Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 04/01/2008, Docket: RP05-157-010, Status: Effective

Original Sheet No. 21 Original Sheet No. 21 : Effective

 

 

STATEMENT OF NEGOTIATED RATES

 

Customer Name: Knoxville Utilities Board

Contract Number: KUB00265S 1/

Rate Schedule: FSS

Demand Rate: 2/ 3/ 4/

Commodity Rate: 2/ 3/ 4/

Term of Negotiated Rate: 04/01/2008 - 03/31/2013

Quantity: MSQ = 100,000 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 Primary Term the following rates shall apply:

 

Monthly Space Reservation Charge which shall be the product of $1.122 multiplied by the

Maximum Storage Quantity divided by twelve (12).

 

Monthly Injection Reservation Charge of $2.248 Dth/d which shall be the product of $2.248

multiplied by the Maximum Daily Injection Quantity.

 

Monthly Withdrawal Reservation Charge of $1.124 Dth/d which shall be the product of $1.124

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Storage withdrawal Charge of $0.05 per each dth withdrawn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Excess withdrawal Charge of $0.05 per each dth withdrawn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 Primary Term 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 Primary Term (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 Primary Term.

 

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.