Tariff Calculations

Click the Tariff Tab to go to the Annual cost of Service.

The Annual cost of service and the Transportation tariff can be calculated from the results of the previous cost screens.  

For the current pipeline system, the capital cost and operating costs calculated are used to determine the cost of service per year and the corresponding pipeline transportation rate or tariff in $/BBL.

In the above display, the Capital cost and Annual operating costs have been transferred to this screen form the respective areas.  The pipeline input flow rate has also been filled in. You may change any or all the financial parameters such as interest rate, rate of return (ROR), tax rate, financing option (debt/equity ratio), etc. and perform “ what if ” analyses.

Pressing the Calculate button will calculate Annual cost of service and the transportation tariff, such as $/bbl. Pressing the Print button will produce a hard copy of the results of these calculations. Press Done button or the Escape key to close this screen.

See the Reference section for the basis of these financial calculations.