Monroe Gas Storage Company, LLC

Original Volume No. 1

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Effective Date: 04/29/2009, Docket: RP09-447-000, Status: Effective

Original Sheet No. 194 Original Sheet No. 194

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

25. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF NEW FACILITIES

 

25.1 Except as provided in Section 25.2 herein, Customer shall reimburse

Operator (a) for the costs of any facilities installed by Operator with

Customer's consent to receive, measure, store or deliver gas for

Customer's account and (b) for any and all filings and approval fees

required in connection with Customer's Service Agreement that Operator

is obligated to pay to the Commission or any other governmental

authority having jurisdiction. Any reimbursement due Operator by

Customer pursuant to this Section 25.1 shall be due and payable to

Operator within ten (10) Days of receipt by Customer of Operator's

bill(s) for same; provided, however subject to Operator's consent such

reimbursement, plus carrying charges thereon, may be amortized over a

mutually agreeable period not to extend beyond the primary contract term

of the Service Agreement between Operator and Customer. Carrying charges

shall be computed utilizing interest factors acceptable to both Operator

and Customer.

 

25.2 Operator may waive from time to time, at its discretion, all or a

portion of the facility cost reimbursement requirement set forth in

Section 25.1 above for Rate Schedule FSS if Customer provides Operator

adequate assurances of storage quantities to make construction of the

facilities economical to Operator. All requests for waiver shall be

handled by Operator in a manner which is not unduly discriminatory. For

purposes of determining whether a project is economical, Operator will

evaluate projects on the basis of various economic criteria, which will

include the estimated storage quantities, cost of the facilities,

operating and maintenance expenses as well as administrative and general

expenses attributable to the facilities, the revenues Operator estimates

will be generated as a result of such construction, and the availability

of capital funds on terms and conditions acceptable to Operator. In

estimating the revenues to be generated, Operator will evaluate the

existence of capacity limitations upstream and downstream of the

facilities, the marketability of the capacity, the interruptible versus

the firm nature of the service, and other similar factors which impact

whether the available capacity will actually be utilized.