Alabama-Tennessee Natural Gas Company
Second Revised Volume No. 1
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Effective Date: 09/01/1993, Docket: RS92- 27-003, Status: Effective
Original Sheet No. 134 Original Sheet No. 134 : Superseded
GENERAL TERMS AND CONDITIONS (Continued)
26. ALLOCATED TAKE-OR-PAY CHARGES
This section establishes the procedures under which Transporter
will flow-through, pursuant to Section 2.104(e) of the
Commission's Regulations, the jurisdictional portion of take-or-
pay charges billed to it by upstream gas pipeline supplier(s)
pursuant to FERC Docket No. RP86-119, et al. The allocation of
such costs to Transporter's customers is based a method
acceptable pursuant to FERC order Nos. 528 and 528-A.
26.1 Basis of the Allocated Take-or-Pay Charge: This section
establishes Allocated Take-or-Pay Charges applicable to
each of Transporter's transportation customers pursuant to
Rate Schedules FT, FT-SG and IT for recovery of take-or-pay
charges billed to Transporter by upstream gas pipeline
(a) Such Allocated Take-or-Pay Charges applicable to each
of Transporter's transportation customers shall be
the amounts as set out on Sheet No. 4A of
Transporter's FERC Gas Tariff, Original Volume No. 1.
The charges set out thereon shall be adjusted from
time to time to reflect either increases or decreases
in the take-or-pay charges billed to Transporter by
Tennessee. Such allocated Take-Or-Pay Charges shall
be paid by each Shipper until Transporter has
recovered from such Shipper its total aggregate
allocated amount, including carrying charges.
(b) Each customer's Allocated Take-or-Pay Charge shall be
amortized over a five (5) year period or such shorter
time as may be mutually agreeable.
(c) Each customer, i.e. firm and interruptible
transportation, shall pay the Volumetric Take-Or-Pay
Surcharge as set forth on the then current Tariff
Sheet No. 4A.
(d) Transporter shall file, not less than annually, to
adjust the Volumetric Take-Or-Pay Surcharge to