Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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

Second Revised Sheet No. 209.01 Second Revised Sheet No. 209.01 : Effective

Superseding: Original Sheet No. 209.01

 

 

Schedule LMS - MA

Load Management Service - Market Area (continued)

 

 

cashout purchases or cashout purchases exceed cashout sales).

Daily Imbalance Charges received by Transporter pursuant to

Section 7(a) of this Rate Schedule and Section 5 of Rate Schedule

LMS-PA shall not be included in the calculation of revenues

received for purposes of determining Transporter's Net Cash Out

Activity.

 

Item No. 2. Operational Activity: For the Annual Cashout

Period, Tennessee's Net Cashout Activity shall be reconciled

with Operational Transactions (as defined in Section 7(g)(ii)

of this Rate Schedule and occurring within the applicable

Annual Cashout Period plus, if necessary, one additional month

ending on the September 30 which is thirteen months after the

start of the Annual Cashout Period) in the following manner:

 

(a) Net Cashout Sale: To the extent that Tennessee has, on

a dekatherm basis, experienced a net sale of gas for the

Annual Cashout Period as determined in Item No. 1(b)

supra, Tennessee shall offset the net sale with an entry

in the Cashout Report equal to the weighted average

price per dekatherm of all Operational Purchases (as

defined in Section 7(g)(ii) of this Rate Schedule) for

the annual period multiplied by the net cashout sale

quantity. If Tennessee has not made sufficient

Operational Purchases to fully offset the net cashout

sale, Tennessee shall include all of the Operational

Purchases in the Cashout Report plus an additional

Balancing Entry purchase to reconcile the remaining net

cashout sale as described below in Item No. 3 of this

Section 7(g)(i).

 

(b) Net Cashout Purchase: To the extent that Tennessee has,

on a dekatherm basis, experienced a net purchase of gas

for the Annual Cashout Period as determined in Item No.

1(b) supra, Tennessee shall offset the net purchase with

an entry in the Cashout Report equal to the weighted

average price per dekatherm of all Operational Sales (as

defined in Section 7(g)(ii) of this Rate Schedule) for

the annual period multiplied by the net cashout purchase

quantity. If Tennessee has not made sufficient

Operational Sales to fully offset the net cashout

purchase, Tennessee shall include all of the Operational

Sales in the Cashout Report plus an additional Balancing

Entry sale to reconcile the remaining net cashout

purchase as described below in Item No. 3 of this Section

7(g)(i).

 

(c) Operational Transactions Pricing: In determining the

average price of Operational Purchases and Operational

Sales, the prices used shall be the actual prices

experienced by Tennessee; provided, however, that the

price shall be adjusted for all transactions for which

receipt or delivery occurs downstream of Station 87 on

Tennessee's system. For all such transactions occurring

downstream of