Richfield Gas Storage System

Substitute Volume No. 1

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Effective Date: 04/15/1993, Docket: CP92-285-002, Status: Effective

Original Sheet No. 34 Original Sheet No. 34 : Superseded

 

3. OFFERING OF SERVICE

Richfield shall accept, on a first come, first served basis,

written requests for service under any Rate Schedule. All

complete requests received on the same

business day or during the same open season will be

considered concurrently received. If concurrently received

requests for firm service exceed the capacity available to

provide such service, such capacity shall be allocated to

prospective Customers based upon the highest present value

of the weighted average per unit Capacity and Reservation

Charges proposed by said prospective Customers to be paid

over the proposed term of service requested. Capacity will

be allocated on a pro rata basis if two or more prospective

Customers submit concurrent bids proposing identical

weighted average per-unit Capacity and Reservation Charges.

For purposes of this Section, the present value of a rate or

charge shall be calculated in the following manner:

 

 

PV = A x 1-(l+r)-n

r

 

where: PV = present value of the rate

 

A = fraction of weighted average unit rate

 

= proposed rate

maximum rate

 

r = the sum of (i) the prime rate as published by

the Wall Street Journal on the business day

preceding the day on which the firm capacity

is available plus (ii) Five percent (5%).

 

n = term of the agreement, in months.

 

For purposes of the foregoing formula, the "day on which the firm

capacity is available" means the day on which information

relating to the availability of the capacity is first posted on

Richfield's Electronic Bulletin board or, in the case of capacity

allocated during an open season held prior to the initiation of

all Richfield service or in connection with the exercise of a

right of first refusal, the first day of the open season.