Dominion South Pipeline Co., LP

Original Volume No. 1

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Effective Date: 12/16/2005, Docket: CP05- 77-001, Status: Effective

Original Sheet No. 1041 Original Sheet No. 1041 : Effective

 

 

GENERAL TERMS AND CONDITIONS

CAPACITY RELEASE

 

15. CAPACITY RELEASE

 

15.1 Availability.

 

A. This Section 15 is available to Pipeline's Firm Transportation Rate Schedules

Customers (Releasing Customers), authorized by Part 284 of the Commission's

Regulations.

 

B. Customer may release capacity under this Section 15 only to the extent that it pays a

reservation charge for such entitlements.

 

C. Eligible Bidders.

 

1. Any party desiring to submit a bid under this Section must first pre-qualify by

demonstrating that it meets the creditworthiness standards of GT&C Section 6. Upon

a Releasing Customer's request Pipeline will waive this pre-qualification

requirement on a non-discriminatory basis. Depending on whether the Releasing

Customer waives the requirement, the following conditions apply:

 

a. In the event that the requirement for pre-qualification applies, Replacement

Customer must satisfy the creditworthiness provisions, including the posting of

collateral, prior to the awarding of the bid. All collateral posted must

include the necessary instructions for Pipeline to effectuate the release of

the collateral, as provided in Section 15.3.G, below. For cash collateral,

bidders must provide all information necessary for Pipeline to return cash

collateral by wire transfer. For non-cash collateral, bidders must provide all

information necessary for Pipeline to return relevant documents via overnight

delivery.

 

b. In the event Releasing Customer waives the pre-qualification requirement for a

Replacement Customer that does not meet the creditworthiness standards of GT&C

Section 6, Releasing Customer shall either:

 

(i) Require Replacement Customer to satisfy the creditworthiness provisions,

including posting of collateral, prior to service being provided to

Replacement Customer, or

 

(ii) Prior to the commencement of service to Replacement Customer, assume

liability for the usage charges or post a bond or other form of credit

assurance for the usage charges with respect to the capacity being

released by Releasing Customer either for the entire duration of the

release or until such time as Replacement Customer satisfies the

collateral requirements.

 

2. Notwithstanding the creditworthiness provisions of GT&C Section, 6, in no event

shall Pipeline require collateral to be posted based on a period corresponding to a

time period longer than the duration of the release.

 

3. An agent may be used to bid for capacity; however, a potential bidder who desires

to act as agent must disclose the identity of its principal on whose behalf it will

participate under this Section, and provide proof of its authority to act on behalf

of its principal.