temperatures not in excess of 120 degrees Fahrenheit nor less than 40 degrees
Fahrenheit, provided that the Gas will have a hydrocarbon dew point not to exceed 40 degrees
Fahrenheit at the delivery pressure, aha will have a heat content of not less than 950 nor more than 1.100
Btu per cubic foot under the conditions of measurement contained herein. Company will not be obligated
to accept any Gas delivered by Customer (or Customer's Designee) under any Transportation Agreement
that is not interchangeable with other Gas in Company's p~peline at the Receipt Point(s) listed ~n such
Transportation Agreement. Company's determination of such interchangeability will be based upon a
factor that is equivalent to the quotient obtainec~ by dividing the total heating value of such Gas,
expressed in Btu. by the square root of the specific gravity of such Gas. Such factor must be within =:7%
of the interchange factor established by Company for its system at the Rece,pt Point(s).
(b) Quality Violations, If at any time the Gas fails to meet the quality specifications enumerated
herein, then the party receiving such Gas will notify the party delivering such Gas. and the delivering party
will immediately correct such failure. If the detivenng party is unable or unwilling to deliver Gas according
to such specifications, the party receiwng such Gas may refuse to accept delivery of Gas under the
applicable Transportation Agreement for so tong as such condition exists.
(c) Amendment of Quafity Provisions. Notwithstanding anything contained herein, Company
reserves the right, at any time and from time to time, to unilaterally amend, on a nondiscriminatory basis,
the quality specifications set forth above upon g~wng Customer at least 30 Days' prior written notice of
any such change(s).
12. Additional Facilities
If new or additional facilities or equipment are required or desirable, in Company's reasonable
judgment, to effectuate the receipt or delivery of Gas under any Transportation Agreement, then
Customer will reimburse Company, within ten Days from the date of receipt of Company's ~nvoice, for any
tap valves, metering facilities, meter equipment, pipelines, and associated equipment, and all labor,
overhead expenses and applicable taxes, attributable to the installation of such equipment. If the
invoiced amount is not paid when due, then Customer will pay interest at the lesser of 18% per annum or
the lowest legal rate of interest (provided that if Customer is a State Agency, as defined in Section
2251,001 of the Texas Government Code, then Customer will pay interest in accordance with Texas
Government Code Section 2251.025 or Section 2251.026, whichever is applicable). Failure of Company
to receive total reimbursement within ten Days of Customer's receipt of Company's ~nvo~ce, or such later
date as prescribed by applicable law, will allow Company to suspend and/or terminate any Transportation
Agreement with respect to the service requiring new or addibonal facilities.
13. Taxes
(a) Reimbursement for Taxes. Customer will pay Company, by way of reimbursement, ail Taxes
paid by Company with respect to the transportation service and any other service provided under any
Transportation Agreement, and that may be related to any associated facilities involved in the
performance of any Transportation Agreement. If any such Taxes are paid by Company to any
governmental authority that are calculated based upon the value of or price paid for the Gas transported
under any Transportation Agreement, then Customer will notify Company of the purchase price of such
Gas to enable Company to calculate and pay all such fees and taxes to appropriate governmental
authorities in a timely manner. If Customer fails or refuses to notify Company of the purchase pnce of
such Gas within 30 Days from the date the related transportation service is provided, then Company will
estimate the purchase price of such Gas in accordance with the provisions of any applicable franchise
ordinance, or, in the absence of such a franchise ordinance, Company will have the right to pay such fees
and taxes and to be reimbursed by Customer based upon the Actual Gas Cost Incurred by Company, as
defined in Rider GCR - Gas Cost Recovery, for the relevant period.
In any event, Customer will indemnify Company for, and hold Company harmless Irom, any and
all claims, demands, losses, or expenses, including attorneys' fees, which Company may incur as a result
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TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 General Transportation Contract Terms and Conditions
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 9 of 13
of Customer's failure or refusal to disclose the purchase price of Gas transported under any
Transportal on AgreemenL
(b) Defimhon of Taxes The t~rm "Taxes" as used herein means all taxes and fees levied upon
and/or paid by Company [other than ad valorem, capital stock. ~ncome or excess profit taxes texcept as
provided herein), general franchise taxes imposed on corporations on account of their corporate
existence or on their right to do business within the state as a fore,gn corporation, and s~milar taxes],
including, but not limited to, mumcipal franchise fees, and street and alley rental fees set out in franchise
ordinances, street crossing agreements, or licenses. "Taxes" also includes any other taxes, fees. or
charges levied, assessed, or made by any governmental authority on the revenue of Company under any
Transportation Agreement, or the act, right, or privilege of setling, transporting, handling, or delivering
Gas. Such taxes or fees are based upon the quantity, volume, heal content, value, sales price of the
Gas, purchase price of the Gas, transportation fee payable under any Transportalion AgreemenL and any
other fee, charge, cost reimbursement, tax reimbursement, or payment under any Transportation
Agreement, including any applicable federal income tax imposed as a result of the reimbursement of the
cost of the installation of facilities and equipment at the Delivery Point(s) or Receipt Point(s) under the
terms of the applicable Transportation Agreement.
(c) Sales and Use Tax. Texas sales and use tax will also be collected by Company on behalf of
the State, as well as any other taxes required by law. However, Company will not collect the sales tax for
the State if Customer provides Company with a valid sales tax exemption certificate.
14. Biflinq, Accountinq, and Reports
(a) Invoices. On approximately the 15th Day of each Month, Company will render to Customer a
statement for the preceding Month showing the quantity of Gas delivered at the Receipt Point(s) and
Delivery Point(s) during such preceding Month; the amount of compensation due to Company under the
applicable Transportation Agreement, including tax reimbursement and any imbaiance payments due
under such Transportation Agreement; other reasonable and pertinent information that is necessary to
explain and support the same; and any adjustments made by Company in determining the amount billed.
(b) Payments. Customer will pay to Company, on or before the 10th Day after receipt of
Company's statement (or such later date as prescribed by applicable law), the amount set forth ~n
Company's statement. Notwithstanding anything contained in any Transportation Agreement, Company
will have the right to require that all payments be made by wire transfer to: TXU Gas Company, Account #
08805016795, Chase Texas Bank, Dallas, Texas, ABA# 113000609. To assure proper credit, Customer
should designate the company name, invoice number, and amount being paid in the Fedwire Text
Section. If the amount contained in any statement is not paid when due, then Customer will pay interest
at the lesser of 18% per annum or the lowest legal rate of interesl (provided that if Customer is a State
Agency, as defined in Section 2251.001 of the Texas Government Code, then Customer will pay interest
m accordance with Texas Government Code Section 2251.025 or Section 2251.026, whichever ~s
applicable, and if Customer is a federal Customer, then Customer will pay interest in accordance with
applicable federal law); provided, however, no interest will accrue on unpaid amounts when failure to
make payment is the result of a bona fide dispute between the parties regarding such amounts (and
Customer timely pays all amounts not in dispute) unless and until it is ultimately determined that
Customer owes such disputed amount, whereupon Customer will pay Company that amount, plus interest
computed back to the original payment due date, immediately upon such determination.
(c) Audit, Each party will have the right at all reasonable times to examine the records of the
other party to the extent necessary to verify the accuracy of any statement, charge, computation, or
demand made under or pursuant to any of the provisions in any Transportation Agreement. If ar' -.;ch
examination reveals any inaccuracy in such billing theretoL ~e made, the necessary adjustments .ch
billing and payment will be made; provided, that no adjustments for any billing or payment will be made
for any ~naccuracy claimed after the lapse of 25 Months from the rendition of the ~nvoice relating there!o,
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TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 I General Transportation Contract Terms and Conditions
APPLICABLE TO: j Entire
System
I REVISlON:O
I DATE:
EFFECTIVE
DATE:
~ PAGE: 10 of 13
(d) Credit-Worth/ness, If the credit worthiness or financial responsibility of Customer should, in
Companys reasonable op~mon, ever b. ecome unsatisfactory, then Company will notify Customer and
upon request by Company at any time and from time to time during the term of any aC~plicable
Transportation Agreement, Customer will deposit with Company: (i) such amount of money requested by
Company, or (ii) a letter of credit in a form acceptable to Company from a financial ~nst~tut~on acceptabie
to Company in an amount requested by Company, to guarantee the payment of statements and ~nvo~ces
under the applicable Transportation Agreement, as well as any possible ~mbaiances under such
Transportation Agreement. Upon the termination of the applicable Transportation Agreement, any money
so deposited, less any amount due Company by Customer, will be refunded to Customer.
15. Responsibility
Customer will be deemed to be in control and possess,on of the Gas transported under any
Transportation Agreement and be responsible for, and will hold Company harmless from, any damage or
injury caused thereby until the same has been delivered to Company at the Receipt Point(s) and after
such Gas has been delivered at the Delivery Point(s), except for injuries and damages caused by the
negligence or other fault of Company. Company will be ~n control and possesston of the Gas transported
under any Transportation Agreement and be responsible for, and will hotd Customer harmless from, any
damage or injury caused thereby after receipt of the Gas at the Receipt Point(s) and until such Gas has
been delivered to Customer (or for its account) at the Delivery Point(s), except for injuries and damages
caused by the negligence or other fault of Customer.
16. Title-Warranty & Indemnity
Customer warrants to Company that at the time of delivery of Gas to Company under any
Transportation Agreement Customer will have good title or the right to deliver such Gas, and that such
Gas will be free and clear of all liens and adverse claims. Customer will indemnify Company, with respect
to the Gas delivered by it, against all suits, actions, debts, accounts, damages, costs (including attorneys'
fees), losses, and expenses arising from or out of any adverse claims of any and all persons to or against
said Gas, Company warrants to Customer that Company will take no action to jeopardize Customer's title
to the subject Gas.
17. Waiver of Breaches, Defaults, or Riqht_s
No waiver by either Customer or Company of any one or more breaches, defaults, or rights under
any provisions of any Transportation Agreement will operate or be construed as a waiver of any other
breaches, defaults, or rights, whether of a like or of a different character, By providing written notice to
the other party, either party may assert any right not previously asserted under any Transportation
Agreement or may assert its right to object to a default not previously protested. Except as specifically
provided herein, in the event of any dispute under any Transportation Agreement, the parties will,
notwithstanding the pendency of such dispute, diligently proceed with the performance of the applicable
Transportation Agreement without prejudice to the rights of either party. Nothing contained in this
paragraph will have the effect of waiving the applicable statute(s) of limitation.
18. Remedy for Breach
Except as otherwise specifically provided in these Transportation Contract Terms and Conditions
or any applicable Transportation Agreement, if either party fails to perform any of the covenants or
obligations ~mposed upon it in any Transportation Agreement (except where such failure is excused
thereunder as a result of a force majeure event), then the other party may, at its option (without waiving
any other remedy for breach), by notice in writing specifying wherein the default has occurred, indicate
such party's election to terminate the applicable Transportation Agreement by reason thereof; provided,
however, that Customer's failure to pay Company within a period of ten Days following Customer's receipt
of written notice from Company advising of such failure to make payment in full within the time specified
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TARtFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 General Transportation Contract Terms and Conditions
REVISION: O
APPLICABLE TO: Entire System I
DATE:
i PAGE: 11 of 13
EFFECTIVE
DATE:
previously here will be a default that will give Company the right to immediately terminate the
applicable Transportation Agreement, unless such failure to pay such amounts is the result of a bona fide
disbute between the parties regarding s~ch amounts under the applicable Transportation Ac~reement and
Customer timely pays all amounts not in dispute. With respect to any other matters, the p~.,,rty in default
will have 30 Days from receipt of such notice to remedy such default, and upon failure to do so. the
applicable Transportation Agreement will terminate from and after the expiration of such 30-Day period
Such termination will be an additional remedy and will not prejudice the right of the party not m default to
collect any amounts due it under the applicable Transportation Agreement for any damage or loss
suffered by it and will not waive any other remedy to which the party not in default may be entitled for
breach of the applicable Transportation Agreement.
19. Force Ma~_uf.e_
(a) Suspension of Performance. In the event either party is rendered unable, wholly or in part, by
an event of force maleure to carry out its obligations under any Transportation AgreemenL except the
obligation to pay monies due under such Transportation Agreement, on such party's g~wng notice a. nd
reasonably full particulars of such event of force majeure, ~n writing or by fa.x, to the other party within a
reasonable time after the occurrence of the cause relied on, the obligations of the party g~ving such
notice, so far as they are affected by such event of force majeure, will be suspended during the
continuance of any inability so caused, but for no longer period, and such cause will, so far as possible,
be remedied with all reasonable dispatch.
(b) Definition of Force Maluere. The term "force majeure" as used herein, means acts of God;
strikes, lockouts, or other industrial disturbances; acts of terrorism, acts of the public enemy, wars,
blockades, insurrections, civil disturbances, riots, and epidemics; landslides, lightning, earthquakes, fires,
storms, floods, and washouts; arrests, orders, directives, restraints, and requirements of the government
and governmental agencies, either federal or state, civil or military; any application of governmental
conservation or cur[ailment rules and regulations; explosions, breakage, or accident to machinery or lines
of pipe; shutdowns of lines of pipe for inspection, maintenance, or repair; freezing of lines of pipe; and
any other causes, whether of the kind enumerated or otherwise, not reasonably within the control of the
party claiming suspension; provided, however, if Customer is an Electric Generation or Industrial
Customer, then no failure of Customer's industrial facilities or power plant will be considered a force
maleure event. The settlement of strikes or lockouts will be entirely within the discretion of the party
having the difficulty, and that the above reasonable dispatch will not require the settlement of strikes or
lockouts by acceding to the demand of the opposing party when such course is, or is deemed to be,
inadvisable or inappropriate in the discretion of the party having the difficulty.
(c) Balancing Obligations Remain. Notwithstanding the foregoing, an event of force majeure will
in no way terminate Customer's obligation to balance quantities of Gas under the applicable
Transportation Agreement or make payment for quantities delivered prior to such event of force majeure.
20. Miscellaneous
(a) Notices. All notices, requests, demands, statements, and payments provided for in any
Transportation Agreement must be given in writing directed to the party to whom given, and mailed to or
delivered at such party's address set forth in the applicable Transportation Agreement or at such address
as each party may by like notice give to the other. Such mailed notices will be deemed to have been
given when deposited in the United States mail (first class, registered, or certified), postage prepaid, or ~n
the case of hand delivery, when delivered to a representative of either party by a representative of the
other party. Company may submit operational communications at the e-mail address set forth in the
applicable Transportation Agreement and Customer will be responsible to monitor such e-mail address
for any such communications from Company. Any such communications sent by Company to such e-mail
address will be deemed received by Customer when sent by Company unless Customer has previously
notified Company in writing of any change to Customer's designated e-mail address. If Company's e-mail
-88-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 31 i General Transportation Contract Terms and Conditions
APPLtCABLE TO: ! Entire System ! REVISION: O
~ DATE:
EFFECTIVE DATE: I PAGE: 12 of 13
system is not operational at the time an operational communication ~s to be sent, then Company may
make the ooerabonal communication b.y utdizing any reasonable alterna!ive means then available to
Company, including, w~tbout limitation, electronic pager, telephone, facsimile, te!egraph, etc, and such
communication will satisfy the nobce requirements ct this paragraph.
(b) Assignment. All Transportation Agreements will be binding upon and inure to Ihe benefit
of Customer and Company and their respective successors and assigns; provided, however, that no
Transportation Agreement may be transferred or assigned by Customer without the pnor wntten consenl
of Company, which consent will not be unreasonably withheld, and any purported transfer or ass~gnmen~
without such consen~ will be null and void and will not operate to release Customer's obligations under
the applicable Transportation Agreement.
(c) Entirety, Each Transportation Agreement, including any referenced rate schedules and
a~ached exhibits, constitutes the entire agreemen~ between Customer and Company covering the subject
ma~ter thereof, and there are no agreements, modifications, conditions, or understandings, written or oral,
express or implied, pertaining to the subject matter thereof that are not contained thereto.
(d) Modifications. Modifications of any Transportation Agreement will be effeclive only upon
the mutual execution of appropriate amendments lhereto Dy duly authorized representatives of Customer
and Company,
(e) Headings. The captions or headings preceding the various parts of these Transportation
Contract Terms and Conditions and any Transportation Agreement are inserted and included solely for
convenience and will never be considered or given any effect m construing any Transportation Agreement
or any part of any Transportation Agreement, or ~n connection with the intent, duties, obligations, or
liabilities of the parties.
(f) Third-Parties. Each Transportation Agreement is entered into solely for the respective
benefit of Company and Customer and nothing contained in any Transportation Agreement, either
express or implied, will be interpreted or construed as conferring any rights, remedies, or claims under or
in respect to any Transportation Agreement or any provision thereof upon any other person or entity,
other than the successors or assigns of Customer and Company.
(g) Joint Preparation. No provision of any Transportation Agreement is to ,be construed
against or to be interpreted to the disadvantage of Customer or Company by any court or other
governmental or judicial authority by reason of Customer or Company having or being deemed to have
prepared, structured, or dictated such provision.
(h) Confidentiality. Subject to the open records laws that may be applicable to Customer,
Company and Customer will keep the terms and provisions of each Transportation Agreement
confidential and not disclose them to any third parties. If disclosure is sought through process of a court,
a government or a city, state, or federal regulatory agency, the party from whom disclosure ~s sought will
resist disclosure through all reasonable means and will immediately notify the other party to allow it the
opportunity to participate in such proceedings. However, Customer and Company will have the right to
make such disclosures, if any, to governmental agencies and to their attorneys, auditors, accountants,
and shareholders, who will in turn maintain its confidentiality. Company and Customer will cooperate to
maintain confidentiality and to attempt to obtain a reasonable protective order or agreement to maintain
that confidentiality under circumstances in which disclosure becomes necessary,
(i) CHOICE OF LAW. EACH TRANSPORTATION AGREEMENT IS GOVERNED BY AND
WILL BE CONSTRUED IN ACCORDANCE WITH LAWS OF THE STATE OF TEXAS WITHOUT GIVING
EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE
STATE OF TEXAS OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF
THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS, ANY LAWSUIT
INVOLVING ANY TRANSPORTATION AGREEMENT BROUGHT BY CUSTOMER OR COMPANY WILL
BE BROUGHT ONLY tN DALLAS COUNTY, TEXAS, WHETHER SUCH LAWSUIT BE BROUGHT IN
FEDERAL OR STATE COURT. NEITHER CUSTOMER NOR COMPANY MAY RAISE ANY DEFENSE
OR OBJECTION OR FILE ANY MOTION BASED ON LACK OF PERSONAL JURISDICTION,
-89-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
I RATE SCHEDULE: 31 General Transportation Contract Terms and Conditions
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 13 of 13
IMPROPER VENUE. INCONVENIENCE OF THE FORUM. OR THE LIKE IN ANY CASE FILED IN A
FEDERAL OR STATE COURT IN DALLAS COUNTY, TEXAS.
Counterparts. Any T~ansportation Agreement may be executed in any number of
counterparts, each of which will be deemed to be an or~ginat and all of which will constitute one and the
same agreement.
(k) Service Regulations. Company's Service Regulations contained in Company's Tariff for
Gas Service are applicable to all Customers receiving service under a Transportation Agreement, except
to the extent there ~s a conflict belween the applicable Transportation Agreement and Company's Serwce
Regulations, in which case the provisions of the Transportation Agreemenl will control
-90-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 32 I City Gate Transportation Terms and Conditions
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: I PAGE: 1 of 3
1. Capitalized Terms
Capitalized terms contained in these City Gate Transportation Terms and Conditions are defined
in Company's General Transportation Contract Terms and Conditions
2. Cubiect Matter
Subject to the terms and conditions of the applicable Transportation Agreement, Company will
receive Gas from Customer (or its designee) at the Receipt Point(s), will transport and store such Gas on
a firm basis, and will deliver such Gas on a firm basis to Customer (or its designee) at the Delivery
Point(s), provided such Gas is ultimately delivered to Customer's residential and commercial customers,
as defined in Rate Schedule - Definitions, which are located on Customer's distribution system(s) inside
the State of Texas, or used as lost and unaccounted for Gas on such distribution system(s). For the
purposes of these City Gate Transpodation Terms and Conditions, the term "firm" means that service will
only be interrupted as a result of a force majeure event, as a result of Customer's non-performance under
the applicable Transportation Agreement, or as allowed by the provisions of the applicable Transportation
Agreement.
3. Downstream Responsibilities
Customer will be solely responsible for: (i) all service requirements downstream of the Delivery
Point(s), including, but not limited to, leak investigation, customer notifications(s), customer ~nquirles,
repairs to facilities downstream of the Delivery Point(s), odorization, and for any other service requirement
deemed to be the responsibility of a Gas distribution utility; (ii) constructing, operating, maintaining, and
regulating all gas pipe and facilities downstream of the Delivery Point(s), (iii) ensunng that the
construction, operation, regulation, and maintenance of all Gas pipe and facilities downstream of the
Delivery Point(s) are at all times in compliance with all local, federal, and state laws, codes, and
regulations, and (iv) any and all environmental matters (including, but not limited to, obtaining and
providing all permits and regulatory and/or court approvals) related to Gas p~pe or facilities downstream of
the Delivery Point(s). Customer will be responsible for ar~y and all liability related to Customer's failure to
fulfill the above responsibilities.
4. Transportation and Storaqe Capac_it~
(a) Capacity Rights. Customer will have the right to firm seasonal daily delivery capacity on
Company's existing pipeline systems up to the Maximum Daily Quantities, and will have the right to firm
seasonal hourly delivery capacity on Company's existing pipeline systems up to the Maximum Hourly
Quantities, set forth in the applicable Transportation Agreement. The delivery capacities listed in the
applicable Transportation Agreement for each seasonal period are intended to equal the maximum daily
and hourly demand required by Customer from Company during each seasonal period. Customer may
request a change in Customer's delivery capacities to be effective on the first Day of a calendar quarter
during the term of the applicable Transportation Agreement. If Customer desires a change in Customer's
delivery capacities effective on the first Day of such calendar quarter, Customer must notify Company, ~n
writing, at least 30 Days prior to the first Day of such calendar quarter, and must provide new delivery
capacity information to Company, as well as detail of the specific Delivery Point(s) at which such change
is needed. Unless otherwise mutually agreed, the changed delivery capacities requested by Customer
will become effective on the first Day of such calendar quarter and will never be less than the highest
daily and hourly quantities delivered under the applicable Transportation Agreement for the same period
in tl~e prewous 24 Months, if daily and hourly delivery information is readily available, or the highest
average daily and hourly quantities delivered under the applicable Transportation Agreement for the
same period in the previous 24 Months. Any increase in daily and hourly delivery capacities will only
become effective to the extent Company has firm capacity available to provide all of the requested
~ncrease. If Customer connects the facilities behind any Delivery Point to an energy delivery system other
than Company, then the provisions of the applicable Transportation Agreement, including, but not limited
-91-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATESCHEDULE: 32 City Gate Terms
Transportation
Conditions
ABLE TO: Entire System REVISION: O
DATE:
E F~T~ PAGE: 2 of 3
to, daily and hourly de)ivery capacities, storage capacities, arid related rights, imbaiances, and imbalance
resolutions will be adjusted with respec_t to such Delivery Point to accoun~ for the capacity available to
Customer from lhe new energy delivery system. Company will not be required Io establish new Delivery
Point(s) or ,ncrease delivery capacity at an existing Delivery Point un~ess additional firm capac;ty is
available on the portion of Company's system on which additional capacity ~s requested.
(b} Overrun Capacity. In the event Customer requires capacity on a short-term basis ~n
excess of Customer's then-applicable daity or hourly delivery capacities in order to ma~ntam firm detivery
service to its residential and commercial customers, Company will make available to Customer, upon
request by Customer, on a pro rata basis with other City Gate Customers, any then exJstmg ~nterruptible
capacity ~n the vicinity of the affected Delivery Point(s), but only to the extent that such ~nterruptibie
capaoty is necessary for Customer to maintain service to Customer's residential and commercial
customers,
(c) Projected Usage Profile. On or before October 1st of each year, Customer must furnish
to Company an annual usage profile showing estimated totaI monthly quantities to be transported under
each applicable Transportation Agreement during the follow~ng calendar year. tn addition, on or before
October 1st of each year, Customer must furnish to Company an estimate of peak day quantities to be
transported under the applicable Transportation Agreement to each Delivery Pomt during the following
calendar year. The annual usage profile will not be used to adjust daily or hourly delivery capacities
under paragraph 4(a).
(d) Storage Capacity. Customer will have the right to have up to the quantity of Gas
identified on the applicable Transportation Agreement stored in Company's Primary and Secondary
Storage Facilities identified on the applicable Transportation Agreement. If changed levels of daily
delivery capacities become effective under paragraph 4(a), then Customer's storage capacities, ~njection
rights, and withdrawal rights will be increased in the same proportion as such change to Customer's daily
delivery capacity.
(e) Injection Rights. Customer will have the right to inject into storage under any appIicable
Transportation Agreement up to the maximum daily injection volumes set forth in the applicable
Transportation Agreement. Simultaneous injection and withdrawal nominations will be allowed by
Company if pipeline system operations and pressures permit. The actual operating capabilities of
Company's pipeline and storage facilities may allow for the maximum injection nominations set forth ~n
the applicable Transportation Agreement to be waived, in whole or in part by Company, from time to time,
Accordingly, Company may from time to time advise Customer of its daily operating conditions, and, to
the extent permitted by such actual operating conditions, Customer may nominate volumes of Gas in
excess of the maximums set forth in the applicable Transportation Agreement.
(f) Withdrawal Rights. Customer will have the right to withdraw from storage under any
applicable Transportation Agreement up to the maximum daily withdrawal volumes established in the
applicable Transportation Agreement. Customer's withdrawal rights will be determined by the then-
existing inventory of Customer's Gas in Primary and Secondary Storage Facilities as set forth in the
applicable Transpo,lation Agreement. Customer's totat storage withdrawal nominations for any Day will
not exceed the lesser of ti) 70% of Customer's estimated daily demand, or (ii) the maximum withdrawal
based on Customer's inventory as set forth in the applicable Transportation Agreement. The actual
operating capabilities of Company's pipeline and storage facilities may allow for the maximum withdrawal
nominations set forth in the applicable Transportation Agreement to be waived, in whole or in part by
Company, from time to time. Accordingly, Company may from time to time advise Customer of its daily
operating conditions, and, to the extent permitted by such actual operating conditions, Customer may
nominate volumes of Gas in excess of the maximums set forth in the applicable Transportation
Agreement.
-92-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 32 I City Gate Transportation Terms and Conditions
APPLICABLE TO: Entire System REVISION: 0
DATE:
EFFECTIVE DATE: i I PAGE: 3 of 3
5. Gas SuPply Sourcinq
(a) Sourcing of Supply. Due to the location of Customer's Delivery Point(s) and Company's
storage facilities and the operational requirements of Company's p~peline, it ~s necessary for Customer to
source certain quantities of its Gas supply in proximity to the Delivery Point(s) and storage facdihes under
the applicable Transportation Agreement in order for Company to provide firm transportation aeiivery and
storage service thereunder, tn order to meet Customer's market and storage requirements, Company
and Customer will coordinate in a timely manner to ensure adequate Gas supplies are available in certain
geographic operational areas. In the event of force majeure on Company's pipetine system such that
service to Customer's residential and commercial customers may be interrupted, Company will make
additional interruptible pipeline capacity available to Customer, to the extent then availabte, on any
segment of Company's system if such action woutd minimize or eliminate firm service interruption.
(b) Storage Supply. In order for Company to provide firm transportation service under any
Transportation Agreement it may be necessary, from time to time, for Customer to source a portion of ~ts
Gas supply from its Gas inventory in Company's storage facilities. Customer's minimum requirements to
source its Gas from storage, if any, will be set forth in the applicable Transportation Agreement. The
actual operating capabilities of Company's pipeline and storage facilities may allow for the mm*mum
withdrawal requirements set forth in the applicable Transportation Agreement to be waived, in whole or in
pad, from time to time. In that regard, Company may from time to time advise Customer of its daily
operating conditions, and, to the extent permitted by such actual operating conditions, Customer may
nominate volumes of Gas less than the minimums set forth in the applicable Transportation Agreement.
-93-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
CHEDULE: Transportation Terms and Conditions
33
Pipeline/Distribution
ABLE TO: Entire System !DATE:REVISION: 0
I EFFECTIVE DATE:
~ PAGE:Icl2
1. Capitalized Terms
Capitalized terms contained in these Pipeline/Distribution Transportation Terms and Conditions
are defined in Company's General Trar~sportation Contrac~ Terms and Conditions
2. Subiect Matter
Subject to the terms and conditions of the applicable Transportation Agreement, Company will
receive Gas from Customer (or its designee) at the Receipt Point(s), will transport such Gas, and will
deliver such Gas to Customer (or its designee) at the Delivery Point(s), provided such gas ~s ultimateiy
used at Customer's industrial facilities or power plant, unless otherwtse agreed by Company, In no event
will the transportation provided under any Transportation Agreement be used to satisfy any part of
Customer's needs that could be classified as "Commercial," under Company's customer classification
criteria, unless otherwise agreed by Company.
3, Priority of Service
(a) Interruptible Service. Company's receipt and delivery of all gas quantities under the
applicable Transportation Agreement will be on a wholly interruptible basis and subject to: (i) the most
efficient and economic utilization of Company's pipeline capacity as determined by Company in ~ts sole
discretion, (ii) pipeline capacity necessary to serve existing or future sales customers under tariffs filed
with applicable regulatory authorities, (iii) the provisions of Company's curtailment program approved by
the applicable Regulatory Authority, and (iv) the other terms and conditions contained in the applicable
Transportation Agreement.
(b) Curtailment and Interruption. When notified by Transporter to do so, Customer will
curtail, interrupt, reduce, limit, terminate, or discontinue the use of Gas transported under the applicable
Transportation Agreement in conformity with the service priority provided for herein. In the event of any
curtailment, interruption, reduction, limitation, termination, or discontinuation of service under any
Transportation Agreement, Company personnel may enter Customer's premises and physically turn off
the Gas or reduce the quantity of Gas serving Customer's industrial facilities or power plant, and no one
other than Company's personnel will thereafter be permitted to increase the quantity of Gas or turn the
Gas back on.
(c) Customer's Indemnification in Event of Curtailment or Interruption, Customer assumes
any and all risks, includir*g, but not limited to, lost profits, damaged or destroyed facilities, lost or
damaged production, damaged or destroyed machinery and/or equipment, and the failure of a facility of
Customer and/or Customer's business due to a curtailment, interruption, reduction, limitation, termination,
or discontinuation of Customer's transportation under any Transportation Agreement. Customer will
indemnify and hold Company harmless from and against any and all damages, costs, losses, and
expenses (including reasonable attorneys' fees) that may be sustained by Customer due to any
claim, demand, suit, or action brought against Company (whether or not the claim, demand, suit,
or action is found to be valid) by any person or entity arising out of, resulting from, or connected,
in whole or in part, with, a curtailment, interruption, reduction, limitation, termination, or
discontinuation of the transportation of Gas under the terms of any Transportation Agreement.
4. Plant Protection Service and Firm Electric Load Quantities
(a) If Customer is an Industrial Customer, then Customer may elect to recetve Plant
Protection transportation quantities during each Day during the term of any Transportation Agreement by
specifying the applicable Plant Protection Quantity in the applicable Transportation Agreement.
Customer will pay to Company, for Plant Protection transpo~ation service, a monthly charge calculated by
multiplying the Plant Protection Quantity specified in the applicable Transportation Agreement times the
number of Days in the billing Month times the Monthly Charge in the first block, entitled "First 0 MMBtu to
1,500 MMBtu," under Rate Schedule T - Transportation effective where the Delivery Point is located,
whether such quantities of Gas are actually transported by Customer or not. The term "Plant Protection'
-94-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 33 Pipeline/Distribution Transportation Terms and Conditions
APPLICABLE TO: Entire System DATE:REVISION: O
EFFECT VE DATE: ! PAGE: 2 of 2
has the meaning set forth in the Order in Gas Utilities Docket No. 496. For measurement, accounting,
and billing purposes, if Customer has.elected to receive Plant Protection transportation servrce, the last
quantities of Gas delivered each Day under the applicable Transportation Agreemenl will be deemed to
be Ptant Protection transportation Gas.
(b) If Customer is an Electric Generation Customer, then Customer may elect to recewe Firm
Electric Load Quantities during each Day during the term of any Transportation Agreement by specifying
the applicable Human Use Needs Quantity in the applicable Transportation Agreement. Customer will
pay to Company, for Human Use Needs transportation service, a monthly charge calculated by
multiplying the Human Use Needs Quantity specified in the applicable Transportation Agreement times
the number of Days in the billing Month times the Monthly Charge in the first block, entitled "First 0
MMBtu to 1,500 MMBtu," under Rate Schedule T - Transportation effective where the Delivery Point ~s
located, whether such quantities of Gas are actuatly transported by Customer or not. The term "Firm
Electric Load Quantity" means the quantity of Gas that qualifies for an exemption form curtailmen[ under
the "emergency exemption" paragraph in the Order in Gas Utilities Docket No. 4.96. For measurement,
accounting, and billing purposes, if Customer has elected to receive Human Use Needs transportation
service, the last quantities of Gas delivered each Day under the applicable Transportation Agreement will
be deemed to be Human Use Needs transportation Gas.
-95-
VIII. CURTAILMENT ORDER
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 34 Curtailment Order
APPLICABLE TO: Entire System I REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 2
VIII. CURTAILMENT ORDER:
Curtailment Priorities
The following curtailment priorities in descending order will be observed on Company's pipeline system:
A. Residential, hospitals, chumhes, schools, and other human needs customers.
B. Industrial and Commercial Customers in the following descending order: (1) Small commercial (less than 100 Mcf on a peak day).
(2) Large commercial (100 Mcf or more on a peak day) and industrial requirements for pilot lights
and plant protection gas.
{3) Small industrial (less than 3,000 Mcf on an average day) requirements for feedstock and
process gas needs.
(4) Large industrial (3,000 Mcf or more on an average day) requirements for feedstock and
process gas needs.
(5) All industrial requirements not specified in priorities B(3), (4), or (6) or F.
(6) (a) Boiler fuel and other indirect flame applications (300 Mcf or less on an average day)
with alternate fuel capabilities.
(b) Boiler fuel and other indirect flame applications (more than 300 Mcf) on an average day
and less than 3,000 Mcr on an average day) with alternate fuel capabilities.
(c) Boiler fuel and other indirect flame applications (3,000 Mcf or more on an average) with
a~ternate fuel capabilities.
C. Legacy Public School rate customers.
D. Agricultural Irrigation
F. Large volume industrial sales and transport customers [need to define].
Electric Utility Customer Emergency Exemption
Any electric utility customer served by TXU Gas Company will be entitled to sufficient natural gas to avoid
the shedding of firm electric load upon a sworn verified statement to TXU Gas that: (1) the utility faces an
emergency situation that would require the shedding of firm electric loads unless an emergency exemption
from curtailment is granted in sufficient quantities to avoid shedding firm electric loads; (2) the utility has
no alternate fuel capability;, (3) the utility has exhausted all purchased power opportunities; (4) the utility
has utilized all alternative sources of power; and (5) the utility will accept reduced deliveries, as soon as
possible thereafter, to replace the volumes taken during the emergency exemption from curtailment.
Definitions
(1) RESIDENTIAL - Service to customers which consist of direct natural gas usage in a residential
dwelling for space heating, air conditioning, cooking, water heating, and other residential uses, to
the extent that such gas consumption occurs within a single dwelling unit.
(2) COMMERCIAL - Service to customers engaged primarily in the sale of goods or services including
institutions and all government agencies for uses other than those involving manufacturing,
electrical generation, or boiler fuel.
-96-
TARIFF FOR GAS SERVICE TXU GAS COMPANY
RATE SCHEDULE: 34 Curtailment Order
APPLICABLE TO: Entire System I REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 2 OF 2
(3) INDUSTRIAL - Service to customers engaged primarily in a process that creates or changes raw or
unfinished materials into another form or product excluding the generation of electrical power.
(4) FEEDSTOCK GAS - Gas used for its chemical properties of natural gas as a raw material in
creating an end product.
(5) PROCESS GAS - Gas use for which alternate fuels are not technically feasible such'as in
applications requiring precise temperature controls and precise flame characteristics.
(6) BOILER FUEL - Is considered to be natural gas used as a fuel for the generation of steam or
electricity, including the utilization of gas turbines for the generation of electricity.
(7) ALTERNATE FUEL CAPABILITIES - Where an alternate fuel could have been utilized and not
whether the facilities for such use have actually been installed. Propane is excluded as an alternate
fuel.
(8) PLANT PROTECTION GAS - The minimum gas required to prevent physical harm to the plant
facilities or danger to plant personnel when such protection cannot be afforded through the use of
an alternate fuel. This includes the protection of such material in process as would otherwise be
destroyed, but shall not include deliveries required to maintain plant production.
-97-
Page 1 of 1
TXU GAS
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
TABLE OF CONTENTS
OVERALL COST OF SERVICE SUMMARY
Schedule A: Cost of Service
A: Cost of Service Summary
A-1: Overall Cost of Service
TXU GAS -- DISTRIBUTION
Section I: Overall Cost of Service Summary
Section It: Historic Test Year Data
Section 111: Rate Design
TXU GAS -- PIPELINE
Section h Overall Cost of Service Summary
Section Il: Historic Test Year Data
Section IIh Rate Design
Note: Totals may vary due to rounding.
Schedule A
Page I of I
TXU GAS
COST OF SERVICE SUMMARY
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: G. L. GOBLE AND R. K. PRUETT
Line Present Proposed Proposed
No. Description ' Rates Rates Increase Percent Increase
(a) (b) (c) (d) (e)
1 Operating Revenues
2 Residential $ 589,242,426 $ 615,166,669 $ 55,924.243 10.00
3 Commercial 283,397.890 289,846,989 6,449,099 2.28
4 Indust rial/Transportation 48.237,172 48,237.172
5 Pipeline Transpor[ation 25.556,087 25,556.087
6 Total $ 916,433,574 $ 978,806,916 $ 62,373,342 6.81
7
8 Other Operating Revenues 44,109,899 51.260.868 7.150.969 16.21
9 'rotal Operating Revenues $ 960,543,473 $ 1.030,067,784 $ 69.824,311 7.24
10
12 Total Revenue Requirement
13 Operating Expenses
15 Gas Cost - Commodk'y $ 459.393,661
17 Operation and Maintenance Expenses 249.232,711
19 Taxes Other than income Taxes 81,672.585
20
21 Depreciation and Amortization Expense 77,697,243
22
23 interest on Customer Deposits 1,472,587
24 Interest on Customer Advances 8,517
25
26 Federal Income Taxes 40,031,742
27
28 Return on Rate ~ase 120,568,737
29
30 Total Revenue Requirement $ 1,030,067,784
x
~0
C~
.-~m
Page 1 of 3
TXU GAS -- DISTRIBUTION
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
TABLE OF CONTENTS
SECTION I: OVERALL COST OF SERVICE SUMMARY
Schedule A: Cost of Service
A (D): Cost of Service Summary
A-1 (D): Overall Cost of Service
SECTION I1: HISTORIC TEST YEAR DATA
Schedule B: Rate Base
B (D): Total Rate Base
B-1 (D): Net Plant Investment
B-1.1 (D): Distribution Plant Investment
B-1.2 (D): General Plant Investment
Schedule C: Original Cost of Plant
C-1 (D): Odginal Cost of Distribution Utility Plant
C-2 (D): Onginal Cost of General Plant
C-3 (D): Total Construction Work in Progress
C-3.1 (D): Construction Work in Progress - Distribution Plant
C-3.2 (D): Construction Work in Progress - General Plant
Schedule D: Depreciation
D-1 (D): Accumulated Depreciation of Distribution Utility Plant
D-2 (D): Accumulated Depreciation of General Plant
D-3 (D): Total Retirement Work in Progress
D-4 (D): Comparison of Current and Proposed Pro Forma Depreciation Expense
D-5 (D): Depreciation Study Rate Summary
Schedule E: Other Rate Base Items
E (D): Summary of Other Rate Sase Items
E-1 (D): Materials & Supplies
E-2 (D): Prepayments
E-3 (D): Customer Deposits and Associated Interest Expense
E-4 (D): Construction Advances
E-5 (D): Provision for Injudes and Damages
E-6 (D): Safety Compliance Program Costs
E-7 (D): Income Tax Adjustments
E-7.1 (D): Accumulated Deferred Federal Income Taxes
Page 2 of 3
TXU GAS -- DISTRIBUTION
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
TABLE OF CONTENTS
E-7.2 (D): Investment Tax Credit
E-8 (D): Cash Working Capital
E-9 (D): Working Gas~ln Storage
Schedule F: Revenue Data
F-1 (D): Operating Revenues
Schedule G: Expense Data
G-1 (D): Other Gas Supply Expense
G-2 (D): Operation And Maintenance Expenses
G-3 (D): Labor Expense
G-3.1 (D): Labor Expense
G-4 (D): Non-Labor Expense
G-4.1 (D): Non-Labor Expense
G-5 (D): Operation and Maintenance Expense Adjustment Summary
G-5,1 (D): Advertising Expense Adjustment
G-5.2 (D): Contributions and Donations Expense Adjustment
G-5.3 (D): Social Club Dues Adjustment
G-5.4 (D): Legislative Advocacy Adjustment
G-5,5 (D): Miscellaneous Account Revisions Adjustment
G-5.6 (D): Insurance Premiums Adjustment
G-5.7 (D): Pension & Benefit Expense Adjustment
G-5.8 (D): Pipeline Integrity Program Adjustment
G-5.9 (D): WINS - TXU Business Services Cost Reduction Adjustment
G-5.10 (D): WINS - TXU Business Services Regulatory Asset Adjustment
G-5.11 (D): WINS Related (Oncor) Reduction Adjustment
G-5.12 (D): Account Reclassifications/Adjustments
(3-6 (D): Taxes Other Than Income Taxes
G-7 (D): Test Year Federal Income Taxes and Requested Federal Income Taxes
G-8 (D): Excluded Operating Expenses
G-9 (D): Operation and Maintenance Expenses - Pipeline Costs
Schedule H: Financial Statements
H-1 (D): Operating Income Statement
H-2 (D): Tdal Balance
Schedule h Return on Invested Capital
I (D): Summary of Return
Page 3 of 3
TXU GAS -- DISTRIBUTION
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
TABLE OF CONTENTS
SECTION Ill: RATE DESIGN
Schedule J: Key Operating Statistics
J-1 (D): Summary of Adjustments for Test Year Customers and Volumes
Schedule K: Class Cost of Service Analysis
K-1 (D): Summary
K-2 (D): Allocation of Rate Base
K-3 (D): Allocation of Revenues
K-4 (D): Allocation of Expenses
K-5 (D): Data Summary
K-6 (D): Development of Allocation Factors
K-7 (D): Classification of Mains Investment
Schedule L: Rate Design
L-1 (D): Rate Design Calculation
L-2 (D): Calculation of Service Charge Revenue
L-2a (D): Calculation of Service Charge Revenue
L-3 (D): Summary Proof of Revenue at Proposed Rates
Note: Totals may vary due to rounding.
S~heaule A (D)
't'XU GAS -- DISTRt SUTION
COST OF SERVtCE SUMMARY
FOR THE TEST yEAR ENDED DECEMBER 31, 2002
SPONSOR: G. L. GOBLE AND R. lC PRUETT
(a} (b} (c) (d)
2 Residential $ 559.242.426 $ 615,166.669 $ 55,924.243 10.00
3 Commemial 283.397.890 289.846.989 6.449.099 2.28
4 IndustrlaLrrransponalion 48.237,172 48.237,172
5 Total $ 890,8T7,488 $ 953,250,829 $ 62.373,342 7.00
6 Other Revenues 10,732,459 17,625,168 6.892,709 64.22
7
8 Total Ope~'ating Revenues $ 901.609,947 $ 970.675.997 $ 69.266.060 7.68
9
12
13
15 Operat~n9 Expenses
16 Gas Cost
17 Commodity Costs $ 459.393.661
18 Total Gas Cost $ 459,393,661
20 Operation and Maintenance Expense - Pipeline Costs $ 75,421,018
21 Operation anti Maintenance Expenses 176,419,172
22
23 Taxes Other than Income Taxes 74,279,978
24
25 Depreciation and Amortization Expense 61,921,256
26
27 Interest on Customer Deposits 1,472,587
28 Interest on CustomerAdvances 8,517
29
30 Federal Income Taxes 30.362.026
32 Return on Rate Base 91.597,779
33
34 Total Re'lmnue Requirement $ 970,875.997
Scheclule B
Page 1 of 1
TXU GAS-- DISTRIBUTION
TOTAL RATE BASE
AS OF DECEMBER 31. 2002
SPONSOR: D,A. WATSON
Line Amount per
No, Desc~ptlon Reference Books Adjustment Total Requested
(a) (b) {c) (c~)
I Net Plant }n Service
2 Distdpotion Plant in Service { B*I (D) { $ 1.041,341,681 $1.041,341.681
3 General Plant 37,843,761 37.843.761
4 Net Gas Diatdbution Piant in Service $ 1.079.185.442 $ $1,079.185,442
5
7 Regulatory Asset - Safety Compliance Program ~ $ 42,982,796 $ 42,982.796
8 Working Capital
9 Working Cash Allowance (53,763.162) (53,763,162)
10 Mate~als & Supahes E (D) 3.859,290 3,859,290
11 Prepayments 11.911,827 11.911,827
12 Working Gas in Storage 98,182.654 98,182.654
13 Totallnvestment Additions $ I03,173.405 $ $ 103.173,405
15 investment Deductions
17 Customer Deposits $ 24,590,346 $ 24,590,346
18 Customer Advances for Construct}on E (D) 456,094 456,094
19 Injunes and Damages Reserve 1,284,500 1,284,500
20 Income Tax Adiustments 137,304,761 137,304,761
21 Total Investment Deductions $ 163.635,701 $ $ 163,635,701
22
23 Total Rate Base $ 1,018,723,146 $ $1,018.723,146
Schedule B~I (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
NET pLANT INVESTMENT
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Adjusted
NARUC Capitalized Accumulated
Line No. Account Description Reference Balance Depreciation Net Book Value
(a) {~) (c) (d) (e)
I Distribution Plant in Seance - Net Investment
2 37401 Land J $ 252.301 $ $ 252.301
3 37402 Land Rights I 2.410.653 816.272 1.694.381
4 375 Structures & Improvements 1.066.957 863.897 203.060
5 376 Mains 983.061.639 288.384.692 66.4.676.947
6 378 M&R Station Equipment - General B-1.1 (D) 14.165.309 7.907.133 6.258.176
7 379 M&R Station Equipment - City Gate 4.827.960 2.378.756 2.449.204
8 380 SerWces 427.901.457 149.615.263 278.286.194
9 381 Meters 126.411.313 54.584.799 71.826.514
10 383 House Regulators 25.039.738 9.244.834 15.794.904
11 T(3ta~ Distribution Plant $ 1.555.137.327 $ 513.795.648 $ 1.~41.34t.681
13 General Plant - Net Investment
14 303 ComputerSoft~are $ 25.332.809 $ 10.012.157 $ 15.320.652
15 389 Land 1.632.151 $ 1.632.151
16 390 Structures & Improvements 16.675.660 6.477.175 10.198.485
17 391 Office Furniture & Equipment 6.795.128 6.162.031 633.097
18 392 Transporter;on Equipment 13.180.344 11.591.933 1.588.411
19 394 Tools. Shop. and Garage Equipment
20 396 Power Oper. Tool & Work Equipment B-1.2 (D) 7.060.485 7.032.129 28.356
21 397 Radio Communication Equipment 3.412.702 3.177.O41 235.661
22 398 Miscellaneous Equipment 14.807.532 11.412.741 3.394.791
23 399 Non*Mainframe Computer Equipment 2.000.752 1.467.244 533.508
24 $ 90.897.563 $ 57.332.451 $ 33.565.112
25 Meter Shop Inventory 4.278.649 4.278.649
26 Total General Plant $ 95.176.212 $ 57.332.451 $ 37.843.761
27
28 Total NetPlant I [Jne~ ,L,ne2S I $ 1.650.313.539 $ 571.128.097 $ 1.079.185.442
Schedule B-1.1 (D)
TXU GAS -- DISTRIBUTION
DISTRIBUTION pLANT INVESTMENT
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Adjusted
NARUC Amount Per Capitalized
Line No. ~c~,,-t Description Reference Books Adiu$tmenta Balance
Plant in Sewice
2 Distribution P~ant - Cost
3 37401 Land ~ 252.301 $ $ 252.301
4 37402 Land Rights 2,410.653 2.410,653
5 375 Structures & Improvements I C'1 (D) 1,066.957 1.06~.957
6 376 Mains 948.435.267 4.626.372 953.061.639
7 378 M&R Station Equipmem - Genera~ 14.159.772 5.537 14.165.309
8 379 M&R Station Equipment - City Gate 4,82.7.9~0 4,827.960
9 380 Serwces 426,621,937 1.279.520 427,901.457
10 381 Meters 126.410.013 1.300 126,411,313
11 383 House Regulators 25.039.738 25.039.738
12 TotalDist~butionPlantOdginalCost ; 1.549.224.598 $ 5.912.729 S 1.555.137.327
14 Distribution Plant - Accumulated Depreciation
15 37401 Land ~ $ $ $
16 37402 Land Rights IO.1({:))1 816,272 818,272
17 375 Structures & Improvements 863,897 863.897
18 376 Mains 2B8.384.692 288,384,692
19 378 M&R Station Equipment - General 7.907,133 7,907.133
20 379 M&R Station Equipment - City Gate 2.378,756 2,378,756
21 380 Services 149,615.263 149,615,263
22 381 Meters 54,584.799 54.584,799
23 383 House Regulatom 9.2~-4.834 g.244.834
24 Total Distnt3utron Accumulated Depreciation S 513.795,646 5 $ 513,795.646
25
26 Distribution Plant - Net
27 37401 Land I 252,301 $ $ 252.301
28 37402 Land Rights [ 1,5~4,381 1,594.381
203,060 2O3.06O
29 375 Structures & Impi'ovements Lines 3 - 1 660.050.575 4,626,372 664.676,947
30 376 Mains minus
31 378 M&R Station Eguipment - General Lin 15 6,252,639 5.537 6,258.176
32 379 M&R Station Equipment - City Gate e~3 2.449.204 2,449,204
33 380 Services 277,006,674 1,279.520 278,286.194
34 381 Meters 71,825,214 1,300 71,826,814
35 383 House Regutstors 15.794.904 15.794,904
36 Total Net Distribution Plant 1,035+428.952 $ 5.912,729 $ 1.041.341.681
Schedule B-t .2 (D)
Page I of !
TXU GAS-- DIS'II:IISU33ON
GENERAL PLANT INVESTMENT
AS OF DECEMBER 31. 2002
SPONSOR: D. A. WATSON
NARUC
Line No. Account I~$cfiption Reference Amount Per Books Adjustments Adjusted Balance
(a) (b) (c) (q~ ~e) (f)
1 Plant in Sewice
2 General Plant - Cost'
3 303 ComputerSohware ~ 25,331,191 $ 1.618 $ 25.332,809
4 389 Land I C.2(D) I 1.824,731 ( t 92.580) 1,632. t 51
6 391 Off[ce Furniture & Equipment 6.789,628 5.500 6.795.128
7 392 T ransp~nation Equipment 13,180,34z, 13.180,344
8 394 ToOls, SHOO. and Garage Equipment
9 396 Power O0er. Tool & Work Eguipment 7,060,208 277 7.060,485
10 397 Radio Communication Equipment 3,332,618 80,084 3.412.702
11 398 Miscellaneous Equipment 14,734.742 72,790 14,807.532
12 399 Non-Mainframe C<)mputer Equipment 2.000.752 2,000,752
13 90,545,016 $ 351,547 $ 90,897,563
14 Meter Shop Inventory 4.278.649 4.278.649
15 Total $ 94.824,665 $ 351.547 $ 95.176,212
17 General Plant - Accumu~atod Depreciation
1819 389303 ComputerLan(~ Software I D'2(D) I~ i 10,012,157 $ $ 10,012,157
20 3~0 Structures & Impmvementa 6.477,175 6,477,175
21 391 Office Furniture & Equipment 6,162,031 6,162.031
22 392 Transportoaon Equipmen~ 10,733,731 858.202 11.591,933
23 394 Tools. Shop, and Garage Eguigment
24 396 Power Oper. Tool & Work Equipment 7.032,t 29 7.032,129
25 397 Radio Communication Equipment 3.177,041 3,177,041
26 398 Miscellaneous Equipment 11,412,741 11.412.741
27 399 Non-Mainframe Computer Equipment 1.467.244 1,467,244
26 56.474.249 $ 858.202 $ 57,332,451
29 Meter Shop Inventory
30 Total 56.474.249 $ 858.202 $ 57.332,451
32 General Plant - Net investment
33 303 Computer Sot1~are I~l~eis'31J3~leSs1~ ~ 15,319,034 1,619 15,320,652
34 389 Land 1.824,731 $ (192,580) $ 1,632,151
35 390 Structures & Imp~ovements 9,814,627 383.858 10,198,485
36 391 Office Furniture & Equipment 627,597 5.500 633,097
37 392 T ransportat~on Equipment 2,446.613 (858,202) 1.588.411
38 394 Tools. Shop, and Garage Equipment
39 396 Power Oper, Tool & Work Equipment 28.079 277 28,356
40 397 Radio Communication Eguipment 155,677 80,084 235.661
41 398 Miscellaneous Equipment 3,322,001 72.790 3,394,791
42 399 Non-Mainf~me Computer Equipment 533.508 533,508
43 34.071,767 $ (506,655) $ 33.565,112
44 Meter ShOO inventory 4.278.649 4,278,649
45 Total 38.350.416 $ t506,6551 $ 37,843.761
Schedule C-1 (DJ
Page 1 of 1
TXU GAS -- DISTRIBUTION
ORIGINAL COST OF DISTRIBUTION UTILITY PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line NARUC Adjustments
No. Account Description Capitalized Cost (Note 11 As Adiusted
(a) ' (b) (c) (dj (e)
1 Distribution Plant in Service - Original Cost
2 37401 Land $ 252,301 $ - $ 252,301
3 37402 Land Rights 2.410,653 2.410,653
4 375 Structures & Improvements 1,066,957 1,066,957
5 376 Mains 948,435,267 4.626,372 963,061,639
6 378 M&R Station Equipment - General 14,159,772 5,537 14,165.309
7 379 M&R Station Equipment - City Gate 4,827,960 4,827,960
8 380 Services 426,621,937 1,279,520 427,901,457
9 381 Meters 126,410,013 1,300 126,411,313
10 383 House Regulators 25.039,738 25,039,739
11 Total Distribution Plant Original Cost $ 1.549.224.597 $ 5.912,730 $ 1.555.137,327
12
13
14 Note 1: Adjustments include the following. Please see the workpapers for
15 specific detail about each adjustment.
16
17 Cost of projects under construction as of December 31, 2002
18 which were completed by Mamh 31,2003 C-3 (DJ $ 5,912,729.61
Schedule C-2 (D)
Page 1 of 'I
TXU GAS ~ DISTRIBUTION
ORIGINAL COST OF GENERAL pLANT
AS OF DECEMBER 31, 2002
SPONSOR: D.A. WATSON
NARUC Amount per Adjustments
Line No. Acct Description Books (Note 1) As Adiusted
(a) (b) (c) (d) (e)
1 General Plant
2 303 Computer Software $25,331,191 $ 1,618 $25,332,809
3 389 Land 1,824,731 (192,580) 1,632,151
4 390 Structures & improvements 16,291,802 383,858 16,675,660
5 391 Office Furniture & Equipment 6,789,628 5,500 6,795,129
6 392 Transportat}on Equipment 13,180,344 13,180,344
7 394 Tools, Shop, and Garage Equipment
8 396 Power Oper. Tool & Work Equip. 7,060,208 277 7,060,485
9 397 Radio Communication Equipment 3,332,618 80,084 3,412,702
10 398 Miscel}aneous Equipment 14,734,742 72,790 14,807,532
11 399 Non-Mainframe Computer Equip. 2,000,752 2,000,752
12 TotaIGeneral Plant $90,546,016 $ 351,548 $90,897,564
13
14 Meter Shop Inventory $ 4,278,649 $ $ 4,278,649
15
16 Total General Plant and Meter Shop Inventory $94,824,665 $ 351,548 $95,176,213
17
18
19 Note 1: Adjustments include the following. Please see the workpapem for
20 specific detail about each adjustment.
21
22 Cost of projects under construction as of December 31, 2002
23 which were completed by Mamh 31,2003 C-3 (D) $ 351,547.71
Schedule C-3 (D)
Page t of 1
TXU GAS -- DISTRIBUTION
TOTAL CONSTRUCTION WORK IN PROGRESS
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line No. Description Total
(a) (b)
1 Total CWIP per Books $ 24,327,576
2
3 Less:
4 Adjustment for Completed Construction - Distribution Plant (Note 1) 5,912,730
5 Adjustment for Completed Construction - General Plant (Note 1) $ 351,548
6 Adjusted Total CWIP 18,063.298
7
8 Adjusted CWIP Included in Rate Base (0%)
9
10 Note 1: See the workpapers for Schedule C-3 (D) for detail of
11 Completed Construction by Account
Schedule C-3.1 (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
CONSTRUCTION WORK IN PROGRESS - DISTRIBUTION PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D.A. WATSON
Workpape
Line NARUC r
No. Acct. Description Reference Amount
(a) (b) (c) (d)
1 Distribution Plant Construction Completed
2 Projects (as of January 31,2003)
3 37401 Land
4 37402 Land Rights
5 375 Structures & Improvements
6 376 Mains WP/C- $ 4,626,372
7 378 M&R Station Equipment - General 3.1/1 (D) 5,537
8 379 M&R Station Equipment - City Gate
9 380 Services 1,279,520
10 381 Meters 1,300
11 383 House Regulators
12 Total Completed Distribution CWIP $ 5,912,730
13
14 Distribution Plant Construction Uncompleted
15 Work in Progress
16 37401 Land
17 37402 Land Rights $ 555
18 375 Structures & improvements 6,896
19 376 Mains WP/C- 7,931,062
17,029
20 378 M&R Station Equipment - General 3.1/1 (D)
21 379 M&R Station Equipment - City Gate 1,640
22 380 Services 264,229
23 381 Meters 501,905
24 383 House Regulators
25 Total Uncompteted Distribution CWIP $ 8,723,317
26
27
28 Total Distribution Plant Work in Progress $ 14,636,047
Schedule C-3.2 (D)
Page I of 1
TXU GAS -- DISTRIBUTION
CONSTRUCTION WORK IN PROGRESS - GENERAL PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D. ~. WATSON
NARUC
Line No. Account Description Reference Amount
(a) (b) (c) (d)
1 General Plant Construction Completed
2 Projects (as of January, 2003)
3 303 Computer Software $ 1,618
4 389 Land (192,580)
5 390 Structures & Improvements 383,858
6 391 Office Furniture & Equipment 5,500
7 392 Transportation Equipment WP/C-3.2/1
8 394 Tools, Shop, and Garage Equipment (D) 80,084
9 396 Power Oper. Tool & Work Equip. 277
10 397 Radio Communication Equipment 72,790
11 398 Miscellaneous Equipment
12 399 Non-Mainframe Computer Equip.
13 Total General Plant Completed Construction $ 351,548
14
15
16 General Plant Construction Uncompleted
17 Projects
18 303 Computer Software $ 8,309,846
19 389 Land (7,000)
20 390 Structures & Improvements 761,002
21 391 Office Furniture & Equipment 46,590
22 392 Transportation Equipment NP/C-3.2/1 (485,022)
23 394 Tools, Shop, and Garage Equipment (D) 151,312
24 396 Power Oper. Tool & Work Equip. (25,500)
25 397 Radio Communication Equipment 110,049
26 398 Miscellaneous Equipment 63,563
27 399 Non-Mainframe Computer Equip. 415,141
28 Total General Plant Uncompleted Construction $ 9,339,981
29
30 Total General Plant Work in Progress $ 9,691,529
Schedule D-1 (D)
Page 1 of 1
'rxu GAS -- DISTRIBUTION
ACCUMULATED DEPRECIATION OF DISTRIBUTION UTILrrY PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line NARUC Amount per Adjusted
No. Account Description Books Adiustments Balance
(a) ' (b) (c) (d) (e)
I Distribution Plant in Service - Original Cost
2 37401 Land $ $
3 37402 Land Rights 816,272 816,272
4 375 Structures & Improvements 863.897 863,897
5 376 Mains 288,384.692 288,384.692
6 378 M&R Station Equipment - General 7,907,133 7,907,133
7 379 M&R Station Equipment - City Gate 2,378,756 2,378.756
8 380 Services 149.615.263 149.615.263
9 381 Meters 54,584.799 54,584,799
10 383 House Regulators 9.244,834 9,244.834
11 Total Distribution Plant Original Cost $ 513,795.646 $ - $ 513,795.646
Schedule D-2 (DJ
Page 1 of 1
TXU GAS -- DISTRIBUTION
ACCUMULATED DEPRECIATION OF GENERAL PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D. ~. WATSON
NARUC Amount per Adjusted
Line No. Acct Description Boolcs Adjustments Balance
(a) (b) (c) (c~)
1 General Plant
2 303 Computer Software $ 10,012.157 5 $ 10,012,157
3 389 Land
4 390 Structures & Improvements 6,477,175 6,4'/7.175
5 391 Office Fumiture& Equipment 6,162.031 6,162,031
6 392 TransDortation Equipment 10,733,731 858,202 11,591.932
7 3~4 Tools, Shop, and Garage Equipment
8 396 Power Oper. Tool & WoK~ Equip. 7,032,129 7,032,129
9 397 Radio Communication Equipment 3,177,041 3,177,041
10 398 Miscellaneous Equipment 11,412,741 11,412.741
11 399 Non-Mainframe Computer Equip. 1,467,244 1.467.244
12 Total General Plant $ 56,474,248 $ 858,202 $ 57,332,450
13
14 Meter Shop Inventory
15
16 Total General Plant end Meter Shop Inventory $ 56,474.248 $ 858.202 $ 57.332,450
Schedule D-3 (DJ
Page 1 of 1
TXU GAS -- DISTRIBUTION
TOTAL RETIREMENT WORK IN PROGRESS
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line No. Description
(a)
There is no separately booked Retirement Work in Progress
2 in the General Ledger. Retirement Work in Progress is
3 recorded in Construction Work in Progress and is adjusted
4 to Accumulated Depreciation when the related project
5 c~oses.
Schedule D-5 (D)
Page I of 1
TXU GAS -- DISTRIBUTION
DEPRECIATION STUDY RATE SUMMARY
WITH ANALYSIS OF DATA THROUGH
DECEMBER 31, 2002
SPONSOR: D. A, WATSON
Study Date
Line NARUC
No. Acct. [~escription Reference 12/99 12/02
(a) (b) (c) (d) (e)
1 Current Proposed
2 Distribution Plant Depreciation Rate I Note I I 3,12% 3,49%
3
4 General Plant Depreciation Rate
5 303 Computer Software WP/D--4/3 (Dt 10,98% 13.86%
6 389 Land 0.00% 0.00%
7 390 Structures & Improvements 1.99% 3,18%
8 391 Office Furniture & Equipment 1.12% 0.99%
9 392 Transportation Equipment 0.00% 0.00%
10 394 Tools, Shop, and Garage Equipment Note I 0.00% 0,00%
11 396 Power Oper. Tool & Work Equip. 0.00% 0,00%
12 397 Radio Communication Equipment 0.00% 0.45%
13 398 Miscellaneous Equipment 6.03% 1.40%
14 399 Non-Mainframe Computer Equip, 18.63% 16.78%
15
16 Note 1: Please see the testimony of D. A. Watson
17 for the complete study in which these rates were
18 computed.
Schedule E (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
SUMMARY OF OTHER RATE BASE ITEMS
AS OF DECEMBER 31, 2002
SPONSORS: B. D. GRIFFIN, R. K. PRUETT, A. L. WARREN, D. A. WATSON
Line
No. Description Reference Amount
(a) (b) (c)
1 Current Assets (13 month average)
2 Materials & Supplies E-1 (D) $ 3,859,290
3 Prepayments E-2 (D) 11,911,827
4 Working Gas in Storage E-9 (D) 98,182,654
5
6 Currant Liabilities (Year-end Balance)
7 Customer Deposits E-3 (D) $ 24,590,346
8 Construction Advances E-4 (D) 456,094
9 Provision For injuries And Damages E-5 (D) 1,284,500
10 Income Tax Adjustments E-7 (D) 137,304,761
11
12 Plant Adjustments
13 Safety Compliance Program Costs E-6 (D) $ 42,982,796
14
15 Cash Working Capital E-8 (D) $ (53,763,162)
Schedule E-1 (D)
Page I of 1
TXU GAS -- DISTRIBUTION
MATERIALS & SUPPLIES
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Stores
Materials & Expense
Line Account Balance Supplies Undistributed Total Materials
No. As of Date (Acct. 154) (Acct. 163) & Supplies
(a) (b) (c) (d)
1 January 1,2002 $ 1,812,756 $ 1.467,548 $ 3,280,305
2 January 31, 2002 2,154,392 1,545,560 3,699,952
3 February 28. 2002 2,249,974 1,657,259 3,907,234
4 March 31. 2002 2,242,590 1,817,616 4.060,206
5 April 30, 2002 1,784,694 1,885,103 3,669,797
6 May 31,2002 1,781,859 1,993,775 3,775,635
7 June 30, 2002 1,799,497 2,077,166 3,876,663
6 July 31,2002 1,780,054 2,165,461 3,945,515
9 August 31, 2002 1,789,217 2,252,936 4,042,153
10 September 30, 2002 1,812,925 2,252,851 4,065,776
11 October 31. 2002 1.767,450 2,225,163 3,992,613
12 November 30, 2002 1,740,452 2,213,866 3,954,319
13 December 31,2002 1,546,175 2,354,435 3,900.609
14 Totals $ 24.262,034 $ 25,908,741 $ 50,170,776
15
16 13 Month Average $ 1,866,310 $ 1,992,980 $ 3,859.290
Schedule 1=.2 (D)
Page 1 of 1
TXU GAS--DISTRIBUTION
PREPAYMENTS
FOR THE TEST YEAR ENDED DECEMBER31,2002
SPONSOR:R.K. PRUETT
Line Account Balance Insurance Other Prepayments Total
No. As of Date (Acct 165.2100) (Acct 165.9000) Prepayments
(a) (b) (c) (d)
1 January 1,2002 $ 435,918 $ 3,043,679 $ 3,479,597
2 January 31, 2002 616,426 6,651,544 7,267,969
3 February 28, 2002 2,267,686 23,025,259 25,292,945
4 March 31,2002 1,943,290 20,524,365 22,467,655
5 April 30, 2002 1,874,932 19,166,112 21,041,045
6 May 31,2002 3,608,129 15,958,599 19,566,728
7 June 30, 2002 3,175,496 10,897,306 14,072,801
8 July 31,2002 2,812,339 8,236,016 11,048,355
9 August 31, 2002 2,376,293 8,233,896 10,610,188
10 September 30, 2002 1,949,437 3,769,583 5,719,020
11 October 31,2002 1,396,609 3,243,162 4,639,771
12 November 30, 2002 1,085,279 6,274,961 7,360,240
13 December 31,2002 874,921 1,412,511 2,287,431
14 Total $ 24,416,755 $ 130,436,991 $ 154.853,747
15
16 13 Month Average $ 1,878.212 $ 10,033,615 $ 11,911,827
Schedule E-3 (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
CUSTOMER DEPOSITS AND ASSOCIATED INTEREST EXPENSE
AS OF DECEMBER 31, 2002
SPONSOR: R. K. PRU~- I ~
Line
No. Description Amount
(a) (b)
1 Customer Deposits
2 Account 235.1000 - Active Deposits $ 24,215,378
3 Account 235.2000 - Inactive Deposits 374,968
4 Total Customer Deposits $ 24,590,346
5
6
7 Interest on Customer Deposits
8 Active Deposits $ 1,452,938
9 Inactive Deposits 19,650
10 Annualized Interest on Customer Deposits $ 1,472,587
Schedule E-4 (D)
Page I of 1
TXU GAS -- DISTRIBUTION
CONSTRUCTION ADVANCES
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line Initial Principal Remaining Annual Interest
No. Balance Refunded Balance Expense
(a) (b) (c) (d)
1 $ 752,316 $ 296,222 $ 456,094 $ 8,517
2
3
4 Notes:
5 1. Not all construction advance contracts specify that
6 interest is to be paid and older contracts may bear a lower
7 interest rate than later contracts so the expense is computed
8 on the remaining balance of individual contracts rather than
9 on the total remaining balance.
Schedule E-5 (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
PROVISION FOR INJURIES AND DAMAGES
AS OF DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line Account Balance
No. NARUC Acct - Description As of Date: Amount
(a) (b) (c)
1 262 - Injuries and Damages Reserve December 31,2002 $ 1,284,500
Schedule E-6 (D)
Page 1 of 1
TXU GAS-- DISTRIBUTION
SAFETY COMPLIANCE PROGRAM COSTS
AS OF DECEMBER 31,2002
SPONSOR: D. A. WATSON
Line
No. Description Reference SCP Costs Adjustments Amortization As Adjusted
(a) (b) (c) (d) (e)
r WP/E-6/1 (D/ I $ 45,130.572 $ $ (2,147,776) $ 42,982,796
Safety Compliance Costs,
Schedule E-7 (D)
Page 1 of t
TXU GAS -- DISTRIBUTION
INCOME TAX ADJUSTMENTS
AS OF DECEMBER 31, 2002
SPONSOR: B. D. GRIFFIN
Line
No. Item Reference Amount
(a) (b) (c)
1 Income Tax Adjustments
2 Accumulated Deferred Federal income Tax E-7.1 (D) $ 126,964,321
3 Unrestored Investment Tax Credits E-7.2 (D) 10,340,440
4 Total Income Tax Adjustments $ 137,304,761
Schedule E-9 (D)
Page 1 of 1
TXU GAS ~ DISTRIBUTION
WORKING GAS IN STORAGE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Working Gas in
Line Account Balance Storage
No As of Date (Acct 164)
(a) (b)
1 Balance as of:
2 January 1,2002 $ 109,408,696
3 January 31,2002 97,407,574
4 February 28, 2002 88,858,891
5 March 31,2002 75,653,595
6 April 30, 2002 80,270,514
7 May 31,2002 88,623,121
8 June 30, 2002 98,467,142
9 July 31, 2002 100,827,396
10 August 31, 2002 102,801,576
11 September 30, 2002 104,321,711
12 October 31,2002 107,670,078
13 November 30, 2002 112,674,259
14 December 31,2002 109,389.949
15 Total $ 1,276,374,502
16
17 13-Month Average Balance $ 98,182,654
Schedule F-1 (DI
Page 1 ol 1
TXU GAS -- DISI~IBUTION
OPERATING REVENUES
FOR THE ~ST yEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUE~F
2 ~ales of Oas
Schedule G-3 (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
LABOR EXPENSE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Labor
No, Acct Description Total Adjustment8 As Adjusted
(a) (b) (c) (o) (el
2 870 Operation Super~alon and Eng;neenng $ 385,326.26 $ $ 385,326.26
3 874 Mains and Services Expenses 6.442,049.47 6.442.049~47
4 675 Measunng and Regulating Station Expenses - General 313,872.52 313,872.52
5 877 Measuring and Regulating Station Ex;). - City Gate Chk. Sra.
6 878 Meter and House Regulator Expenses 6,227,079.80 6.227.079.80
7 879 Customer installations Expenses 1,170,511.30 1,170,511.30
6 880 Other Expenses 4,568,876.25 4,588,876.25
9 881 Rents 25.12 25.12
10 Total Distribution Operation Expense $ 19,107,740.72 $ $ 19,107,740.72
12 Distribution Maintenance Expense
13 885 Maintenance Supervision and Engmeenng $ 33,391.75 $ $ 33,391.75
14 986 Maintenance of Structures and Improvements
15 887 Maintenance of Mains 7,428,748.22 7,428,748.22
16 589 Malnt. of Measuring and Regulating Station Equip. - GaneraJ 1,005,863.54 1,005,863.54
17 890 Ma~nt. of Measuring and Regulating Station Equip. - Industrial 240.69 240.69
18 892 Maintenance of Semices 2,667,314.83 2,667,314.83
19 893 Maintenance of Meters and House Regulators 1,145,776.49 1,145,776.49
20 894 Maintenance of Otrier Equipment 1,229.630.61 1,229,630.61
21 Total Distd=ution Maintenance Expense $ 13,510,966.13 $ $ 13,510,966.13
22
23 Customer Accounts Expense
24 901 Supervlalon $ $
25 902 Meter Reading Expense 5,777,929.42 5,777,929.42
26 903 Customer Records and Collection Expenses 5,061,738.34 5,061,738.34
27 904 Uncollectible Accounts
28 905 Miscellaneous Customer Accounts Expenses
29 Total Customer Accounts Expense $ 10,839,667.76 $ $ 10,839,667.76
30
31 Customer Ser~ce Expense
32 910 Customer Aasistance Expenses $ 2,710,009.23 $ $ 2,710,009.23
33 911 Informational Advertising Expenses
34 Total Customer Service Expense $ 2,710,009.23 $ $ 2,710,009.23
35
36 Sales Promotion Expense
37 915 Super~'~alon $ 829.51 $ $ 829.51
38 916 Demonstrating and Selling Expenses
39 917 Promotional Advertising Expenses 85,387.90 85,387.90
40 918 Miscellaneous Sales Promotion Expenses
41 Total Sales Promotion Expense $ 86,217.41 $ $ 86,217.41
42
43 Administrative and General ExDenee
44 920 Administrative and General Salaries $ 3,203,201.41 $ (836,429.40) $ 2,366,772.01
45 921 Office Supeiies and Expenses
46 923 Outside Services Employed 151,585,88 151,585.88
47 924 Property Insurance
48 925 Injuries and Damages
49 ~26 Employee Pensions and Benefits
50 928 Regulatory Commission Expenses
51 930.1 institutional or Goodwill Advertising Expense
52 930.2 Miscellaneous Ger~ral Ex,oense
53 931 Rents -
54 932 Malnmnance of General Plant
55 Total Administrative and General Ex~oense $ 3,354,787.29 $ (836,429.40) $ 2,518,357.89
56
57 Total Labor Expense $ 49,609.388.54 $ I836,429.401 $ 48,772,959.14
Scheaule G..4 (D)
Page 1 of 1
3'XU GAS -- DISTRIBUTION
NON*LABOR EXPENSE
FOR THE TEST YEAR ENDED DECEMBER 31, 20{32
SPONSOR: R. K. PRUE'I'T
Line NARUC Non-Labor
No. Acct Description Total Adiustments As Adiustsd
(a) (b) (c) (d) (e)
I Distribution Operation Expense
2 870 Operation Supervision and Engineenng $ 141,366.99 $ $ 141,366.99
3 874 Mains and Services Expenses 9,524,152.54 672,855.00 10.197,007.54
4 875 Meesudng and Regulating Station Expenses - General 348,107.82 348,107.82
5 877 Measuring and Regulating Station Ex~. - City Gate Chk. Sta. 255.38 255.38
6 878 Meter and House Regulator Expenses 1,750,014.18 1,750,014.18
7 879 Customer Installations Expenses 256,346.34 256,346.34
8 880 Other Expenses 5,554,269.44 (4,105.55) 5,550,163.89
9 881 Rents 37,895.19 37,895.19
10 TotaI Distribution Operation Expense $ 17,612,407.88 $ 668,749.45 $ 18,281,157.33
11
12 Distribution Maintenance Expense
13 885 Maintenance Supervision and Enginsedng $ 12,874.95 $ $ 12,874.95
14 886 Maintenance of Structures and improvements 65.44 65.44
15 887 Maintenance of Mains 7,120,208.29 682,835.97 7,803,044.26
16 889 Maint. of Measuring and Regulating Station Equip. - General 293,935.44 293,935.44
17 890 Maint. of Measuring and Regulating Station Equip. - IndustriaJ 4,718.12 4,718.12
18 892 Maintenance of Services 721,733.43 721,733.43
19 893 Maintenance of Meters and House Regulators 283,025.65 283,025.65
20 894 Maintenance of Other Equipment (592,182.561 (592,182.56)
21 Total Distribution Maintenance Expense $ 7,844,378.76 $ 682,835.97 $ 8,527,214.73
22
23 Customer Accounts Expense
24 901 Supervision $ (300.00) $ $ (300.00)
25 902 Meter Reading Expense 1,761,502.41 (192.29) 1,761,310.12
26 903 Customer Records and Collection Expenses 32,188,087.87 32,188,087.87
27 904 Uncollectible Accounts 4,019,755.41 4,019,755.41
28 905 Miscellaneous Customer Accounts Expenses
29 Total Customer Accounts Expense $ 37,969,045.69 $ (192.29) $ 37,968,853.40
30
31 Customer Sen/ice Expense
32 910 Customer Assistance Expenses $ 1,120,109.02 $ (9,451.86) $ 1,110,657.16
33 911 Informational Advertising Expenses 34,690.21 (99.28) 34,590.93
34 Total Customer Sen/ice Expense $ 1,154,799.23 $ (9,551.14) $ 1,145,248.09
35
36 Sales Promotion Expense
37 915 Supervision $ 396.13 $ $ 396.13
38 916 Demonstrating and Selling Expenses 147,654.21 (13,103.85) 134,550.36
39 917 Promotional Advertising Expenses 148,022.74 (1,125.00) 146,897.74
40 918 Miscellaneous Sales Promotion Expenses 64,504.67 (5,365.321 59,139.35
41 Total Sales Promotion Expense $ 360,577.75 $ (19,594.17) $ 340,983.58
42
43 Administrative and General Exoense
44 920 Administrative and General Salades $ $ $
45 921 Office Supplies and Expenses 520,716.87 77,654.44 598,371.31
46 923 Outside Services Employed 28,316,671.83 (645,895.91) 27,671,075.92
47 924 Property Insurance 175,803.95 61,555.98 237,359.93
48 925 Injudes and Damages 5,641,414.99 661,206.36 6,302,621.35
49 926 Employee Pensions and Benefits 15,643,649.18 4,739,114.43 20,382,763.61
50 928 Regulatory Commission Expenses 2,661,029.41 (2,661,029.41)
51 930.1 Institutional or Goodwill A0vertising Expense 101,383.48 101,383.48
52 930.2 Miscellaneous Ganerel Expanse 4,531,933.86 1,091,539.80 5,623,473.66
53 931 Rents 187,328.58 278,380.72 465,706.30
54 932 Maintenance of General Plant
55 Total Administrative and General Expense $ 57,779,929.15 $ 3,602,826.41 $ 61,382,755.56
56
57 TotaJ Non-Labor Expense $122,721,138.46 $ 4,925,074.23 $ 127,646.212.69
Schedule G-5.1 ID)
Page I of 1
TXU GAS -- DISTRIBUTION
ADVERTISING EXPENSE ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
la) (P)
1 910 Customer Assistance Expenses WP/G-5.1 (D) $ 75,782.22
2 911 Informational A0vertising Expenses G-2 ID) 34,690,21
3 916 Demonstrating and Selling Expenses WP/G-5.1 ID) 8~35.10
4 917 Promotional Advertising Expenses G-2 ID) 233,410.64
5 918 Miscellaneous Sales Promotion Expenses WP/G-5.1 ID) 169.50
6 930.1 Institutional or Goodwill Adverasing Expense G-2 ID) 101.383.48
7 Total System Aave~sing Expense $ 453,671.15
8
9 Total Operating Revenue F-1 ID) $ 905,034,147.65
10 Less: 904 Uncollectible Accounts G-2 ID) 4,019,755.41
12 Total Gross Receipts $ 901,014.392.24
13
14 Atiowabie Percentage for A¢tverfising per Substantive Rule 7.5414 0.500%
15
16 Calculated Allowable Adve~sing Expense $ 4.505.071.96
18
19 Total Advertising Expense included in Rate Filing $ 453.671.15
20
21 Total Advertising Expense Adjustment $
22
23
24 The above information is provided per Substantive Rule 7.5414. The advertising expense included in the rate filing is below the
25 atiowable level, consequently, an adjustment to expense is not required.
Scr~du;e G-5.2 (D)
TXU GAS -- DISTRIBUTION
CONTRIBUTIONS AND DONATIONS EXPENSE ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Test Year Amount
No. Acct D~cHpflon Refe~nce Amount Ad)usted
2
3 Total Contributions and Donations E~3ense WP/G-5.2 (D) $ 224,21 ~.02
7
8 Va~ Non-LaDor Expense WP/G-5.2 (D) $ 22,8~4.39
9
10 Total Contributions and Donations Ex~pense Adjustment $ I22,894.39~
Schedule G-5.3 (D)
Page I of 1
TXU GAS -- DISTRIBUTION
SOCIAL CLUB DUES ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU~- I I
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (b) (c) (d) (e)
1 Social Club Dues Adjustment
2
3 Total Social Club Dues WP/G-5.3 (D) $ 12,077.10
4
5 Less:
6 426 Miscellaneous Income Deductions WP/G-5.3 (D) 5,871.69
7
8
9 Var Non-Labor Expense WP/G-5.3(D) $ 6,785.07
10
11 Total Social Club Dues Adjustment $ (6,785.07
12
13
14 Adjustment to expense to remove social club dues in accordance with Substantive Rule 7.5414.
Schedule G-5.4 (DJ
Page 1 of 1
TXU GAS -- DISTRIBUTION
'LEGISLATIVE ADVOCACY ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Test Year Amount
No, Acct Description Reference Amount Adjusted
(a) (~) (c) (cl) (e)
1 Legislative Advocacy Adjustment
2
3 930.2 Non-Labor Expense WP/G-5.4 (DJ $ 3,808.52
4
5 Total Legislative Advocacy Adjustment $ (3,808.52)
6
7
8 Adjustment to expense to remove legislative advocacy costs in accordance w~th Substantive Rule 7.501.
9
10 The last odd-year legislative advocacy expense (2001) is presented below per Substantive Rule 7.501
11
12 Total Legislative Advocacy for last odd year (2001) WP/G-5.4 (D) $ 3,740.51
TXU GAS -- DISll~IBb'llON
MISCELLANEOUS ACCOUNT REVISIONS ADJUSTMENT
FOR 1HE l~ST YE/~R ENDED DECEMBER 31, 20~2
SPONSOR: R. K. PRUETT
34 Total Customer ~r~ Expense $
6O
Schedule G-5.6 (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
INSURANCE PREMIUMS ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31,2002
SPONSORS: R. K. PRUETT AND S. N. RAGLAND
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (b) (c) (d) (e)
1 Insurance Premiums Adiustment
2
3 924 Labor WP/G-5.6 (D)
4 924 Non-Labor WP/G-5.6 (D) 61,555,98
5 925 I_a~or WP/G-5,6 (D)
6 925 Non-Labor WP/G-5.6 (D) 661,206.36
7
8 Total Insurance Premiums Adjustment $ 722.762.34
9
10
11 Adjustment to insurance premiums and claims expenses in the test year for known and measurable changes, The increase
12 in liability and proper~y insurance premiums is due to higher policy limits which went into effect in mid 2002. The increase
13 in third par~y workers compensation is due to an increase in premiums.
Schedule G-5.7
Page 1 of I
TXU GAS -- DISTRIBUTION
PENSION & BENEFIT EXPENSE ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (b) (c) (d) (e)
1 Pension & Benefit Expense Adjustment
2
3 926 Labor $
4 926 Non-Labor WP/G-5,7 (D) 5,286,036,69
5
6 Total Pension & Benefit Expense Adjustment $ 5,286,036.69
7
8
9 Adjustment to pension and bealth-related employee benefit expenses due to increased medical costs, decreased values
10 in trusts used to fund retirement benefits, and reductions in expected returns on pension fund assets from g% to 6.75%.
Schedule G-5,8 (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
PIPELINE INTEGRITY PROGRAM ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSORS: R. K. PRUETT AND J. A. GREER
Line NARUC Amount
No. Acct Description Reference Labor Non-Labor Adjusted
(a) (b) (c) (d) (e) (f)
I Pipeline Integrity Program Adiustment
2
3 874 Mains and Services Expenses WP/G-5.8 (D) $ $ 672.855.00 S 672.855.00
4
5 Total Pipeline Inlogdty Program Adjustment $ $ 672,855.00 $ 672,855.00
6
7
8 TO include in the test year an amount of expense lor the Pipeline Intogdty Program. Refer to the direct testimony of Mr,
9 J.A. Greer.
Schedule G-5.9 (D)
Page I of 1
T'XU GAS -- DISTRIBUTION
WINS - TXH BUSINESS SERVICES COST REDUCTION ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSORS: M. D. MOSELEY, R. K. PRUETT, S. N. RAGLAND
Line NARUC Test Year Amount
NO. Acct Description Reference Amount Adiusted
(a) (b) {c) (d) (e)
I WINS -TXU Business Services Cost Reduction Adiustment
2
3 923 Labor $
4 923 Non-Labor WP/G-5.9 (D) (1,844,612.31)
$
6 Total WiNS - TXU Business Services Cost Reduction Adjustment $ I1.844.612.31
7
8
9 To include in the test year a reduction in expense for the WiNS - TXU Business Services Cost Reduction Adjustment,
10 Refer to the direct testimony of Mr, M. D. Moseley and Mr. S. N, Ragland.
Schedule G-5,10
Page t of 1
TXU GAS -- DISTRIBUTION
WINS - TXU-BUSINESS SERVICES REGULATORY ASSET ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSORS: M.D. MOSBLEY, R. K. PRUETT, S. N, RAGLAND
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (bi (c) (dj (e)
1 WINS - TXU Business Services Req[Jlatory Asset Adiustment
2
3 930.2 Labor WP/G-5.10 (DJ
4 930.2 Non. Labor WP/G-5.10 (DJ 175.629.16
5
6 Total WINS * 'rxu Business Services Regulatory Asset Adjustment $ 175.629.16
7
8
9 To adjust expense in the test year to include one year of amortization relative to the WINS - TXU Business Services
10 Regulatory Asset. Refer to the direct testimony of Mr. M. D. Moseley and Mr. S. N. Ragland.
Schedule G-5.11 (DI
Page 1 of 1
TXU GAS -- DISTRIBUTION
WINS RELATED (ONCOR) REDUCTION ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSORS: J. A. GREER, M. D. MOSELEY, AND R. K. PRUETT
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (t~) (c) (d) {e)
I WINS Related (Oncor) Reduction Adiustment
2
3 920 Labor WP/G-5.11 (D) $ (2,845,730.00)
4 926 Non-Labor WP/G-5.11 (D) (1,039,773.00)
5 930.2 Non-Labor WP/G-5.11 (D) 936,467,00
6
7 Total WINS Re~ated (Oncor) Reduction Adjustment $ f2,949,036.001
8
9
10 To adjust expense in the test year for WINS Related (Oncor) reductions. Refer to the direct testimony
11 of Mr. J. A. Greer and Mr. M. D. Moseley.
Schedule G-8 (D)
Page 1 of 1
TXU GAS -- DISTRIBUTION
EXCLUDED OPERATING EXPENSES
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC
No. Acct. Description Total
(a) (b) (c)
1 426.1 Donations $ 207,218.86
2
3 426.4 Lobbying 13,949.94
4
5 Total Excluded Operating Expenses $ 221,168.80
6
7
8 The amounts listed above are excluded from the cost of service filing.
Schedule H-1 (D)
Page 1 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
1 OPERATING REVENUES
2 4569000 Otb Rev- Other $
3 Electric- trade $
4 Electric-affiliated companies $
5 4800000 Residential Sales $ 569,092,899.63
6 4800110 Over_Under Collection-Res 4,466,032.74
7 4810100 Gas Sales-Commercial (Small) 287,510,526.85
8 4810110 Over_Under Collection-Com 4,820,793.81
9 4810200 Ind Gas Sales To Non-Assoc Co 19,285,065.13
10 4810210 Industrial Large Sales 1,414,462.38
11 4811200 Electric Generation Small Sale 1,618.71
12 4820000 Other Sales - Public Authority 1,288,313.03
13 4830000 Gas Sales for Resale 1,968,984.12
14 4860100 Unbilled Residential Gas Rev (10,268,230.39)
15 4860200 Unbilled Commercial Gas Rev (1,924,602.34)
16 4860300 Unbilled Industrial Gas Rev (74,000.00)
17 4870000 Forfeited Discount-Residential 11,220.00
18 Gas - trade $ 877,593,083.67
19 4830111 Sales For Resale-LUG Adj $
20 4831401 Sales For Resale Assoc R & C
21 4831402 Sales For Resale Assoc Indstrl
22 4831403 Sales For Resale Assoc-ElecGen
23 Gas - affiliated companies $
24 Telecommunications- trade $
25 Telecommunications - affiliated companies $
26 4570010 Service Revenues- Pipeline $
27 4580000 Service Revenues-Non Assoc Cos
28 4587000 Other Revenues
29 4600100 Over_(Under) Recvry Adj To Rev
30 4880200 Connect Charge 8,324,014.85
31 4880300 Return Checks 215,940.75
32 4880400 Collection Charges 30,609.45
33 4890100 IndustriaITransportation 13,008,459.80
34 4890103 Ind Trans- Tax Exempt 950,589.45
35 4890110 Transp for LSG Trans-R&C
36 4890120 Transp for LSG Trans-indust
37 4890140 Transp for LSG Trans-LUG Acc
38 4890500 Electric Generation 27,741.48
39 4890544 Electric Gen-31 l(A)(2)-Texas
40 4890545 Transp - Swing Fees
41 4890550 Electric Generation - Assoc 239,363.95
42 4890554 Electric Gen 311(A)(2) - Assoc
43 4890600 Parking Transportation Revenue
44 4890644 Parking Transp Rev- 311(A)(2)
45 4890700 Lending Transportation Revenue 76.54
46 4890800 Pipeline
Schedule H-1 (D)
Page 2 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUE'~r
Line
No. Account - Description Amount
(a) (b)
47 4890844 Pipeline-311(A)(2)-Texas
48 4890900 Imbalance Penalties
49 4891100 Compress Rev-Transp Customers
50 4891200 Other Transport Related Rev 412,110.71
51 4891900 HUB Transaction Revenue
52 4891944 HUB Trans Rev - 31 l(A)(2)Texas
53 4910100 Rev-Natural Gas Proc by Others
54 4920400 Revenue From Condensate Sales
55 4930100 Rents Gas Props Non-Assoc Cos 900.00
56 4930200 Rent Gas Pmperty-Assoc Cos 1,390,577.25
57 4930500 Rent Gas Property-Pipeline Fee
58 4950000 Other Gas_Oil Revenue
59 4950100 Other Gas Revenues 9,361.82
60 4950400 Other Gas Revenues - Assoc
61 4951100 Other O&M Services Fees
62 4951300 OtherTransp Rev- Swing Fees
63 4951400 Nonassoc Dehydration & Oth Fee
64 4951500 OtherTransp Rev-Pooling
65 4951550 OthTransp Rev-Pooling Transf
66 4952100 Customer O/U Collection (1,022,858.57)
67 4953200 Other Gas Rev- Stand-By Fees 3,854,176.50
68 4960100 Rent Revenue-Building
69 Other $ 27,441,063.98
70 Total operating revenues $ 905,034,147.65
71
72 OPERATING EXPENSES
73 Fuel- trade $
74 Fuel - affiliated companies $
75 Purchased power- trade $
76 Purchased power- affiliated companies $
77 7800000 Products Purchased For Resale $
78 8000000 Nat Gas Well Head Purchase 34,724,700.33
79 8000010 Gas Purchase Affiliated Cos
80 8010000 Field Line Purchases 60,669,914.13
81 8020000 Plant Outlet Pumhases (8,612,848.04)
82 8030000 Transmission Line Purchases 430,685,694.33
83 8040200 City Gate Pumh-Company Use
84 8040400 CityGate Purch-Residential
85 8040401 CityGate Pumh-Res Unbilled
86 8040500 City Gate Purch-Commercial
87 8040501 City Gate Pumh-Com Unbilled
88 8040600 City Gate Pumh-lndustrial
89 8040601 CityGate Purch-lnd Unbilled
90 8040700 City Gate Purch-Public Author
91 8040800 City Gate Pumh-Elect Generate
92 8040900 CityGate Purch-Unaccounted
Schedule H-1 (D)
Page 3 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
93 8040901 City Gate Pur-Unbilled Contra
94 8040911 City Gate Purch-LUG Adjustment
95 8050000 Gas Pumhases-Third Party (250,317.86)
96 8050800 OGP-Retention-Distrib Credit
97 8051111 OGP-LUG Adjustment (1,158,000.00)
98 8051500 OGP-LUG Memo 22,521,419.64
99 8051600 OGP-LUG Contra (22,521,419.64)
100 8051900 OGP-Line Pack
101 8052000 OGP-Equalization Fees (1,228,030.90)
102 8060000 Exchange Gas
103 8061500 Exchange Gas-Assoc (10,376,852.14)
104 8061510 Exchange Gas-Assoc-Retention
105 8061520 Exchgas-Assoc-Retention Contra
106 8063000 Exchange Gas-Nonassoc-GMR174
107 8063030 System gas imbalance exp
108 8063500 Openaccess Ferc 500-1mbal Egtc
109 8064000 Valuat Gain_Loss-EGT_EES Recov
110 8080000 Gas Withdrawn From Storage (N)
111 8080010 Primary Stor Gas Withdrawn Exp 16,929,499.07
112 8080020 Secondary Stor Gas Withdrawn 28,662,264.23
113 8090000 Gas Delivered To Storage (N)
114 8090010 Primary Stor Gas Inject Exp (16,743,381.77)
115 8090020 Secondary Stor Gas Inject Exp (28,829,634.53)
116 8120000 Gas Used For Other Lltil Ops-CR (161,766.03)
117 8230000 Gas Losses
118 8589100 Gas Transportation-R&C-Assoc 54,507,177.96
119 8589200 Gas Transportation-lnd-Assoc 1,313,876.89
120 8589400 GasTransportation-LUG-Assoc (376,650.00)
121 Energy purchase $ 559,785,645.67
122 Other power expenses $
123 8590000 Other Transmission System $
124 TDSP and other electric transmission charges $
125 4261000 Donations $ 207,218.86
126 6010000 COGS-Operating Expense
127 7500000 Oper-Super&Engineer-Compressor
128 7520000 Gas Wells
129 7530000 Field Line Expenses
130 7540000 Field Compressor Expense
131 7560000 Field Measuring&Regulating Sta
132 7570000 Purification Expense
133 7590000 Other Gathering System
134 7760000 Operation Supplies & Expense
135 8053000 OGP-Co Used-Comp Sta FueI-CR
136 8053200 OGP-Co Used-Other Oper-CR
137 8070000 Purchased Gas Expense
138 8072000 Oper-Measuring Stations
Schedule H-1 (D)
Page 4 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
139 8130000 Other Gas Supply Expenses 3,273,283.13
140 8140000 Oper-Supervision & Engineering
141 8160000 Storage Wells Expense
142 8170000 Storage Lines
143 8180000 Compressor Station Expense
144 8190000 Compressor Fuel & Power
145 8200000 Storage Measuring & Reg Statn
146 8210000 Purification Expense
147 8240000 Other Storage
148 8251000 Storage Well Royalties - Gas
149 8260000 Rents-Underground Storage
150 8500000 Oper-Supervision & Engineering
151 8510000 System Control & Load Dispatch
152 8520000 Communication System
153 8530000 Compressor Station Labor & Exp
154 8540000 Gas For Compressor Statn Fuel
155 8560000 Mains Exp-Transmission System
156 8569000 Mains Exp-Transmission Sys-Gas
157 8570000 Measuring & Regulating Station
158 8580000 Trans & Compr Of Gas By Others
159 8581000 Gas Transport Exp-Affiliates
160 8600000 Rents-Transmission System
161 8700000 Oper Supervision & Engineering 526,693.25
162 8740000 Mains & Services 15,966,202.01
163 8750000 Measuring & Reg Sta-General 661,980.34
164 8770000 Measuring & Reg Sta-CityGate 255.38
165 8780000 Meter& House Regulator 7,977,093.98
166 8790000 Customer installations Expense 1,426,857.64
167 8800000 Other Expenses 10,123,145.69
168 8810000 Rents-Distribution 37,920.31
169 9010000 Supervision-CustomerAccounts (300.00)
170 9020000 Meter Reading Expenses 7,539,431.83
171 9030000 Customer Records & Collections 6,770,756.00
172 9030001 Receivables Sale Fees 1,144,866.21
173 9030002 Customer Services - Affiliate 29,334,204.00
174 9040000 Uncollectible Accounts 3,711,645.49
175 9040001 Non-ClS Related Uncollectibles 308,109.92
176 9101000 Customer Assistance (N) 3,830,118.25
177 9111000 InformationalAdvertising (N) 34,690.21
178 9130000 Advertising Expense
179 9151000 Supervision(N) 1,225.64
180 9161000 Demonstrating & Selling (N) 147,654.21
181 9171000 PromotionalAdvertising (N) 233,410.64
182 9181000 Miscellaneous (N) 64,504.67
183 9200000 Administrative & Gen Salaries 3,203,201.41
184 9210000 Office Supplies & Expenses 520,716.87
Schedule H-1 (D)
Page 5 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUE'I-F
Line
No. Account - Description Amount
(a) (b)
185 9220000 Administrative Exp-Transferred
186 9230000 Outside Services Employed 19,420,071.66
187 9230002 Out Serv Emp[-Energy Del/TUFCO
188 9231000 Outside Services - Assoc Cos 9,048,186.05
189 9240002 Property Ins - Energy Del 175,803.95
190 9250002 Injuries&Damages Ins-EnrgyDel 5,641,414.99
191 9260000 Employee Pensions & Benefits 4,605,729.18
192 9260002 Empl Pension&Benefit-Enrgy Del 11,037,920.00
193 9280000 Regulatory Commission Expense 2,661,029.41
194 9301000 General Advertising Expenses 101,383.48
195 9302000 Misc General Expenses 4,531,933.86
196 9302001 Credit Line Fees - Regulated
197 9302100 Paid Losses
198 9302200 Change in Loss Reserves
199 9302301 Reinsurance Premium Expense
200 9302302 Reinsurance Premium income
201 9302400 Commission income
202 9310000 Rents-Administrative & General 187,325.58
203 9311000 Rents-Admin & GeneraI-Assoc Co
204 9429420 Ceded Premium Expense
205 Operation $ 154,455,684.10
206 7640000 Maint-Field Lines $
207 7650000 Maint-Fieid Compressor Station
208 7660000 Gath Sys Meas& Reg Equip-Maint
209 7670000 Maint-Purification Equipment
210 8310000 Maint-Structures&lmprovements
211 8320000 Maint-Resevoim & Wells
212 8330000 Maint-Lines
213 8340000 Maint-ComprStation Equip
214 8350000 Maint-Mearsuring & Reg Equip
215 8360000 Maint-Purification Equipment
216 8370000 Maint-OtherStorage Equipment
217 8610000 Maint-Supervision&Engineering
218 8620000 Maint-Structures&lmprovements
219 8630000 Maint Of Mains-Transmission
220 8633000 Pipe
221 8640000 Maint-Compressor Station Equip
222 8650000 Maint-Measuring & Reg Equip
223 8660000 Maint-Communication Equipment
224 8670000 Maint-Other Equipment
225 8850000 Maint-Supervision&Engineering 46,266.70
226 8860000 Maint-Structures&lmprovements 65.44
227 8870000 Maintenance Of Mains 14,548,956.51
228 8890000 Maint-Meas&Reg Sta-General 1,299,798.98
229 8900000 Maint-Meas&Reg Sta-lndustrial 4,958.81
230 8920000 Maintenance Of Services 3,389,048.26
Schedule H-1 (D)
Page 6 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
231 8930000 Maint-Meter & House Regulator 1,428,802.14
232 8940000 Maint Of Other Equipment 637,448.05
233 9320000 Maintenance Of General Plant
234 Maintenance $ 21,355,344.89
235 4031200 Depr-Transmission Plant $
236 4031210 Depr-Customer Sales Stations
237 4031220 Depr-Transm CompressorStatns
238 4031300 Depr-Distribution System 46,457,743.72
239 4031500 Depr-Gathering System
240 4031600 Depr-Underground Storage
241 4031710 Depr-Gen PIt-Struc & Imprv 320,233.03
242 4031720 Depr-Gen Pit-Off Fum & Equip 76,087.33
243 4031770 Gen PIt-Commun Equip
244 4031781 Depr-Gen PIt-Non-Assoc Mainfr 374,219.44
245 4031790 Depr-Gen PIt-Misc Equip 886,067.61
246 4031798 Depr-General Plant
247 4031921 NON-OPER DEPR EXP OFFICE FURNI
248 4040901 OPERATING AMORTIZATION EXPENSE 1,963,848.59
249 4041920 NON-OPAMORTIZATION EXPENSE 761,562.18
250 4071000 Amort of Other Reg Asset 127,156.61
251 Depreciation and amortization $ 50,966,918.51
252 4081000 FICA $ 3,182,918.31
253 4081100 Federal - Unemployment 50,538.65
254 4081500 DOT Pipeline User Fee 30,011.15
255 4081970 Allocated Taxes FICA - Credit (3,081,975.56)
256 4081980 Allocated Taxes FUTA - Credit (61,699.21)
257 4081990 Payroll Taxes Allocated 1.287,831.18
258 4081992 Payroll Taxes Alloc-Enrgy Del 2,453,278.00
259 4082100 State- Unemployment 109,774.34
260 4082200 State Regulat Assessment &Fees 422,363.10
261 4082400 State - Gross Receipts 14,832,199.74
262 4082410 State - Local Gross Receipts 33,771,791.83
263 4082419 LGR - Denton Settlement Recove 6,072.36
264 4082500 State - Franchise 234,005.83
265 4082602 Ad Valorem - EN Del Operating 14,583,399.54
266 4082650 State-Ad Vaiorem-PriorYear 417.63
267 4082980 Allocated Taxes SUTA - Credit (50,159.76)
268 Taxes, other than income $ 67,770,767.13
269 Total operating expenses $ 854,304,360.30
270
271 OPERATING INCOME (LOSS) $ 50,729,787.35
272
273 4150200 Merchandise Rev-CounterSales $ 72.19
274 4201000 AFUDC-Equity(N)
275 4210300 Other Misc Nonoperating Income 295,398.84
276 4212000 Wdtten Premium
Schedule H-1 (D)
Page 7 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
277 4212100 Change in Unearned Premium
278 4220100 Disposition Of Proprty-Gain(N) 1,428,957.40
279 OTHER INCOME $ 1,724,428.43
280
281 4210200 Disposition Of Property-Loss $
282 4210510 Inc_Loss from Unconsol Sub
283 4210530 Uncons Sub Earn Loss - ERINC
284 4220200 Disposition Of Proprty-Loss(N) 130,948.00
285 4250100 Misc Amortization
286 4263500 Penalties - Non Operating
287 4264500 Lobbying - Other-Non Operating 9,141.53
288 4264600 Lobbying - PAC - Non Operating 4,808.41
289 4264700 Lobbying - Transferred
290 4265000 Other Deductions - Dues
291 4265500 Other Deductions-Non Operating
292 OTHER DEDUCTIONS $ 144,897.94
293
294 4190100 Interest& Dividend Inc-Misc $ (1,248,627.48)
295 4190200 Interest Income-Associated Cos 11,011.63
296 INTEREST INCOME $ (1,237,615.85)
297
298 INTEREST EXPENSE AND OTHER CHARGES
299 4270000 Interest On Long Term Debt $
300 4310100 Other interest Expense 582,964.02
301 4310300 Customer Deposits 1,452,937.76
302 4310400 Advance For Construction 24,969.91
303 4310800 Intemal Revenue Service
304 4313100 Other Financing Fees
305 Interest expense - trade $ 2,060,871.69
306 4300000 Interest On Debt To Assoc Cos $ 41,059,766.93
307 Interest expense - affiliated companies $ 41,059,766.93
308 4202000 AFUDC-Debt (N) $
309 4322000 Capitalized Interest
310 Allowance for borrowed funds used during construction $
311 4280000 Amort-Debt Discount & Expense $
312 4290000 Amort-Premium On Debt-Credit
313 Amortization of debt expense and loss $
314 4379000 Distributions - Preferred $
315 4379100 Accretions-Preferred Security
316 Preferred securities distributions $
317 Total interest expenseand other charges $ 43,120,638.62
318
319 INCOME (LOSS) BEFORE INCOME TAXES
320 AND EXTRAORDINARY ITEMS $ 7,981,063.37
321
Schedule H-1 (D)
Page 8 of 8
TXU GAS -- DISTRIBUTION
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETr
Line
No. Account - Description Amount
(a) (b)
322 INCOME TAX EXPENSE (BENEFIT):
323 Current:
324 4091000 Current FIT - Util Oper Income $ (15,567,038.19)
325 4092000 Current FIT - Other Income 4.872.728.53
326 Federal $ (10,694,309.661
327 State $
328 Foreign $
329 Deferred: $
330 4101000 Def FIT - Utility Oper Income $ 48,727,210.08
331 4111000 Def FIT - Utility Oper Income (31,022,725.96)
332 4112000 Def FIT - Non Operating Income (4,200,000-00/
333 Federal $ 13,504,484.12
334 State $
335 Foreign $
336 4114000 Investment Tax Credit $ (106,372.68I
337 Investment tax credits $ (106,372.68~
338 Total income taxes $ 2,703,801.78
339
340 INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS $ 5,247,261.59
341
342 4093000 Income Tax Extraordinary Item $
343 4350000 Extraordinary Deductions
344 EXTRAORDINARY ITEMS, NET OF TAX EFFECT $
345
346 NET INCOME (LOSS) $ 5,247,261.59
347
348 4370000 Divs DecI-Pref Stock $
349 4370001 Allocated Preferred Stock 1,785,850.00
350 PREFERRED STOCK DIVIDENDS $ 1,785,850.00
351
352 NET INCOME (LOSS) AVAILABLE FOR COMMON STOCK $ 3,461,411.59
353
354
355 4181000 Equity- Subsidiary Earnings $
356 EQUITY EARNINGS OF SUBSIDIARIES $
Schedule H-2 (D)
Page 1 of 10
TXU GAS m DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETr
Twelve Months
Line Ended
No. Account ! Description December 31, 2002
(a)
1 1010020 IS-Franchises & Consents $ 18,896.42
2 1010300 IS-Distribution System 1,553,250,945.10
3 1010301 Distribution Fee Land 252,301.19
4 1010700 IS-Gen Plant-Fee Land 1,824,730.84
5 1010710 IS-Gen Ptnt-Struct & Irnprov 16,291,801.51
6 1010720 IS-Gen Plnt-Furn & Equip 6,789,628.43
7 1010730 IS-Transportation Equipment 13,180,344.47
8 1010760 IS-Gen Pint-Power Op Equip 7,060,208.13
9 1010770 IS-Gen Pint-Corem Equip 3,332,617.96
10 1010781 IS-Gen Pint-Computer Equip-PC 2,000,751.57
11 1010790 IS-Gen Plnt-Misc Equipment 14,734,742.36
12 1010900 IS-Intangible Plant 25,331,191.13
13 1070000 Construction Work In Progress 650,382,250.83
14 1079000 Construction-Credit to Plant (626,912,830.27)
15 1080300 RWIP-Distdbution System 3,266,242.15
16 1080301 Non Depr-Distribution 775.00
17 1080700 Non Depr- General Plant
18 1081300 APFD-Distribution System (45,344,217.97)
19 1081710 APFD-Structures & Improvements (439,401.96)
20 1081720 APFD-Office Furniture & Equip (76,087.33)
21 1081781 APFD-Non Associate-Mainframe (374,219.44)
22 1081790 APFD-Miscellaneous Equipment (886,067.61)
23 1082300 Retir - Distribution System 3,433,290.01
24 1082301 Retir- Non Depr-Distribution 1.00
25 1082700 Retir-Non Depr - General Plant 1,314,082.32
26 1082710 Retir-Structures& Improvements 36,486.00
27 1082900 Retir- Intangible
28 1083300 Salv - Distribution System
29 1083700 Salv- Non Depr - General Plant
30 1084300 Oth Rec - Distribution System (5,506,241.24)
31 1084301 Oth Rec- Non Depr-Distribution (776.00)
32 1084700 Oth Rec-Non Depr-General Plant (1,121,502.73)
33 1084730 Oth Rec-Transportation Equipme (87,609.75)
34 1086300 Distribution - Beg Bal (469,644,719.22)
35 1086710 Structr and Improvmnts-Beg Bal (6,074,259.76)
36 1086720 Office Furn and Equip-Beg Bal (6,085,943.41)
37 1086730 Transp Equip-Beg Bal (10,646,120.82)
38 1086760 Power Operated Equip-Beg Bal (7,032,128.57)
39 1086770 Communication Equip- Beg Bal (3,177,040.98)
40 1086781 Non-assoc Mainframe - Beg Bal (1,093,024.83)
41 1086790 Miscellaneous Equip-Beg Bal (10,526,673.74)
42 1111000 Amortization - Plant (10,012,156.73)
Schedule H-2 (D)
Page 2 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU~-I 1
Twelve Months
Line Ended
No. Account ! Description December 31,2002
(a) (b)
43 1113000 Amortization - Other (7,231.02)
44 UTILITY PLANT $ 1,097,453,033.04
45 1211000 Real Estate 9,768.22
46 1231000 Advances To Assoc Cos - MP
47 1240000 Other Investments 51,916.29
48 1241200 Other - Misc Investments 429,386.11
49 1245500 Salary Deferral-7Yr Foundation 144,851.54
50 1245600 Salary Defer-Retire Foundation 70,421.96
51 1247000 Prepaid-Gas
52 INVESTMENTS $ 706,344.12
53 1310000 Cash-Chase Bank of TX-Pre FIM
54 1317214 Cash-Chase-0991-3rd Party Coil 842,121.33
55 1317267 Cash - Bank of America 2668 533,428.06
56 1317511 Cash-BofA-O009-Common
57 1317512 Cash-Chase-9197-CIS Common 1,617,359.11
58 1410000 Notes Receivable-Current 18,052.87
59 1420000 Customer Accounts Receivable 76,674.76
60 1420500 Returned Checks
61 1422000 Gas-CIS 69,992,916.04
62 1422010 Gas A_R-Gas Master 3,144,844.69
63 1422400 CIS AR Estimate 880,872.83
64 1423100 Sale of Gas Receivables (66,589,000.87)
65 1423200 Notes Receivable from ERINC 45,399,280.19
66 1428000 Customer AR Split to CIS (782,857.52)
67 1430100 Other Misc Accounts Receivable 1,341,889.84
68 1430200 Estimates 4,834,118.48
69 1431000 Payroll Deduction - Other 3,938.49
70 1431060 Energy Conservation 307,265.63
71 1431110 Appliances 315,615.16
72 1432500 Customer Refund Forgery 670.36
73 1438000 Customer AR Split from ClS (3,333.82
74 1439000 Misc Rec AR Module Only 4,888,034.67
75 1439100 GCBS Only-Accounts Receivable 45,877.67
76 1440000 Uncollectible Accounts-Credit (2,046,277.52
77 1440100 Uncollectible Accounts-Misc (1,235,877.92
78 1440200 Sale Of Car-Credit 412,660.19
79 1460000 A_R - Associated Companies 226,799,826.81
80 1460220 LUG Deferral Asset - Affil
81 1469000 A_R-Associated Cos-Advances
82 1545000 Materials & Supp-PMMS Normal 1,546,174.61
83 1550000 Memhandise 0.01
84 1631100 Purchasing & Stores 2,231,039.00
Schedule H-2 (D)
Page 3 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Twelve Months
Line Ended
No. Account ! Description December 31, 2002
(a) (b)
85 1632000 Purchasing & Stores-Kitting (99,462.73)
86 1634000 Stores Sales & Use Tax 222,858.51
87 1640010 Gas Stored Underground-Primary 46,735,524.53
88 1640020 Gas Stored Underground-Secndry 62,654,424.50
89 1652100 Insurance 874,920.51
90 1659000 Other Prepayments 1,412,510.58
91 1661100 Prepayments-Gas (N)
92 1661110 Prepayments-Gas Reclassed (N)
93 1710000 Other Interest & Div Receivble 383.26
94 1730100 Gas 26,955,022.14
95 1741230 Exchange Gas
96 1746000 Home Purchase Plan
97 CURRENT ASSETS $ 433,331,494.45
98 1742100 Customer O/U Co[. - Principal 77,921,180.00
99 1742200 Customer O/U Col. - Interest 435,362.00
100 1829900 Other Regulatory Assets 12,259,711.00
101 18421 O0 Variable Time
102 1842400 Variable Time Loading 779,653.03
103 1842409 Variable Time Loading (Credit) (624,330.13)
104 1860100 Misc Deferred Debit - Other 1,507.48
105 1860700 Deferred Tax-City Gas Company
106 1861101 Job Order-Rate Case-Gen Exp 12,079,570.74
107 1862300 Job Order-Insurance Recoveries 644,568.15
108 1862700 Job Orders 1,102.11
109 1864500 Misc Def DR-TUFCO Contract
110 1866100 Subj To Amort-Rate Case Exp 223,543.81
111 1866300 1999 Severance Costs 3,138,782.19
112 1866310 1997 Enhanced Retirement Plan 16,175,827.02
113 1866320 WINS Project Cost 881,674.13
114 1866350 Polypipe Replacement 43,149,008.85
115 1868550 SDP Unamort Co Match-7Yr Found 34,969.79
116 1868560 SDP Unamort Co Match Retiree 50,612.35
117 1868900 Money Pooi-Contrib To_From (0.33)
118 1869000 Miscellaneous Deferred Debits 2,470,877.28
119 1869900 Validation Fatals
120 DEFERRED DEBITS $ 169,623,619.47
121 1900000 Accum Def Federal Income Tax 144,431.07
122 1900001 ADFIT-PEP 48,890.32
123 1900002 ADFIT-Bad Debt Reserve 526,058.15
124 1900004 ADFIT-Vacations 652,133.09
125 1902001 ADFIT-Property Insuranc Reserv 781,483.59
126 1902002 ADFIT-DClP Amortization
Schedule H-2 (D)
Page 4 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU,- I I
Twelve Months
Line Ended
No. Account / Description December 31, 2002
(a) (b)
127 1902004 ADFIT-LESOP 115,958.83
128 1902013 ADFIT-Pension Plan 6,561,625.13
129 1902020 ADFIT-Salary Del Plan 7 Yr Opt 38,449.26
130 1902021 ADFIT-Salary Def Plan Ret Opt 50,479.31
131 1902023 ADFIT-OPEB and FAS 112 20,591,279.42
132 1902025 ADFIT-Provided For Misc Recv 298,337.73
133 1902033 ADFIT-Unamortized ITC 1,069,705.01
134 1902035 ADFiT-ALT Minimum Tax 193,495.28
135 1902040 ADFIT-Ins Claims IBNR Accrual 201,777.46
136 1902058 ADFIT- Restoration & COLA Plan 506,110.27
137 1903110 DFIT-Purchase Acctg Adjustment 581,639.06
138 1904013 ADFIT Regulatory Settlement 4,200,000.00
139 ACCUMULATED DEFERRED TAX ASSETS $ 36,561,852.98
140
141 TOTAL ASSETS $ 1,737,676,344.06
142
143 2040801 Allocated Preferred Stock $ 37,500,000.00
144 2049101 Allocated Preferred Securities 55,251,000.00
145 2110000 Miscellaneous Paid-In Capital 50,046,434.96
146 2111000 Miscellaneous Paid-In Capital 47,685,000.00
'147 2160000 Unappropriated Ret Earnings 359,383,478.30
148 2160200 Pumhase Accounting Adjustment (43,829,217.35)
149 2230000 Advances from Assoc Cos - MP 326,617,424.79
150 2240009 Allocated Lng Term Debt fr ENS 207,742,000.00
151 2320200 A_P-Gas Purchased 105,199,111.91
152 2320220 A_P-Gas Purchase-LUG Adjustmnt
153 4393200 Other Compreh income- Pensions (11,483,948.45)
154 CAPITAL $ 1,134,111,284.16
155 2320300 Other Accounts Payable 83,294.70
156 2321900 PED- Loans (65,516.38)
157 2321901 ENSAVE Loans
158 2321902 PED - Bankruptcy 3,588.00
159 2321903 PED - Child Support 800.86
160 2321904 PED - Parking
161 2321909 PED - Dependent Life Insurance (163.62)
162 2321911 Group Universal Life Ins 13,157.88
163 2321912 Vision Care (920.46)
164 2321914 PED - IRS Levy 525.25
165 2321916 PED - TU PAC 1,170.05
166 2321919 PED - Student Loans 1,230.24
167 2321920 PED - Thrift Plan Collections 165,478.56
168 2321921 PED - U.S. Savings Bonds 225.00
Schedule H-2 (D)
Page 5 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Twelve Months
Line Ended
No. Account ! Description December 31, 2002
(a) (b)
169 2321922 ENSAVE Plan Collections
170 2321924 PED - United Way 2,220.50
171 2321925 Lifestyle Account 8,530.66
172 2321928 PED-Thrift Loan Fees
173 2321930 Thrift Plan - Employer Match 57,019.74
174 2321931 Voluntary Benefits 571.92
175 2321932 Accidental D&D 2,800.08
176 2321933 LT Disability 11,306.92
177 2322401 Employee Group Life Insurance 3,508.84
178 2322402 Retiree Dental Insurance 316.46
179 2322403 Retiree Medical Insurance 82,357.43
180 2323000 Retentions 964,660.02
181 2324000 Trade Payables & Vouchers 3,428,214.37
182 2324100 CIS - Customer Refunds 845,897.36
183 2324199 Customer Refunds - Mellon
184 2324600 Managers Fund - Refunds 8,805.77
185 2327600 Customer Assistance 184,744.47
186 2328900 O_S Checks-Money Pool 6,755,706.57
187 2328910 O_S Checks-Gas Purchase 47,264.40
188 2328950 EDI Payments Outstanding 745,563.65
189 2340000 A_P - Associated Companies 232,526,883.17
190 2340220 LUG Deferral Liab - Affil
191 2351000 Customer Deposits - Active 24,466,145.95
192 2351100 Long-Term Contra (14,901,271.00)
193 2352000 Unclaimed 385,137.64
194 2353000 Billed 2,416,000.56
195 2361000 FICA - Employer 301,346.16
196 2361100 Accrd Federal Unemployment Tax 48.17
197 2361550 Accrued DOT Pipeline User Fee 4,784.50
198 2362100 Accrued State Unemployment Tax 99.49
199 2362200 State Regulat Assessment &Fees 128,369.19
200 2362400 State - Gross Receipts 166,063.32
201 2362410 Local - Gross Receipts 2,815,936.96
202 2362600 State-Ad Valorem-Current Year 12,377,269.24
203 2362610 State-Ad Valorem-Prior Year
204 2362700 State - Other - Full Accrual 289,202.10
205 2362720 Local - Other - City Accrual
206 2363800 FIT-Accrual (11,414,493.43)
207 2375000 Interest Accr-Customer Deposit 5,834,404.04
208 2376000 Accr Int-Advances for Construc 124,993.33
209 2411000 FICA Withheld 144,028.23
210 2411200 FIT - Withheld - income Tax 250,386.30
Schedule H-2 (D)
Page 6 of 10
TXU GAS--DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31,2002
SPONSOR:R.K. PRUETT
Twelve Months
Line Ended
No. Account / Description December 31, 2002
(a) (b)
211 2411450 3rd Party Transport Tax Estima 320,269.40
212 2412200 SIT Withheld - Income Tax 353.00
213 2412400 State-Gross Production 640.63
214 2412450 Local Gross Rec - Third Party 643,925.46
215 2412460 Local Gross Receipts - ClAC 158.30
216 2412500 Oil Field Clean Up Fee 1.43
217 2412700 State - Other - Accrual
218 2412710 State - Other - Accrual -State
219 2412720 State - Other - Accrual - City
220 2412750 State - Other - Accrual - SPD
221 2412800 Sales Tax Collected - ClS Only 2,827,676.88
222 2421160 Escheat - Customer Overpay
223 2421170 Escheat-Other 8,185.25
224 2421230 Exchange Gas 1,550,513.78
225 2421615 Exchange Gas-lmbalance-Affil
226 2423400 Vacation 318,111.47
227 2423900 Other Accrued Payables 4,602,212.93
228 2424000 Payroll Accrual 707,338.95
229 2424100 Accrued Incentive Plans 1,360,200.00
230 2429300 Corporate Accruals 3,835,465.21
231 2429900 Other Accrued Liabilities 121,128.80
232 CURRENT LIABILITIES $ 285,563,874.65
233 2520100 Customer Advances For Construc 5,031,889.35
234 2520200 D I P Contracts 3,027,245.36
235 2530001 FAS 109-Unamortized ITC 1,069,705.01
236 2531000 IBNR - Medical & Dental Claims 878,864.00
237 2533300 Retirement Plan 36,844,499.49
238 2533500 FAS 112 1,779,528.00
239 2533900 OPEB-Other 57,697,452.98
240 2534000 Leveraged ESOP 331,311.06
241 2535500 Salary Deferrat-7Yr Foundation 144,824.59
242 2535600 Salary Defer-Retire Foundation 194,838.95
243 2538010 Customer Deposits - Non Curr 14,901,271.00
244 2539000 Other Deferred Credits 1,678,888.38
245 2539050 Defer Cr-Cust Contributions 527,867.77
246 2539120 Restoration Plan 126,181.02
247 2539160 Enserch COLA Plan 1,319,884.19
248 2542100 Regulatory Liability 28,122,356.72
249 2551000 Accumulated Deferred ITC 3,935,789.00
250 2553000 Rate Base Amortization (1,949,194.04)
251 2620000 Injuries & Damages Reserve (N) 1,284,500.00
252 DEFFERRED CREDITS $ 156,947,702.83
Schedule H-2 (D)
Page 7 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUEI-F
Twelve Months
Line Ended
No. Account ! Description December 31, 2002
(a) (b)
253 2822001 ADFIT-Liberalized Depreciation 130,495,386.26
254 2822002 ADFIT-CWIP-Basis Difference 2,718,822.79
255 2822011 ADFIT-Oth Software DevelopCost 649,597.12
256 2822023 ADFIT-InterCo Transf Gain_Loss (476.40)
257 2822027 ADFIT-Polypipe Replacement 15,102,152.94
258 2832000 ADFIT-Other (6,183,664.55)
259 2832002 ADFiT-Other Regulatory Expense 4,202,265.16
260 2832031 ADFIT-1999 Enh Emp Separ Prog 312,082.31
261 2832039 ADFIT - WINS Costs 294,699.94
262 2835600 ADFIT on Reg Asset Bens-Mergr 10,001,205.26
263 ACCUMULATED DEFERRED TAX LIABILITIES $ 157,592,070.83
264
265 TOTAL LIABILITIES $ 1,734,214,932.47
266
267 4800000 Residential Sales $ 569,092,899.63
268 4800110 Over_Under Collection-Res 4,466,032.74
269 4810100 Gas Saies-Commemial (Small) 287,510,526.85
270 4810110 Over_Under Collection-Corn 4,820,793.81
271 4810200 Ind Gas Sales To Non-Assoc Co 19,285,065.13
272 4810210 Industrial Large Sales 1,414,462.38
273 4811200 Electric Generation Small Sale 1,618.71
274 4820000 Other Sales - Public Authority 1,288,313.03
275 4830000 Gas Sales for Resale 1,968,984.12
276 4860100 Unbilled Residential Gas Rev (10,268,230.39)
277 4860200 Unbilled Commemial Gas Rev (1,924,602.34)
278 4860300 Unbilled Industrial Gas Rev (74,000.00)
279 4870000 Forfeited Discount-Residential 11,220.00
280 4880200 Connect Charge 8,324,014.85
281 4880300 Return Checks 215,940.75
282 4880400 Collection Charges 30,609.45
283 4890100 Industrial Transportation 13,008,459.80
284 4890102 lnd Trans Billed for LSGTR
285 4890103 Ind Trans - Tax Exempt 950,589.45
286 4890104 Ind Trans - LSP - Tax Exempt
287 4890500 Electric Generation 27,741.48
288 4890550 Electric Generation - Assoc 239,363.95
289 4890800 Pipeline 76.54
290 4891200 Other Transport Related Rev 412,110.71
291 4930100 Rents Gas Props Non-Assoc Cos 900.00
292 4930200 Rent Gas Property-Assoc Cos 1,390,577.25
293 4950100 Other Gas Revenues 9,361.82
294 4952100 Customer O/U Collection (1,022,858.57)
Schedule H-2 (D)
Page 8 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31,2002
SPONSOR: R. K. PRUEI'I'
Twelve Months
Line Ended
No. Account ! Description December 31, 2002
(a)
295 4953200 Other Gas Rev - Stand-By Fees 3,854,176.50
296 REVENUES $ 905,034,147.65
297 4031300 Depr-Distribution System 46,457,743.72
298 4031710 Depr-Gen Plt-Struc & Imprv 320,233.03
299 4031720 Depr-Gen Pit-Off Fum & Equip 76,087.33
300 4031781 Depr-Gen PIt-Non-Assoc Mainfr 374,219.44
301 4031790 Depr-Gen Plt-Misc Equip 886,067.61
302 4040901 OPERATING AMORTIZATION EXPENSE 1,963,848.59
303 4041920 NON-OP AMORTIZATION EXPENSE 761,562.18
304 4071000 Amort of Other Reg Asset 127,156.61
305 4081000 FICA 3,182,918.31
306 4081100 Federal - Unemployment 50,538.65
307 4081500 DOT Pipeline User Fee 30,011.15
308 4081970 Allocated Taxes FICA - Credit (3,081,975.56)
309 4081980 Allocated Taxes FUTA - Credit (61,699.21)
310 4081990 Payroll Taxes Allocated 1,287,831.18
311 4081992 Payroll Taxes Alloc-Enrgy Del 2,453,278.00
312 4082100 State - Unemployment 109,774.34
313 4082200 State Regulat Assessment &Fees 422,363.10
314 4082400 State - Gross Receipts 14,832,199.74
315 4082410 State - Local Gross Receipts 33,771,791.83
316 4082419 LGR - Denton Settlement Recove 6,072;36
317 4082500 State - Franchise 234,005.83
318 4082602 Ad Valorem - EN Del Operating 14,883,399.54
319 4082650 State-Ad Valorem-Prior Year 417.63
320 4082980 Allocated Taxes SUTA - Credit (50,159.76)
321 4261000 Donations 207,218.86
322 8000000 Nat Gas Well Head Purchase 34,724,700.33
323 8010000 Field Line Purchases 60,669,914.13
324 8020000 Plant Outlet Purchases (8,612,848.04)
325 8030000 Transmission Line Pumhases 430,685,694.33
326 8050000 Gas Purchases-Third Party (250,317.86)
327 8051111 OGP-LUG Adjustment (1,158,000.00)
328 8051500 OGP-LUG Memo 22,521,419,64
329 8051600 OGP-LUG Contra 22,521,419.64)
330 8052000 OGP-Equalization Fees (1,228,030.90)
331 8061500 Exchange Gas-Assoc 10,376,852.14)
332 8080010 Primary Stor Gas Withdrawn Exp 16,929,499.07
333 8080020 Secondary Stor Gas Withdrawn 28,662,264.23
334 8090010 Primary Stor Gas Inject Exp 16,743,381.77)
335 8090020 Secondary Stor Gas Inject Exp 28,829,634.53)
336 8120000 Gas Used For Other Util Ops-CR (161,766.03)
Schedule H-2 (D)
Page 9 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Twelve Months
Line Ended
No. Account ! Description December 31, 2002
(a) (t3)
337 8130000 Other Gas Supply Expenses 3,273,283.13
338 8589100 Gas Transportation-R&C-Assoc 54,507,177.96
339 8589200 Gas Transportation-lnd-Assoc 1,313,876.89
340 8589400 Gas Transportation-LUG-Assoc (376,650.00)
341 8700000 Oper Supervision & Engineering 526,693.25
342 8740000 Mains & Services 15,966,202.01
343 8750000 Measuring & Reg Sta-General 661,980.34
344 8770000 Measuring & Reg Sta-City Gate 255.38
345 8780000 Meter & House Regulator 7,977,093.98
346 8790000 Customer Installations Expense 1,426,857.64
347 8800000 Other Expenses 10,123,145.69
348 8810000 Rents-Distribution 37,920.31
349 8850000 Maint-Supervision&Engineering 46,266.70
350 8860000 Maint-St ructu res&Improvements 65.44
351 8870000 Maintenance Of Mains 14,548,956.51
352 8890000 Maint-Meas&Reg Sta-General 1,299,798.98
353 8900000 Maint-Meas&Reg Sta-lndustrial 4,958.81
354 8920000 Maintenance Of Services 3,389,048.26
355 8930000 Maint-Meter & House Regulator 1,428,802.14
356 8940000 Maint Of Other Equipment 637,448.05
357 9010000 Supervision-Customer Accounts (300.00)
358 9020000 Meter Reading Expenses 7,539,431.83
359 9030000 Customer Records & Collections 6,770,756.00
360 9030001 Receivables Sale Fees 1,144,866.21
361 9030002 Customer Services - Affiliate 29,334,204.00
362 9040000 Uncollectible Accounts 3,711,645.49
363 9040001 Non-CIS Related Uncollectibles 308,109.92
364 9101000 Customer Assistance (N) 3,830,118.25
365 9111000 Informational Advertising (N) 34,690.21
366 9151000 Supervision(N) 1,225.64
367 9161000 Demonstrating & Selling (N) 147,654.21
368 9171000 Promotional Advertising (N) 233,410.64
369 9181000 Miscellaneous (N) 64,504.67
370 9200000 Administrative & Gert Salaries 3,203,201.41
371 9210000 Office Supplies & Expenses 520,716.87
372 9230000 Outside Services Employed 19,420,071.66
373 9231000 Outside Services - Assoc Cos 9,048,186.05
374 9240002 Property Ins - Energy Del 175,803.95
375 9250002 injuries&Damages Ins-Enrgy Del 5,641,414.99
376 9260000 Employee Pensions & Benefits 4,605,729.18
377 9260002 Empl Pension&Benefit-Enrgy Del 11,037,920.00
378 9280000 Regulatory Commission Expense 2,661,029.41
Schedule H-2 (D)
Page 10 of 10
TXU GAS -- DISTRIBUTION
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUE'I'r
Twelve Months
Line Ended
No. Account ! Description December 31, 2002
(a) (b)
379 9301000 General Advertising Expenses 101,383.48
380 9302000 Misc General Expenses 4,531,933.86
381 9310000 Rents-Administrative & General 187,325.58
382 OPERATING EXPENSES $ 854,304,360.30
383 4190100 Interest & Dividend Inc-Misc (1,248,627.48)
384 4190200 Interest Income-Associated Cos 11,011.63
385 INTEREST INCOME $ (1,237,615.85I
386 4150200 Merchandise Rev-Counter Sales 72.19
387 4210300 Other Misc Nonoperating income 295,398.84
388 4220100 Disposition Of Proprty-Gain(N) 1,428,957.40
389 OTHER INCOME $ 1,724,428.43
390 4220200 Disposition Of Proprty-Loss(N) 130,948.00
391 4264500 Lobbying - Other-Non Operating 9,141.53
392 4264600 Lobbying - PAC - Non Operating 4,808.41
393 DEDUCTIONS $ 144,897.94
394 4300000 interest On Debt To Assoc Cos 41,059,766.93
395 4310100 Other Interest Expense 582,964.02
396 4310300 Customer Deposits 1,452,937.76
397 4310400 Advance For Construction 24,969.91
398 INTEREST $ 43,128,638.62
399 4091000 Current FIT - Utit Oper Income (15,567,038.19)
400 4092000 Current FIT - Other Income 4,872,728.53
401 4101000 Def FIT - Utility Oper income 48,727,210.08
402 4111000 Def FIT - Utility Oper Income (31,022,725.96)
403 4112000 Del FIT - Non Operating Income (4,200,000.00)
404 4114000 Investment Tax Credit 1106,372.68)
405 INCOME TAXES $ 2,703,801.78
406 DISCONTINUED OPS $
407 EXTRAORDINARY ITEMS $
408
409 NET INCOME BEFORE EQUITY EARNINGS $ 5,247,261.59
410
411 EQUITY EARNINGS
412
413 NET INCOME $ 5,247,261.59
414
415 4370001 Allocated Preferred Stock 1,785,850.00
416 RETAINED EARNINGS $ 1,785,850.00
417
418 TOTAL DEBITS & CREDITS $ 0.00
TXU GAS-- D]SI'RIEU'RON '
SUMMARY OF RE'I'URN
FOR THE I~ST YEAR ENDED DECEMBER 31, 20G2
SPONSOR: B. H. FAIRCHILD
(b)
2
3 Cost OI Debt 6.71% $ 34.861.725 $ 34.861.725
4 Cost of Preferred Stock 5.53% 619,689 619,689
5 Available or Required Return on
6 Book Ve~ue of Common Equity 23,765,589 56.116.364
7
8 Total Return on Invested Capital $ 59,247,003 $ 91,597,779
9
10 Rate Baae - Caoltalizatlon Structure
12 Debt 51.00% $ 519,548,804 $ 519,548,804
13 Preferred Stock 1 .I~,~ 11,205.955 11.205.955
14 Common Equity at Book Value 47.90% 487,968,387 487.968.387
16 Total invested Capital $ 1,018.723,146 $ 1,015,723,146
20 Cost of Debt 6.71% 6.71%
21 Cost of Preferred Stock 5.53% 5.53%
22 Return on Book Value of Common Equity 4.87% 11.50"/0
23
24 Percent Return * Alter Tax 5.82% 8.99%
1[[[[[[[[[[[[[[[[[[[[[[ [[[[[ [[[
Schedule L-1 (D)
Page 1 of 3
'FXU GAS -- DISTRIBUTION
RATE DESIGN CALCULATION
FOR THE TEST yEAR ENDED DECEMBER 31, 2082
SPONSOR: G.L GOBLE
Line No. Description Total Reference
(a) (b) (c)
Residential
1 Residential Revenue Requirement 615,166,669 Schedule K (D)
2 Less Revenue Related Taxes ~ 33,938,797 Sche(]ule K (D)
3 Less Gas Cost 276,4~4,295 Schedule K (D)
4 Less Revenue From Customer Charge ($12' Annual Customers) 193.540.320 WP/K-6/6, Schedute J-1
5 Revenue Required From Commodity Rate $ 111.193.253
6
7 Residential Block 1 MCF (0-3 Mc'f} 33.535,700 WP/L-I/14 (D)
8 Residential Block 2 MCF (Over 3 Mcr) 51,907.154 WP/L-I/14 (D)
9
10 Total Residential MCF 85,442.854 Schedule J-1 (D)
12 Revenue Required From Commodity Rate $111,193,253
13 Plus (Block 2 MCF ' 0.25) $12.976,788
14 Tota~ $124,170,042
15
16 Two Steo Rate
17 Block I Commodity Rate (Mcr) 1.4533 line 14 / line 10
18 Block 2 Commodity Rate (Mc'f) 1.2032 line 17 minus $0.25
20 Customer Charge Revenue 193,540.320 line 4
21 Block 1 Commodity Rate Revenue 48,737.433 line 17 times line 7
22 Block 2 Commodity Rate Revenue 62,454,688 line 18 times line 8
23 Revenue Related Taxes Revenue 33,938,797 line 2
24 Gas Cost Revenue 276,4~4,298 line 3
25 Total Revenue $615.165.536
26
27
28
Schedule Lo1 (D)
Page 2 of 3
TXU GAS -- DISTRIBUTION
RATE DESIGN CALCULATION
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: G.L GOBLE
Line No. Description Total Reference
(a) (b) (c)
Commercial
1 Commercial Revenue Requirement 289.846,989 Schedule K (D)
2 Less Revenue Related Taxes ~ 15.990,883 Schedule K (D)
3 Less Gas Cost 173,465,963 Schedule K (D)
4 Less Revenue From Customer Charge ($20' Annual Customers} 30.144,720 WPIK-6/6,Schedule J-1
5 Revenue Required From Commodity Rate $ 70.245,423
6
7 Commercial Block 1 MCF (0-30 Mci) 15,383,564 WP/L-II15 (D)
8 Commercial Block 2 MCF (30-350 Mcf) 28,777.471 WP/L-I/15 (D)
9 Commercial Block 3 MCF (Over 350 Mc'f) 9,443,784 WP/L-l/15 {D)
10
11 Total Commemial MCF 53,604,820
12
13 Revenue Required From Commodity Rate $70.245,423
14 Plus (Block 2 MCF * 0,25) $7,194,368
15 Plus (Block 3 MCF * 0.5) $4.721~892
16 Total $82.161,683
17 Three Steo Rate
18 Block 1 Commodity Rate (Mc'f) 1.5327 line 16 / line 11
19 Block 2 Commodity Rate (Mcf) 1,2027 line 20 minus 0.25
20 Block 3 Commodity Rate (Mcr) 1.0329 line 20 minus 0.50
21
22 Customer Charge Revenue 30.144,720 line 4
23 Block 1 Commodity Rate Revenue 23,578,389 line 18 times line 7
24 Block 2 Commodity Rate Revenue 36,912,863 line 19 times line 8
25 Block 3 Commodity Rate Revenue 9,754,485 line 20 times line 9
26 Revenue Related Taxes Revenue 15,990.883 line 2
27 Gas Cost Revenue 173,465,963 line 3
28 Total Revenue $289.847,301
29
30 Block 3 Commodity Rate (MMBTU) 1.0087
Schedule L-'l (D)
Page 3 of 3
TXU GAS -- DISTRIBUTION
RATE DESIGN CALCULATION
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: G.L. GOBLE
Line No. Description Total Reference
(a) (b) (c)
Industrial Sales/Transportation
1 Revenue Requirement 48,237,172 Schedule K (D)
2 Less Revenue from Customer Charge ($150' Annual Customers) 2.374,200 WP/K-6/6, Schedule J-1
3 Less Revenue Related Taxes 2.661,249 Schedule K (D)
4 Less Gas Cost 9,433~401 Schedule K (D)
5 Revenue Required From Commodity Rate $ 33,768.322
6
7 Industrial Block 1 MCF (0-1.500) 8,935,784 WP/L-I/17 (D)
8 Industrial Block 2 MCF (Next 3,500) 12,905,297 WP/L-I/17 (D)
9 Industrial Block 3 MCF (Next 45,000) 25.863,736 WP/L-I/17 (D)
10 Industrial Block 4 MCF (Over 50,000) 13,936~083 WPIL-1/17 (D)
11 Total Industrial/Transportation MCF 61,640,901
12
13 Revenue Required From Commodity Rate 33,768,322
14 Plus (Block 2 MCF * 0.15) 1,935,795
15 Plus (Block 3 MCF * 0.3) 7,759,121
16 Plus (Block 3 MCF * 0.45) 6,271,237
17 Total $49,734.475
18
19 Block 1 Commodity Rate (Mcr) $0.8068 line 18 / line 12
20 Block 2 Commodity Rate (Mcf) $0.6568 line 20 - 0.15
21 Block 3 Commodity Rate (Mcf) $0.5068 line 20 - 0.30
22 Block 4 Commodity Rate (Mcr) $0.3569 line 20 - 0.45
23 Customer Charge Revenue 2,374.200 line 2
24 Block I Commodity Rate Revenue 7,209,391 line 22 times line 8
25 Block 2 Commodity Rate Revenue 8,476.199 line 23 times line 9
26 Block 3 Commodity Rate Revenue 13,107,742 line 24 times line 10
27 Block 4 Commodity Rate Revenue 4.973,788 line 25 times line 11
28 GCA Revenue 9.433,401 line 4
29 Revenue Related Taxes 2,661,249 line 3
30 Total Revenue $48.235,969
31
32 Block 1 Commodity Rate (MMBtu) $0.7879
33 Block 2 Commodity Rate (MMBtu) $0.6414
34 Block 3 Commodity Rate (MMBtu) $0.4949
35 Block 4 Commodity Rate (MMBtu) $0.3485
'FXU GAS-DISTRIBUTION Schedule L-3 (D)
SUMMARY PROOF OF REVENUE AT PROPOSED RATES Page 1 of 3
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: G. L. GOBLE
Line Description Total Reference
(a) (b) (c)
1 TOTAL RESIDENTIAL
2
3
5 Customer Charge $12.00 Schedule L-1 page 1
6 Block 1 $1.4533 Schedule L-1 page 1
7 Block 2 $1.2032 Schedule L-1 page 1
8
9 Gas Cost $3.1522 WP/L-I/13
10 Volume Factor 1.0266 WP/L-l/4
11
12
13
14 ~;onsumotion Characteristics:
15 Block 1 0.39249
16 Block 2 0.60751
17
18 ~
19 Bills 16,128,360 Schedule J-1
20 Block 1 33,535,700 line 22 times line 15
21 Btock 2 51,907,154 line 22 times line 16
22 Total MCF 85,442,854 Schedule J-1
23
24 Customer Charge Revenue $193,540,320 WP/L-3/1 (D)
25 Block 1 48,737,433 WP/L-3/1 (D)
26 Block 3 62,454,688 WP/L-311 (D)
27 Total Base Revenue $304,732,441
28
29 Gas Cost Adjustment 276,494,298 WP/L-3/1 (D)
30 Subtotal 581,226,739
31 Revenue Related Taxes 33,938,731 WP/L-3/1 (D)
32 TotalAnnual Gross Revenue $615,165,470
TXU GAS-DISTRIBUTION Schedule L-3 (D)
SUMMARY PROOF OF REVENUE AT PROPOSED RATES Page 2 of 3
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: G. L. GOBLE
Line Description Total Reference
(a) (b) (c) (d)
1 TOTAL COMMERCIAL
2
3
4
6 Customer Charge $20.00 Schedule L-1 page2
7 Block 1 $1.5327 Schedule L-1 page 2
8 Block 2 $1.2827 Schedule L-1 page 2
9 Block 3 $1.0329 Schedule L-1 page 2
10
11
12 Gas Cost $3.1522 WP/L-I/13
13 Volume Factor 1.0266 WP/L-l/4
14
15
16
17 Consumr~tion Characteristics:
18 Block 1 0.2870
19 Block 2 0.5368
20 Block 3 0.1762
21
22 Bi]]J]lg_U. Di[~
23 Bills 1,507,236 Schedule J-1
24 Block 1 15,383,564 line 27 times line 18
25 Block 2 28,777,471 line 27 times line 19
26 Block 3 9,443,784 line 27 times line 20
27 Total MCF 53,604,820 Schedule J-1
28
29 ~
30 Customer Charge Revenue 30,144,720 WP/L-3/2 (D)
31 Block 1 23,578,389 WP/L-3/2 (D)
32 Block 2 36,912,863 WP/L-3/2 (D)
33 Block 3 9,754,485 WP/L-3/2 (D)
34 Total Base Rate Revenue $100,390,456
35
36 Gas Cost 173,465,963 WP/L-3/2 (D)
37 Subtotal 273,856,418
38 Revenue Related Taxes 15,990,901 WP/L-3/2 (D)
39 Total Annual Gross Revenue $289,847,320
NOTE: Commercial includes Schools and Military
TXU GAS.DISTRIBUTION Schedule L-3 (D)
SUMMARY PROOF OF REVENUE AT PROPOSED RATES Page 3 of 3
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: G. L. GOBLE
Line Description Total Reference
(al (b) (c) (d)
1 INDUSTRIAL& TRANSPORTATION
2
3 ~
4 Customer Charge $150.00 Schedule L-1 page 3
5 Block 1 $0.8068 Schedule L-1 page 3
6 Block 2 $0.6568 Schedule L-1 page 3
7 Block 3 $0.5068 Schedule L-1 page 3
8 Block 4 $0.3569 Schedule L-1 page 3
9
10 Gas Cost $3.1522 WP/L-I/13
11 Volume Factor $1.0266 WP/L-l/4
12
13
14 Consumetion Characteristics:
15 Block 1 0.1450
16 Block2 0.2094
17 Block 3 0.4196
18 Block 4 0.2261
19
20 Industfial Sales Volume 2,915,130 Schedule J-1
21 Transportation Volume 58,725,772 Schedu!e J-1
22 Adjusted Industrial Volume- MCF 61,640,901
23
24 J~
25 Bills 15,828 Schedule J-1
26 Industrial Block 1 MCF 8,935,784 line 30 times line 15
27 Industrial Block 2 MCF 12,905,297 line 30 times line 16
28 Industrial Block 3 MCF 25,863,736 line 30 timesline 17
29 Industrial Block 4 MCF 13,936,083 line 30 times line 18
30 Total Industrial MCF 61,640,901 Schedule J-1
31
32
33 ~
34 Industrial Customer Charge Revenue $2,374,200 WP/L-3/3 (D)
35 industrial Block 1 Base Rate Revenue $7,209,391 WP/L-3/3 (D)
36 Industrial Block 2 Base Rate Revenue $8,476,199 WP/L-3/3 (D)
37 Industrial Block 3 Base Rate Revenue $13,107,742 WP/L-3/3 (D)
38 industrial Block 4 Base Rate Revenue $4,973,788 WP/L-3/3 (D)
39 Total Industrial Base Rate Revenue $36,141,320
40
41 GCA Revenue 9,433,401 WP/L-3/3 (D)
42 Subtotal $45,574,720
43 Revenue Related Taxes $2,661,179 WP/L-3/3 (D)
44 Total Adjusted Revenue $48,235,899
Page 1 of 3
TXU GAS -- PIPELINE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
TABLE OF CONTENTS
SECTION I: OVERALL COST OF SERVICE SUMMARY
Schedule A: Cost of Service
A (P): Cost of Service Summary
A-1 (P): Overall Cost of Service
SECTION I1: HISTORIC TEST YEAR DATA
Schedule B: Rate Base
B (P): Total Rate Base
B-1 (P): Net Plant Investment
B-1.1 (P): Pipeline Plant Investment
B-1.2 (P): General Plant Investment
Schedule C: Original Cost of Plant
C-1 (P): Original Cost of Pipeline Utility Plant
C-2 (P): Original Cost of General Plant
C-3 (P): Total Construction Work in Progress
C-3.1 (P): Construction Work in Progress - Pipeline Plant
C-3.2 (P): Construction Work in Progress - General Plant
Schedule D: Depreciation
D-1 (P): Accumulated Depreciation of Pipeline Utility Plant
D-2 (P): Accumulated Depreciation of General Plant
D-3 (P): Retirement Work in Progress
D-4 (P): Comparison of Current and Proposed Pro Forma Depreciation Expense
D-5 (P): Depreciation Study Rate Summary
Schedule E: Other Rate Base Items
E (P): Summary of Other Rate Base Items
E-1 (P): Materials & Supplies
E-2 (P): Prepayments
E-3 (P): Customer Deposits and Associated Interest Expense
E-4 (P): Construction Advances
E-5 (P): Provision for Injudes and Damages
E-6 (P): Safety Compliance Program Costs
E-7 (P): Income Tax Adjustments
E-7.1 (P): Accumulated Deferred Federal Income Taxes
E-7.2 (P): Investment Tax Credit
Page 2 of 3
TXU GAS -- PIPELINE
FOR THE TEST YEAR ENDED DECEMBER 3'1, 2002
TABLE OF CONTENTS
E-8 (P): Cash Working Capital
E-9 (P): Line Pack Gas
E-10 (P): Cushion Gas~n Storage
Schedule F: Revenue Data
F-1 (P): Operating Revenues
Schedule G: Expense Data
G-1 (P): Other Gas Supply Expense
G-2 (P): Operations and Maintenance Expenses
G-3 (P): Labor Expense
G-3.1 (P): Labor Expense
G-4 (P): Non-Labor Expense
G-4.1 (P): Non-Labor Expense
G-5 (P): Operation and Maintenance Expense Adjustment Summary
G-5.1 (P): Advertising Expense Adjustment
G-5.2 (P): Contributions and Donations Expense Adjustment
G-5.3 (P): Social Club Dues Adjustment
G-5.4 (P): Legislative Advocacy Adjustment
G-5.5 (P): Miscellaneous Account Revisions Adjustment
G-5.6 (P): Insurance Premiums Adjustment
G-5,7 (P): Pension & Benefit Expense Adjustment
G-5.8 (P): Pipeline Integrity Program Adjustment
G-5.9 (P): WINS - TXU Business Services Cost Reduction Adjustment
G-5.10 (P): WINS - TXU Business Services Regulatory Asset Adjustment
G-5.11 (P): WINS Related (Oncor) Cost Reduction Adjustment
G-5,12 (P): Regulatory Asset Amortization Adjustment
G-5.13 (P): Account Reclassifications/Adjustments
G-5.14 (P): Fuel, Loss and Other Gas Related Expenses Adjustment
G-6 (P): Taxes Other Than Income Taxes
G-7 (P): Test Year FIT and Requested FIT
G-8 (P): Excluded Operating Expenses
Schedule H: Financial Statements
H-1 (P): Operating Income Statement
H-2 (P): Trial Balance
Schedule I: Return on Invested Capital
I (P): Summary of Return
Page 3 of 3
TXU GAS m PIPELINE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
TABLE OF CONTENTS
SECTION II1: RATE DESIGN
Schedule J: Key Operating Statistics
J-1 (P): Summary of Adjustments for Customers and Volumes
Schedule K: Class Cost of Service Analysis
K-1 (P): Summary
K-2 (P): Allocation of Rate Base
K-3 (P): Allocation of Revenues
K--4 (P): Allocation of Expenses
K-5 (P): Data Summary
Ko6 (P): Development of Allocation Factors
Schedule L: Rate Design
L-1 (P): Rate Design Calculation
Note: Totals may vary due to rounding,
Schedule A (P)
Page 1 of 1
'~'XU GAS -- PIPEUNE
COST OF SERVICE SUMMARY
FOR THE TEST YEAR ENDED DECEMBER 31.2~02
SPONSOR: G. L. GOBLE AND R. K. PRUETr
9
20
22
Schedule B
Page 1 of 1
TXU GAS -- PIPELINE
TOTAL RATE BASE
AS OF DECEMBER 31,2002
SPONSOR: D.A. WATSON
Line
No. Description Reference Amount per Books Adiustment TotaIRecJuested
(a) (b) (c) (d)
1 Net Plant in Service
2 Pipeline Plant in Service J B-1 (P) j $ 357,986,589 $ 357,986,589
3 General Plant 14.019,776 14,019,776
4 Net Gas Pipeline Plant in Service $ 372.006,365 $ $ 372,006.365
5
6 Investment Additions:
7 Working Capital
8 Working Cash Allowance J $ (3,224,772) $ (3,224,772)
9 Materials & Supplies J 3.141,829 3,141,829
10 Prepayments E (P) 760,358 760,368
11 Line Pack 2,506,634 2,506,634
12 Cushion Gas in Storage 18.021,864 18,021,864
13 Total lnvestment Additions $ 21.205,924 $ $ 21.205,924
14
15 Investment Deductions
16 Injuries and Damages Reserve J E (P) J $ 272,500 $ 272,500
17 Income Tax Adjustments 70,844.655 70.84-4,655
18 Total lnvestment Deductions $ 71,117,155 $ $ 71,117,155
19
20 Total Rate Base $ 322,095.134 $ $ 322,095,134
Sct~eciule B-1
Page 1 of 1
TXU GAS -- PIPELINE
NET PLANT INVESTMENT
AS OF DECEMBER 31. 2002
SPONSOR: D. ~. WATSON
NARUC Adjusted Plant Accumulated
Line No. Acct, Description Reference Balance Depreciation Net Book Value
(a) (P) (c) (d) (e} (I)
1 Pipeline Plant in Service - Net Investment
2 GathenngPlant J $ 15.226.299 $ 2,119,337 $ 13,106,962
3 Transmission Plant I B-1.1 (P) 564.830,212 269.679,705 298.150,507
4 Natural Gas Storage 78.244,913 28.515.793 49,729.120
5 Total Pipeline Plant in Service $ 658,301,424 $ 300,314.835 $ 357.986.589
6
7 General Plant - Net investment
8 389 Land $ 82.110 $ $ 82,110
9 390 Structures & improvements 3,126,161 1.217,009 1,909,152
10 391 Office Fumlture & Equipment 9.332.891 7,444,510 1,888.381
11 352 Trans~o~lation Equipment 4,927,385 4,996,177 (68,792)
12 393 Stores Equipment 28,648 28,648
13 395 Laborato~ Equipment B-1,2 (P) 29,349 29,349
14 396 Power Oper. Too~ & Work Equipment 4,542,147 2.982,998 1,559.149
15 397 Radio Communication Equipment 999,033 853.473 145,560
16 698 Miscellaneous Equipment 11.554,768 6,879,587 4,675,181
17 399 Non-Mainframe Computer Equipment 2,403,487 1,732,909 670,578
18 303 Computer Software 3.975,409 816,952 3,158,457
19 Total GenetaIPlant $ 41,001.388 $ 26.981.612 $ 14,019.776
20
21 Total Net Plant t L~neS*Lme19 I $ 699,302.812 $ 327.296.447 $ 372,006.365
Schedule E-1,2
Page 1 of 1
TXU GAS -- PIPELINE
GENERAL pLANT INVESTMENT
AS OF DECEMBER 31, 20~2
SPONSOR: D. A. WATSON
NARUC
Line NO. Acct. Description Reference Amount Per Books Adiustments Ac Adjusted
(a) (b) (c) (d~ {el (f)
1 Plant in Sen/ice
2 General Plant - Cost
3 389 Land ~ $ 82,110 $ $ 82,110
4 390 Structures & improvements I C.2(p) I 3.058,382 67,779 3.128.161
5 391 Office Fumiture& Equipment 9.332,891 9.332,891
6 392 Transportation Equipment 5,027.071 (99.686} 4.927.385
7 393 Stores Equipment 28,648 28.648
8 395 Laboratory Equipment 29.349 29.349
9 396 Power Oper. Tool & Work Equipment 4,551.697 (9,550) 4,542,147
10 397 Radio Communication Equipment 999.033 999,033
11 398 Miscellaneous Equipment 11,421 .I03 133,665 11.654,768
12 398 Non-Mainframe Computer Equipment 2.403,487 2.403.487
13 303 Computer Soh'wa re 3,g75.409 3.975.409
14 Total $ 40,909,181 5 92,208 $ 41.001,388
16 General Plant - Accumulated Depreciation
17 389 Land ~ $ $ $
18 390 Structures & Improvements I D_2(p) I 1.217,009 1,217,00g
19 391 Office Furniture & Equipment 7,44~,510 7,4.44.510
20 392 Transportation Equipment 3.215.599 1,780,578 4,996,177
21 393 Stores Equipment 28.648 28,648
22 395 Laboratory Equipment 29,349 29,349
23 396 Power Oper. Tool & Work Equipment 2,911,028 71.970 2.982,998
24 397 Radio Communication Equipment 853,473 853,473
25 398 Misce[laneous Equipment 6,879,587 6,879,587
26 398 Non-Mainframe Computer Equipment 1.732,909 1.732.909
27 303 Computer Sof~ware 816.952 816.952
28 Total $ 25.129,063 $ 1.852.547 $ 26.981.612
29
30 General Plant - Net tnvestment
31 389 Land ~ $ 82,110 $ $ 82,110
32 390 StnJctures & Improvements I Lmi ?is.3~ile3sl 1.841,373 67,779 1.909,152
33 391 Office Fumiture & Equipment 1.888,381 1,888.381
34 392 Transportation Equipment 1,811,472 (1,880.264) (68,792)
35 393 Stores Equipment
36 395 Laboratory Equipment
37 396 Power Oper. Tool & Work Equipment 1,640,670 (81,520) 1.559.149
38 397 Radio Communication Equipment 145,561 145,560
39 398 Miscellaneous Equipment 4,541,516 133.665 4.675,151
40 39~ Non-Mainframe Computer Equipment 670,578 670,578
41 303 Computer Software 3.158.457 3,158,457
42 Total 15,780.118 $ I1,760,340) $ 14.019,776
Sct~edule C-1 (P)
Page 1 of 1
'rxu GAS -- PIPELINE
ORIGINAL COST OF PIPELINE UTILITY PLANT
AS OF DECEMBER 31,2002
SPONSOR: D.A. WATSON
Line NARUC Adjustments
No. Acct, Description Per Books (Note 1) As Adiusted
(a) (b) (c) (cl) (e)
1 Gathering & Transmission Plant
2 Gathering Plant
3 32501 Land - Gathering $ $ $
4 32502 Land Rights - Gathering 459.144 (68,958) 390,185
5 327 Field Compressor Structures 96,260 96,260
6 328 Field M&R Structures 59,623 59,623
7 329 Other Structures 34,541 34,541
8 332 Field Lines 9,301,098 (1,191,214) 8,109,884
9 333 Field Compressor Equipment 982,617 982,617
10 334 Field M&R Equipment 3,064,373 (423,572) 2,640,802
11 336 Purification Equipment 2,605,394 2,605.394
12 337 Other Equipment 392,289 (85.297) 306.993
13 Total Gathering Plant $ 16.995,340 $ (1.769.041) $ 15,226.299
14
15 Transmission Plant
16 36501 Land - Transmission $ 567,364 $ $ 567,364
17 36502 Land Rights - Transmission 12,755.420 (51,386) 12.704,034
18 366 M&R Station Structures 4,374,846 480 4,375,326
19 367 Mains 454,772,651 674,944 455,447,594
20 368 Compressor Station Equiprne~t 35,559,494 35,559,494
21 369 M&R Station Equipment 52,543,313 (94,425) 52,448,888
22 371 Other Equipment 3,735,924 (8,413) 3,727,511
23 Total Transmission Plant $ 564.309,013 $ 521.199 $ 564,830,212
24 Total Gathering & Transmission Plant $ 581,304,352 $ (1,247,841) $ 580,056.511
25
26 Natural Gas Storage
27 35001 Land- Gas Storage $ 236,367 $ $ 236,367
26 35002 Land Rights - Gas Storage 33,459 33,459
29 351 Structures & Improvements 8,703,682 8,703,682
30 352 Wells & Reservoirs 31,196,086 127,307 31,323,392
31 353 Lines 3,397,147 3,397,147
32 354 Compressor Equipment 20,430,429 353,380 20,783,809
33 355 M&R Station Equipment 3,321,055 3,321.055
34 356 Purification Equipment 9,371,706 9,371,706
35 357 Other Equipment 1.074,295 1,074,295
36 Total Natural Gas Storage Plant $ 77,764.226 $ 480,687 $ 78,244,913
37
38
39 Total Pipeline Plant in Service $ 659.068,578 $ (767.155) $ 658,301,424
40
41 Note 1: Adjustments to Pipeline Plant in Service include the following:
42
43 Projects In Construction Work in Progress at December 31,2002 which
44 were placed in service as of March 31,2003. C-3 (P) $ 2,600,248.39
45
46 Sales of Pipeline Plant in March and Apdl, 2003 WP/C-l/1 (P) $ (3,367,402,95)
47
48 Total Adjustments $ (767,154.561
Schedule C-2 (P)
Page 1 of 1
TXU GAS ~ PIPELINE
- ORIGINAL COST OF GENERAL PLANT
AS OF DECEMBER 31,2002
SPONSOR: D.A. WATSON
Line NARUC Amount per Adjustments Adjusted
No. Acct Description Books (Note 1) Balance
(a) (b) (c) (d) (e)
I General Plant
2 389 Land $ 82,110 $ $ 82,110
3 390 Structures & Improvements 3,058,382 67,779 3,126,161
4 391 Office Furniture & Equipment 9,332,891 9,332,891
5 392 Transportation Equipment 5,027,071 (99,686) 4,927,385
6 393 Stores Equipment 28,648 28,648
7 395 Laboratory Equipment 29,349 29,349
8 396 Power Oper. Tool & Work Equip. 4,551,697 (9,550) 4,542,147
9 397 Radio Communication Equipment 999,033 999,033
10 398 Miscellaneous Equipment 11,421,103 133,665 11,554,768
11 398 Non-Mainframe Computer Equip. 2,403,487 2,403,487
12 303 Computer Software 3,975,409 3,975,409
13 Total General Plant $ 40,909,181 $ 92,208 $41,001,389
14
15 Note 1: Adjustments to the Cost of General Plant include the following:
16
17 Projects in Construction Work in Progress at December 31,2002 which
18 were placed in service as of March 31,2003 C-3 (P) $ 92,207.81
Schedule C-3 (P)
Page 1 of 1
TXU GAS -- PIPELINE
TOTAL CONSTRUCTION WORK IN PROGRESS (CWlP)
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line No. Description Total
(a) (b)
1 Total Pipeline System CWIP per Books $ 15,834,875
2
3 Less:
4 Adjustment for Completed Construction - Pipeline Plant (Note 1 ) 2,600,248
5 Adjustment for Completed Construction - General Plant (Note 1) 92,208
6 Adjustment for Retirement Jobs not closed to Resen, e (1,764,910)
7 Adjusted Total CWIP $ 14,907,329
8
9 Adjusted CWIP Included in Rate Base (0%)
10
11 Note 1: See the workpapers for Schedule C-3 (P) for detail of
12 Completed Construction by Account
Schedule C-3.1 (P)
Page I of 1
TXU GAS m PIPELINE
CONSTRUCTION WORK IN PROGRESS - PIPELINE PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line NARUC Workpaper
No. Acct. Description Reference Amount
(a) (b) (c) (d)
I Gathering Plant
2 32501 Land - Gathering $
3 32502 Land Rights - Gathering
4 327 Field Compressor Structures
5 328 Field M&R Structures
6 329 Other Structures
7 332 Field Lines 15,869
8 333 Field Compressor Equipment
9 334 Field M&R Equipment
10 336 Purification Equipment
11 337 Other Equipment
12 $ 15,869
13 Transmission Plant- City Gate (Customer Sales)
14 365 Land Rights $
15 366 M&R Station Structures
16 367 Mains
17 369 M&R Station Equipment
18 371 Other Equipment
19 $
20 Transmission - Compressors (Compressor Stations)
21 36501 Land $
22 36502 Land Rights
23 366 M&R Station Structures
24 368 Compressor Station Equipment
25 $
26 Transmission
27 36501 Land $
28 36502 Land Rights
29 366 M&R Station Structures 4,585
30 367 Mains I WP/C-3.1/1 (P) I 1,728,177
31 369 M&R Station Equipment 366,346
32 371 Other Equipment 4,585
33 $ 2,103,692
34 Underground Storage
35 35001 Land $
36 35002 Land Rights
37 351 Structures & Improvements
38 352 Wells & Reservoirs 127,307
39 353 Lines
40 354 Compressor Equipment 353,380
41 355 M&R Station Equipment
42 356 Purification Equipment
43 357 Other Equipment
44 367 Mains
45 368 Compressor Station Equipment
46 $ 480,687
47 Total $ 2,600,248
48
Schedule C-3.2 (P)
Page 1 of 1
TXU GAS -- PIPELINE
CONSTRUCTION WORK IN PROGRESS - GENERAL PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D.A. WATSON
NARUC
Line No. Account Description Reference Amount
(a) (b) (c) (d)
1 Costs of Construction as of December 31, 2002 Completed
2 Prior to Apdl 1,2003
3 389 Land $
4 390 Structures & Improvements 67,779
5 391 Office Furniture & Equipment
6 392 Transportation Equipment (99,686)
7 393 Stores Equipment
8 395 Laboratory Equipment
9 396 Power Oper. Tool & Work Equip. (9,550)
10 397 Radio Communication Equipment
11 398 Miscellaneous Equipment 133,665
12 398 Non-Mainframe Computer Equip.
13 303 Computer Software
14 $ 92,208
15
16 Costs of Construction as of December 31,2002 not Completed
17 Prior to April 1,2003
18 389 Land $
19 390 Structures & Improvements
20 391 Office Furniture & Equipment
21 392 Transportation Equipment
22 393 Stores Equipment
23 395 Laboratory Equipment
24 396 Power Oper. Tool & Work Equip.
25 397 Radio Communication Equipment
26 398 Miscellaneous Equipment
27 398 Non-Mainframe Computer Equip.
28 303 Computer Software
29 $
30 Total General Plant Work in Progress $ 92,208
Schedule D-1 (P)
Page 1 of 1
TXU GAS ~ PIPELINE
ACCUMULATED DEPRECIATION OF PIPELINE UTILITY PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D, A. WATSON
Line NARUC Adjustments
No. Acct. DeScription Per Books (Note 1) As Adiusted
(a) (b) (c) (d) (e)
1 Gathering & Transmission Plant
2 Gathering Plant
3 32501 Land - Gathering $ $ $
4 32502 Land Rights - Gathering 88,070 (31.497) 56.573
5 327 Field Compressor Structures 19,601 (3.859) 15,742
6 328 Field M&R Structures 7,810 (1,740) 6.070
7 329 Other Structures 6.195 (2,238) 3,957
8 332 Field Lines 1,695,128 (678.611) 1.016,518
9 333 Field Compressor Equipment 182,586 (35,948) 146,638
10 334 Field M&R Equipment 567,883 (198.426) 369,457
11 336 Purification Equipment 475.078 (6.683) 468,395
12 337 Other Equipment 61,793 (25.805) 35,989
13 Total Gathering Plant $ 3,104,144 $ (984.8061 $ 2.119,337
14
15 Transmission Plant
16 36501 Land- Transmission $ 24,559 $ $ 24,559
17 36502 Land Rights - Transmission 6,888,435 331.365 7,219.800
18 366 M&R Station Structures 2,137,931 (10,915) 2,127,016
19 367 Mains 224,328,099 (1,464,917) 222,863,182
20 368 Compressor Station Equipment 12,426,914 12.426,914
21 369 M&R Station Equipment 22,750,797 (214,644) 22,536,153
22 371 Other Equipment 2.435,340 46,741 2,482,081
23 TotaITransmission Plant $ 270.992,074 $ (1.312.3691 $ 269.679,705
24 Total Gathering & Transmission Plant $ 274.096,218 $ (2,297,176) $ 271.799,042
25
26 Natural Gas Storage
27 35001 Land - Gas Storage $ $ $
28 35002 Land Rights - Gas Storage 13,826 13,826
29 351 Structures & Improvements 3,299,526 3,299,526
30 352 Wells & Reservotm 10,711,065 10,711,065
31 353 Lines 1.299,214 1,299,214
32 354 Compressor Equipment 7,700,213 7,700,213
33 355 M&R Station Equipment 880,770 880,770
34 356 Purification Equipment 4,190,379 4,190,379
35 357 Other Equipment 420,800 420,800
36 Total Natural Gas Storage Plant $ 28,515,793 $ $ 28,515,793
37
38
39 Total Pipeline Plantin Service $ 302.612,011 $ (2,297.176) $ 300.314,835
40
41 Note 1: Adjustments to Pipeline Plant in Service Accumulated Depreciation include the following:
42
43 Sates of Pipeline Plant in March and Apdl, 2003 WP/D-l/1 (P) $ (2,297,176)
Schedule D-2 (P)
Page 1 of 1
'I'XU GAS -- PIPELINE
ACCUMULATED DEPRECIATION OF GENERAL PLANT
AS OF DECEMBER 31, 2002
SPONSOR: D.A. WATSON
Line NARUC Adjustments
No. Acct, Description Per Books {Note 1) ~.~ Adjusted
(a) (b) (c) (d) (e)
1 General Plant
2 389 Land $ $ $
3 390 Structures & Improvements 1,217,009 1,217,009
4 391 Office Furniture & Equipment 7.4~4,510 7,444,510
5 392 Transportation Equipment 3.215,599 1,780,578 4,996,177
6 393 Stores Equipment 28,648 28.648
7 395 Laborato~ Equipment 29,349 29,349
8 396 Power Oper. Tool & Work Equip. 2,911,028 71,970 2,982,998
9 397 Radio Communication Equipment 853,473 853,473
10 398 Miscellaneous Equipment 6,879.587 6,879,587
11 398 Non-Mainframe Computer Equip. 1,732,909 1,732,909
12 303 Computer Software 816,952 816,952
13 Total General Plant $ 25.129.063 $ 1.852,547 $ 26,981,610
14
15
16 Note 1: Adjustments to Accumulated Depreciation include the following. Please see
17 the related work paper for detail related to the adjustment.
18
19 Adjustment for RWIP not cleared from CWIP WP/D-2/1 (P} $ 1,852,547
Schedule D-3 (P)
Page 1 of 1
TXU GAS -- PIPELINE
RETIREMENT WORK IN PROGRESS
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Line
No. Description
(a)
1 There is no separately booked Retirement Work in Progress
2 in the General Ledger, Retirement Work in Progress is
3 recorded in Construction Work in Progress and is adjusted
4 to Accumulated Depreciation when the related project
5 closes.
Schedule D-5 (P)
Page I of 1
TXU GAS -- PIPELINE
DEPRE.ClATION STUDY RATE SUMMARY
WITH ANALYSIS OF DATA THROUGH
DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Study Date
Line NARUC
No. Acct. Description Reference 12/99 12/02
(a) (b) (c) (d) (e)
1 Pipeline Plant Depreciation Rates Currant Proposed
2 Gathering Plant 10.66% 15.23%
3 Underground Storage 2.41% 2.31%
4 Transmission Note 1 1.61% 1.59%
5 Transmission Customer (Note 2) 12.86% 1.59%
6 Transmission Compressors 7.34% 4.80%
7
8
9
10 General Plant Depreciation Rate
11 389 Land 0.00% 0.00%
12 390 Structures & Improvements 1.84% 2.45%
13 391 Office Furniture & Equipment 1.50% 1.83%
14 392 Transportation Equipment 0.00% 0.00%
15 393 Stores Equipment 0.00% 0.00%
16 394 Tools, Shop, and Garage Equipment Note I 0.00% 0.00%
17 395 Laboratory Equipment 0.00% 0.00%
18 396 Power Oper. Tool & Work Equip. 0.00% 0.00%
19 397 Radio Communication Equipment 0.00% 1.33%
20 398 Miscellaneous Equipment 2.06% 2.24%
21 398 Non-Mainframe Computer Equip. 0.00% 10.90%
22 303 Computer Software WP/D-4/3 (PI 17.99% 17.99%
23
24 Note 1: Please see the testimony of D. A. Watson
25 for the complete study in which these rates were computed.
26
27 Note 2: The remaining investment in Transmission - Customer related
28 facilities ($49,894) was combined with Transmission and used in computing the
29 depreciation rate for Transmission.
Schedule E (P)
Page 1 of 1
TXU GAS -- PIPELINE
SUMMARY OF OTHER RATE BASE ITEMS
AS OF DECEMBER 31, 2002
SPONSORS: B.D. GRIFFIN, R. K. PRUETF, A. L. WARREN, D. A. WATSON
Line
No. Description Reference Amount
(a) (b) (c)
1 Current Assets (13 month average)
2 Materials & Supplies E-1 (P) $ 3,141,829
3 Prepayments E-2 (P) 760,368
4 Line Pack E-9 (P) 2,506,634
5 Cushion Gas in Storage E-10 (P) 18,021,864
6
7 Current Liabilities (Year-end Balance)
8 Customer Deposits and Associated Interest Expense E-3 (P) N/A
9 Construction Advances E-4 (P) N/A
10 Provision for Injuries and Damages E-5 (P) $ 272,500
11 Income Tax Adjustments E-7 (P) 70,844,655
12
13 Plant Adjustments
14 Safety Compliance Program Costs E-6 (P) N/A
15
16 Cash Working Capital E-8 (P) $ (3,224,772)
Schedule E-1 (P)
Page I of 1
TXU GAS-- PIPELINE
MATERIALS & SUPPLIES
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Stores
Materials & Expense
Line Account Balance Supplies Undistributed Total Materials
No. As of Date (Acct. 154) (Acct. 163) & Supplies
(a) (b) (c) (d)
1 January 1, 2002 $ 2,689,897 $ 55,600 $ 2,745,497
2 January 31,2002 3,020,313 87,222 3,107,535
3 February 28, 2002 3,323,052 116,959 3,440,011
4 Mamh 31,2002 3,192,148 108,924 3,301,072
5 April 30, 2002 3,210,686 85,790 3,296,475
6 May 31,2002 2,924,465 79,629 3,004,094
7 June 30, 2002 2,945,571 80,318 3,025,889
8 Ju~y 31,2002 3,016,202 76,914 3,093,116
9 August 31, 2002 3,048,738 80,626 3,129,364
10 September 30, 2002 3,057,530 80,442 3,137,971
11 October 31,2002 3,097,424 83,850 3,181,274
12 November 30, 2002 3,116,414 76,539 3,192,953
13 December 31,2002 3,105,591 82,937 3,188,528
14 Totals $ 39,748,030 $ 1,095,749 $ 40,843,779
15
16 13 Month Average $ 3,057,541 $ 84,288 $ 3.141,829
Schedule E~2 (P)
Page 1 of I
TXU GAS--PIPELINE
PREPAYMENTS
FOR THE TESTYEAR ENDED DECEMBER31,2002
SPONSOR:R.K. PRUEI-i'
Line Account Balance insurance Other Prepayments Total
No. As of Date (Acct. 165.2100) (Acct. 165.9000) Prepayments
(a) (b) (c) (d)
I January 1, 2002 $ 203,633 $ 40,244 $ 243,877
2 January 31,2002 184,360 575,694 760,055
3 February 28, 2002 557,011 546,601 1,103,612
4 March 31,2002 469.537 484,329 953,867
5 April 30, 2002 432,322 422,058 854,380
6 May 31. 2002 789,218 359,787 1,149,005
7 June 30, 2002 837,264 297,516 1.134,780
8 July 31,2002 776,340 235,244 1,011,584
9 August 31,2002 673,339 172,973 846,312
10 September 30, 2002 570,435 110,702 681,137
11 October 31,2002 399,205 82,266 481,471
12 November 30, 2002 323,717 55,181 378,898
13 December 31, 2002 257,714 28~096 285,810
14 Total $ 6,474,094 $ 3.410,692 $ 9,884,786
15
16 13 Month Average $ 498,007 $ 262,361 $ 760,368
Schedule E-3 (P)
Page 1 of 1
TXU GAS -- PIPELINE
CUSTOMER DEPOSITS AND ASSOCIATED INTEREST EXPENSE
AS OF DECEMBER 31, 2002
SPONSOR: R. K. PRUETi'
Line
No. Description Amount
(a) (b)
1
2 This schedule is not used by TXU Gas - Pipeline.
Schedule E-4 (P)
Page 1 of 1
TXU GAS -- PIPELINE
CONSTRUCTION ADVANCES
AS OF DECEMBER 31, 2002
SPONSOR: D.A. WATSON
Annual
Line Initial Principal Remaining Interest
No. Balance Refunded Balance Expense
(a) (b) (c) (d)
1
2 This schedule is not used by TXU Gas - Pipeline.
3
Schedule E-5 (P)
Page 1 of 1
TXU GAS -- PIPELINE
PROVISION FOR INJURIES AND DAMAGES
AS OF DECEMBER 31, 2002
SPONSOR: R. K. PRIJ~ ~ i
Line Account Balance
No. NARUC Account As of Date: Amount
(a) (b) (c)
1 262- Injuries and Damages Reserve December 31,2002 $ 272,500
Schedule E-6 (P)
Page 1 of 1
'FXU GAS -- PIPELINE
SAFETY COMPLIANCE PROGRAM COSTS
AS OF DECEMBER 31, 2002
SPONSOR: D. A. WATSON
Measurable
Charged to Changes to Amortization
Line Reg A~set es Reg Asset as of Total Reg
No. Description Reference of 12/31/2002 Value 12/31/2002 A.~set Value
(a) (b) (c) (d) (e) (f)
1
2 This schedule is not used by TXU Gas - Pipeline.
3
4
Schedule E-7 (P)
Page 1 of 1
TXU GAS -- PIPELINE
INCOME TAX ADJUSTMENTS
AS OF DECEMBER 31, 2002
SPONSOR: B. D. GRIFFIN
Line
No. Item Reference Amount
(a) (b) (c)
1 Income Tax Adjustments
2 Accumulated Deferred Federal Income Tax E-7.1 (P) $ 62,909,895
3 Unrestored Investment Tax Credits E-7.2 (P) 7,934.761
4 Total Income Tax Adjustments $ 70.844,655
Schec~ule E-9 (P)
Page I of 1
TXU GAS -- PIPELINE
LINE PACK GAS
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: D.A. WATSON
Line Account Balance Line Pack Gas
No. As of Date (Acct. 186.4400)
(a) (b)
1 January 1,2002 $ 2,391,239
2 January 31,2002 2,438,081
3 February 28, 2002 2,944,024
4 Mamh 31,2002 2,178,344
5 April 30, 2002 2,419,425
6 May 31,2002 2,695,691
7 June 30, 2002 2,783,408
8 July 31,2002 2,183,334
9 August 31, 2002 2,177.502
10 September 30, 2002 2,424,548
11 October 31,2002 2.170.392
12 November 30, 2002 3,005.962
13 December 31,2002 2.774,296
14 Total $ 32,586,246
15
16 13 Month Average $ 2.506,634
Schedule E-lO (P)
Page 1 of 1
· · TXU GAS -- PIPELINE
CUSHION GAS IN STORAGE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: D.A. WATSON
Line Account Balance As of Cushion Gas in Storage
No. Date (Acct. 117.3000)
(a) (b)
1 January 1,2002 $ 18,030,722
2 January 31,2002 18,030,722
3 February 28, 2002 18,181,531
4 March 31,2002 18,181,531
5 April 30. 2002 18,181,531
6 May 31,2002 18,181,531
7 June 30, 2002 18,181,531
8 July 31,2002 18,181,531
9 August 31. 2002 18,181,531
10 September 30, 2002 18,181,531
11 October 31,2002 18,181,531
12 November 30, 2002 17.892,283
13 December 31,2002 16,696,722
14 Totals $ 234,284,230
15
16 13 Month Average $ 18,021,864
Schedule ¢-1
Page 1 of 1
TXU GAS -- PIPELINE
OPERATING REVENUES
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC
No. Acct Description Total Adiustmenta {I) As Adjuste~
(a) (b) (c) (~)
Schedule G-5.1 (P)
Page I of 1
TXU GAS -- PIPELINE
ADVERTISING EXPENSE ADJUSI~IENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NAFIUC Test Year Amount
NO. Acct ' Description Reference Amount Adjusted
1 756 Field Measu~ng and Regulating Station Expenses WP/G-5,1 (P) $ 46.43
2 816 Wells Expenses WP/G-5.1 (P) 75.00
3 818 Compressor Station Expenses WP/G-5,1 (P) 125.28
4 856 Mains Expenses WP/G-5.1 (P) 1.648.76
5 857 Measunng and Regulating Station Expenses WP/G-5.1 (P) 100,41
6 Total System Adverasing Expense $ 1.995.88
7
8 Total Operating Flevenue F-1 (P) $ 128,546,224.78
9 Less: 904 Uncollectible Accounts G-2 (P) 523.896.56
10
11 Total Gross Receipts $ 128.022,328.22
13 ,NIowable Pementage for Advertising per Substantive Rule 7.5414 0.500%
15 Calculated PJIowabis Advertising Expense $ 640.111.64
18 Total A(~vertising Expense Included in Rate Filing $ 1,995.88
19
20 Total Advertising Expense Adjustment $
22
23 The above information is provided per Substant~'e Rule 7.5414. The edvertising expense included in the rate filing is below the
24 allowable level, consequently, an adjustment to expense is not required.
Schedule G-5.2 (P)
Page 1 of 1
TXU GAS -- PIPELINE
CONTRIBUTIONS AND DONATIONS EXPENSE ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31,2002
SPONSOR: R. K. PRU~] ~
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adiusted
(a) (b) (c) (d) (e)
I Contributions {md Donations Exoeflse Adiustment
2
3 Total Contributions and Donations Expense WP/G-5.2 (P) $ 1,050.00
4
5 Less:
6 426 Miscellaneous Income Deductions WP/G-5.2 (P) 875.00
7
8 Var Non-Labor Expense WP/G-5.2 (P) $ 175.00
9
10 Total Contributions and Donations Expense Adjustment $ I175.001
11
12
13 Adjustment to expense to remove contribution and donations in accordance with Substantive Rule 7,5414.
Schedule G-5.3 (P)
Page 1 of 1
TXU GAS -- PIPELINE
SOCIAL CLUB DUES ADJUSTMENT
FOR THE TEST yEAR ENDED DECEMBER 31, 2002
SPONSOR: R. lC PRUEI-F
Line NARUC Test Year Amount
No, Acct Description Reference Amount Adjusted
(a) (b) (c) (dj (e)
I So~ial ~hJb Dues Adiustment
2
3 Total Social Club Dues WP/G-5.3 (P) $ 2,145.92
4
5 Less:
6 186 Miscellaneous Deferred Debits WP/G-5.3 (P) 80,58
7
8
9 921 Non-Labor WP/G-5.3 (P) $ 2.065,34
10
11 Total Social Club Dues Adjustment $ (2,065,34)
14 Adjustment to expense to remove social club dues in accordance wffh Substantive Rule 7.5414.
Schedule G-5.4 (P)
Page I of 1
TXU GAS ~ PIPELINE
LEGISLATIVE ADVOCACY ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU=~ ~
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (~)) (c) (d) (e)
I Leqislative Advocacy Adjustment
2
3
4
5 930,2 Non-Labor Expense WP/G-5.4/1 (P) $ 425.96
6
7 Total Legislative Advocacy Adjustment $ (425.96)
8
9
10 Adjustment to expense to remove legislative advocacy costs in accordance with Substantive Rule 7.501,
11
12 The last odd-year legislative advocacy expense (2001) is presented below per Substantive Rule 7,501
13
14 Total Legislative Advocacy for last odd year (2001) WP/G-5.4/2 (P) $ 415,61
'FXU GAS -- PIPELINE
MISCELLANEOUS ACCOUNT REVISIONS ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. lC PRUETT
Line NARUC Amount
7 757 Punflcat~on E~pertses WP/G-5.5 (P)
11 76~ Maimenence of F~ L~es WP/G-5.5 (P) $ $ $
12 765 Maintenance of F~eld C~/1~e~sor Station Equipment WPIG-5.5 (Pi
18 ~o1 Natural Gas F~eI;I [.]ne Purchases W P/G-$.$ (P)
23 809 Gas Delr~ered to Stomgs--Cre¢llt WP/G-5.5 (P)
29 816 Wells Ex;)enses WP/G-5.5 (P)
30 817 !.roes E.~enses WP/G-5.5 (P)
31 818 C o.l~)tessof Statio~ Exper~es WP/G-5.5 (P) (26.46) (26.46)
35 823 Gas L;~sas WP/G-5.5 (P) (105,716.6~) (105,716.68)
36 824 Other E~J)er~es WP/G-5.5 (P)
37 825 Storage Wells Royalties WP/G-5.5 (P) (143.~.) (143.32)
38 826 Rents WP/G-5.5 (P)
TXU GAS -- PIPEUNE
MISCELLANEOUS ACCOUNT REVISIONS ADJUSTMENT
FOR THE ~ST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R, K. PRUETT
73
Schedule G-5.6 (P)
Page I of 1
TXU GAS-- PIPELINE
INSURANCE PREMIUMS ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. lC PRUETT AND S. N, RAGLAND
Line NARUC Test Yaar Amount
NO. Acct Description Reference Amount Ad)uste(l
(a) ih) (c) (~)
I Insurance Premiums Adiustment
2
3 924 Labor WP/G-5.6 (P) $
4 924 Non-Labor WP/G-5,6 (P) 64,052.71
5 925 Labor WP/G-5.6 (P)
6 925 Non-Labor WP/G-5,6 (P) 104,890.39
7
8 Total Insurance Premiums Adjustment $ 168.943.10
9
10
11 Adjustment to insurance premiums and claims expenses in the test year for known and measurable changes. The increase
12 in liability and propa~ly insurance premiums is due to higher policy limits which ~nt into effect in mid 2002, The increase
13 in thirci party workers compensation is due to an increase in premiums.
Schedule G-5.7 (P)
Page Iot I
TXU GAS -- PIPELINE
-PENSION & BENEFIT EXPENSE ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Test Year Amount
No. Acct Description Reference Amount Ad)usted
(a) (b) (c) (d) (e)
I Pension & Benefit Expense Adiustment
2
3 926 Labor $
4 926 Non-Labor WP/G-5.7 (P) 2,580,097.75
5
6 Total Pension & Benefit Expense Adjustment $ 2,580,097,75
7
8
9 Adjustment to pension and health-related employee benefit expenses due to increased medical costs, decreased values
10 in trusts used to fund retirement benefits, and reductions in expected retums on pension fund assets from 9"/,, to 6.75%.
Line NARUC Amount
No. Acct Description Reference Labor Non-Labor A~iusted
(a) (b) (c) ((1) (e) (t)
Schedule G-5.9 (P)
Page I of 1
TXU GAS -- PIPELINE
WINS - TXB BUSINESS SERVICES COST REDUCTION ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSORS: M. D. MOSELEY, R. K. PRUET 1, S. N. RAGLAND
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (b) (c) (d) (e)
1 WINS - TXU Business Services Cost Reduction Adjustment
2
3 923 Labor WP/G-5,9 (P) $
4 923 Non-Labor WP/G-5.9 (P) (1,175,977,36)
5
6 Total WINS - TXU Business Services Cost Reduction Adjustment $ 11,175,977.361
7
8
9 To include in the test year a reduction in expense for the WINS - TXU Business Services Cost Reduction. Refer to
10 the direct testimony of Mr. M. D. Moseley and Mr, S. N. Ragland.
Scneciule G-5,10
Page 1 of 1
TXU GAS -- PIPELINE
WINS - TXU B~SINESS SERVICES REGULATORY ASSET ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31,2002
SPONSORS: M. D. MOSELEY, R. K. PRU=~ ~, S. N. RAGLAND
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adiusted
(a) (b) (c) (d) (e)
1 WINS - TXU Business Services Requlatory Asset Adiustment
2
3 930.2 Labor WP/G-5.10 (P) $
4 930.2 Non-Labor WP/G-5.10 (P) 113.043.18
5
6 Total WINS - TXU Business Services Regulatory Asset Adjustment $ 113,043.18
7
8
9 To adjust expense in the test year to include one year of amortization relative to the WINS - TXU
10 Business Services Regulatory Asset. Refer to the direct testimony of Mr. M. D. Moseley and
11 Mr. S. N. Ragland.
Scheciule G-5.11 (P)
Page 1 of 1
TXU GAS -- PIPELINE
WINS RELATED (ONCOR) COST REDUCTION ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSORS: J.A. GREER, M, D. MOSELEY, AND R. K. PRIJr= 1
Line NARUC Test Year ~mount
No. Acct Description Reference ~mount Adjusted
(a) (b) (c) (d) (e)
I WINS Related (Oncor} Cost Reduction Adjustment
2
3 920 Labor WP/G-5.11 (P) $ (978,040.00)
4 926 Non-Labor WP/G-5.11 (P) (357,356.00)
5 930.2 Non-Labor WP/G-5.11 (P) 321,852.00
6
7 Total WINS Related (Oncor) Cost Reduction Adjustment $ 11,013.544.00I
8
9
10 To adjust expense in the test year for WINS Related (Oncor) reductions. Refer to the direct testimony of
11 Mr. J. A. Greer and Mr. M. D. Moseley.
Schedule G-5.12 (P)
Page I of 1
TXU GAS -- PIPELINE
REGUI.~ATORY ASSET AMORTIZATION ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSORS: M. D. MOSELEY AND R. K. PRUETF
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adiusted
(a) (b) (c) (d) (e)
I Re~lulatory Asset Amortization Adiustment
2
3 930.2 Labor WP/G-5,12 (P) $
4 930.2 Non-Labor WP/G-5.12 (P) 71,720.75
5
6 Total Regulatory Asset Amortization Adjustment $ 71,720.75
7
8
9 To include in expense one year of amortization expense related to the 1999 Enhanced Retirement and
10 Voluntary Severance Program. Refer to the direct testimony of Mr. M. D. Moseley.
ACCOUNT RECLASSIFICATIONS/ADJUSTMENTS
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
Schedule G-5.14 (P)
Page I of 1
TXU GAS-- PIPELINE
FUEL, LOSS AND OTHER GAS RELATED EXPENSES ADJUSTMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Test Year Amount
No. Acct Description Reference Amount Adjusted
(a) (b) (c) (d) {e)
1 Fuel, Loss and Other Gas Related Expenses Adiustment
2
3 Non-Labor
4
5 757 Purification Expenses WP/G-5.14/1 (P) $ 41,660.02
6 801 Natural Gas Field Line Purchases WP/G-5.14/1 (P} 149.54
7 802 Natural Gas Gasoline Plant Outlet Purchases WP/G-5.14/1 (P) 8.53
8 805 Other Gas Purchases WP/G-5.14/1 (P) (4,978,791.90)
9 806 Exchange Gas WP/G-5.14/1 (P) 2,896,040.38
10 808 Gas Withdrawn from Storage-Debit WP/G-5.14/1 (P) 550.00
11 809 Gas Delivered to Storage-Credit WP/G-5.14/1 (P) (263,902.10)
12 813 Other Gas Supply Expenses WP/G-5.14/1 (P) (375.44)
13 819 Compressor Station Fuel and Power WP/G-5.14/1 (P) 1,103,521.28
14 821 Purification Expenses WP/G-5.14/1 (P) 70,962.26
15 824 Other Expenses WP/G-5.14/1 (P} 2,538.87
16 854 Gas for Compressor Station Fuel WP/G-5.14/1 (P) 4,660,806.38
17 856 Mains Expenses WP/G-5.14/1 (P) (12,081.18)
18 857 Measuring and Regulating Station Expenses WP/G-5.14/1 (P) 212.99
19
20 Total Fuel, Loss and Other Gas Related Expenses Adjustment $ I3,521,299.63/
21
22
23 To adjust expense to remove the cost of the commodity, and other gas related expenses from O&M which are recovered
24 through retention.
Schedule G-8 (P)
Page 1 of 1
TXU GAS -- PIPELINE
EXCLUDED OPERATING EXPENSES
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line NARUC Amount
No. Acct. Description Per Book
(a) (b) (c)
1 426.1 Donations $ 2,375.00
2
3 426.4 Lobbying 9,703.26
4
5 426.5 Other 5,018.00
6
7 Total Excluded Operating Expenses $ 17,096.26
8
9
10 The amounts listed above are excluded from the cost of service filing.
Schedule H-1 (P)
Page 1 of B
'rxu GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU", I
Line
No. Ac_count - Description Amount
(a) (b)
1 OPERATING REVENUES
2 4569000 Oth Rev- Other
3 Electric-trade $
4 Electric - affiliated companies S
6 4800000 Residentia] Sales
6 4800110 Over_Under Collection-Res
7 4810100 Gas Sales-Commemial (Small)
8 4810110 Over_UnderColiection-Com
9 4810200 Ind Gas Sales To Non-Assoc Co
10 4810210 Industrial Large Sales
11 4811200 Electric Generation Small Sale
12 4820000 Other Sales - Public Authority
13 4830000 Gas Sales for Resale
14 4860100 Unbitled Residential Gas Rev
15 4860200 Unbilled Commemial Gas Rev
16 4860300 Unbilled Industrial Gas Rev
17 4870000 Forfeited Discount-Residential
18 Gas- trade $
19 4830111 Sales For Resale-LUG Adj
20 4831401 Sales For Resale Assoc R & C
21 4831402 Sales For Resale ^ssoc Indstrl
22 4831403 Sales For Resale Assoc-ElecGen
23 Gas - affiliated companies $
24 Telecommunications-trade $
25 Telecommunications - affiliated companies $
26 4570010 Service Revenues- Pipeline
27 4580000 Service Revenues-Non Assoc Cos
28 4587000 Other Revenues
29 4600100 Over_(Under) RecvryAdjTo Rev
30 4880200 Connect Charge
31 4880300 Return Checks
32 4880400 Collection Charges
33 4890100 IndustrialTransportation 19,542,439.31
34 4890103 Ind Trans - Tax Exempt
35 4890110 Transp for LSG Trans-R&C 54,508,694.96
36 4890120 Transp for LSG Trans-lndust 1,313,876.89
37 4890140 TranspforLSG Trans-LUG Acc (376,650.00)
38 4890500 Electric Generation 13,148,347.71
39 4890544 Electric Gen-311(A)(2)-Texas 595,554.11
40 4890545 Transp- Swing Fees 2,144,543.98
41 4890550 Electric Generation - Assoc 10,079,751.82
42 4890554 Electric Gen 311(A)(2) - As$0c 110,337.15
43 4890600 Parking Transportation Revenue 291,731.38
44 4890644 Parking Transp Rev- 311(A)(2) 4,250.00
45 4890700 Lending Transportation Revenue 14,790.99
46 4890800 Pipeline 12,933,975.74
Schedule H-1 (P)
Page 2 o! 8
TXU GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Ac.count - Description Amount
(a) (b)
47 4890844 Pipeline-311(A)(2)-Texas 2,790,951.30
48 4890900 Imbalance Penalties 224,185.55
49 4891100 Compress Rev-Transp Customers 2,002,632.08
50 4891200 Other Transport Retated Rev 4,000,847.89
51 4891900 HUB Transaction Revenue 172,653.03
52 4891944 HUB Trans Rev - 31 l(A)(2)Texas 51,887.04
63 4910100 Rev-Natural Gas Proc by Others 108,786.00
54 4920400 Revenue From Condensate Sales 345,003.65
55 4930100 Rents Gas Props Non-Assoc Cos 8,300.00
56 4930200 Rent Gas Property-Assoc Cos 199,461.25
57 4930500 Rent Gas Property-Pipeline Fee 2,261.16
58 4950000 Other Gas_Oil Revenue
59 4950100 Other Gas Revenues 2,423,328.57
60 4950400 Other Gas Revenues - Assoc 1,023,708.57
61 4951100 Other O&M Services Fees 21,350.00
62 4951300 OtherTransp Rev- Swing Fees 3,472.60
63 4951400 Nonassoc Dehydration & Oth Fee 133,544.80
64 4951500 Other Transp Rev -Pooling 704,753.53
65 4951550 Oth Transp Rev-Pooling Transf 17,453.72
66 4952100 Customer O/U Collection
67 4953200 Other Gas Rev- Stand-By Fees
68 4960100 Rent Revenue-Building
69 Other $ 128,546,224.78
70 Total operating revenues $ 128,546,224.78
71
72 OPERATING EXPENSES
73 Fuel-trade $
74 Fuel - affiliated companies $
75 Purchased power-trade $
76 Purchased power- affiliated companies $
77 7800000 Products Purchased For Resale
78 8000000 Nat Gas Well Head Purchase
79 8000010 Gas Purchase Affiliated Cos
80 8010000 Field Line Purchases 149.54
81 8020000 Plant Outlet Pumhases 8.53
82 8030000 Transmission Line P,,rchases
83 8040200 CityGate P,,rch-Company Use
84 8040400 City Gate Purch-Residential
85 8040401 City Gate Purch-Res Unbilled
86 8040500 CityGate Purch-Commemial
87 8040501 City Gate Purch-Com Unbilled
88 8040600 CityGate Purch-lndustrial
89 8040601 City Gate Purch-lnd Unbilled
90 8040700 City Gate P,,rch-Public Author
91 8040800 CityGate P,,rch-Elect Generate
92 8040900 City Gate Purch-Unaccounted
Schedule H-1 (P)
Page 3 of 8
TXU GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU~- i 1
Line
No. Account- Description Amount
(a) (b)
93 8040901 CityGate Pur-Unbilled Contra
94 8040911 City Gate Purch-LUG Adjustment
95 8050000 Gas Purchases-Third Party
96 8050800 OGP-Retention-Distdb Credit 12,023.14
97 8051111 OGP-LUG Adjustment 1,272,706.47
98 8051500 OGP-LUG Memo (442,000.00)
99 8051600 OGP-LUG Contra 442,000.00
100 8051900 OGP-Line Pack (383,057.14)
101 8052000 OGP-Equalization Fees
102 8060000 Exchange Gas 7,212,552.72
103 8061500 Exchange Gas-Assoc 9,723,444.72
104 8061510 Exchange Gas-Assoc-Retention (18,503,438.23)
105 8061520 Exchgas-Assoc-Retention Contra 18,503,438.23
106 8063000 Exchange Gas-Nonassoc-GMR174 1,244,975.77
107 8063030 System gas imbalance exp (9,369,476.12)
108 8063500 Openaccess Ferc 500-1tubal Egtc (229,807.60)
109 8064000 Valuat Gain_Loss-EGT_EES Recov (5,685,649.11)
110 8080000 Gas Withdrawn From Storage (N) 550.00
111 8080010 Primary Stor Gas Withdrawn Exp
112 8080020 Secondary Stor Gas Withdrawn
113 8090000 Gas Delivered To Storage (N) (263,902.10)
114 8090010 Primary Stor Gas Inject Exp
115 8090020 SecondaryStor Gas Inject Exp
116 8120000 Gas Used For Other Util Ops-CR
117 8230000 Gas Losses 105,716.68
118 8589100 GasTransportation-R&C-Assoc
119 8589200 Gas Transportation-lnd-Assoc
120 8589400 Gas Transportation-LUG-Assoc
121 Energy purchase $ 3,640,235.50
122 8590000 Other Transmission System 1,620,803.11
123 TDSP and other electric transmission charges $ 1,620,803.11
124 Energy purchased for resale and fuel consumed $ 5,261,038.61
125 4081500 DOT Pipeline User Fee 725,113.33
126 4081992 PayrollTaxes Alloc-Enrgy Del 53,861.36
127 4082602 Ad Valorem - EN Det Operating 4,825,060.31
128 7500000 Oper-Super&Engineer-Compressor 32,304.02
129 7520000 Gas Wells 302.68
130 7530000 Field Line Expenses 166,104.05
131 7540000 Field Compressor Expense 2,578.04
132 7560000 Field Measuring&Regulating Sta 127,230.15
133 7570000 Purification Expense 43,362.51
134 7590000 Other Gathering System
135 7640000 Maint-Field Lines 26,120.26
136 7650000 Maint-Field Compressor Station 31,915.82
137 7660000 Gath Sys Meas& Reg Equip-Maint 17,114.86
138 7670000 Maint-Purification Equipment 530.91
Schedule H-1 (P)
Page 4 of 8
TXU GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
139 7760000 Operation Supplies & Expense
140 8053000 OGP-Co Used-Comp Sta FueI-CR (5,803.159.06)
141 8053200 OGP-Co Used-OtherOper-CR (77,305.31)
142 8070000 Pumhased Gas Expense
143 8072000 Oper-Measuring Stations
144 8130000 Other Gas Supply Expenses (375.44)
145 8140000 Oper-Supervision & Engineering 243,707.50
146 8160000 Storage Wells Expense 104,479.64
147 8170000 Storage Lines 10,~.-!-1.30
148 8180000 Compressor Station Expense 1,931,500.32
149 8190000 Compressor Fuel & Power 1,103,521.28
150 8200000 Storage Measuring & Reg Statn 130,432.73
151 8210000 Purification Expense 116,830.71
152 8240000 Other Storage 8,448.89
153 8251000 Storage Well Royalties - Gas 445,942.37
154 8260000 Rents-Underground Storage 13,113.31
155 8310000 Maint-Structures&lmprovements 14,136.72
156 8320000 Maint-Resevoirs & Wells 109,748.88
157 8330000 Maint-Lines 58,506.93
158 8340000 Maint-ComprStation Equip 862,580.77
159 8350000 Maint-Mearsuring & Reg Equip 51,906.26
160 8360000 Maint-Purification Equipment 100,560.93
161 8370000 Maint-OtherStorage Equipment 14,720.90
162 8500000 Oper-Supervision & Engineering 2,296,992.98
163 8510000 System Control & Load Dispatch 3,073,231.39
164 8520000 Communication System 1,461,406.80
165 8530000 Compressor Station Labor & Exp 737,254.62
166 8540000 Gas For Compressor Statn Fuel 4,662,330.38
167 8560000 Mains Exp-Transmission System 16,719,695.80
168 8569000 Mains Exp-Trensmission Sys-Gas (32,512.79)
169 8570000 Measuring & Regulating Station 6,366,314.02
170 8580000 Trans & Compr Of Gas By Others (347,732.72)
171 8581000 Gas Transport Exp-Affiliates 59,462.34
172 8600000 Rents-Transmission System 92,733.26
173 8610000 Maint-Supervision&Engineering 5,485.00
174 8620000 Maint-Structures&lmprovements 48,425.86
175 8630000 Maint Of Mains-Transmission 1,007,363.50
176 8633000 Pipe 65.21
177 8640000 Maint-Compressor Station Equip 283,386.41
178 8650000 Maint-Measuring & Reg Equip 630,076.43
179 8660000 Maint-Communication Equipment 119,720.96
180 8670000 Maint-Other Equipment 99,701.38
181 8700000 Oper Supervision & Engineering
182 8740000 Mains & Services
183 8750000 Measuring & Reg Sta-General
184 8770000 Measuring & Reg Sta-City Gate
Schedule H-1 (P)
Page 5 of 8
TXU GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
185 6780000 Meter & House Regulator
186 8790000 Customer installations Expense
187 8800000 Other Expenses
188 8810000 Rents-Distribution
189 8850000 Maint-Supervision&Engineering
190 8860000 Maint-Structures&lmprovements
191 8870000 Maintenance Of Mains
192 8890000 Maint-Meas&Reg Sta-General
193 8900000 Maint-Meas&Reg Sta-lndustrial
194 8920000 Maintenance Of Services
195 8930000 Maint-Meter& House Regulator
196 8940000 Maint Of Other Equipment
197 9230002 Out Serv EmpI-Energy DeFTUFCO 4,934,615.56
198 9240002 Property Ins - Energy Del 416,427.40
199 9250002 Injuries&Damages Ins-EnrgyDel 811,409.73
200 9260002 Empl Pension&Benefit-Enrgy Del 482,803.28
201 Operating Expenses $ 49,419,997.73
202 4031200 Depr-Transmission Plant 8,465,304.13
203 4031210 Depr-CustomerSales Stations 6,416.40
204 4031220 Depr-Transm CompressorStatns 2,717,084.80
205 4031300 Depr-Distribution System
206 4031500 Depr-Gathering System 1,834,252.98
207 4031600 Depr-Underground Storage 1,822,763.56
208 4031710 Depr-Gen PIt-Struc & Imprv 61,287.32
209 4031720 Depr-Gen Pit-Off Furn & Equip 149,157.67
210 4031770 Gen PIt-Commun Equip 16,651.46
211 4031781 Depr-Gen PIt-Non-Assoc Mainfr
212 4031790 Depr-Gen PIt-Misc Equip 237,089.90
213 4031798 Depr-General Plant
214 4031921 Non-Oper Depr Exp Office Furni
215 4040901 Operating Amortization Expense 441,811.18
216 4041920 Non-OpAmortization Expense
217 4071000 Amort of Other Reg Asset
218 Depreciation and amortization $ 15,751,819.40
219 Total direct costs and expenses $ 70,432,855.74
220 Gross margin $ 58,113,369.04
221 Other costs and expenses
222 4081000 FICA 193,584.11
223 4081100 Federal- Unemployment 2,714.40
224 4081970 Allocated Taxes FICA - Credit (188,995.93)
225 4081980 AIIocatedTaxes FUTA- Credit (3,388.55)
226 4081990 Payroll Taxes Allocated 93,701.91
227 4082100 State- Unemployment 5,042.54
228 4082650 State-Ad Valorem-Prior Year (1,604.13)
229 4082980 Allocated Taxes SUTA - Credit (3,127.80)
230 4261000 Donations 2,375.00
Schedule H-1 (P)
Page 6 of 8
TXU GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU~- I,
Line
No. Ac. count - Description Amount
(a) (b)
231 4264600 Lobbying - PAC - Non Operating 9,703.25
232 4265000 Other Deductions - Dues 5,018.00
233 9010000 Supervision-CustomerAccounts
234 9020000 Meter Reading Expenses
235 9030000 Customer Records & Collections 3,045.00
236 9030001 Receivables Sale Fees 166,913.78
237 9030002 Customer Services - Affiliate
238 9040000 Uncollectible Accounts 523,896.56
239 9040001 Non-ClS Related Uncollectibles
240 9101000 Customer Assistance (N)
241 9111000 Informational Advertising (N)
242 9130000 Advertising Expense
243 9151000 Supervision(N)
244 9161000 Demonstrating & Selling (N)
245 9171000 Promotional Advertising (N)
246 9181000 Miscellaneous (N)
247 9200000 Administrative &Gen Salaries 1,170,399.08
248 9210000 Office Supplies & Expenses 609,098.34
249 9220000 Administrative Exp-Transferred
250 9230000 Outside Services Employed 18,956,163.71
251 9231000 Outside Services - Assoc Cos
252 9260000 Employee Pensions & Benefits 1,132,442.84
253 9280000 Regulatory Commission Expense 1,022,858.57
254 9301000 General Advertising Expenses
255 9302000 Misc General Expenses 443,554.85
256 9302001 Credit Line Fees - Regulated
257 9302100 Paid Losses
258 9302200 Change in Loss Reserves
259 9302301 Reinsurance Premium Expense
260 9302302 Reinsurance Premium Income
261 9302400 Commission Income
262 9310000 Rents-Administrative & General 346,708.15
263 9311000 Rents-Admin & GeneraI-Assoc Co
264 9320000 Maintenance Of General Plant 140.22
265 9429420 Ceded Premium Expense
266 Selling, general and administrative expense $ 24,490,243.71
267 4082200 State Regulat Assessment &Fees 242,090.86
268 4082400 State - Gross Receipts
269 4082410 State - Local Gross Receipts
270 4082419 LGR - Denton Settlement Recove
271 4082500 State - Franchise 73,434.64
272 Franchise and revenue based taxes $ 315,525.50
273 4150200 Memhandise Rev-CounterSales
274 4201000 AFUDC-Equity (N) 92,431.74
275 4210300 Other Misc Nonoperating Income 4,300.00
276 4220100 Disposition Of Proprty-Gain(N) 3,769,101.83
Schedute H-1 (P)
Page 7 of 8
TXU GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line
No. Account - Description Amount
(a) (b)
277 Other income $ 3,865,833.57
278 4220200 Disposition Of Proprty-Loss(N)
279 4250100 Misc Amortization 222,070.00
280 Other deductions $ 222,070.00
281 4190100 Interest & Dividend Inc-Misc 73,903.23
282 4190200 Interest Income-Associated Cos 7,036.146.16
283 Interest income $ 7,110,049.39
284 4310100 Other Interest Expense (27,419.13I
285 Interest expense - trade $ (27,419.13)
286 4300000 Interest On Debt To Assoc Cos 22,497,761.43
287 Interest expense - affiliated companies $ 22,497,761.43
288 4202000 AFUDC-Debt (N) (216,324.23)
289 Allowance for borrowed funds used during construction $ (216,324.23)
290 4370001 Allocated Preferred Stock 1,785,850.00
291 Preferred stock dividends of subsidiaries $ 1,785,850.00
292 Interest expense and other charges $ 24,039,868.07
293 Total other costs and expenses $ 38,091,824.32
294
295 INCOME (LOSS) BEFORE INCOME TAXES
296 AND EXTRAORDINARY ITEMS $ 20,021,544.72
297
298 INCOME TAX EXPENSE (BENEFIT):
299 Currrent
300 4091000 Current FIT - Util Oper Income (1,282,469.53)
301 4092000 Current FIT - Other Income 3,841,973.86
302 Federal $ 2,559,504.33
303 Deferred:
304 4101000 Def FIT - Utility Oper Income 17,743,617.09
305 4111000 Def FIT- UtilityOper Income (12,635,057.18)
306 4112000 Def FIT - Non Operating income
307 Federal $ 5,108,559.91
308 4114000 Investment tax credits (27,362.21/
309 Total income taxes $ 7,640,702.03
310
311 INCOME (LOSS) BEFORE DISCONTINIJED OPERATIONS
312 AND EXTRAORDINARY ITEMS $ 12,380,842.69
313
314 DISCONTINUED OPERATIONS, NET OF TAX EFFECT
315 4093000 IncomeTax Extraordinary Item
316 4350000 Extraordinary Deductions
317 EXTRAORDINARY ITEMS, NET OF TAX EFFECT $
318
319 NET INCOME (LOSS) $ 12,380,842.69
320
321 PREFERRED STOCK DIVIDENDS $
Schedute H-1 (P)
Page 8 of 8
TXU GAS -- PIPELINE
OPERATING INCOME STATEMENT
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETF
Line
No. A.ccount - Description Amount
(a) (b)
322
323 NET INCOME (LOSS) AVAILABLE FOR COMMON STOCK $ 12,380,842.69
Schedule H-2 (P)
Page 1 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line Twelve Months Ended
No Account - Description December 31,2002
(a) (b)
I 1010200-1S-Transmission $ 526,722,047.46
2 1010201-1S-Transmission Fee Land 502,022.18
3 1010210-1S-Trans-City Gate Station 49,894.23
4 1010220-1S-Transm Compressor Stations 36,969,707.06
5 1010221-Transmission Compress Fee Land 65,341.68
6 1010500-1S-Gath-Rights of Way 16,995,339.72
7 1010600-1S-Underground Storage 77,527,858.47
8 1010601-1S-Underground Storag Fee Land 236,367.49
9 1010700-1S-Gen Plant-Fee Land 82,110.29
10 1010710-1S-Gen Plnt-Struct & Improv 3,058,381.59
11 1010720-1S-Gen Plnt-Furn & Equip 9,332,890.62
12 1010730-1S-Transportation Equipment 5,027,071.27
13 1010740-1S-Gen Pint-Stores Equipment 28,647.77
14 1010750-1S-Gen Pint-Lab Equipment 29,349.01
15 1010760-1S-Gen Pint-Power Op Equip 4,551,697.39
16 1010770-1S-Gen Ptnt-Comm Equip 999,033.36
17 1010781-1S-Gen Pint-Computer Equip-PC 2,403,487.42
18 1010790-1S-Gen Plnt-Misc Equipment 11,421,103.17
19 1010900-1S-Intangible Plant 3,975,409.32
20 1070000-Construction Work In Progress 156,280,558.32
21 1079000-Construction-Credit to Plant (140,358,272.67)
22 1080200-RWIP-Transmission (13,879.20)
23 1080201-Non Depr- Transmission 120.79
24 1080500-RWIP-Gathering System 946.78
25 1080710-RWIP-Structures & improvements
26 1081200-APFD-Transmission (9,634,639.08)
27 1081210-APFD-Customer Sales Stations (6,416.40)
28 1081220-APFD-Transm Compressor Statns (2,717,084.80
29 1081500-APFD-Gathering System (1,845,778.05
30 1081600-APFD-Underground Storage (1,756,036.06
31 1081710-APFD-Structures & Improvements 58,428.42
32 1081720-APFD-Office Furniture & Equip (149,157.67
33 1081770-APFD-Communication Equipment (16,651.46
34 1081790-APFD-Miscellaneous Equipment (237,089.80
35 1082200-Retir - Transmission 3,080,228.22
36 1082201-Retir- Non Depr - Transmission 13.28
37 1082220-Retir-Transm Compressor Statns 98,500.59
38 1082500-Retir - Gathering System 672,953.49
39 1082600-Retir- Underground Storage 438,117.36
40 1082700-Retir-Non Depr- General Plant 12,657.49
41 1082710-Retir-Structures& Improvements 119,494.00
42 1082720-Retir-Office Furniture & Equip 815,265.65
43 1082730-Retir-Transportation Equipment 2,218,817.62
Schedule H-2 (P)
Page 2 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
44 1082750-Retir - Laboratory Equipment 466,607.73
45 1082760-Retir-Power Operated Equipmen 2,010,980.77
46 1082770-Retir- Communication Equipment 447,989.77
47 1082781-Retir- Non Associate-Mainframe 26,728.48
48 1082790-Retir- Miscellaneous Equipment 415,676.16
49 1082900-Retir - Intangible 266,290.98
50 1083200-Salv - Transmission 1,617,100.00
51 1083220-Salv- Transm Compressor Statns
52 1083500-Salv - Gathering System 769,500.00
53 1083600-Salv- Underground Storage (90,231.00)
54 1084200-Oth Rec- Transmission (3,445,342.06)
55 1084220-Oth Rec-Transm Compressor Stat (29,760.00)
56 1084500-Oth Rec- Gathering System (795,160.00)
57 1084700-Oth Rec-Non Depr-General Plant (4,500.28)
58 1086200-Transmission- Beg Bal (249,656,497.99)
59 1086201-Nondepr Transmission - Beg Bal 56,357.65
60 1086210-Cust Sales Stations-Beg Bal (4,389.20)
61 1086220-Trans Comp Stat-Beg Bal (10,336,385.54)
62 1086500-Gathering Systems - Beg Bal (1,907,339.92)
63 1086501-Gathering System-Land-Beg Bal 734.14
64 1086520-Gathering Compress Sta-Beg Bal
65 1086600-Underground Storage - Beg Bal (27,107,643.18
66 1086710-Structrand Improvmnts-Beg Bal (1,394,931.19
67 1086720-Office Furn and Equip-Beg Bal (8,110,617.55
68 1086730-Transp Equip-Beg Bal (5,434,416.67
69 1086740-Stores Equip - Beg Bal (28,647.77
70 1086750-Laboratory Equip - Beg Bal (495,956.74
71 1086760-Power Operated Equip-Beg Bal (4,922,008.62
72 1086770-Communication Equip- Beg Bal (1,284,810.86
73 1086781-Non-assoc Mainframe - Beg Bal (1,861,093.03
74 1086790-Miscellaneous Equip-Beg Bal (6,956,717.80
75 1111000-Amortization - Plant (1,083,242.96
76 1112000-Amortization - Storage Rights (32,434.89
77 1140000-Gas Plant Acquisitn Adjustment 1,356,313.76
78 1150000-APFA-Gas Pit Acquisitn Adjust (815,623.76)
79 1173000-Gas Stored Undrgnd-Noncurr Oth 16,696,722.29
80 UTILITY PLANT $ 405,372,107.04
81 1211000-Real Estate 102,446.15
82 1231000-Advances To Assoc Cos - MP 284,198,989.69
83 1240000-Other Investments 464,146.47
84 1240010-Oth Inv-Contra Credit-LTNR (40,640.40)
85 1241200-Other- Misc Investments 24,632.55
86 1243200-Split $ Life ins 450,580.00
Schedule H-2 (P)
Page 3 of 11
TXU GAS--PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31,2002
SPONSOR:R.K. PRUETT
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
87 1243300-Supplemental Retirement Plan 69,212.00
88 1245100-Salary Deferral-7 Year Option
89 1245500-Salary Deferral-7Yr Foundation 249,951.83
90 1245600-Salary Defer-Retire Foundation 128,886.34
91 INVESTMENTS $ 285,648,204.63
92 1317215-Cash-Chase-6795-Concentration 1,287,660.61
93 1410000-Notes Receivable-Current 248,287.32
94 1410010-Notes Rec - Contra Credit (41,052.28)
95 1428000-Customer AR Split to ClS
96 1429000-Customer Rec AR Module Only (81,105.23)
97 1430100-Other Misc Accounts Receivable 255,162.90
98 1430200-Estimates 2,198,355.97
99 1431000-Payroll Deduction- Other (139,480.25)
100 1431060-Energy Conservation 7,020.68
101 1431110-Appliances 8,104.05
102 1433000-Sale of Misc Receivables (9,081,000.00)
103 1433001-Notes Receivable from ERINC 6,244,432.84
104 1438000-Customer AR Split from ClS
105 1439000-Misc Rec AR Module Only 755,784.99
106 1439100-GCBS Only-Accounts Receivable 5,087,156.45
107 14-40100-Uncollectible Accounts-Misc (620,158.73)
108 1440200-Sale Of Car-Credit 341,366.76
109 1460000-A_R - Associated Companies 21,570,213.72
110 1469000-A_R-Associated Cos-Advances
111 1530000-Residuals & Extracted Products 61,722.69
112 1545000-Materials & Supp-PMMS Normal 3,105,590.96
113 1631100-Purchasing & Stores 4,751.05
114 1634000-Stores Sales & Use Tax 78,185.99
115 1640000-Gas Stored Underground-Current 8,750,407.53
116 1652100-Insurance 257,713.65
117 1659000-Other Prepayments 28,095.87
118 1729000-Rent Rec - A_R Module 1,738.92
119 1741230-Exchange Gas 2,062,396.38
120 1741233-System gas receivable 6,244,198.99
121 1741615-Exchange Gas-lmbalance-Affil
122 1741636-Recoverable Exchange Gas-Affil
123 1746000-Home Pumhase Plan 7,714.11
124 CURRENT ASSETS $ 48,643,265.94
125 1823001-FAS 109-EPIS-Basis Differences 6,464.13
126 1823002-FAS 109-CWIP-FlowThrough 614,365.28
127 1829900-Other Regulatory Assets 2,706,514.47
128 1847120-Labor Clearing
129 1860100-Misc Deferred Debit - Other
Schedule H-2 (P)
Page 4 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
130 1860300-Other Work In Progress
131 1862700-Job Orders
132 1864400-Line Pack 2,774,295.75
133 1866300-1999 Severance Costs 871,851.91
134 1866320-WINS Project Cost 567,277.12
135 1868200-DICP-Unamort-Employee Deferral 55,462.50
136 1868300-DICP-Unamort-Company Match 161,223.75
137 1868400-DICP-Unamort-lncentive Award 13,916.56
138 1868510-SDP-Company Match 7 Yr Option 0.03
139 1868520-SDP-Unamort Comatch Retirement
140 1868550-SDP Unamort Co Match-7Yr Found 32,641.82
141 1868560-SDP Unamort Co Match Retiree 23,607.16
142 1868900-Money Pool-Contrib To_From 1,045.42
143 1869000-Miscellaneous Deferred Debits
144 1869900-Validation Fatats 11,571.52
145 DEFERRED DEBITS $ 7,840,237.42
146 1900001-ADFIT-PEP 40,766.33
147 1900004-ADFIT-Vacations 2,214.41
148 1902001-ADFIT-Proper[ylnsuranc Reserv 337,569.86
149 1902004-ADFIT-LESOP 37,088.32
150 1902012-ADFIT-Supplemental Retirement 25,108.65
151 1902013-ADFIT-Pension Plan 2,118,618.34
152 1902014-ADFIT-Deferred Incentive Comp (31,682.85)
153 1902015-ADFIT-Long Term incentive Plan 82,391.12
154 1902016-ADFIT-Capit Exp-Gas Inventory 3,333,332.39
155 1902020-ADFIT-Salary Def Plan 7 Yr Opt 76,914.83
156 1902021-ADFIT-Salary Def Plan Ret Opt 85,881.46
157 1902023-ADFIT-OPEB and FAS 112 800,516.55
158 1902025-ADFIT-Provided For Misc Recv 1,154,170.98
159 1902033-ADFIT-Unamortized iTC 277,340.26
160 1902040-ADFIT-Ins Claims IBNR Accrual 20,225.80
161 1902058-ADFIT- Restoration & COLA Plan 234,212.15
162 1903110-DFIT-Purchase Acctg Adjustment
163 ACCUMULATED DEFERRED TAX ASSETS $ 8,594,668.60
164
165 TOTAL ASSETS $ 756,098,483.63
166
167 2040801-Allocated Preferred Stock $ 37,500,000.00
168 2049101-Allocated Preferred Securities 28,065,000.00
169 2110000-Miscellaneous Paid-tn Capital 96,501,273.95
170 2160000-Unappropriated Ret Earnings 127,374,676.14
171 2160200-Purchase Accounting Adjustment (23,625,973.11)
172 2230000-Advances from Assoc Cos - MP 242,717,191.98
Schedule H-2 (P)
Page 5 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUcH
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
173 2240009-Allocated Lng Term Debt fr ENS 105,523,000.00
174 4393200-Other Compreh Income- Pensions (658,798.40)
175 CAPITAL $ 613.396,370.56
176 2320200-A_P-Gas Purchased 316,105.89
177 2320220-A_P-Gas Purchase-LUG Adjustmnt 2,496,681.43
178 2320300-Other Accounts Payable 14,167.81
179 2321900-PED - Loans 1,649.55
180 2321901-ENSAVE Loans
181 2321902-PED- Bankruptcy 361.00
182 2321904-PED - Parking
183 2321909-PED - Dependent Life Insurance (6.14)
184 2321911-Group Universal Life Ins 676.33
185 2321912-Vision Care (105.82)
186 2321916-PED - TU PAC 91.79
187 2321919-PED - Student Loans
188 2321920-PED - Thrift Plan Collections 5,095.56
189 2321921-PED - U.S. Savings Bonds
190 2321922-ENSAVE Plan Collections
191 2321924-PED - United Way 152.08
192 2321925-Lifestyle Account 74.95
193 2321928-PED-Thrift Loan Fees
194 2321930-Thrift Plan - Employer Match 3,481.05
195 2321931-Voluntary Benefits 8.00
196 2321932-Accidental D&D 151.72
197 2321933-LT Disability 644.60
198 2322401-Employee Group Life insurance 2,136.69
199 2322402-Retiree Dental Insurance (50,058.97)
200 2322403-Retiree Medical Insurance 67,776.61
201 2324000-Trade Payables & Vouchers 821,839.33
202 2328900-O_S Checks-Money Pool 2,351,576.53
203 2328950-EDI Payments Outstanding 23,533.67
204 2340000-A_P - Associated Companies 21,189,424.98
205 2361000-FICA- Employer 28,987.52
206 2361100-Accrd Federal Unemployment Tax 20.34
207 2361550-Accrued DOT Pipeline User Fee 115,419.03
208 2362100-Accrued State Unemployment Tax 53.15
209 2362200-State Regulat Assessment &Fees 61,089.36
210 2362600-State-Ad Valorem-Current Year 4,207,212.36
211 2362610-State-Ad Valorem-Prior Year
212 2362700-State - Other - Full Accrual 192,809.89
213 2362800-State-Other-Gmss Production 548.54
214 2363800-FIT - Accrual 3,149,872.22
215 2411000-FICA Withheld 4,719.32
Schedule H-2 (P)
Page 6 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31,2002
SPONSOR: R. K. PRUETT
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
216 24t 1200-FIT - Withheld - Income Tax 18,313.28
217 2412200-SIT Withheld - Income Tax
218 2412400-State-Gross Production 6,759.38
219 2412410-Tax Coil-St Gross Pmd-Condens 593.61
220 2412500-Oil Field Clean Up Fee 15.30
221 2421230-Exchange Gas 8,306,596.28
222 2421233-System gas payable (0.02)
223 2421238-Open Access FERC Ord 500-1mbal
224 2421630-Exchange Gas-Affiliated
225 2421636-Exchange Gas-Delivered-Affil
226 2421709-Other Current Liabilities
227 2423400-Vacation 6,326.88
228 2423900-Other Accrued Payables 1,275,595.78
229 2424000-Payroll Accrual 37,480.32
230 2424100-Accrued Incentive Plans 293,332.00
231 2429300-Corporate Accruals 341,366.76
232 2429900-Other Accrued Liabilities 583,198.49
233 CURRENT LIABILITIES $ 45,875,768.43
234 2530001-FAS 109-Unamortized ITC 277,340.26
235 2531000-1BNR - Medical & Dental Claims 57,788.01
236 2533060-Restrictive Stock Award
237 2533300-Retirement Plan 7,091,363.80
238 2533400-Supplemental Retirement Plan 71,739.00
239 2533500-FAS 112 224,553.00
240 2533900-OPEB-Other 2,107,287.08
241 2534000-Levereged ESOP 105,966.59
242 2535100-Salary Deferral-7 Year Option 1,333.34
243 2535200-Salary Deferral-Retirement 1,333.38
244 2535500-Salary Deferral-7Yr Foundation 251,065.17
245 2535600-Salary Defer-Retire Foundation 267,649.39
246 2539000-Other Deferred Credits 1,630.00
247 2539050-Defer Cr-Cust Contributions 395,743.44
248 2539120-Restoration Plan 54,892.32
249 2539160-Enserch COLA Plan 614,285.25
250 2551000-Accumulated Deferred ITC 1,012,400.00
251 2553000-Rate Base Amortization (497,339.53)
252 2620000-Injuries & Damages Reserve (N) 272,500.00
253 2650000-Misc. Operating Reserves 200,000.00
254 DEFFERRED CREDITS $ 12,511,530.50
255 2822001-ADFIT-Liberalized Depreciation 69,421,152.81
256 2822002-ADFIT-CWlP-Basis Difference (49,192.53)
257 2822011-ADFIT-Oth Software DevelopCost 1,044,758,78
258 2822015-ADFIT-F109-EPIS-Flow Through 6,464.13
Schedule H-2 (P)
Page 7 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUt: ~ i
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
259 2822016-ADFIT-F109-CWIP-Flow Through 614,365.28
260 2822023-ADFIT-InterCoTransf Gain_Loss (367,510.76)
261 2832000-ADFIT-Other (354,737.60)
262 2832002-ADFIT-Other Regulatory Expense 0.01
263 2832031-ADFIT-1999 Enh Emp Separ Prog 529,029.20
264 2832039-ADFIT- WINS Costs 142,362.07
265 2835600-ADFIT on Reg Asset Bens-Mergr 947,280.06
266 ACCUMULATED DEFERRED TAX LIABILITIES $ 71,933,971.45
267
268 TOTAL LIABILITIES $ 743,717,640.94
269
270 4890100-Industrial Transportation $ 19,542,439.31
271 4890110-Transp for LSG Trans-R&C 54,508,694.96
272 4890120-Transp for LSG Trans-lndust 1,313,876.89
273 4890140-Transp for LSG Trans-LUG Acc (376,650.00)
274 4890500-Electric Generation 13,148,347.71
275 4890544-Electric Gen-311(A)(2)-Texas 595,554.11
276 4890545-Transp- Swing Fees 2,144,543.98
277 4890550-Electric Generation - Assoc 10,079,751.82
278 4890554-Electric Gen 311 (^)(2) - Assoc 110,337.15
279 4890600-Parking Transportation Revenue 291,731.38
280 4890644-Parking Transp Rev- 311(A)(2) 4,250.00
281 4890700-Lending Transportation Revenue 14,790.99
282 4890800-Pipeline 12.933,975.74
283 4890844-Pipeiine-311(A)(2)-Texas 2,790,951.30
284 4890900-Imbalance Penalties 224,185.55
285 4891100-Compress Rev-Transp Customers 2,002,632.08
286 4891200-OtherTransport Related Rev 4,000,847.89
287 4891900-HUB Transaction Revenue 172,653.03
288 4891944-HUB Trans Rev - 31 l(A)(2)Texas 51,887.04
289 4910100-Rev-Natural Gas Proc by Others 108,786.00
290 4920400-Revenue From Condensate Sales 345,003.65
291 4930100-Rents Gas Props Non-Assoc Cos 8,300.00
292 4930200-Rent Gas Property-Assoc Cos 199,461.25
293 4930500-Rent Gas Property-Pipeline Fee 2,261.16
294 4950100-Other Gas Revenues 2,423,328.57
295 4950400-Other Gas Revenues - Assoc 1,023,708.57
296 4951100-Other O&M Services Fees 21,350.00
297 4951300-Other Transp Rev - Swing Fees 3,472.60
298 4951400-Nonassoc Dehydration & Otb Fee 133,544.80
299 4951500-Other Transp Rev -Pooling 704,753.53
300 4951550-Oth Transp Rev-Pooling Transf 17,453.72
301 REVENUES $ 128,546,224.78
Schedule H-2 (P)
Page 8 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
302 4031200-Depr-Transmission Plant 8,465,304.13
303 4031210-Depr-Customer Sales Stations 6,416.40
304 4031220-Depr-Transm Compressor Statns 2,717,084.80
305 4031500-Depr-Gathering System 1,834,252.98
306 4031600-Depr-Undergreund Storage 1,822,763.56
307 4031710-Depr-Gen PIt-Struc & Imprv 61,287.32
308 4031720-Depr-Gen Pit-Off Fum & Equip 149,157.67
309 4031770-Gen PIt-Commun Equip 16,651.46
310 4031790-Depr-Gen PIt-Misc Equip 237,089.90
311 4040901-Operating Amortization Expense 441,811.18
312 4081000-FICA 193,584.11
313 4081100-Federal - Unemployment 2,714.40
314 4081500-DOT Pipeline User Fee 725,113.33
315 4081970-Allocated Taxes FICA - Credit (188,995.93)
316 4081980-Allocated Taxes FUTA- Credit (3,388.55)
317 4081990-Payroll Taxes Allocated 93,701.91
318 4081992-Payroll Taxes AIIoc-Enrgy Del 53,861.36
319 4082100-State - Unemployment 5,042.54
320 4082200-State Regulat Assessment &Fees 242,090.86
321 4082500-State- Franchise 73,434.64
322 4082602-Ad Valorem - EN Del Operating 4,825,060.31
323 4082650-State-Ad Valorem-Prior Year (1,604.13)
324 4082980-Allocated Taxes SUTA - Credit (3,127.80)
325 4261000-Donations 2,375.00
326 4265000-Other Deductions - Dues 5,018.00
327 7500000-Oper-Super&Engineer-Compressor 32,304.02
328 7520000-Gas Wells 302.68
329 7530000-Field Line Expenses 166,104.05
330 7540000-Field Compressor Expense 2,578.04
331 7560000-Field Measuring&Regulating Sta 127,230.15
332 7570000-Purification Expense 43,362.51
333 7640000-Maint-Field Lines 26,120.26
334 7650000-Maint-Field Compressor Station 31,915.82
335 7660000-Gath Sys Meas& Reg Equip-Maint 17,114.86
336 7670000-Maint-Purification Equipment 530.91
337 8010000-Field Line Purchases 149.54
338 8020000-Plant Outlet Purchases 8.53
339 8050800-OGP-Retention-Distrib Credit 12,023.14
340 8051111-OGP-LUG Adjustment 1,272,706.47
341 8051500-OGP-LUG Memo (442,000.00)
342 8051600-OGP-LUG Contra 442,000.00
343 8051900-OGP-Line Pack (383,057.14)
344 8053000-OGP-Co Used-Comp Sta FueI-CR (5,803,159.06)
Schedule H-2 (P)
Page 9 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
345 8053200-OGP-Co Used-Other Oper-CR (77,305.31)
346 8060000-Exchange Gas 7,212,552.72
347 8061500-Exchange Gas-Assoc 9,723,444.72
348 8061510-Exchange Gas-Assoc-Retention (18,503,438.23)
349 8061520-Exchgas-Assoc-Retention Contra 18,503,438.23
350 8063000-Exchange Gas-Nonassoc-GMR174 1,244,975.77
351 8063030-System gas imbalance exp (9,369,476.12)
352 8063500-Openaccess Ferc 500-1tubal Egtc (229,807.60)
353 8064000-Valuat Gain_Loss-EGT_EES Recov (5,685,649.11)
354 8080000-Gas Withdrawn From Storage (N) 550.00
355 8090000-Gas Delivered To Storage (N) (263,902.10)
356 8130000-Other Gas Supply Expenses (375.44)
357 8140000-Oper-Supervision & Engineering 243,707.50
358 8160000-Storage Wells Expense 104,479.64
359 8170000-Storage Lines 10,444.30
360 8180000-Compressor Station Expense 1,931,500.32
361 8190000-Compressor Fuel & Power 1,103,521.28
362 8200000-Storage Measuring & Reg Statn 130,432.73
363 8210000-Purification Expense 116,830.71
364 8230000-Gas Losses 105,715.68
365 8240000-Other Storage 8,448.89
366 8251000-Storage Well Royalties - Gas 445,942.37
367 8260000-Rents-Underground Storage 13,113.31
368 8310000-Maint-Structures&lmprovements 14,136.72
369 8320000-Maint-Resevoirs & Wells 109,748.88
370 8330000-Maint-Lines 58,506.93
371 8340000-Maint-Compr Station Equip 862,580.77
372 8350000-Maint-Mearsuring & Reg Equip 51,906.26
373 8360000-Maint-Purification Equipment 100,560.93
374 8370000-Maint-Other Storage Equipment 14,720.90
375 8500000-Oper-Supervision & Engineering 2,296,992.98
376 8510000-System Control & Load Dispatch 3,073,231.39
377 8520000-Communication System 1,461,406.80
378 8530000-Compressor Station Labor & Exp 737,254.62
379 8540000-Gas For Compressor Statn Fuel 4,662,330.38
380 8560000-Mains Exp-Transmission System 16,719,695.80
381 8569000-Mains Exp-Transmission Sys-Gas (32,512.79)
382 8570000-Measuring & Regulating Station 6,366,314.02
383 8580000-Trans & Compr Of Gas By Others (347,732.72)
384 8581000-Gas Transport Exp-Affiliates 59,462.34
385 8590000-Other Transmission System 1,620,803.11
386 8600000-Rents-Transmission System 92,733.26
387 8610000-Maint-Supervision&Engineedng 5,485.00
Schedule H-2 (P)
Page 10 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRU~- I I
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
385 8620000-Maint-Structures&lmprovements 48,425.86
389 8630000-Maint Of Mains-Transmission 1,007,363.50
390 8633000-Pipe 65.21
391 8640000-Maint-Compressor Station Equip 283,386.41
392 8650000-Maint-Measuring & Reg Equip 630,076.43
393 8660000-Maint-Communication Equipment 119,720.96
394 8670000-Maint-Other Equipment 99,701.38
395 9030000-Customer Records & Collections 3,045.00
396 9030001-Receivables Sale Fees 166,913.78
397 9040000-Uncollectible Accounts 523,896.56
398 9200000-Administrative &Gen Salaries 1,170,399.08
399 9210000-Office Supplies & Expenses 609,098.34
400 9230000-Outside Services Employed 18,956,163.71
401 9230002-Out Serv EmpI-Energy Del/TUFCO 4,934,615.56
402 9240002-Property Ins - Energy Del 416,427.40
403 9250002-Injuries&Damages Ins-Enrgy Del 811,409.73
404 9260000-Employee Pensions & Benefits 1,132,442.84
405 9260002-Empl Pension&Benefit-Enrgy Del 482,803.28
406 9280000-RegulatoryCommission Expense 1,022,858.57
407 9302000-Misc General Expenses 443,554.65
408 9310000-Rents-Administrative & General 346,708.15
409 9320000-Maintenance Of General Plant 140.22
410 OPERATING EXPENSES $ 95,228,921.69
411 4190100-Interest & Dividend Inc-Misc 73,903.23
412 4190200-Interest Income-Associated Cos 7,036,146.16
413 4201000-AFUDC-Equity (N) 92,431.74
414 4210300-Other Misc Nonoperating Income 4,300.00
415 4220100-Disposition Of Pmprty-Gain(N) 3,769,101.83
416 4250100-Misc Amortization (222,070.00)
417 4264500-Lobbying- Other-Non Operating
418 4264600-Lobbying - PAC - Non Operating (9,703.26)
419 OTHER INCOME AND DEDUCTIONS $ 10,744,109.70
420 4202000-AFUDC-Debt (N) (216,324.23)
421 4300000-Interest On Debt To Assoc Cos 22,497,761.43
422 4310100-Other tnterest Expense (27,419.13)
423 4322000-Capitalized Interest
424 INTEREST $ 22,254,018.07
425 4091000-Current FIT - Util Oper Income (1,282,469.53)
426 4092000-Current FIT - Other Income 3,841,973.86
427 4101000-Del FIT- UtilityOper Income 17,743,617.09
428 4111000-Def FIT - Utility Oper Income (12,635,057.18)
429 4114000-Investment Tax Credit (27,362.21)
430 INCOME TAXES $ 7,640,702.03
Schedule H-2 (P)
Page 11 of 11
TXU GAS -- PIPELINE
TRIAL BALANCE
FOR THE TEST YEAR ENDED DECEMBER 31, 2002
SPONSOR: R. K. PRUETT
Line Twelve Months Ended
No Account - Description December 31, 2002
(a) (b)
431 DISCONTINUED OPS $
432 EXTRAORDINARY ITEMS $
433
434 NET INCOME BEFORE EQUITY EARNINGS $ 14,166,692.69
435
436 EQUITY EARNINGS
437
438 NET INCOME $ 14,166,692.69
439
440 4370001-Allocated Preferred Stock 1,785,850.00
441 RETAINED EARNINGS $ 1,785,850.00
442
443 TOTAL DEBITS & CREDITS $ 0.00
Sci~edule I (P)
Page 1 of 1
TAU GAS -- PIPELINE
SUMMARY OF RET~IRN
FOR THE TEST YEAR ENDED DECEMBER 31. 2002
SPONSOR: B.H. FAIRCHILD
(a) (b} {c) (dl
2
12 Debt 51.00% $ 164,268,518 $ 164,2C=8,518
16 Total invested CeditaJ $ 322.095,133 $ 322,095,133 B (P)
23
SCHEDULE L-1 (P)
PAGE 1 OF 2
TXU LONE STAR PIPELINE
PIPELINE CRY GATE RATE DESIGN
FOR THE TEST YEAR ENDED DECEMBER 31. 2002
SPONSOR; G. L. GOBLE
..... Pipeline City Gale Revenue Rec~u~rement .....
Line Descnption , - Bulk Transmission Network Transmission 'rota~
1 Cost of Service Requirements $17.404.334 $58,668.972 $76.073.306
2 Proposed Meter Charge Revenue 112.800 1,742,400 1,855.200
3 Proposed Capacity Charge Revenue 443,991 28,884.177 29.328.168
4 Revenue Required from Commodity Charge $16.547.543 $28,042.394 $44,889.938
5
6
7 ..... Pipeline City Gate Billing Determinants .....
8 Bulk Transmission Network Transmission Total
9 Year End Meters X 12Months 564 8,712 9.276
10 Billing MDU 1,638.343 27,759.901 29.398.245
11 Ouanti~ Transporte~ {MMBtu) o First BlOCk 12,066.683 20t.331,626 213.398.310
12 Quantity Transpo~eo (MMBtu) - Second Block 0 0 0
13 TotaI Quantity Transported (MMBtu) 12.066.683 201.331.626 213.398.310
15
16 ---- MDU Capacity Charge Fon~utseqn .......
18 Proposed Capacity Cost Recovery $7,943.734 $21.384.455
19 Bulk Billing MDU 1.638.343 27.759.901
20 Supply Billing MDU 24.988,045
2t Network Billing MDU 25,095.845
22 Inlenm Capacity Rate $0.2702 S0.4270
23 Bulk Cost Recovery $442,699 $7,501.035
24 SupplyCosl Recovery 10,669.214
25 Network Cost Recovery 10.715.241
26 Capacity Cost Recovery Requirements $442,699 $28,885,490
27 MDU Capacity Charge $0.2702 $1,0405
28
29
30 ........ Commodity Charge Fon~ulaeqn .........
32 Proposed Commodity Cost Recovery $16.844,738 $26.045.180
34 Equals: Commodity Revenue Requirement in First BlOCk $16.844,738 $26.045.180
35 Bulk MMBtu - First BloCk 12,066,683 201.331 .E26
36 Supply MMBtu * First Block 183,272,141
37 Network MMBtu - First BlOCk 178.305.988
38 Intenm Commodity Rate $0.0789 $0.0776
39 Bulk Cost Recovery $952,492 $15,892.246
40 Supply Cost Recovery 14.215,185
41 Network Cost Recovery 13,829.994
42 Commodity Cost Recovery Requirements $952.492 $43.937.426
43 MMBlu Commodity Charge - First Block $0.0789 $0.2182
45
46 ..... Pipeline Transpohation Proposed Rate .....
48 Proposed Meter Charge $200,00 $200.00
49 Proposed Capacity Charge $0.2710 $1.0405
50 Proposed Commodity Charge - First Block $0,0795 $0.2182
51 Proposed Commodity Charge - Second Block $0.0000 80.0000
62
53
54 ...... Pipeline City Gate Proposed Revenue .....
55 Bulk Transmission Network Transmission Tolal
56 Proposed Me.er Charge Revenue $112.800 $1.742.400 $1.855.200
57 Proposed Capacity Charge Revenue 443.991 28.884.177 29.328.168
58 Proposed Commodity Charge Revenue - First Block 959.301 43.930,561 44.889.862
59 Proposed Commodity Charge Revenue - Second Block 0 0 0
60 Proposed Total Revenue lrom City Gate $1.516,092 $74,557.138 $76.073.231
62 Average Total Revenue per MMBIu $0.1256 $0.3703
SCHEDULE L-1 (P)
PAGE 9 OF 2
T'XU LONE STAR PIPELINE
PIPELINE TRANSPORTATION RATE DESIGN
FOR THE TEST YEAR ENDED DECEMBER 31,
. SPONSOR: G. L GOBLE
..... P~peline *;ransporta[~on Revenue Rec3ulrement .....
5
6
15
19 Bulk Billing MDU 4.786.506 g.358,235
20 Supply Billing MDU 6.929,132
22 Intedm Capacity Rate $0.3917 80.3058
25 Network Cost Recovery 2.787.290
28
29
43 mmBtu Commodity Charge -Fimt Block $0.0770 $0,1038
45
49 Proposed Capacity Charge $0.3910 $0.9160
50 Proposed Co~'nmodity Charge - Fi~s/Block $0,0770 $0.1038
51 Proposed Commodity Charge - Second Bk3ck $0.0700 $0.0800
52
53
56 Proposed Meter Charge Revenue S88.800 $4 t 7,600 $506,400
57 Proposed Capacity Charge Revenue 1,871.524 8,572,143 10,443,667
58 Proposed Commodity Charge Revenue - First BloCk 3,176,034 8.102,351 11,278,384
59 Proposed Commodity Charge Revenue · Secon(i BlOCk 1,245.599 2.081.906 3.327,505
60 Proposed Total Revenue Irom Transpoilat~on $6,381,957 $19.174.000 $25,555.956
61
62 Average Total Revenue per mmBtu $01081 $0.1842 $0.1567