Puget Sound Energy, Inc.
Original Volume No. 1
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Effective Date: 11/01/1998, Docket: CP98-250-002, Status: Effective
Original Sheet No. 33 Original Sheet No. 33 : Effective
addition, the extent of each Owner's participation shall be its
then current Ownership Percentage prior to such expansion or
addition, unless all Owners agree otherwise. If fewer than all
Owners participate in the expansion or addition, then the extent
of each Owner's participation shall be the percentage
corresponding to the ratio of such Owner's Ownership Percentage to
the aggregate Ownership Percentages of the participating Owners,
unless all participating Owners agree otherwise. Non-initiating
Owner(s) electing to participate in an expansion or addition shall
reimburse a proportionate share of the costs of preparation,
analysis and review of the proposal discussed in Section 4.1.
The participating Owner(s) shall indemnify and hold harmless the
non-participating Owner(s) for any damage or loss to person or
property, including any Storage Reservoir or part thereof, arising
from, or incidental to, an expansion or addition.
4.4 Impact on Ownership and Storage Service Rights
4.4.1 An Owner's Ownership Percentage, allocations of gains and
losses pursuant to Section 8.2, and proportionate allocation of
Capital Costs may be affected by an expansion or addition. The
Ownership Percentage and Weighted Share of Capital Costs of each
Owner after an expansion or addition will be determined by (a)
calculating the sum of (i) the quotient obtained from a Owner's
Firm Withdrawal Deliverability divided by the Project Firm
Withdrawal Capability, plus (ii) the quotient obtained from a
Owner's Firm Working Gas Capacity divided by the Project Firm
Working Gas Capacity, and then (b) dividing the sum by two (2).
4.4.2 After each expansion or addition, the Committee by 75%
majority agreement of the Owners will equitably adjust the
Weighted Shares of the O&M Costs for all Owners, taking into
account the dollars invested in the expansion, the relative
percentages of Storage Service Rights, and changes in overall O&M
Costs as a result of such expansion.