Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 21 Original Sheet No. 21 : Effective

 

2.5 Transportation of the gas received by Pipeline at the Primary

Receipt Point(s) specified in Exhibit A of Shipper’s Rate

Schedule FT Service Agreement, and the delivery of such gas to

the Primary Delivery Point(s) specified in Exhibit B of such

Service Agreement, shall be on a firm basis and shall not be

subject to limitation or interruption, except as provided in

GT&Cs Sections 11, 12, 14, 15, 16, 18, and 23. Firm

transportation services under this rate schedule shall have

priority over Pipeline’s interruptible services.

 

2.6 Subject to this Section 2.6, a new or existing Shipper may select

the following 10-year minimum term option:

 

(a) A new Shipper must agree, subject to the terms of GT&Cs

Section 2, to enter into a firm Service Agreement for a

minimum term of 10 years at a rate mutually agreed to by

Shipper and Pipeline, or an existing Shipper must agree to

extend its existing firm Service Agreement for a minimum

term of 10 years at a service level equal to the level of

Shipper’s existing MDTQ and at a rate mutually agreed to by

Shipper and Pipeline.

 

(b) In exchange for such agreement, Pipeline will agree that:

(i) Shipper will have the option during the term of its

Service Agreement to increase its MDTQ in accordance with

the provisions of this Tariff by up to the lesser of 50,000

Dts or 100 percent of Shipper’s existing MDTQ; and (ii) if

necessary to serve such increased MDTQ, Pipeline will

exercise commercially reasonable efforts to construct new

facilities and secure approvals for such construction. To

exercise this option, Shipper shall give to Pipeline six

(6) months written notice if the increased MDTQ does not

require installation of new facilities and, if new

facilities are required, twelve (12) months written notice,

or such longer time as shall reasonably be necessary to

install the new facilities.

 

(c) Pipeline shall not be obligated to construct facilities

under (b) above unless: (i) the incremental revenue

provided by Shipper’s increase in MDTQ during the first

year of service is equal to or exceeds Pipeline’s

incremental first-year costs, including return of and on

equity, of providing the increased MDTQ; and (ii) the

primary term for the increased MDTQ is at least 15 years

and the remaining term of any other firm transportation

service agreed to under (a) above is at least five (5)

years or is extended to at least five (5) years. Shipper

may provide a contribution in aid of construction to reduce

the cost of facilities to a sufficient level so that

requirement (i) is satisfied.