Ozark Gas Transmission, L. L. C.

First Revised Volume No. 1

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Effective Date: 11/01/2008, Docket: RP08-617-001, Status: Effective

Substitute Original Sheet No. 126 Substitute Original Sheet No. 126

 

GENERAL TERMS AND CONDITIONS (continued)

 

11.4 Demand Charge Credits. If during any Month Transporter shall

have failed, by reason of Force Majeure, to deliver for the

account of a firm Shipper on any Day a quantity of Natural Gas

(exclusive of Fuel Usage and Lost and Unaccounted For) as shall

have been tendered by or for the account of Shipper (a "Firm

Delivery Shortfall"), Transporter shall become obligated to

provide a partial demand charge credit in favor of Shipper, as

specified in this Section 11.4; provided, however, that Shipper

shall not be entitled to demand charge credits to the extent that

Shipper utilizes secondary point service. Notwithstanding the

occurrence of a Firm Delivery Shortfall, Shipper shall remain

obligated to pay to Transporter the full amount of the applicable

monthly Demand Charge specified in the applicable Rate Schedule

and Shipper's Service Agreement for the Month in which the Firm

Delivery Shortfall occurred. Transporter shall, however, reflect

in the invoice rendered Shipper in the next succeeding Month

partial demand charge credits corresponding to the Firm Delivery

Shortfall. Such partial demand charge credits shall be calculated

as to each Day in which a Firm Delivery Shortfall occurred by

multiplying (i) the amount of the Firm Delivery Shortfall on such

Day by (ii) the result of dividing (x) the Equity Return and

Associated Income Tax Component (as defined in the next sentence)

by (y) the number of Days in the applicable Month. For purposes

of performing this calculation, the Equity Return and Associated

Income Tax Component shall be deemed to be the percentage of the

monthly Demand Charge which the allowance for return on equity and

associated income taxes underlying Transporter's then-effective

firm service reservation rates bears to the total cost of service

underlying those rates, as reflected in the rate settlement or

FERC order authorizing Transporter to collect such rates.

 

If Transporter curtails firm service for any reason other than

Force Majeure, Shipper shall be entitled to full demand charge

credits to the extent Transporter is unable to honor Shipper's

Nominations; provided, however, that Shipper shall not be entitled

to demand charge credits to the extent that Shipper utilizes

secondary point service.