Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 09/01/1998, Docket: RP95- 64-005, Status: Effective

Original Sheet No. 209.02 Original Sheet No. 209.02 : Effective

 

 

 

Schedule LMS - MA

Load Management Service - Market Area (continued)

 

 

Station 87, the transaction price will be reduced by

subtracting a "transportation component" from the price so

as to make the price comparable to a price in the Gulf of

Mexico gas supply area; the "transportation component" --

as defined in Section 7(c)(iii) of this Rate Schedule --

shall be equal to Tennessee's Rate Schedule FT-A maximum

commodity rate (including fuel and surcharges) for

transportation from Zone 1 on Tennessee's system to the

zone in which the operational transaction occurred.

 

Item No. 3. Balancing Entry: To the extent that Tennessee's

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)

are insufficient to fully offset the Net Cashout Activity, Tennessee

shall include in the Cashout Report a Balancing Entry to reconcile the

remaining Net Cashout Activity in the following manner:

 

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

experienced a net cashout sale, but has not made

sufficient operational purchases to fully offset the net

cashout sale, a Balancing Entry of operational purchases

will be included in the Cashout Report equal to the

quantity of deficient operational purchases multiplied by

a price based upon a NYMEX futures price as described in

Item Nos. 3(c) and 3(d) below.

 

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

experienced a net cashout purchase, but has not made

sufficient operational sales to fully offset the net

cashout purchase, a Balancing Entry of operational sales

will be included in the Cashout Report equal to the

quantity of deficient operational sales multiplied by a

price based upon a NYMEX futures price as described in

Item Nos. 3(c) and 3(d) below.

 

(c) Balancing Entry Pricing: The price for Balancing Entry

quantities shall be taken from the NYMEX Henry Hub 12-

month projection of future monthly gas prices for November

through October as of the close of business on September

30 following the close of the Annual Cashout Period. For

Balancing Entry quantities up to and including 500,000

dekatherms, the fourth highest NYMEX future monthly price

shall be the price for Balancing Entry sale quantities and

the fourth lowest NYMEX future monthly price shall be the

price for Balancing Entry purchase quantities. For

Balancing Entry quantities in excess of 500,000

dekatherms, if any, the price of Balancing Entry sale

quantities shall be the highest NYMEX future monthly

price, and the price for Balancing Entry purchase

quantities shall be the lowest NYMEX future monthly price.