Tennessee Gas Pipeline Company
FIFTH REVISED VOLUME NO. 1
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Effective Date: 02/01/2006, Docket: RP06-157-001, Status: Effective
Sub Sixth Revised Sheet No. 95B Sub Sixth Revised Sheet No. 95B : Effective
Superseding: Fifth Revised Sheet No. 95B
RATE SCHEDULE FS
FIRM STORAGE SERVICE (continued)
March 1 of each calendar year will be automatically charged an overrun withdrawal
rate per DTH beneath the limit. In the event that Transporter calls a Critical
Day or issues an Action Alert pursuant to Article VIII of the General Terms and
Conditions, a Shipper will be penalized $25.00 per DTH on further withdrawals
below the minimum that are not authorized. In the event that Transporter calls a
Balancing Alert pursuant to Article VIII of the General Terms and Conditions, a
Shipper will be penalized $15.00 plus the applicable Regional Daily Spot Price for
each dekatherm on further withdrawals below the minimum that are not authorized.
Regional Spot Price means the highest spot price published in Gas Daily for the
day(s) on which, and for the region(s) in which, the Balancing Alert is in effect;
provided that if the Balancing Alert is in effect on days on which no Gas Daily is
published, the applicable price(s) reflected in the most recently published Gas
Daily shall be used in assessing the charge. However, to the extent the overruns
are explicitly authorized by Transporter, both the authorized overrun charge and
the applicable $25.00 per DTH penalty or the $15.00 per DTH penalty plus the
applicable Regional Daily Spot Price penalty will be waived.
(c) For the months November through March, maximum net withdrawals of a shipper's
inventory must be less than or equal to 110% of Ratchet II daily level times
the number of days in the month. This restriction will not apply to shippers
who make seasonal elections (effective December - February) to forfeit in
relation to the transportation contracts designated under Rate Schedule FT-A,
FT-G or FT-GS, release rights for capacity, including the primary receipt
point(s), upstream of Shipper's FS service point. Shippers making seasonal
elections must provide written notice of such election to Transporter by
October 20.
The maximum net withdrawal restriction also will not apply to Shippers who make
seasonal elections to release proportionate amounts of firm storage capacity,
deliverability rights (including conditional deliverability rights), and firm
transportation capacity upstream of Shippers' FS service point during the
months of December through February. In the event of such a proportionate
release: (a) the Releasing Shipper will retain conditional deliverability
rights in proportion to the firm storage capacity, deliverability rights
(including conditional deliverability rights), and firm transportation capacity
upstream of Shippers' FS service point that it retains; and (b) the Replacement
Shipper shall be entitled to the conditional deliverability rights included in
the proportionate release and subject to the same conditions for conditional
deliverability as the Releasing Shipper, provided that the Replacement Shipper
does not re-release either the firm storage or the designated transportation
contract during the period December through February. Shipper must provide
written notice of such proportionate releases to Transporter at least 5 days
prior to the effective date of such releases.
Transporter is not required to provide notice to Shippers exceeding one hundred
ten percent (110%) of Ratchet II withdrawals. For Shippers who did not make a
seasonal election, in the event that Transporter calls a Critical Day or issues
an Action Alert pursuant to Article VIII of the General Terms and Conditions,
all volumes exceeding such limit will be subject to an unauthorized overrun
charge of $25.00 per DTH. For Shippers who did not make a seasonal election, in
the event that Transporter calls a Balancing Alert pursuant to Article VIII of
the General Terms and Conditions all volumes exceeding such limit will be
subject to an unauthorized overrun charge of $15.00 per DTH plus the applicable
Regional Daily Spot Price for each dekatherm; unless Shipper receives advance
approval from Transporter, in Transporter's sole discretion, that Shipper may
exceed 110% of Ratchet II withdrawals. Transporter will use reasonable efforts
to accommodate withdrawals exceeding 110% of Ratchet II upon receipt of a
Shipper's request. Regional Spot Price means the highest spot price published
in Gas Daily for the day(s) on which, and for the region(s) in which, the
Balancing Alert is in effect; provided that if the Balancing Alert is in effect
on days on which no Gas Daily is published, the applicable price(s) reflected in
the most recently published Gas Daily shall be used in assessing the charge.