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According to the verified application and supporting schedules <br /> attached as exhibits, Applicant's increased retail gas rates, as shown <br /> in Exhibits A, D. F and H. have been designed to merely offset increases <br /> in wholesale costs to Applicant, as follows: <br /> (a) A reduction of $1,826,492 in wholesale rates due to final <br /> settlement of CIG rates In FPC Docket RP 72-113, and a corresponding change <br /> in wholesale rates of Western Slope Gas Company; <br /> (b) A temporary increase in CIG rates subject to refund pending <br /> final determination by the FPC in Docket RP 73-93, and a corres^c'4ino change <br /> in Western Slope Gas Company's rates that became effective on October 4, 1973. <br /> These increases total $4,795,493 annually; <br /> (c) An increase pursuant to application of a purchased gas adjust- <br /> ment clause in CIG's FPC tariff approved in FPC Docket RP 72-112, and a <br /> corresponding change in Western Slope Gas Company rates. These increases <br /> total $2,661 ,027 on an annual basis; <br /> (d) A net decrease :n wholesale costs in Applicant's Rifle-DeBeque- <br /> Grand Valley-New Castle-Silt service area due to changes in rates of Western <br /> Slope Gas Company, which in turn reflect changes in the wholesale rates of <br /> El Paso Natural Gas Company. This change amounts to a decrease of $35,512 <br /> annually. <br /> The reduction as described in (a) above, results from the fact that <br /> the settled rates are lower than the temporary rates in FPC Docket RP 72-113 <br /> that went into effect, subject to refund, on October 1 , 1972. <br /> Applicant proposes that any such refund be, to turn, refunded to <br /> its customers pursuant to a refund plan contained in Exhibit C to the appli- <br /> cation. <br /> -2- <br />