Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 10/01/2003, Docket: RP00-477-005, Status: Effective

Ninth Revised Sheet No. 205 Ninth Revised Sheet No. 205 : Effective

Superseding: Sixth Revised Sheet No. 205

 

 

Schedule LMS - MA

Load Management Service - Market Area (continued)

 

 

6. Uniform Quantities

 

As nearly as practicable, Shipper or Balancing Party, as applicable, shall

deliver and receive gas in uniform hourly quantities during any day.

 

7. Cash Out Option

 

On any day that a Balancing Party does not elect the Storage Swing Option

service under Section 8 of this Rate Schedule, Balancing Party shall be

subject to the requirements of this Section 7.

 

(a) Daily Imbalance Charges:

 

(i) The Daily Imbalance for a Delivery Point Balancing Agreement

shall be the difference between the total net quantities

scheduled for delivery at the point(s) as set forth in the

Balancing Agreement and the actual quantities of gas taken by

Balancing Party at such point(s) for each day.

 

(ii) Each day, Transporter shall provide on PASSKEY a continuous

notice of the net pipeline position of Transporter's pipeline

system. Beginning at 12 PM CCT each gas day, Transporter shall

monitor the net pipeline position and provide notice via e-mail

to customers the first time the net pipeline position is greater

than plus or minus 4.5%. Transporter shall calculate the net

pipeline position by dividing the sum of the total positive or

negative cumulative imbalances at all points covered by this

Rate Schedule and the total positive or negative cumulative

imbalances at all points under Rate Schedule LMS-PA by the sum

of the total scheduled quantities at all points covered by this

Rate Schedule and the total scheduled quantities at all points

covered by Rate Schedule LMS-PA. The resulting % imbalance is

the net pipeline position.

 

(iii) On a day that the net pipeline position exceeds plus or minus 5%,

any Balancing Party under this Rate Schedule that 1) has a Daily

Imbalance that exceeds the greater of 10% of scheduled quantities

or 1,000 Dth but less than or equal to 20% of that Balancing

Party's scheduled quantities and 2) the Daily Imbalance is in the

same direction as the net pipeline position, shall be assessed a

per dekatherm Daily Imbalance Charge equal to two times the

currently effective maximum rate under Transporter's Rate

Schedule PAL. The Daily Imbalance Charge under this Section

7(a)(iii) shall apply only to those quantities of the Daily

Imbalance that exceed the greater of 10% of scheduled quantities

or 1,000 Dth but are less than or equal to 20% of the Balancing

Party's scheduled quantities for that day.

 

(iv) On a day that the net pipeline position exceeds plus or minus

5%, any Balancing Party under this Rate Schedule that 1) has a

Daily Imbalance greater than 20% of that Balancing Party's

scheduled quantities and 2) the Daily Imbalance is in the same

direction as the net pipeline position, in addition to the Daily

Imbalance Charge set forth in Section 7(a) (iii) above, shall

also be subject to a per dekatherm Daily Imbalance Charge equal

to four times the currently effective maximum rate under

Transporter's Rate Schedule PAL. The Daily Imbalance Charge

under this Section 7(a)(iv) shall apply only to those quantities

of the Daily Imbalance that exceed 20% of the Balancing Party's

scheduled quantities for that day.