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.