[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR154.303]

[Page 481-482]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 154_RATE SCHEDULES AND TARIFFS--Table of Contents
 
               Subpart D_Material To Be Filed With Changes
 
Sec. 154.303  Test periods.

    Statements A through M, O, P, and supporting schedules, in Sec. 
154.312 and Sec. 154.313, must be based upon a test period.
    (a) If the natural gas company has been in operation for 12 months 
on the filing date, then the test period consists of a base period 
followed by an adjustment period.
    (1) The base period consists of 12 consecutive months of the most 
recently available actual experience. The last day of the base period 
may not be more than 4 months prior to the filing date.
    (2) The adjustment period is a period of up to 9 months immediately 
following the base period.

[[Page 482]]

    (3) The test period may not extend more than 9 months beyond the 
filing date.
    (4) The rate factors (volumes, costs, and billing determinants) 
established during the base period may be adjusted for changes in 
revenues and costs which are known and measurable with reasonable 
accuracy at the time of the filing and which will become effective 
within the adjustment period. The base period factors must be adjusted 
to eliminate nonrecurring items. The company may adjust its base period 
factors to normalize items eliminated as nonrecurring.
    (b) If the natural gas company has not been in operation for 12 
months on the filing date, then the test period must consist of 12 
consecutive months ending not more than one year after the filing date. 
Rate factors may be adjusted as in paragraph (a)(4) of this section but 
must not be adjusted for occurrences anticipated after the 12-month 
period.
    (c)(1) Adjustments to base period experience, or to estimates where 
12 months' experience is not available, may include the costs for 
facilities for which either a permanent or temporary certificate has 
been granted, provided such facilities will be in service within the 
test period; or a certificate application is pending. The filing must 
identify facilities, related costs and the docket number of each such 
outstanding certificate. Subject to paragraph (c)(2) of this section, 
adjustments to base period experience, or to estimates where 12 months' 
experience is not available, may include any amounts for facilities that 
require a certificate of public convenience and necessity, where a 
certificate has not been issued by the filing date but is expected to be 
issued before the end of the test period. Adjustments to base period may 
include costs for facilities that do not require a certificate and are 
in service by the end of the test period.
    (2) When a pipeline files a motion to place the rates into effect, 
the filing must be revised to exclude the costs associated with any 
facilities that will not be in service as of the end of the test period, 
or for which certificate authorization is required but will not be 
granted as of the end of the test period. At the end of the test period, 
the pipeline must remove from its rates costs associated with any 
facility that is not in service or for which certificate authority is 
required but has not been granted.
    (d) The Commission may allow reasonable deviation from the 
prescribed test period.

[Order 582, 60 FR 52996, Oct. 11, 1995, as amended by Order 582-A, 61 FR 
9629, Mar. 11, 1996]