LT Capital Project Adjustment Mechanism. The specified local transmission revenue requirement and rate adjustment for each designated capital project will occur on January 1 of the year following the operational date of the project. These adjustments to the adopted local 2 These calculations are based on an increase in CGS’s Annual Baja holdings and a corresponding decrease in their seasonal Baja holdings. Approval of this change will be sought in a separate application as provided in Section 3.3, above. Should this adjustment to their holdings not be approved, then Backbone Rates will be recalculated based on the same principles, but using the CGS’s Backbone firm capacity allocations from the Gas Accord III Settlement or as otherwise authorized by the Commission. transmission revenue requirements and rates will be incorporated into the Annual Gas True-Up. During the term of this Settlement, the Settlement Parties will not protest these LT capital project adjustments. The non-PG&E Settlement Parties reserve their right in future rate cases to address the reasonableness, including the costs, of these LT projects. No other local transmission capital project will be allowed such an adjustment during the Settlement Period. If a designated project becomes operational in 2010, then the 2010 adjustments will be applied effective January 1, 2011, if the Commission has not otherwise approved rates based on the next GT&S Rate Case that would be effective on January 1, 2011. This is in addition to any rate adjustments provided by Section 2.3.2.
