Columbia Gas Transmission LLC

Third Revised Volume No. 1

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Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 387 Original Sheet No. 387

 

GENERAL TERMS AND CONDITIONS (Cont'd)

 

38. RECOVERY OF PIPELINE SUPPLIER BILLINGS OF TAKE-OR-PAY AND CONTRACT REFORMATION COSTS

 

38.1 Purpose. This Section establishes the mechanism for the recovery by Transporter from Shippers of Order

No. 500/528 costs billed to Transporter by its pipeline suppliers.

 

38.2 Fixed Charge Recovery Mechanism. Transporter shall allocate to and recover from its Shippers each month

the fixed charges billed by its pipeline suppliers in such month. The amounts billed to each Shipper shall

equal the sum of the amounts billed to Transporter by each pipeline supplier times the percentage allocated to

each Shipper under the allocation method employed by each respective billing pipeline supplier, except in

instances where a pipeline supplier is exempt from Commission Order No. 528 or any successor Commission

orders. In those instances, Columbia will allocate the monthly charges from that pipeline supplier to its

shippers based on an allocation methodology reflecting current daily Total Firm Entitlements under Rate

Schedules FTS, NTS, NTS-S, TPS, SST, GTS, and OPT. Periodic adjustments will be made annually at November 1

of each year and direct billings will remain in effect, reflecting the then current daily Total Firm

Entitlements. In the event fixed charges from Transporter's pipeline suppliers are being collected by such

suppliers subject to refund, Transporter's charges to Shippers pursuant to this Section will also be subject

to refund. Any increase or decrease in such fixed charges to Transporter by any such pipeline supplier will

likewise be allocated and charged to Shippers on that same basis. The fixed monthly demand surcharges

applicable to Shippers shall remain in effect until all charges, including all associated carrying charges,

are fully recovered by Transporter from Shippers. These fixed monthly demand surcharges may be refunded or

recovered from Shippers over an extended amortization period as may be requested by the affected Shipper, not

to exceed 36 months (Recovery Period), commencing with the effective date of the filing; provided, however,

that Transporter may elect to propose such longer Recovery Period and provided, further, that Shipper may

elect the option of a lump sum payment. Such fixed monthly demand surcharge to Shippers, which includes

carrying charges estimated by Transporter's pipeline suppliers, shall be set forth on the currently effective

Sheet Nos. 46, et seq. Actual carrying charges billed to Transporter by its pipeline suppliers shall be

allocated among Shippers in accordance with the allocation percentages as set forth on Sheet Nos. 46, et seq.

 

38.3 Payment. Transporter shall include in the monthly billing statements rendered to Shipper pursuant to

Section 10 (Billing and Payment) for services under other provisions of this Tariff, the applicable charges to

Shipper pursuant to this Section 38. To the extent Transporter incurs charges in a given month from its

pipeline suppliers on a retroactive basis covering more than one month, Transporter shall recover from each

Shipper in said given month Shipper's allocated share of such amount. If for any reason Transporter is

required to pay amounts billed by its pipeline suppliers prior to the recovery of such amounts from Shippers

under this Section 38, Transporter shall be permitted to recover carrying charges calculated in accordance

with Section 154.501 of the Commission's Regulations. The provisions of Section 10 of these General Terms and

Conditions shall apply to this Section 38.

 

38.4 Sales and Transportation Entitlement Changes or Termination. In the event the Service Agreement with

Transporter under Rate Schedules FTS, NTS, NTS-S TPS, SST, GTS, and OPT of any Shipper liable for charges

under this Section 38 is terminated for any reason, including, but not limited to, the expiration of said

agreement, an abandonment of service under the Natural Gas Act, a change in corporate identity, a change in

entitlement levels or through conversion of any or all demand billing determinants to another of Transporter's

Rate Schedules, Shipper shall not be relieved of its obligation under Section 38, et seq. In such event,

Transporter shall at Shipper's option either (a) bill Shipper within forty-five (45) days after such notice of

termination a one-time charge for the full amount of said Shipper's monthly fixed charge remaining due, or (b)

continue billing the monthly fixed charge to Shipper during the remainder of the recovery period, or in any

other manner allowable under the Natural Gas Act.