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.