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    November 19, 2020 Ms. Kimberly Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D. C. 20426 Re: Southern Natural Gas Company, L.L.C. Docket No. RP21-________________ Annual Storage Cost Reconciliation Mechanism Report Dear Ms. Bose: Enclosed for electronic filing is the Annual Storage Cost Reconciliation Mechanism ("SCRM") report of Southern Natural Gas Company, L.L.C. (“Southern”) made pursuant to Section 14 of the General Terms and Conditions of Southern’s FERC Gas Tariff for the twelve- month period ending October 31, 2020. Southern is proposing no change to the current rate of $(0.0000). Nature, Basis and Reasons for the Filing Section 14.2(a) of the General Terms and Conditions of Southern’s Tariff, which was approved by the Commission’s Order Accepting Settlement, Severing Contesting Parties, Issuing Certificates and Approving Abandonment issued in Docket Nos. RP89-224-012, et al., on September 29, 19951 (“Order”), provides for an annual reconciliation of Southern’s storage gas costs to reflect differences between the cost to Southern of its storage gas inventory and the amount Southern receives for such gas arising out of (i) the purchase and sale of such gas in order to resolve shipper imbalances and (ii) the purchase and sale of gas as necessary to maintain an appropriate level of storage gas inventory for system management purposes. The Order authorized said procedure to become effective as of November 1, 1993, the date Southern’s Order No. 636 restructuring plan was put into effect. Pursuant to Section 14.2(b) of Southern’s Tariff, Southern established a Storage Cost Reconciliation Deferred Account (“Deferred Account”) to track such storage cost differences as of such date. In Southern's general rate case filed on August 31, 2004 in Docket No. RP04-523, Southern proposed to revise Section 14.2 of its General Terms and Conditions to include supply pooling 1 Southern Natural Gas Company, 72 FERC 61,322 (1995), order on reh’g, 75 FERC 61,046 (1996) Brookwood Office Center 569 Brookwood Village Suite 749 Birmingham, AL 35209 205.325.7410


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    Ms. Kimberly Bose, Secretary November 19, 2020 Page 2 volumes in the SCRM. On April 29, 2005, Southern filed a comprehensive Settlement in this docket which incorporated Southern's revised SCRM. The Settlement was approved by letter order dated July 13, 2005 in Docket Nos. RP04-523-000 and RP04-523-001. Under Section 14.2(c) of the General Terms and Conditions of Southern’s Tariff, at the end of each twelve-month period after initiating service under Order No. 636 (i.e. twelve months ending October), Southern shall determine whether the balance in the Deferred Account is in excess of $500,000. If so, Southern is required to refund or to surcharge, as appropriate, over the twelve months beginning the following January the portion of the Deferred Account balance representing fixed and realized gains or losses from the purchase and sale of Southern’s storage gas inventory. If the balance is less than or equal to $500,000, the balance is carried forward in the Deferred Account. As specified under Section 14.2(c) of the General Terms and Conditions of Southern's Tariff, such refund or surcharge, applicable during the following twelve-month period beginning in January, is to be determined by dividing the fixed and realized gain or loss by (1) the total quantity received under supply pool balancing agreements in Dth, excluding receipts from a storage point and PAL points of transactions and (2) the total quantity delivered under rate schedules FT, FT-NN, and IT in DTH. As set forth on Sheet 1 of Schedule No. 1, the Balance to be Recovered in the instant filing is $(319,336). In accordance with Southern’s tariff and as set forth on Schedule No. 1, Sheet 1, Southern computes the Balance to be Recovered of $(319,336) by taking (1) the Balance filed for Recovery in Docket No. RP20-252 of $(381,694) then subtracting (2) the SCRM surcharge credits distributed to Southern’s customers for November 2019 through October 2020 of ($245,147), then adding (3) the Realized (Gains)/Losses under Section 14.2(c) for November 2019 through October 2020 of ($150,661) and then subtracting (4) the penalty revenue collected during the period November 2019 through October 2020 of $32,128. Since the $($319,336) Balance to be Recovered is less than $500,000 in accordance with Section 14.2 of Southern’s tariff, the surcharge to be effective on January 1, 2021 is $(0.0000)/DTH and the $(319,336) will be carried forward in the Deferred Account. Since the currently effective surcharge is also $(0.0000)/DTH, Southern is proposing no change to the rate sheets in its FERC Gas Tariff.


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    Ms. Kimberly Bose, Secretary November 19, 2020 Page 3 Procedural Matters Pursuant to the applicable provisions of Section 154.7 of the Commission’s Regulations, Southern submits the following materials in connection with the filing: 1. A transmittal letter; 2. Appendix A, containing Schedule 1, Sheets 1-8 showing the derivation of the surcharge amount, in PDF format. As required by Section 154.208 of the Commission’s Regulations, copies of this filing are being made available at Southern’s office in Birmingham, Alabama, and electronically mailed to Southern’s customers and interested state commissions. The names, titles, and mailing addresses of the persons to whom communications concerning this filing are to be addressed and to whom service is to be made are: T. Brooks Henderson Patricia S. Francis Director, Rates and Regulatory VP – Managing Counsel Southern Natural Gas Company, L.L.C. Southern Natural Gas Company, L.L.C. P. O. Box 2563 P. O. Box 2563 Birmingham, Alabama 35202-2563 Birmingham, Alabama 35202-2563 205-325-3843 205-325-7696 brooks_henderson@kindermorgan.com patricia_francis@kindermorgan.com Respectfully submitted, SOUTHERN NATURAL GAS COMPANY, L.L.C /s/ T. Brooks Henderson T. Brooks Henderson Director, Rates and Regulatory


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    CERTIFICATE OF SERVICE I hereby certify that I have served the foregoing document upon all Southern’s customers and interested state commissions. Dated at Birmingham, Alabama this 19th day of November, 2020. /s/ T. Brooks Henderson T. Brooks Henderson Director – Rates & Regulatory Southern Natural Gas Company, L.L.C. Post Office Box 2563 Birmingham, AL 35202-2563 brooks_henderson@kindermorgan.com


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    Appendix A Derivation of Surcharge Amount


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    Southern Natural Gas Company Schedule No. 1 Derivation of Surcharge Adjustment Pursuant Sheet 1 of 8 to Section 14.2 (c) of the General Terms and Conditions of Southern's FERC Gas Tariff Line No. Description Amount 1 Balance Filed for Recovery in Docket No. RP20-252 $ (381,694) 1/ 2 Less Surcharge Recoveries/ (credits) (245,147) 2/ 3 Remaining Balance $ (136,547) 4 Realized (Gains) Losses Under Section 14.2 (c) (150,661) 3/ 5 Less Penalties Collected and Credited 32,128 4/ 6 Balance to be Recovered $ (319,336) 7 Throughput - Dth 1,288,143,135 8 Surcharge Effective January 1, 2021 $ - 5/ 1/ See Southern's November 29, 2019 Filing in Docket No. RP20-252 2/ Schedule No. 1, Sheet 3, Line 13 3/ Schedule No. 1, Sheet 2, Column 2, Line 3 4/ Schedule No. 1, Sheet 4, Line 13 5/ In accordance with Section 14.2 of the General Terms and conditions of Southern's tariff, since the Balance to be Recovered is less than or equal to $500,000 the surcharge is $0.0000/DTH.


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    Southern Natural Gas Company Schedule No. 1 Storage Cost Reconciliation Deferred Account Sheet 2 of 8 Realized and Unrealized Gains and Losses November, 2019 Through October, 2020 Total Realized Amounts Unrealized Amounts 1/ (Col. 1 + Col. 3) (Col. 2 + Col. 4) Line No. Description Dth (Gain) / Loss Dth (Gain) / Loss Dth (Gain) / Loss (1) (2) (3) (4) (5) (6) 1 Volumes Injected Into Storage 5,401,594 $ (2,192,120) - $ - 5,401,594 $ (2,192,120) 2/ 2 Volumes Withdrawn From Storage 5,401,594 2,041,459 - - 5,401,594 2,041,459 3/ 3 Balance - $ (150,661) - $ - - $ (150,661) 1/ Contingent and unrealized gains and losses are carried forward in the deferred account pursuant to Section 14.2(c) of the General Terms and Conditions of Southern's FERC Gas Tariff. The amount of such gains and losses that may become fixed and realized is dependent on the cost of gas at the time storage volumes are replaced. 2/ Schedule No.1, Sheet 5, Column 5, Line 13 3/ Schedule No.1, Sheet 6, Column 5, Line 14


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    Southern Natural Gas Company Schedule No. 1 Storage Cost Reconciliation Deferred Account Sheet 3 of 8 Surcharge Credits During The Period November, 2019 Through October, 2020 Line No. Month Amount 1 November, 2019 $ (117,632) 2 December (127,515) 3 January, 2020 - 4 February - 5 March - 6 April - 7 May - 8 June - 9 July - 10 August - 11 September - 12 October - 13 Total $ (245,147)


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    Southern Natural Gas Company Schedule No. 1 Storage Cost Reconciliation Deferred Account Sheet 4 of 8 Penalties Collected During The Period November, 2019 Through October, 2020 Line No. Month Amount 1 November, 2019 $ 18,180 2 December 5,004 3 January, 2020 8,944 4 February - 5 March - 6 April - 7 May - 8 June - 9 July - 10 August - 11 September - 12 October - 13 Total $ 32,128


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    Southern Natural Gas Company Schedule No. 1 Derivation of Amounts Debited and Credited to the Sheet 5 of 8 Storage Cost Reconciliation Deferred Account Volumes Injected Into Storage November, 2019 Through October, 2020 Amount Per Dth (Debited) Unit Price Credited Paid For To Deferred Volumes Unit Cost Volumes Difference Account Line No. Month Injected 1/ Of Storage Injected 2/ (Col. 2 - Col. 3) (Col. 1 x Col. 4) (1) (2) (3) (4) (5) 1 November, 2019 481,158 $2.383 $2.4260 ($0.044) $ (20,953) 2 December 1,016,083 $2.383 $1.9791 $0.403 $ 409,903 3 January, 2020 283,053 $2.383 $1.8901 $0.492 $ 139,361 4 February 441,552 $2.383 $1.7781 $0.604 $ 266,883 5 March 468,439 $2.383 $2.1904 $0.192 $ 90,009 6 April 414,962 $2.383 $2.0534 $0.329 $ 136,566 7 May 436,481 $2.383 $1.8816 $0.501 $ 218,640 8 June 190,401 $2.383 $1.4495 $0.933 $ 177,648 9 July 369,311 $2.383 $1.9253 $0.457 $ 168,851 10 August 397,182 $2.383 $1.3962 $0.986 $ 391,754 11 September 358,590 $2.383 $2.5014 ($0.119) $ (42,645) 12 October 544,382 $2.383 $1.9121 $0.470 $ 256,102 13 Total 5,401,594 $ 2,192,120 1/ Schedule No. 1, Sheet 7, Column 5 2/ Schedule No. 1, Sheet 7, Column 7


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    Southern Natural Gas Company Schedule No. 1 Derivation of Amounts Debited and Credited to The Sheet 6 of 8 Storage Cost Reconciliation Deferred Account Volumes Withdrawn From Storage November, 2019 Through October, 2020 Amount Per Dth Debited Unit Price (Credited) Received For To Deferred Volumes Unit Cost Volumes Difference Account Line No. Month Withdrawn 1/ Of Storage Withdrawn 2/ (Col. 2 - Col. 3) (Col. 1 x Col. 4) (1) (2) (3) (4) (5) 1 Beginning Balance - $2.383 $0.0000 $2.3825 $ - 2 November, 2019 481,158 $2.383 2.2427 0.1398 67,265 3 December 1,016,083 $2.383 2.1507 0.2318 235,492 4 January, 2020 283,053 $2.383 2.0247 0.3578 101,266 5 February 441,284 $2.383 1.9362 0.4463 196,964 6 March 511,251 $2.383 1.6814 0.7011 358,446 7 April 370,287 $2.383 1.6449 0.7376 273,119 8 May 427,193 $2.383 1.7066 0.6759 288,752 9 June 188,145 $2.383 1.5704 0.8121 152,784 10 July 382,974 $2.383 1.6709 0.7116 272,528 11 August 396,997 $2.383 2.1735 0.2090 82,973 12 September 371,016 $2.383 1.9478 0.4347 161,280 13 October 532,153 $2.383 2.6633 (0.2808) (149,410) 14 Total 5,401,594 $ 2,041,459 1/ Schedule No. 1, Sheet 8, Column 5 2/ Schedule No. 1, Sheet 8, Column 7


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    Southern Natural Gas Company Schedule No. 1 Derivation of Unit Cost of Volumes Injected into Storage Sheet 7 of 8 November, 2019 Through October, 2020 Volumes Injected Into Storage Total Unit Price Imbalance Cash Outs 1/ System Management 2/ (Col. 1 + Col. 3 ) (Col. 2 + Col. 4 ) (Col. 6 / Col. 5 ) Line No. Month Dth Amount Paid Dth Amount Paid Dth Amount Paid Dth (1) (2) (3) (4) (5) (6) (7) 1 November, 2019 481,158 $ 1,167,311.79 - $ - 481,158 $ 1,167,311.79 $2.4260 2 December 1,016,083 $ 2,010,914.80 - $ - 1,016,083 $ 2,010,914.80 1.9791 3 January, 2020 283,053 $ 535,012.55 - $ - 283,053 $ 535,012.55 1.8901 4 February 441,552 $ 785,114.82 - $ - 441,552 $ 785,114.82 1.7781 5 March 168,439 $ 279,046.62 300,000 $ 747,000.00 468,439 $ 1,026,046.62 2.1904 6 April 94,962 $ 157,680.48 320,000 $ 694,400.00 414,962 $ 852,080.48 2.0534 7 May 206,481 $ 341,526.21 230,000 $ 479,750.00 436,481 $ 821,276.21 1.8816 8 June 190,401 $ 275,982.18 - $ - 190,401 $ 275,982.18 1.4495 9 July 176,311 $ 290,222.35 193,000 $ 420,810.00 369,311 $ 711,032.35 1.9253 10 August 87,382 $ 188,659.59 309,800 $ 365,873.00 397,182 $ 554,532.59 1.3962 11 September 106,590 $ 206,832.85 252,000 $ 690,152.50 358,590 $ 896,985.35 2.5014 12 October 213,387 $ 332,198.89 330,995 $ 708,689.07 544,382 $ 1,040,887.96 1.9121 1/ Volumes Purchased Pursuant To Section 14.1(c) Of The General Terms And Conditions Of Southern's FERC Gas Tariff And Section 2.2 Of Southern's Pipeline Balancing Agreement. 2/ Volumes Purchased Pursuant To Section 14.2(b) (iii) Of The General Terms And Conditions Of Southern's FERC Gas Tariff.


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    Southern Natural Gas Company Schedule No. 1 Derivation of Unit Cost of Volumes Withdrawn From Storage Sheet 8 of 8 November, 2019 Through October, 2020 Volumes Withdrawn From Storage Imbalance Cash Outs 1/ System Management 2/ Total Unit Price Amount Amount (Col. 1 + Col. 3 ) (Col. 2 + Col. 4 ) (Col. 6 / Col. 5 ) Line No. Month Dth Received Dth Received Dth Amount Received Dth (1) (2) (3) (4) (5) (6) (7) 1 Beginning Balance - $ - - $ - - $ - $0.0000 2 November, 2019 134,667 $ 337,603.43 346,491 $ 741,490.74 481,158 $ 1,079,094.17 2.2427 3 December 146,081 $ 323,521.73 870,002 $ 1,861,804.28 1,016,083 $ 2,185,326.01 2.1507 4 January, 2020 192,457 $ 379,232.52 90,596 $ 193,875.44 283,053 $ 573,107.96 2.0247 5 February 238,373 $ 420,166.07 202,911 $ 434,229.54 441,284 $ 854,395.61 1.9362 6 March 511,251 $ 859,609.04 - $ - 511,251 $ 859,609.04 1.6814 7 April 370,287 $ 609,089.68 - $ - 370,287 $ 609,089.68 1.6449 8 May 427,193 $ 729,035.58 - $ - 427,193 $ 729,035.58 1.7066 9 June 188,145 $ 295,471.73 - $ - 188,145 $ 295,471.73 1.5704 10 July 382,974 $ 639,907.06 - $ - 382,974 $ 639,907.06 1.6709 11 August 396,997 $ 862,871.96 - $ - 396,997 $ 862,871.96 2.1735 12 September 371,016 $ 722,665.49 - $ - 371,016 $ 722,665.49 1.9478 13 October 232,153 $ 574,264.86 300,000 $ 843,000.00 532,153 $ 1,417,264.86 2.6633 1/ Volumes Sold Pursuant To Section 14.1(b) Of The General Terms And Conditions Of Southern's FERC Gas Tariff And Section 2.2 Of Southern's Pipeline Balancing Agreement. 2/ Volumes Sold Pursuant To Section 14.2(b) (iii) Of The General Terms And Conditions Of Southern's FERC Gas Tariff.


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