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

Second Revised Sheet No. 399 Second Revised Sheet No. 399 : Effective

Superseding: First Revised Sheet No. 399

 

GENERAL TERMS AND CONDITIONS (Continued)

 

47. PENALTIES AND PENALTY CREDITING MECHANISM (continued)

 

 

47.6 Unauthorized Delivery Imbalance Charge

(a) In the event that unauthorized deliveries as defined in

Section 15.8 of the General Terms and Conditions of this FERC

Gas Tariff are made to Transporter, Transporter shall assess a

charge equal to three times the daily demand rate pursuant to

Transporter's FT-A Rate Schedule per Dekatherm for any

unauthorized delivery quantity, to the extent necessary to

prevent the impairment of reliable service; provided, however,

that the charge applicable to such quantities on any portion

of Transporter's system where service is provided pursuant to

Rate Schedules FT-L or IT-L shall be three times the daily

demand rate pursuant to Transporter's FT-L Rate Schedule.

Transporter shall have the right to retain unauthorized

deliveries at Receipt Point(s) that have not been cured after

30 days notice to the responsible party.

 

(b) Transporter shall dispose of any retained quantities by

auction pursuant to Section 48 of the General Terms and

Conditions of this FERC Gas Tariff. Transporter shall credit

the net proceeds received from such auction in accordance

with the provisions of Section 47.6(c) below.

 

(c) To the extent that Unauthorized Delivery Imbalance Charge

revenues are collected from LMS-PA Balancing Parties or

Transporter disposes of retained quantities by auction,

Transporter will credit penalty revenues or auction proceeds,

net of costs, to any LMS-PA Balancing Party that did not

incur a penalty pursuant to this Section 47.6 in the Month

for which revenues were received ("Non-Offending LMS-PA

Balancing Party"), based on the ratio of the actual

quantities delivered by the Non-Offending LMS-PA Balancing

Party to the actual quantities delivered by all Non-Offending

LMS-PA Balancing Parties.

 

Any credits required by this Section 47.6(c) shall be made

within 90 days following each anniversary of the

Implementation Date.