Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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Effective Date: 08/01/2004, Docket: RP04-336-000, Status: Effective

Seventh Revised Sheet No. 86 Seventh Revised Sheet No. 86 : Effective

Superseding: Sixth Revised Sheet No. 86

 

GENERAL TERMS AND CONDITIONS FOR SERVICE - continued

 

35. CREDITING OF IMBALANCE REVENUE

 

35.1 This Section 35 establishes the procedures to be used by

Transporter to credit to Shippers Penalty Charges. "Penalty

Charges" shall include Unauthorized Overrun Charges; net Imbalance

revenue pursuant to Section 5.2d of Rate Schedule FT and Section

5.2b of Rate Schedule IT; Directional Notice and Critical Time

Operational Flow Order penalties pursuant to Section 29.9 of this

GT&C; PALS and S-PALS contract cash-out revenue pursuant to

Section 8.4(b) of the PALS and S-PALS rate schedules; penalty

amounts collected pursuant to Section 5.7a of Rate Schedule CMC-1

and Section 5.7a of Rate Schedule CMC-2; the realized value of

confiscated gas pursuant to Section 2.9 of Rate Schedule NNS and

Section 2.5 of Rate Schedules FSS and ISS; and the value of

retained gas pursuant to Section 29.13 of these General Terms and

Conditions. This procedure will be effective for Penalty Charges

assessed and collected after June 1, 2003.

 

(a) By December 30 of each Year, Transporter shall submit to the

FERC a reconciliation filing setting forth in detail the

Penalty Charges and related costs as of the preceding

September 30 and the allocation of any Penalty Charges and

related costs under this Section 35 to each Shipper, which

will be subject to review.

 

(b) Transporter shall compare Penalty Charges and related costs,

and determine if the Penalty Charges were in excess of costs

(net Penalty Charge revenue), or if costs were in excess of

Penalty Charges (net Penalty Charge costs).

 

(c) To the extent net Penalty Charge revenues are received by

Transporter, such net Penalty Charge revenues, if any, shall

be refunded through a direct payment. A refund allocation

factor for each Shipper shall be calculated by dividing the

actual reservation and commodity revenues for each Shipper

by the total reservation and commodity revenues during the

reporting period. The reservation and commodity revenues

used to calculate the refund allocation factor shall be net

of all applicable surcharges, including but not limited to,

ACA and GRI surcharges. The resulting refund allocation

factor shall be multiplied by the net Penalty Charge revenue

to arrive at the applicable direct payment for each Shipper.

 

(d) Any net Penalty Charge costs shall be rolled forward into

succeeding reporting periods until eliminated.