Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 09/23/2000, Docket: RP00-555-000, Status: Effective

Original Sheet No. 1107 Original Sheet No. 1107 : Effective

 

 

 

GENERAL TERMS AND CONDITIONS

Take-or-Pay Recovery

 

Pipeline shall submit an invoice to any such

Customer as part of the final bill. Customer

shall remit payment in full within 30 days of

receipt of invoice or, at Customer's option,

Customer shall furnish Pipeline with a

promissory note for its allocated share of

Pipeline's total unpaid allocated principal

amount. The promissory note shall require

payment within the amortization period

prescribed herein together with interest.

 

B. Take-or-Pay Usage Surcharge. Fifty percent of all

take-or-pay costs paid or incurred by Pipeline will

be recovered from Customers through a Take-or-Pay

Usage Surcharge applied to all quantities

transported by Pipeline pursuant to its

transportation rate schedules, and all quantities

injected into storage by Pipeline pursuant to its

storage service rate schedules.

 

1. Calculation of the Take-or-Pay Usage

Surcharge. In each filing to recover

take-or-pay costs, Pipeline shall calculate

the Take-or-Pay Usage Surcharge for the first

12 months of the respective amortization

period by dividing fifty percent of the total

amount of take-or-pay costs by three, adding

interest for the first 12 months of the

amortization period and then dividing by

Pipeline's total transportation and storage

service injection quantities. In subsequent

12-month periods of the amortization period,

the Take-or-Pay Usage Surcharge shall be

adjusted for changes in interest rates.

 

At the end of each 12 months of the

amortization period, Pipeline shall compare

interest amounts collected from each Customer

to actual interest amounts calculated at the

Commission-approved interest rates. Any

overcollections (or undercollections) of

interest will be credited (or surcharged) to

Customer's first monthly invoice rendered

after the end of each 12 months of the

amortization period.