K O Transmission Company

Original Volume No. 1

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Effective Date: 07/10/2004, Docket: RP00-394-003, Status: Effective

Second Revised Sheet No. 125 Second Revised Sheet No. 125 : Effective

Superseding: First Revised Sheet No. 125

GENERAL TERMS AND CONDITIONS (continued)

 

20. Penalties (con't.)

 

provisions of this Tariff under all of Transporter's Rate Schedules.

 

(c)

On a monthly basis, Transporter shall calculate the amount of Affiliate Penalty

Revenues. Shippers who did not incur penalties during the reporting month are

eligible for credits of penalty revenues related to the reporting month. Transporter

shall allocate such Affiliate Penalty Revenues to the Unaffiliated Shippers based

on their actual monthly throughput under the FTS and/or ITS service agreements.

Transporter shall credit the bills of Unaffiliated Shippers that are the original

capacity holders (and not Replacement Shippers under Section 4 of the General

Terms and Conditions) for such allocated amounts within thirty (30) days of the

end of the reporting month.

 

20.6 Critical Day Requirement for Penalties

 

A "Critical Day" will be declared by Transporter whenever Transporter, in

Transporter's reasonable discretion, determine (based on criteria such as weather

forecasts, line pack, pipeline pressures, horsepower availability, system supply and

demand and other operational circumstances that operational conditions have severely

deteriorated such that Transporter faces a threat to its system integrity and/or to

Transporter's ability to meet its firm service obligation. With the exception of (1)

failure to interrupt penalties imposed pursuant to Sections 16 and 19 of the General

Terms and Conditions and (2) OFO penalties imposed pursuant to the provisions of

Sections 17 and 19 of the General Terms and Conditions, Transporter will not impose

penalties under this Section 20 and under any rate schedule unless a "Critical Day"

as defined above has been declared and is in effect on Transporter's system. For

penalties ascribed for conduct that occurs over a monthly as opposed to a daily

period of time, these monthly penalties will be imposed only if Transporter has

declared a "Critical Day" on any day occurring in that monthly period.

 

Except for force majeure events and/or events or conditions which threaten the

integrity of Transporter's system or Transporter's ability to meet its firm service

obligations, Transporter will notify Shippers at least 24 hours in advance on its

Internet website of the effective date of the Critical Day, and of the type of

penalties that will be applicable during the Critical Day period. If due to

declaration of a Critical Day, a monthly penalty becomes applicable, Transporter will

notify Shippers by posting on its Internet website notice that the monthly penalty is

applicable.

 

20.7 No Imposition of Multiple Penalties

 

Transporter will not impose on a Shipper both OFO or failure to interrupt penalties

pursuant to Section 17 and 20 of the General Terms and Conditions for the same

infraction.