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Natural Gas > Sales Refund Objective (SRO)

The following information is about Sales Refund Objective (SRO).

Sales Refund Objective (SRO) Defined

A provision included in many prior settlements, and often examined by Staff, that if actual volumes exceed an agreed level during the period of time the rates are in effect, the pipeline agrees to refund the fixed costs received in the commodity rate. The SRO can be offset by increases in certain jurisdictional costs. The SRO has not been used with the Modified Fixed Variable classification method.

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