Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 04/01/2009, Docket: RP05-157-015, Status: Effective

Original Sheet No. 25 Original Sheet No. 25

 

STATEMENT OF NEGOTIATED RATES

 

Customer Name: Knoxville Utilities Board

Contract Number: 420031 1/

Rate Schedule: FSS

Demand Rate: 2/ 3/ 4/

Commodity Rate: 2/ 3/ 4/

Term of Negotiated Rate: The term of the Negotiated Rates extends from April 1, 2009 through

March 31, 2015 under the Service Agreement. 2/

Quantity: MSQ = 100,000 Dth; MDWQ = 10,000 Dth/d; MDIQ = 5,000 Dth/d

Receipt Point(s): 44760

Delivery Point(s): 44770

 

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 $1.659 multiplied by the

Maximum Storage Quantity divided by twelve (12).

 

Monthly Injection Reservation Charge of $3.322 Dth/d which shall be the product of $3.322

multiplied by the Maximum Daily Injection Quantity.

 

Monthly Withdrawal Reservation Charge of $1.657 Dth/d which shall be the product of $1.657

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Storage withdrawal Charge of $0.05 per each dth withdrawn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Excess withdrawal Charge of $0.05 per each dth withdrawn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 Negotiated 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.

 

In the event that the maximum recourse rates for firm storage service are established by a

final and non-appealable order in the Natural Gas Act Section 4 general rate case filed by

Saltville on March 4, 2008 ("2008 Rate Case") at a level below the Negotiated Rates, Customer

shall have the right to make a one-time election to pay and, in lieu of these Negotiated

Rates, if it so elects shall pay the currently effective maximum recourse rates under

Saltville's Tariff, as such rates may change from time to time, including all applicable

charges and surcharges associated with Customer's Service for the remainder of the Primary

Term. Customer's right to elect to pay the maximum recourse rates shall be exercised, if at

all, within 30 days after the Commission order in the 2008 Rate Case becomes final and non-

appealable, and if exercised such election shall be effective starting on the first day of

the calendar month following Customer's notice to Saltville of such election.. Saltville

shall have no refund obligation related to prior payments of the Negotiated Rates.

 

3/ Pursuant to Section 3.2 of the FSS Rate Schedule of Saltville's FERC Gas Tariff, the rates

set forth above shall constitute Negotiated Rates and, unless Customer exercises its one-time

election described in footnote 2 above, the applicable rates for service under the Service

Agreement during the Primary Term shall remain as stated above. Except as explicitly

provided in footnote 2 above, the Negotiated Rates shall replace the otherwise generally

applicable maximum recourse rate, rate component, charge or credit in Saltville's FERC Gas

Tariff, and these maximum recourse 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 recourse

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.