East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 04/20/2008, Docket: RP08-277-000, Status: Effective

Third Revised Sheet No. 182 Third Revised Sheet No. 182 : Effective

Superseding: Second Revised Sheet No. 182

 

 

Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)

 

 

(e) Limitation on Tiered Pricing - Any imbalances caused by an

event of force majeure as set forth in Section 24 of the

General Terms and Conditions of Transporter's FERC Gas

Tariff or caused by Transporter's actions (1) will not be

included in the calculation of the total monthly imbalance

for purposes of determining the appropriate cash-out level

and (2) will be cashed out at the 0-5% tolerance level, as

set forth in Section 8.5.

 

(f) Disposition of Charges: At the conclusion of each annual

period, Transporter will determine the net cashout activity

under its LMS Rate Schedules and Section 8 of Rate Schedule

PAL. In the event that charges collected by Transporter

under its cashout provisions exceed the actual cost of

providing service under this Rate Schedule, Transporter

shall credit such excess revenues to all eligible Balancing

Parties. Credits shall be applied based on (1) volumes

transported during each Month that the Balancing Party used

the Cashout Option during the past year and (2) a pro rata

portion of volumes transported by Balancing Parties which

elect the Storage Swing Option but who also resolve

imbalances pursuant to this Cashout Option. Such proration

shall be based on the imbalances cashed out versus

imbalances swung to storage. Any credits due hereunder

shall be made within 45 days following approval by the

Federal Energy Regulatory Commission of Transporter's report

and refund plan concerning such credits. To the extent that

the cashout activity in any annual period results in a

negative balance, such balance will be carried forward and

applied to the next annual determination of cashout

activity. Within 150 days after each anniversary of the

Implementation Date, Transporter will file a report and

refund plan with the Commission.

 

8.6 Operational Integrity - Nothing in this Section 8 shall limit

Transporter's right to take action as may be required to adjust

deliveries of gas in order to alleviate conditions that threaten

the integrity of its system.

 

9. STORAGE SWING OPTION

 

9.1 A Balancing Party meeting the requirements set forth in this

Section 9 may elect to resolve daily variances (as defined in

Section 5 of this LMS-MA Rate Schedule) through the Storage Swing

Option. The Storage Swing Option is designed to allow Balancing

Parties who also hold contracts with Tennessee Gas Pipeline

Company ("Tennessee") for service pursuant to Tennessee's Rate

Schedule FS and for firm transportation on Tennessee, to use up to

two FS contracts and any number of firm transportation contracts

at a time for balancing of daily variances, consistent with

Section 9 of the LMS-MA Rate Schedule of Tennessee's FERC Gas

Tariff.

 

9.2 Requirements: A Balancing Party electing the Storage Swing Option

must hold firm storage and transportation on Tennessee and firm

transportation on Transporter. Balancing Party must provide

Transporter with the following no later than five (5) Business

Days prior to the beginning of the Month in which the Storage

Swing Option is to be effective: