For ACA, yes, we have to pay the FERC based on through-put out of the system.  Therefore, we do not discount it; it would be lost revenues.  

For the GRI surcharges, it is up to us (Transwestern) whether we discount them or not (not the Shipper's choice).  You are right, Lindy; we only remit to GRI what we collect.
Therefore, we can discount the GRI surcharges all the way to zero.

Let me know if you have any questions.  Jeanette.
 -----Original Message-----
From: 	Donoho, Lindy  
Sent:	Tuesday, February 26, 2002 4:55 PM
To:	Centilli, James; Gadd, Eric
Cc:	Doll, Jeanette
Subject:	RE: Sun Devil

This is my understanding too.  We can discount GRI away and we only have to pay the Gas Research Institute what we collect.  We have to pay the ACA, if we discount it away.

One more check would be Jeanette Doll.  Jeanette?

 -----Original Message-----
From: 	Centilli, James  
Sent:	Tuesday, February 26, 2002 4:20 PM
To:	Gadd, Eric
Cc:	Donoho, Lindy
Subject:	RE: Sun Devil

The GRI is a voluntary surcharge that the Shipper indicates they want to pay.  We just collect it and pass it on to the Gas Research institute.  The ACA is an Annual Charge Adjustment to recover cost charged to us by FERC.  We typically do not waive or discount this charge.  The other surcharges are due to past settlements and are not applicable to new expansion projects.  These are defined in the Tariff in sections 21 and 23 of the General Terms and Conditions.



Lindy

Did I state this correctly.  Please let Eric and me know if I miss stated anything.

 -----Original Message-----
From: 	Gadd, Eric  
Sent:	Tuesday, February 26, 2002 3:57 PM
To:	Centilli, James
Subject:	Sun Devil

James,

On Sun Devil, are we required to collect GRI, ACA, or any other surcharges?  If so, how are they applied?  If not, why?