Petal Gas Storage Company
Original Volume No. 1
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Effective Date: 12/18/1993, Docket: CP93- 69-002, Status: Effective
Original Sheet No. 111 Original Sheet No. 111 : Effective
GENERAL TERMS AND CONDITIONS
availability of storage capacity and deliverability in the
following order of declining priority:
(a) Firm storage service at Primary Point(s) of
Receipt or Delivery.
(b) Firm storage service at point(s) other than
Primary Point(s) of Receipt or Delivery.
(c) Make-up volumes to correct prior variances
between (i) Transporter and Petal under a balancing agreement,
(ii) Customer and Petal, and (iii) Customer and Transporter if
the variance was due to Petal's failure to receive or deliver
Customer's scheduled volumes.
(d) Interruptible storage service pursuant to
Section 4.3 below.
(e) Authorized overrun service for FSS Customers.
(f) Authorized overrun service for ISS Customers.
4.2 Firm Service.
(a) During an open season, Petal will accept
requests for firm storage service from potential customers.
Capacity will be allocated to those customers offering to pay
the highest negotiated rates. Specifically, capacity will be
allocated to those customers offering to pay the highest
present value of the weighted average per unit Capacity and
Deliverability Charges over the term of each agreement. Such
present value of the Capacity and Deliverability Charges shall
be calculated in accordance with the following formula:
(Monthly Charges Per Unit of Storage Capacity) X
[1 - ((1 + i)to the -n power)/i] X ((1 + i) to the
-t power) = Present Value Per Unit of Storage Capacity