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. 60B Original Sheet No. 60B

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

(I) Electing Customer enters into a negotiated rate

agreement with Southern LNG providing for Customer'

paying charges that recover the full cost of service

of the Cost Exceedance and operating expenses to

restore the capacity under its Service Agreements

"Excess Negotiated Rate"; and

 

(II) Electing Customer provides credit support in the form

of either a standby, irrevocable letter of credit

issued by a financial institution having a long-term

unsecured debt rating of either BBB from Moody's

Investor Services or Baa from Standard and Poors or

comparable credit support for an amount in U.S.

dollars equal to the Cost Exceedance ("Excess Credit

Support").

 

(2) Interim Evaluation Period

 

(A) If Southern LNG commences restoration under Section

8.6(b)(1) above, then starting at the end of every sixth

(6th) month thereafter until restoration of firm capacity to

serve at least eighty percent (80%) of each of Customer's

MSQ and MDVQ, Southern LNG shall provide to Electing

Customer by notice in writing with an update to the Initial

Restoration Report or, if affirmed, the Supplemental

Restoration Report ("Interim Restoration Report"). The

Interim Restoration Report shall provide the estimated

duration and cost of restoration based on information

available to Southern LNG since the last report.

 

(B) If the estimated duration in the later of the Interim

Restoration Report and the Interim Expert Decision estimates

that either (i) the duration will exceed sixty (60) months

starting from satisfaction of the conditions precedent; or

(ii) the cost will exceed the Available Funds, then within

thirty (30) days thereafter Electing Customer may either

direct Southern LNG to continue with restoration or

terminate its Service Agreement upon