East Tennessee Natural Gas Company
Second Revised Volume No. 1
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Effective Date: 10/01/1998, Docket: RP98-380-001, Status: Effective
Sub Original Sheet No. 52B Sub Original Sheet No. 52B : Superseded
Rate Schedule LMS-MA
Load Management (Market Area) Service (Continued)
(a) Requirements: Balancing Party must provide at least eight (8) hours prior
notice to Transporter of its election of SDO, to be effective the next gas day
or concurrent with Transporter's notification of its intent, pursuant to
Section 7.1 above, to invoke its right to assess Unauthorized Overrun Charges.
Balancing Party must hold contracts for transportation under Transporter's Rate
Schedule FT-A and contracts for storage attached to Transporter's system. At
the time of its notice of its election, Balancing Party must rank consecutively
the storage contracts designated for SDO if more than one contract is to be
used. Balancing Party's election of SDO shall remain in effect until
termination of SDO pursuant to Section 7.4(c) of this Rate Schedule, or
Balancing Party has exceeded its storage balance available for SDO whichever
(b) Nominations for SDO:
(i) Under SDO, Transporter will nominate Balancing Party's designated FT-A
Agreement(s) from the storage receipt(s) to the delivery points(s)
covered by Balancing Party's OBA and at which the excess takes occurred.
(ii) Transporter will nominate a quantity up to the lesser of Balancing
Party's transportation MDQ or storage MDWQ. Any volumes nominated by
Balancing Party and scheduled by Transporter on the designated FT-A
Agreement(s) and/or the designated storage agreements will reduce the
transportation MDQ and/or storage MDWQ available for SDO.
(iii) Balancing Party must verify the quantity of gas scheduled for delivery
at the delivery point(s) within two (2) business days from the day the
gas was delivered. Transporter will nominate the quantities to be
withdrawn from the storage account for SDO after Balancing Party has
verified the quantities delivered, but no later than five days after the
last day of the month. Balancing Party's failure to provide accurate
verifications of quantities of gas delivered may result in termination
of SDO after eight (8) hours' prior notice from Transporter.
(iv) Any Balancing Party electing SDO and utilizing Transporter's LNG
facilities shall pay to Transporter the applicable LNGS rate(s) as set
forth in the LNGS Rate Schedule and Sheet No. 4 of this Tariff for the
withdrawals from storage. In addition, any Balancing Party electing SDO
shall pay to Transporter a "Transportation Component." The
Transportation Component for SDO shall be equal to the applicable
commodity rate, plus fuel, under Transporter's FT-A Rate Schedule,
multiplied by the volumes in excess of the MAD TQ.
(c) Upon eight (8) hours' prior notice to Balancing Party, Transporter has the
right to terminate SDO for Balancing Party's violation of any provisions of
this Section 7.4. Balancing Party has the right, at its sole discretion, to
terminate SDO with eight (8) hours prior notice to Transporter, effective at
the beginning of the next gas day.
(d) Balancing Party may only utilize a TPP storage point(s) for SDO upon the TPP's
execution of both a Balancing Agreement under Rate Schedule LMS-PA and a TPP
8. CASHOUT OPTION
8.1 Unauthorized Overrun: A Balancing Party that has elected the Cashout Option may also
be subject to an Unauthorized Overrun Charge as set forth in Section 7.