Dominion Cove Point LNG, LP

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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.