Saltville Gas Storage Company L.L.C.
Original Volume No. 1
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Effective Date: 04/01/2007, Docket: RP05-157-006, Status: Effective
Original Sheet No. 17 Original Sheet No. 17 : Effective
STATEMENT OF NEGOTIATED RATES
Customer Name: Knoxville Utilities Board
Contract Number: KUB00264S 1/
Rate Schedule: FSS
Demand Rate: 2/ 3/ 4/
Commodity Rate: 2/ 3/ 4/
Term of Negotiated Rate: 4/1/2007/ - 3/31/2013
Quantity: MSQ = 200,000 Dth, MDWQ = 10,000 Dth/d, MDIQ = 5,000 Dth/d
Receipt Point(s): 59760
Delivery Point(s): 59770
1/ The designated service agreement does not deviate in any material respect from the form of
Service Agreement contained in Saltville's Tariff.
2/ During the Term of Negotiated Rate the following rates shall apply:
Monthly Space Reservation Charge which shall be the product of $1.362 multiplied by the
Maximum Storage Quantity divided by twelve (12).
Monthly Injection Reservation Charge of $2.729 Dth/d which shall be the product of $2.729
multiplied by the Maximum Daily Injection Quantity.
Monthly Withdrawal Reservation Charge of $1.365 Dth/d which shall be the product of $1.365
multiplied by the Maximum Daily Withdrawal Quantity.
Storage Injection Charge of $0.05 per each dth injected
Storage withdrawal Charge of $0.05 per each dth withdrawn
Excess Injection Charge of $0.05 per each dth injected
Excess withdrawal Charge of $0.05 per each dth withdrawn
The rates specified above shall be all-inclusive and Customer shall not be charged any
additional surcharges or fuel and lost and unaccounted for, or electric power charges.
3/ In consideration of the rates set forth above, the applicable rates for service under the
Service Agreement during the Term of Negotiated Rate shall remain as stated above.
Therefore, pursuant to Section 4.5 of the FSS Rate Schedule of Saltville's FERC Gas Tariff,
the rates set forth above shall constitute Negotiated Rates. The Negotiated Rates shall
replace the otherwise generally applicable maximum recourse rate, rate component, charge or
credit in Saltville's FERC Gas Tariff ("Tariff Rates"), and the Tariff Rates shall not apply
to or be available to Customer for service under the Service Agreement during the Term of
Negotiated Rate (to the extent that such Tariff Rates are inconsistent with the rates set
forth above), notwithstanding any adjustments to such generally applicable maximum recourse
rate, rate component, charge or credit which may become effective during the Term of
4/ If, at any time after service commences under the Service Agreement, Saltville is collecting
its effective maximum recourse rates from other customers subject to refund under Section 4
of the Natural Gas Act, Saltville shall have no refund obligation to Customer even if the
final maximum rate is reduced to a level below the Negotiated Rates provided herein.
Customer's right to receive credits relating to Saltville's penalty revenue or other similar
revenue, if any, applicable to storage service at Saltville's facility shall be governed by
Saltville's FERC Gas Tariff and any applicable FERC orders and/or regulations. In the event
Customer releases its firm storage rights under the Service Agreement, Customer shall
continue to be obligated to pay Saltville for the difference, if any, by which the Negotiated
Rate herein exceeds the release rate.