qualified natural gas supply contract

(B)For purposes of this paragraph, the term “qualified natural gas supply contract” means any contract to acquire natural gas for resale by a utility owned by a governmental unit if the amount of gas permitted to be acquired under the contract by the utility during any year does not exceed the sum of— (i)the annual average amount during the testing period of natural gas purchased (other than for resale) by customers of such utility who are located within the service area of such utility, and (ii)the amount of natural gas to be used to transport the prepaid natural gas to the utility during such year. (C)Natural gas used to generate electricity shall be taken into account in determining the average under subparagraph (B)(i)— (i)only if the electricity is generated by a utility owned by a governmental unit, and (ii)only to the extent that the electricity is sold (other than for resale) to customers of such utility who are located within the service area of such utility. (D) (i)If— (I)after the close of the testing period and before the date of issuance of the issue, the utility owned by a governmental unit enters into a contract to supply natural gas (other than for resale) for a business use at a property within the service area of such utility, and (II)the utility did not supply natural gas to such property during the testing period or the ratable amount of natural gas to be supplied under the contract is significantly greater than the ratable amount of gas supplied to such property during the testing period, (ii)The average under subparagraph (B)(i) shall not exceed the annual amount of natural gas reasonably expected to be purchased (other than for resale) by persons who are located within the service area of such utility and who, as of the date of issuance of the issue, are customers of such utility. (E)The Secretary may increase the average under subparagraph (B)(i) for any period if the utility owned by the governmental unit establishes to the satisfaction of the Secretary that, based on objective evidence of growth in natural gas consumption or population, such average would otherwise be insufficient for such period. (F) (i)The amount otherwise permitted to be acquired under the contract for any period shall be reduced by— (I)the applicable share of natural gas held by the utility on the date of issuance of the issue, and (II)the natural gas (not taken into account under subclause (I)) which the utility has a right to acquire during such period (determined as of the date of issuance of the issue).

Source

26 USC § 148(b)(4)(B)


Scoping language

For purposes of this paragraph
Is this correct? or