Millennium Pipeline Company, L. L. C.

Original Volume No. 1

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Effective Date: 02/01/2010, Docket: RP10-272-000, Status: Effective

First Revised Sheet No. 234 First Revised Sheet No. 234

Superseding: Original Sheet No. 234

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(c) At the end of the contract year, Transporter will calculate the amount

of Penalty Revenues. Transporter will include interest on the Penalty

Revenues refund balance at the rate specified in the Commission's Regulations

at Section 154.501(d)(1). For each month of the preceding contract year,

Transporter will allocate Penalty Revenues for that month to the Non-

Penalized Shippers for that month based on their actual monthly throughput

for that month under the Non-Penalized Shippers' Rate Schedule FT-1, FT-2,

HT-1, BH-1 and IT-1 Service Agreements. Transporter will credit the bills of

Non-Penalized Shippers for such allocated amounts within 90 days of the end

of the contract year. To the extent that there are no Non-Penalized Shippers

in a month in which there are Penalty Revenues, the Penalty Revenues will be

carried forward to the next succeeding month and will be allocated to Non-

Penalized Shippers in that month.

 

(d) Transporter will file a report within 90 days of the close of the

contract year showing how it calculated and apportioned the Penalty Revenues,

the costs netted against the Penalty Revenues, and the resulting Penalty

Revenue credits for each month of the contract year (November 1 to October

31).

 

19.8 Critical Day Requirement for Penalties.

 

A "Critical Day" will be declared by Transporter whenever Transporter,

in Transporter's reasonable discretion, determines (based on criteria such as

weather forecasts, line pack, pipeline pressures, horsepower availability,

system supply and demand, and other operational circumstances) that operating

conditions have severely deteriorated such that Transporter faces a threat to

its system integrity and/or to Transporter's ability to meet its firm service

obligations. With the exception of (1) failure to interrupt penalties

imposed pursuant to Sections 16 and 19 of the General Terms and Conditions,

2) Operational Flow Order penalties imposed pursuant to the provisions of

Sections 17 and 19 of the General Terms and Conditions and/or the Operational

Flow Order provisions of individual rate schedules, and (3) daily delivery

point scheduling penalties imposed pursuant to Section 19.5 of the General

Terms and Conditions, Transporter will not impose penalties under this

Section 19 and under any rate schedule unless a "Critical Day," as defined

above, has been declared and is in effect on Transporter's system. For

penalties ascribed for conduct that occurs over a monthly as opposed to a

daily period of time, these monthly penalties will be imposed only if

Transporter has declared a "Critical Day" on at least one day occurring in

that monthly period.