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. 157 Original Sheet No. 157 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(e) terminate the Customer's Storage Service Agreement,

provided that PPEC shall provide not less than thirty (30) days

notice of such termination to the Customer and to FERC; and

 

(f) assert any liens or other interests, consistent

with applicable law, against any Gas Customer may have remaining

on PPEC's system.

 

28.3 Customer shall not be obligated to pay PPEC

reservation charges for any suspended services during any period

of suspension pursuant to Section 28.2.

 

29. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF NEW

FACILITIES

 

29.1 Except as provided in Section 29.2 herein, Customer

shall reimburse PPEC (a) for the costs of any facilities installed

by PPEC with Customer's consent to receive, measure, store or

deliver Gas for Customer's account and (b) for any and all filings

and approval fees required in connection with Customer's Storage

Service Agreement that PPEC is obligated to pay to the Commission

or any other governmental authority having jurisdiction. Any

reimbursement due PPEC by Customer pursuant to this Section 29.1

shall be due and payable to PPEC within ten (10) days of receipt

by Customer of PPEC's invoice(s) for same; provided, however, that

subject to PPEC's consent, such reimbursement, plus carrying

charges thereon, may be amortized over a mutually agreeable period

not to extend beyond the primary contract term of the Storage

Service Agreement between PPEC and Customer. Carrying charges

shall be computed utilizing interest factors acceptable to both

PPEC and Customer.

 

29.2 PPEC may waive from time to time, at its discretion,

all or a portion of the facility cost reimbursement requirement

set forth in Section 29.1 for Rate Schedules FSS, FP and FL if

Customer provides PPEC adequate assurances to make construction of

the facilities economical to PPEC. All requests for waiver shall

be handled by PPEC in a manner which is not unduly discriminatory.

For purposes of determining whether a project is economical, PPEC

will evaluate projects on the basis of various economic criteria,

which will include the estimated cost of the facilities, operating

and maintenance as well as administrative and general expenses

attributable to the facilities, the revenues PPEC estimates will

be generated as a result of such construction, and the

availability of capital funds on terms and conditions acceptable

to PPEC. In estimating the revenues to be generated, PPEC will

evaluate the existence of capacity limitations downstream of the

facilities, the marketability of the capacity, the Interruptible

versus the firm nature of the service, and other similar factors

which impact whether the available capacity will actually be

utilized.