Equitrans, L. P.
Original Volume No. 1
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Effective Date: 05/16/2010, Docket: RP10-616-000, Status: Effective
First Revised Sheet No. 316 First Revised Sheet No. 316
Superseding: Second Substitute Original Sheet No. 316
GENERAL TERMS AND CONDITIONS (Continued)
41. TENNESSEE CAPACITY SURCHARGE TRACKER (TCST)
41.1 Purpose. This Section provides for the recovery of Tennessee Gas Pipeline capacity
costs incurred by Equitrans through a Gas Transportation Agreement for use under
Tennessee Gas Pipeline Rate Schedule FT-A for the period October 1, 2008 through
August 31, 2010 (Transportation Agreement). The firm reservation charges associated
with Transportation Agreement (Capacity Costs) shall be recovered by means of this
surcharge tracker. The TCST rate shall be applicable to shippers on the Equitrans'
Big Sandy Pipeline under Rate Schedules FTS and ITS. The TCST rate will be
calculated in accordance with Section 41.4 below.
41.2 Capacity Utilization. Transportation Agreement provides for 82,000 Dth per day of
firm transportation service from Glancy Fork, the Equitrans Big Sandy interconnect
with Tennessee Gas Pipeline to Dry Creek, an interconnect on Tennessee Gas Pipeline
with Texas Eastern Transmission Corporation. The firm capacity on Tennessee for
delivery to Dry Creek is available to Big Sandy Shippers on a daily basis. Big
Sandy firm shippers have priority over interruptible shippers to nominate to Dry
Creek. In the event firm nominations to Dry Creek exceed the 82,000 Dth /day, the
Capacity will be allocated based on a percentage of total nominations received. If
Dry Creek capacity is available to Interruptible shippers and the nominations
exceed available capacity, interruptible capacity will be allocated based on a
percentage of total interruptible nominations received. Firm and Interruptible
shippers nominating gas to Dry Creek will be responsible for fuel and volumetric
charges assessed by Tennessee Gas Pipeline to transport gas to Dry Creek.
41.3 TCST Filings. Annually, or at such other times as Equitrans in its reasonable
discretion determines necessary, Equitrans may adjust the TCST rate to take into
account both prospective changes in Capacity Costs and unrecovered Capacity Costs
from the preceding period as described in Section 41.4 below. That adjustment
shall be effected by Equitrans' making a Capacity Cost Tracker filing with the
Commission annually on or before September 1 to become effective October 1 (Annual
Within 90 days prior to the expiration of the Gas Transportation Agreement under
Tennessee Gas Pipeline Rate Schedule FTA on August 31, 2010, Equitrans may make a
filing to compare projected total revenue collected under the Tennessee Surcharge
Tracker to the projected total costs incurred under the Tennessee Agreement and
adjust the TCST rates to ensure accurate recovery of the Tennessee capacity costs.
Equitrans will stop billing the TCST rates upon full recovery of all costs incurred
under the Tennessee Agreement.
41.4 Calculation of TCST Rate. In each Annual or Periodic filing, Equitrans shall
calculate the TCST Rate using the following methodology:
(a) Equitrans will estimate Capacity Costs for the prospective 12 months based
on the Equitrans Firm Transportation Agreement FT-A with Tennessee Gas
Pipeline ("Prospective Capacity Costs ").
(b) Equitrans will separately adjust the Prospective Capacity Costs upward or
downward if and to the extent that Equitrans under-recovered or over-
recovered Capacity Costs during the prior 12-month period. Equitrans will
determine the existence and amount of such under-recovery or over-recovery
by determining the TCST revenues received from Customers, during the prior
12 month period and subtracting the actual Capacity Costs incurred by
Equitrans during the prior 12-month period adjusted for any Tennessee
capacity release revenues collected by Equitrans under Transportation
Agreement during the prior 12-month period. Capacity release revenues will
be credited to Big Sandy Firm Shippers only through the TCST reservation
charge. The remaining over recovered or under recovered dollars, if any,
will be subtracted from or added to the Prospective Capacity Costs.