Kern River Gas Transmission Company
Second Revised Volume No. 1
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Effective Date: 09/04/2009, Docket: RP09-860-000, Status: Effective
First Revised Sheet No. 499B First Revised Sheet No. 499B
Superseding: Original Sheet No. 499B
NEGOTIATED RATE AGREEMENTS (Continued)
11/ Shipper will pay Transporter a discounted rate of $0.1000 per Dth for
scheduled quantities at receipt and delivery points shown on Exhibit "A", up
to Shipper's DMDQ. Shipper will pay Transporter a Commodity/Usage Rate of
$0.0150 per Dth for all capacity scheduled by Shipper or any replacement
Shipper using the transportation path(s) identified on Exhibit "A", plus all
Applicable Surcharges, as defined in footnote 13.
12/ For all scheduled quantities at receipt and/or delivery points not listed
in Exhibit "A", including quantities in excess of Shipper's DMDQ, Shipper will
pay Transporter an Alternate Rate that is calculated as follows:
Alternate Rate = (Net Daily Spread - Index Spread Adjustment) +
Where: Net Daily Spread = ("SoCalGas" price* - "Kern River, Opal Plant
price*) - fuel**
Index Spread Adjustment = the lesser of $0.65 or (Net Daily Spread x
Applicable Surcharges = ACA or future surcharges that Kern River does
not have the ability to discount
*Price is shown in Platts' Gas Daily, "Daily Price Survey, Flow Date Midpoint,"
for the day of scheduled transportation.
**Fuel is the product of (i) fuel and lost and unaccounted-for gas
reimbursement factor under Rate Schedule KRF-1 for Firm Incremental Rate
Service related to the 2003 Expansion, and (ii) price* at "Kern River, Opal
In no event will the Alternate Rate, less applicable surcharges, be less than
the highest Daily Reservation/Demand Rate under Rate Schedule KRF-1 for Rolled-
in Rate Service, as such rates may change from time to time in accordance with
the Natural Gas Act.
During the first twelve (12) months of this Agreement, in no event shall
Shipper pay less than the Minimum Annual Charge, defined as follows:
Minimum Annual Charge = DMDQ x Currently Effective Maximum Recourse
Rate under Rate Schedule KRF-1 for firm incremental rate service for
the 2003 Expansion Project x 365.
13/ The term of the agreement is for a period beginning September 1, 2008,
up to and including August 31, 2009, and month to month thereafter.