Page:United States Statutes at Large Volume 92 Part 3.djvu/757

 PUBLIC LAW 95-621—NOV. 9, 1978

92 STAT. 3389

(2) INTRASTATE P I P E L I N E S. —

(A) IN GENERAL.—The Commission may, by rule or order, authorize any intrastate pipeline to transport n a t u r a l gas on behalf of—• (i^ any interstate pipeline; and (ii) any local distribution company served by any interstate pipeline.

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(B) RATES AND CHARGES.— (i) MAXIMUM FAIR AND EQUITABLE PRICE.—The r a t e s

and charges of any intrastate pipeline with respect to any transportation authorized under subparagraph (A), including any amount computed i n accordance with the rule prescribed under clause ( i i), shall be fair and equitable and may not exceed an amount which is reasonably comparable to the rates and charges which interstate pipelines would be permitted to charge for providing similar transportation service. (ii)

COMMISSION RULE. — The Commission shall, by

rule, establish the method for calculating an amount necessary to— (I) reasonably compensate any intrastate pipeline for expenses incurred by the pipeline and associated with the providing of any gathering, treatment, processing, transportation, delivery, or similar service provided by such pipeline in connection with any transportation of natural gas authorized under subparagraph (A); and ( II) provide an opportunity for such pipeline to earn a reasonable profit on such services. (b) COMMISSION APPROVAL o r S A L E S. —

(1) IN GENERAL.—The Commission may, by rule or order, authorize any intrastate pipeline to sell natural gas to— (A) any interstate pipeline; and (B) any local distribution company served by any interstate pipeline. (2) R A T E S AND CHARGES.— (A) MAXIMUM FAIR AND EQUITABLE PRICE.—The r a t e s and

charges of any intrastate pipeline with respect to any sale of n a t u r a l gas authorized under paragraph (1) shall be fair and equitable and may not exceed the sum of— (i) such intrastate pipeline's weighted average acquisition cost of n a t u r a l g a s; (ii) an amount, computed in accordance with the rule prescribed under subparagraph (B); and (iii) any adjustment permitted under subparagraph (C). (B)

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COMMISSION RULE.—The Commission shall, by rule,

establish the method for calculating an amount necessary to— (i) reasonably compensate any intrastate pipeline for expenses incurred by the pipeline and associated with the providing of any gathering, treatment, processing, transportation, or delivery service provided by such pipeline in connection with any sale of natural gas authorized under paragraph (1); and (ii) provide an opportunity for such pipeline to earn a reasonable profit on such services.

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