Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 02/25/2009, Docket: RP09-296-000, Status: Effective

First Revised Sheet No. 118 First Revised Sheet No. 118

Superseding: Original Sheet No. 118


2.2 Construction of Facilities.


(a) Shipper may request Pipeline to construct facilities in

connection with a request for service. Pipeline is not

required to build facilities at Shipper’s request or



(b) In a manner that is not unduly discriminatory, Pipeline and

a Shipper may agree on one or a combination of the

following alternatives pursuant to which Shipper may obtain

Pipeline’s agreement to construct the requested facilities.

The amount of collateral that may be required from Shipper

if Pipeline agrees to construct the requested facilities

will be determined in accordance with GT&Cs section



(1) Pipeline may agree to construct the requested

facilities if it determines that construction of the

facilities would be economic, based on Shipper

contracts for firm transportation service, as

described below. For purposes of determining

whether a project is economic, Pipeline will evaluate

projects on the basis of various economic criteria,

which may include, without limitation, the estimated

firm transportation demand subscribed under Long Term

Service Agreements, cost of the facilities, operation

and maintenance, applicable taxes, administrative and

general expenses attributable to the facilities, the

system net revenues Pipeline estimates will be

generated subsequent to such construction,

depreciation, return on debt and equity, and the

availability of capital funds on terms and conditions

acceptable to Pipeline. In estimating the system net

revenues to be generated, Pipeline will evaluate the

revenue generated from firm Long Term Service

Agreements and other system benefits.