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. 1096 Original Sheet No. 1096 : Effective
GENERAL TERMS AND CONDITIONS
OVERRUNS, PENALTIES AND REVENUE CREDITING
37.5 Crediting of Penalty Revenues.
A. Pipeline shall credit each month a subaccount of Account No. 254 by the penalty
revenues, net of Related Costs, received by Pipeline from its customers pursuant to
GT&C Sections 18.5, 37.2 and 37.3. The monthly penalty revenues entered into the
subaccount shall be identified by Customer and by Rate Schedule so that Pipeline can
determine the identity of Offending and Non-Offending Customers taking service under
each Firm Transportation Rate Schedule. On July 31 of each year, Pipeline shall
credit the April 30 balance of the subaccount, including Interest, to the appropriate
customers by means of a cash payment via check or wire transfer. Where a credit
amount due to any customer is less than $10,000, Pipeline shall have the option to
provide the amount by means of a credit to that customer's bill, which shall be
separately identified as such a credit. Where there is no Non-Offending Customer in
a particular month, Pipeline may retain any penalty revenue.
B. Pipeline shall allocate penalty revenues received each month from transportation
customers among eligible Non-Offending Customers in proportion to transportation
reservation revenues received.
C. Within 30 days of the annual crediting of the amounts required under this section,
Pipeline shall file a report with the Commission setting forth, by month, the amount
of penalty revenues received from Offending Customers, Related Costs that Pipeline
netted against such revenues and the penalty revenues allocated to each Non-Offending
Customer. The report shall detail the nature of Related Costs and the nexus between
the incurrence of Related Costs and the action that resulted in a penalty. To the
extent that the Commission finds that Pipeline has not demonstrated that the "Related
Costs" reported by Pipeline qualify as such under the definition set forth in GT&C
Section 37.5.D, Pipeline shall return any such amounts to the relevant subaccount
D. The following definitions shall apply to this Section 37.5:
1. "Related Costs" are all out-of-pocket costs incurred as a direct result of an
Offending Customer's imbalance, unauthorized overrun, failure to abide by an OFO,
or other misconduct, to the extent that Pipeline demonstrates that the costs are
not already recovered in rates.
2. "Non-Offending Customers" are Pipeline's customers, including Customers paying
Negotiated Rates, that were not assessed a penalty by Pipeline in the applicable
3. "Offending Customers" are Pipeline's customers that were assessed a penalty by
Pipeline in the applicable month.
37.6 The payment of an authorized overrun charge or overrun penalty shall not under any
circumstances be construed as giving Customer the right to take such overruns; nor shall
payment be construed as a substitute for any other remedies available to Pipeline or to
any other Customer against the Customer receiving the unauthorized overrun for failure to
adhere to its obligations under the provisions of the Rate Schedule, the Service
Agreement or the GT&C. Pipeline shall post on the Website the options available to
Customer to minimize or avoid the overrun service charges described in this Section 37.
Such posting shall include alternative services, if any, offered by Pipeline.