Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 04/01/2009, Docket: RP09-399-001, Status: Effective
Sixth Revised Sheet No. 205 Sixth Revised Sheet No. 205
Superseding: Fifth Revised Sheet No. 205
GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.42.A."Retainage": The quantity of Natural Gas or LNG that Buyer shall provide and
Operator shall retain from quantities of Natural Gas or LNG received by Operator from
Buyer under all Rate Schedules, as described below, for Operator's fuel use and lost
and unaccounted for quantities. The standard fuel calculation using the retainage
(fuel) percentage shall be:
delivery quantity
-------------------------- - delivery quantity = retainage quantity
1 - (retainage percentage)
--------------------
( 100 )
The Retainage under Section 4 of Rate Schedules FTS, FPS-1, FPS-2 and FPS-3, Section
3 of LTD-1 and LTD-2, and Section 5 of ITS shall be assessed as a percentage of the
total quantities of Natural Gas or LNG received from Buyers under such Rate Schedules
for fuel used in plant operations (including fuel for liquefaction) and lost and
unaccounted for quantities. The Retainage collected during each Contract Year under
Section 4 of Rate Schedules FPS-1, FPS-2 and FPS-3 shall not exceed twenty and one-
half percent (20.5%) of Buyer's deliveries during the Contract Year and, as
applicable under Section 5(h) of Rate Schedules FPS-1, FPS-2 and FPS-3, twenty and
one-half percent (20.5%) of Buyer's Liquefied Gas Balance on April 16.
The Retainage percentages shall be established initially by Operator based upon
Operator's best estimate of anticipated operating requirements. NAESB Standard
1.3.28 provides that: "For current in-kind fuel reimbursement procedures, fuel rates
shall be made effective only at the beginning of the month." Accordingly, Operator
shall adjust the Retainage percentages annually by filing with the Commission on or
before March 1 to become effective April 1 or, if operating or other conditions
require, at such other times as Operator in its reasonable discretion determines an
adjustment is required to prevent excessive over- or under-recovery of Retainage,
such adjustment to become effective on the first day of the month occurring no
earlier than thirty (30) days after filing.
Each Retainage filing to become effective on April 1 shall establish revised
percentages based upon Operator's estimate of operating requirements for the
succeeding twelve (12) month period ending December 31 of the filing year, as
adjusted for quantities retained either over or under actual quantities required by
Operator during the preceding twelve (12) months ending December 31 of the prior
year. The adjustment for quantities that were retained either over or under actual
quantities required by Operator will not include quantities otherwise recoverable in
accordance with Section 1.42.B. below.
Filings made to become effective on the first of a month other than April shall be
based upon Operator's estimate of operating requirements for the twelve (12) month
period ending nine (9) months after the proposed effective date, as adjusted for
quantities retained either over or under actual quantities required by Operator
during the twelve (12) month period ending three (3) months prior to the proposed
effective date. The adjustment for quantities that were retained either over or
under actual quantities required by Operator will not include quantities otherwise
recoverable in accordance with Section 1.42.B. below.