Page:United States Statutes at Large Volume 92 Part 3.djvu/745

 PUBLIC LAW 95-621—NOV. 9, 1978

92 STAT. 3377

(ii) the increase under subparagraph (C) of the surcharge generally applicable due to any adjustment under subparagraph (B), if the Commission determines that to do so would be impracticable or unnecessary to carry out the purposes of this title. (4)

LOCAL DISTRIBUTION COMPANY DIRECT PTIRCHASES.—In

any

case in which a local distribution company directly incurs any first sale acquisition cost subject to the passthrough requirements of this title under section 203 or otherwise directly incur' any other cost subject to such requirements under sections 203(a) (8)(B), (9), or (10), such local distribution company shall, with respect to the natural gas involved, be treated for purposes of this title as if it were an interstate pipeline. (5)

P I P E L I N E S AND LOCAL DISTRIBUTION COMPANIES W I T H MORE

THAN ONE SOURCE OF NATURAL GAS.—The Tule under section 201 (including any amendment under section 202 to such rule) shall prescribe one or more methods for determining, for purposes of paragraph (2)(B) and paragraph (3)(A), the volume of natural gas delivered indirectly by any interstate pipeline to any incrementally priced industrial facility through any other interstate pipeline or local distribution company for purposes of applying subsection (d)(2). (d) DEDUCTIONS F R O M ACCOUNT. —

(1) IN GENERAL.—Amounts passed through by any interstate pipeline by means of any surcharge under this section shall be deducted from such pipeline's account. (2) NORMAL ALLOCATION TO OCCUR WHERE BTU EQUIVALENCY IS REACHED FOR ALL FACILITIES SERVED BY A PTPELINK.^—In any case

in which the rates and charges to incrementally priced industrial facilities for n a t u r a l gas delivered, directly or indirectly, by any interstate pipeline for industrial use to incrementally priced industrial facilities subject to the rule required under section 201 (including any amendment under section 202 to such r u l e), are not less than the appropriate alternative fuel cost, such rule shall prescribe one or more methods by which amounts in excess of that reasonably necessary to maintain such rates and charges applicable to such industrial facilities at the appropriate alternative fuel cost may be deducted from such pipeline's account and may be allocated to the rates and charges of such interstate pipeline in any manner which would be permitted in the absence of this title. (e) DETERMINATION OF ALTERNATIVE F U E L COST.—

(1) IN GENERAL.—Except as provided in paragraph (2), the appropriate alternative fuel cost for any region (as designated by the Commission) shall be the price, per million Btu's, for Number 2 fuel oil determined by the Commission to be paid in such region by industrial users of such fuel. (2)

REDUCTION

OF

APPROPRIATE

ALTERNATIVE

FUEL

COST

ALLOWED.—The Commission may, by rule or order, reduce the appropriate alternative fuel cost— (A) for any category of incrementally priced industrial facilities, subject to the rule required under section 201 (including any amendment under section 202 to such rule) located within any region and served by the same interstate pipeline; or (B) for any specific incrementally priced industrial facility which is subject to such requirements and which is located in any region;

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