Home > Term: cost of service tariff
cost of service tariff
A special type of tariff which allows a gas pipeline to adjust periodically for any overage or underage in recovery of its cost of service (including per unit adjustments for loss of load). In contrast, a normal fixed-rate tariff, while specified based upon a cost of service estimate, does not provide for recovery of any previous underage or return of any overage above actual costs incurred.
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