Southern LNG Inc.
Original Volume No. 1
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Effective Date: 03/01/2010, Docket: RP10-271-000, Status: Effective
Original Sheet No. 11A Original Sheet No. 11A
(b) Customer's Crediting Ratio:
Each Customer shall receive its pro rata share of the BI Credit or
ROE Credit defined below based on the following ratio for each firm
rate schedule ("Customer's Crediting Ratio"). Customer's Crediting
Ratio equals the product of (1) the maximum reservation rates set
forth on the rate sheet(s) of this Tariff for the MSQ and MDVQ, as
applicable, under each firm rate schedule multiplied by (2) the MSQ
and MDVQ specified in Customer's Service Agreement under such rate
schedule [(1) X (2)] ("Customers' Recourse Revenues") divided by the
sum of all Customers' Recourse Revenues for all firm reservation
billing determinants under such rate schedule ("Total Recourse
Revenues").
(c) Crediting:
The higher of the MSQ or MDVQ percentage not made available, greater
than twenty percent (20%), shall be the "Firm Shortfall."
For the period extending beyond the thirtieth day of the SLNG Force
Majeure there shall be deducted from each Customer's monthly invoice
the greater of either the BI Credit or ROE Credit amount, as defined
below, multiplied by Customer's Crediting Ratio:
(1) an amount equal to any insurance proceeds for business
interruption of Southern LNG (the premiums for which are
included in the cost of service underlying SLNG's rates
under the applicable rate schedule) paid to Southern LNG
("BI Credit"); or
(2) an amount equal to the portion of the Total Recourse
Revenues attributable to the FERC-approved cost of common
equity and associated income taxes under the applicable rate
schedule multiplied by the Firm Shortfall("ROE Credit").
[[BI Credit or ROE Credit] * Customer's Crediting Ratio]
In no event, however, shall the amount to be paid by a discounted or
negotiated rate Customer under this subsection (c) above result in
less than the amount that would be paid for a maximum recourse rate
Customer having the same MSQ and MDVQ. If the proceeds for business
interruption are subsequently determined to be greater than the ROE
Credit provided to Customers or less than the BI Credit provided to
Customers, then Southern LNG shall refund or invoice the difference
(pro rate for each Customer) to true up such difference.