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.