Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 03/27/2000, Docket: RP00-535-000, Status: Suspended

Fifth Revised Sheet No. 471 Fifth Revised Sheet No. 471 : Suspended

Superseding: Fourth Revised Sheet No. 471

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

with Pipeline, the Replacement or Prearranged Customer becomes an existing

Customer like any other Customer and is subject to the applicable

provisions of Pipeline's FERC Gas Tariff, including but not limited to

Pipeline's billing and payment and operational provisions. In addition,

the Replacement or Prearranged Customer as an existing Customer may also

release its capacity pursuant to this Section.

 

(H) Billing:

 

(1) Pipeline will bill the Customer releasing capacity the amount it is

obligated to pay Pipeline for (1) Reservation Charges, reservation

surcharges, other fixed costs and (2) Usage Charge(s), volumetric

surcharges, Overrun Charges, Excess Charges, imbalances and/or other

volumetric costs attributable to any capacity retained by such Customer

and Pipeline shall credit the bill of the Customer releasing capacity an

amount equal to the Reservation Charges, surcharges and/or other fixed

cost attributable to capacity rights released by such Customer,

(hereinafter called "Credit Back"); provided, however, Pipeline shall have

the right to reverse such Credit Back and to charge applicable carrying

charges calculated in accordance with Section 154.501(d) of the

Commission's Regulations to the Customer in the event Pipeline is not paid

such charges for the released capacity.

 

(2) Notwithstanding the foregoing, Pipeline shall be entitled to retain an

agreed upon amount of any applicable Credit Back to be credited to a

Customer when Pipeline, at the request of Customer and upon reaching an

agreement with Customer therefore, takes other action to market such

Customer's released capacity beyond posting the information on the LINK®

System and through electronic data interchange and locates the Replacement

Customer. Pipeline will not be compensated if it does not locate the

Replacement Customer, such as where the Customer has a prearranged deal or

where a Replacement Customer accepts a posted Customer's Notice without

Pipeline actively marketing that released capacity.

 

(3) The rate paid by a Replacement Customer in any capacity release

transaction with a term of less than one (1) year during the period from

March 27, 2000, through September 30, 2002, or any later date established

by the Commission, which is not subject to the maximum rate cap will be

deemed to be a final rate and is not subject to refund.

 

(I) Capacity Assignment:

 

Once the conditions of this FERC Gas Tariff are met and the terms and conditions

specified in the Customer's Notice are met, Replacement or Prearranged Customer

and Pipeline will finalize an applicable Addendum to the Capacity Release

Umbrella Agreement and the Replacement or Prearranged Customer will be

considered as any other existing Customer on Pipeline's system.

 

(J) Release of Discrete Packages:

 

In addition to releasing a portion of all capacity rights under a firm service

agreement under Rate Schedules CDS,