Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 02/02/1998, Docket: GT98- 17-000, Status: Effective

Second Revised Sheet No. 40 Second Revised Sheet No. 40 : Effective

Superseding: First Revised Sheet No. 40

RATE SCHEDULE AIS-1

AUTHORIZED IMBALANCE SERVICE

(Continued)

 

2. APPLICABILITY AND CHARACTER OF SERVICE (Continued)

 

2.5 In the event PG&E GT-NW does not have sufficient capacity on a

given day to satisfy all nominations to borrow or repay gas under

this rate schedule, PG&E GT-NW shall schedule nominations in

sequence, starting with the nomination of the Shipper paying

the highest rate for service under this rate schedule. If two or

more Shippers are paying the same rate for service under this

rate schedule, the nominations of such Shippers shall be

scheduled on a pro-rata basis, using confirmed quantities.

 

2.6 Shipper shall be required to return the quantity of gas

advanced by PG&E GT-NW at the point it was advanced. Shipper may

nominate for the return of advanced gas at any time within

the agreed upon delivery schedule, and PG&E GT-NW shall accept

such gas to the extent it has capacity to do so. Shipper must

return the quantities of gas specified in its nomination in

accordance with PG&E GT-NW's confirmation of Shipper's nomination

 

2.7 If Shipper fails to deliver quantities of gas as set out in

the redelivery schedule, Shipper will be obligated to

purchase such quantities of gas from PG&E GT-NW at the highest

price, determined as 200% of the Monthly Contract Index for

PG&E GT-NW (Kingsgate) as published in Gas Daily, among:

 

a) the month in which the authorized imbalance occurred,

b) the month in which redelivery of the authorized

imbalance was scheduled but did not occur, and;

c) any month between (a) and (b) above.

 

2.8 Authorized Imbalance Service shall be subject to curtailment

or interruption pursuant to the applicable Transportation

General Terms and Conditions contained in this FERC Gas

Tariff First Revised Volume No. 1-A.

 

2.9 Shipper may demonstrate credit-worthiness by providing two

years of audited financial statements demonstrating adequate

financial strength to justify the amount of credit to be

extended. Shippers unable to qualify on this basis may

qualify for service by providing a letter of credit issued

by a credit-worthy financial institution and in a form

acceptable to PG&E GT-NW or by providing prepayment in an amount

sufficient to cover the maximum amount of charges to be

incurred.

(Continued)