Caledonia Gas And Storage

Original Volume No. 1

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Effective Date: 12/05/2007, Docket: RP08- 57-000, Status: Effective

Original Sheet No. 65A Original Sheet No. 65A : Effective

 

24.3 Credit Exposure means an amount equal to: (1) in the case of

Firm Service to Customers whose service commences with the first day of

authorized operation of  Caledonia’s facilities, reservation charges for

twelve (12) Months or the duration of the Customer’s bid or Service Agreement,

whichever is shorter, at the rate specified in Customer’s bid for service or

Service Agreement; (2) for Firm Service to Customers taking service from

expansion facilities and whose service commences on the first day of

authorized operation of those facilities, an amount determined by Caledonia

prior to the start of construction that is not less than the amount set forth

in subsection (1) of this Section 24.3, but reasonable in light of the risks

of the construction project, not to exceed Customer’s proportional share of

the cost of the facilities to be constructed (which amount shall be reduced as

Customer pays off the obligation for construction of new facilities); (3) in

the case of Firm Service to all other Customers, reservation charges for three

(3) Months or the duration of the Customer’s bid or Service Agreement,

whichever is shorter, at the rate specified in Customer’s bid for service or

Service Agreement; or (4) in the case of Advanced Interruptible Storage or

Loan Service and Interruptible Storage or Loan Service, charge(s) for service

for three (3) Months or the duration of the Customer’s Service Agreement,

whichever is shorter, calculated on a one hundred percent (100%) load factor

basis, plus, as applicable, the Market Value of any quantities of Gas provided

to the Customer through a loan or negative storage balance.

 

24.4 "Market Value of Gas" means the Customer’s Interruptible Loan

Balance for service under Rate Schedule ILS or the Customer’s Advanced

Interruptible Loan Balance for service under Rate Schedule AILS, as

applicable, multiplied by the sum of the NYMEX Henry Hub Swap, as posted on

the www.nymex.com web site, for the period under which the loaned gas is

scheduled to be returned pursuant to the Customer’s AILS or ILS Service

Agreement, plus the maximum transportation charges for interruptible

transportation service on Tennessee Gas Pipeline Company under Rate Schedule

IT from TGPL 500 line Zone SL to Zone 1, as set forth in Tennessee Gas

Pipeline’s currently effective FERC Gas Tariff, including all applicable

charges, surcharges, fees, and fuel under Rate Schedule IT, multiplied by the

Customer’s Interruptible Loan Balance or Advanced Interruptible Loan Balance,

as applicable. Caledonia shall calculate Customer’s Market Value of Gas at

the time service is first requested under Rate Schedule ILS or Rate Schedule

AILS, as applicable, and thereafter may recalculate Customer’s Market Value of

Gas from time to time but not more frequently than a daily basis.

 

24.5 "Unsecured Collateral Limit" means the maximum amount of credit

that Caledonia will extend to a Customer pursuant to Rate Schedules AILS or

ILS without Customer providing Financial Assurances pursuant to this Section

24, based on the Customer’s Credit Rating, as provided in the table

below: