Pine Prairie Energy Center, LLC

Original Volume No. 1

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Effective Date: 09/01/2007, Docket: RP07-563-000, Status: Effective

Original Sheet No. 133 Original Sheet No. 133 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(g) OFOs: In the event that, in PPEC's judgment,

immediate action is required to alleviate conditions which

threaten to impair reliable firm service, to maintain operations

at the pressures required to provide efficient and reliable

service, to have adequate Gas supplies in the system to deliver on

demand, to maintain services to all firm Customers and for all

firm services, and/or to maintain the system in balance for the

foregoing purposes, PPEC may forgo the action described in Section

5.5(f) and immediately issue an OFO. In the event that (l)

Customer or point operator does not respond to an Action Alert,

(2) the actions taken thereunder are insufficient to correct the

system problem for which the Action Alert was issued, or (3) there

is insufficient time to carry out the procedures with respect to

Action Alerts, PPEC may issue an OFO pursuant to this Section

5.5(g) or take unilateral action, including the curtailment of

firm service, to maintain the operational integrity of PPEC's

system. For purposes of this Section, the operational integrity

of PPEC's system shall encompass the integrity of the physical

system and the preservation of physical assets and their

performance, the overall operating performance of the entire

physical system as an entity, and the maintenance (on a reliable

and operationally sound basis) of total system deliverability and

the quality of Gas delivered.

 

(h) Termination of an Action Alert or OFO: PPEC shall

lift any effective Action Alert or OFO promptly upon the cessation

of operating conditions that caused the relevant system problem.

After PPEC has lifted the Action Alert or the OFO, PPEC shall post

a notice on its Internet Web Site specifying the factors that

caused the Action Alert or OFO to be issued and then lifted, to

the extent such factors are known. PPEC shall also provide such

notification via e-mail communication to those Customers who have

submitted a request, and provided e-mail address information for

at least one contact person, via PPEC's Internet Web Site to

receive e-mail notification of Critical Notices issued by PPEC.

 

(i) Penalties: All quantities tendered to PPEC and/or

taken by Customer on a daily basis in violation of an Action Alert

or OFO shall constitute unauthorized receipts or deliveries for

which the applicable Action Alert or OFO penalty charge stated

below shall be assessed.

 

(l) Action Alert penalty charge for each Dekatherm of Gas

by which Customer deviated from the requirements of the

Action Alert shall be equal to an Action Alert Index

Price, calculated as 110% of the applicable daily Gas

Daily posting for Henry Hub for the Day on which the

deviation occurred, multiplied by the quantity by

which the Customer deviated from the requirements of

the Action Alert.

 

(2) OFO penalty charge for each Dekatherm of Gas by which

Customer deviated from the requirements of the OFO

shall be equal to an OFO Index Price, calculated as

three (3) times the applicable daily Gas Daily posting

for Henry Hub for the Day on which the deviation

occurred, multiplied by the quantity by which the

Customer deviated from the requirements of the OFO.