Cove Point LNG Limited Partnership

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 06/01/2003, Docket: CP01- 76-003, Status: Effective

Original Sheet No. 18C Original Sheet No. 18C : Effective

 

 

RATE SCHEDULE LTD-1

FIRM LNG TANKER DISCHARGING SERVICE

(Continued)

 

 

 

3. RATES (Continued)

 

3.2 (c) Retainage: Operator shall, as compensation for fuel used and lost and unaccounted

for, reduce Buyer's Liquefied Gas Balance by a specified percentage. Such

percentage shall be specified on the Currently Effective Rate Sheets of this

Tariff, as subsequently adjusted in accordance with the GT&C.

 

(d) Surcharges: The surcharges applicable to this Rate Schedule.

 

(e) Regulatory Fees: Buyer shall pay Operator all fees required or approved by the

Commission, or any regulatory body having jurisdiction, related to service

provided to Buyer under this Rate Schedule.

 

3.3 If Operator is unable to provide the service required by this Rate Schedule LTD-1 for

any reason, including an inability to provide service to Buyer under Elected FTS

service, for a period (other than periods of reasonably scheduled maintenance not to

exceed ten (10) days in any calendar year) that exceeds either (i) a cumulative total

of twenty (20) days in any calendar year, or (ii) three (3) consecutive calendar days,

Operator shall provide Buyer with a credit in an amount equal to (a) the cost of common

equity and associated income taxes reflected in the Reservation Charge for LNG tanker

discharging service under this Rate Schedule LTD-1 multiplied by (b) the quantity of

the service that was interrupted or curtailed. Such credit shall be calculated

prospectively for the period that the interruption or curtailment of service exceeds

the periods set forth above. Notwithstanding the foregoing, in the event that Operator

is unable to perform service required by this Rate Schedule LTD-1 solely as a result of

the unavailability of any or all of the existing three (3) electric power generators at

Operator's facility as of the commencement of Rate Schedule LTD-1 service (the

"Original Generators"), then any credit available to Buyer under this Section 3.3 as a

result of such inability shall be calculated prospectively beginning with the first day

after the continuation of such inability for thirty (30) consecutive calendar days;

provided, however, that this exception to the credit requirement shall cease to apply

effective as of the date that Operator places in-service electric generation capacity

that Operator determines, in its sole judgment, reasonably exercised, and after

consultation with Buyers, will create sufficient electric generating capacity, not to

exceed 8.5 megawatts, to provide a reasonable level of reserve capacity for the

capacity created by the Original Generators taking into account the operational

requirements of the Cove Point facility.