Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 12/01/2000, Docket: RP01- 69-000, Status: Effective

Sixth Revised Sheet No. 596 Sixth Revised Sheet No. 596 : Effective

Superseding: Fifth Revised Sheet No. 596

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

10.9 Continuation of Service

 

Subject to the requirements of Section 7 of the Natural Gas Act, Pipeline shall not be

required to perform or to continue to perform service on behalf of any Customer that

has applied for bankruptcy under the Bankruptcy Code or on behalf of any Customer who,

at Pipeline's discretion, fails to demonstrate minimal credit worthiness as required

under this FERC Gas Tariff; provided, however, such Customer may receive service if

said Customer prepays for such service or, upon fifteen (15) days notice from Pipeline,

furnishes good and sufficient surety bond, or other good and sufficient security, as

determined by Pipeline in its discretion, of a continuing nature and in an amount equal

to the cost of performing the service requested by or provided to Customer for up to a

three (3) month period; and provided further, that an exception will be made for a

Customer who is a debtor in possession operating under Chapter 11 of the Bankruptcy

Code where adequate assurance is provided from the bankruptcy court having jurisdiction

over such debtor in possession that service billings will be paid promptly as a cost of

administration of the bankruptcy proceeding.

 

10.10 Order of Discounts

 

If and when Pipeline discounts the rates applicable for service under any Service

Agreement under Rate Schedules included in Pipeline's FERC Gas Tariff, the amount of

any such discount shall be accounted for as a reduction of maximum rates in the

following sequence to the extent any of the following components are included in the

maximum rate:

 

1. GRI Surcharge;

2. (a) the pro rata portion of the EPC demand component based upon the ratio of

the total measure of the discount to the maximum rate;

(b) the pro rata portion of the Storage Surcharge component based upon the

ratio of the total measure of the discount to the maximum rate;

(c) the pro rata portion of the interruptible PCB-related cost component based

upon the ratio of the total measure of the discount to the maximum rate;

3. the base rate (maximum less minimum rate and excluding all other components

specified herein);

4. the remaining portion of the EPC demand component not included in 2(a) above;

5. the remaining portion of the Storage Surcharge component not included in 2(b)

above; and

6. the firm PCB-related cost component and the remaining portion of the

interruptible PCB-related cost component not included in 2(c) above.

 

All of each component will be exhausted prior to discounting the next component,

provided however, in accordance with the provisions of Pipeline's PCB-Related Cost

Settlement in Docket Nos.