Mississippi River Transmission Corp.

Third Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 43-004, Status: Effective

Original Sheet No. 188 Original Sheet No. 188 : Superseded

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

 

update and revise either upward or downward, the Gas Supply

Realignment Cost amount used for the development of the

Reservation Surcharge, GSRC allocated to Rate Schedule ITS, and/or

Exit Fee through additional filings in order to permit MRT to

recover all GSRC, and to ensure that MRT will not overcollect the

GSRC. Customers accepting assignment of problem gas supply

contracts shall receive credit against their overall GSRC

liability.

 

(b) Definitions

 

(i) "GSRC" shall mean costs including amounts in

cash or other consideration prudently incurred by MRT to

terminate contracts and settle claims by suppliers related

to elimination or modification of existing supply

commitments as a result of the decisions of its former

bundled firm sales Customers to reduce or terminate their

purchase contracts with MRT or to exercise their rights

pursuant to Order Nos. 636, et seq. to purchase gas at

market prices. Such amounts shall include, without

limitation, payments to suppliers to buy out or buy down

contract volumes or prices under gas supply contracts; to

terminate such contracts; to reform volume, take-or-pay,

minimum take, price or any other pertinent terms of any gas

purchase agreement; to satisfy damage awards to suppliers

arising out of a court order or arbitration related to gas

supply contracts, or to cover costs that arise as a result

of tax liability or contingent excess royalty reimbursement

clauses and payments to any other party in consideration of

that party taking assignment of MRT's problem gas supply

contracts. In instances where MRT is either (1) unable to

reach a negotiated resolution with a supplier upon

reasonable terms, or (2) is required to purchase gas during

the negotiation process, GSRC shall include the Price

Differential times the volume of gas MRT is obligated to

take from such supplier over the period in question.