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

First Revised Sheet No. 183 First Revised Sheet No. 183 : Effective

Superseding: Original Sheet No. 183

Rate Schedule LMS-MA

Load Management (Market Area) Service

 

(i) the Balancing Party's Tennessee Service Package number(s) for the

applicable FS storage contract(s); and

 

(ii) the Balancing Party's Tennessee Service Package number for the applicable

firm transportation contract (which must list Lobelville and/or Greenbrier

as a Primary Delivery Point); and

 

(iii) the Balancing Party's firm transportation Service Package number(s) for its

firm transportation contract(s) with Transporter (which must list

Lobelville and/or Greenbrier as a Primary Receipt Point and which must

include as Primary Delivery Point(s) only points covered by the Balancing

Party's Balancing Agreement); and

 

(iv) the Service Package numbers for any applicable agency contracts with either

Transporter or Tennessee, and the name of any applicable agent; and

 

(v) executed copies of Tennessee's Downstream Storage Swing Option election

form.

 

Nothing in this Section 9 shall exempt the Balancing Party from MAD Service

Charges.

 

9.3 Daily Variances: A Balancing Party's daily variances at Delivery Point(s) shall be

treated by Transporter as injections into or withdrawals from Tennessee storage,

unless withdrawal would result in a violation of the Storage Swing Limit (as

defined below). Quantities taken in excess of Scheduled Quantities shall be

treated as Tennessee storage withdrawals and will be treated by Transporter as

quantities scheduled for receipt at Lobelville or Greenbrier; the difference

between quantities taken, when they are below Scheduled Quantities, and Scheduled

Quantities shall be treated as Tennessee storage injections and will be treated by

Transporter as if those quantities had not been scheduled for receipt at Lobelville

or Greenbrier. Charges associated with daily variances shall be netted against the

applicable charges for any offsetting scheduled receipts at Lobelville or

Greenbrier for that Day.

 

9.4 Storage Swing Limit: A Balancing Party's Storage Swing Limit on each Day shall

apply only when the Balancing Party takes more gas than is scheduled and shall be

the difference between the Balancing Party's Maximum Daily Receipt Obligation at

Lobelville/Greenbrier under its firm transportation contract(s) with Transporter

specified pursuant to Section 9.2 and the total firm receipt quantity scheduled

(exclusive of fuel) under such firm transportation contract(s) from

Lobelville/Greenbrier to any Primary or Secondary Delivery Points under such firm

transportation contract(s). Nothing herein shall exempt a Balancing Party from

compliance with an Operational Flow Order issued pursuant to Section 14 of

Transporter's General Terms & Conditions or from penalties resulting from

noncompliance.

 

9.5 Transportation Component: For all daily variances resolved by utilization of the

Storage Swing Option, (a) Balancing Party shall pay to Transporter the

"Transportation Component" if actual deliveries are greater than the Scheduled

Quantities, or (b) Transporter shall pay to Balancing Party the "Transportation

Component" if actual deliveries are less than the Scheduled Quantities. The

"Transportation Component" shall be equal to the applicable commodity rate under

Transporter's FT-A or FT-GS Rate Schedule, as applicable, multiplied by the daily

variance.

 

9.6 Mandatory Cashout: In the event that Tennessee or East Tennessee, in accordance

with their respective FERC Gas Tariffs, does not treat a daily variance as an

automatic injection or withdrawal, that portion of the daily variance shall be

cashed out in accordance with the provisions of Section 8 of this Rate Schedule.