Kern River Gas Transmission Company
Second Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 10/01/2008, Docket: RP04-274-014, Status: Pending
Sub Ninth Revised Sheet No. 496 Sub Ninth Revised Sheet No. 496
Superseding: Eighth Revised Sheet No. 496
NEGOTIATED RATE AGREEMENTS (continued)
1/ Pursuant to the terms of Exhibit "B" to the June 5, 2003 Transportation
Service Agreement between Transporter and High Desert Power Trust, each month
Transporter will bill Shipper a negotiated rate in the form of a monthly
reservation charge, comprised of the sum of three components:
(1) Incremental Facility Charge $334,411
(2) Deferred Cost Recovery Surcharge 38,197
(3) Completion Incentive Charge 46,137*
*Based on an in-service date of September 1, 2002.
2/ Shipper will pay Transporter a discounted rate of $0.3601 per Dth for
scheduled quantities at receipt and delivery points shown on Exhibit "A," up
to Shipper's Maximum Daily Quantity.
3/ For all scheduled quantities at receipt and/or delivery points not listed
in Exhibit "A," including quantities in excess of Shipper's DMDQ, Shipper will
pay Transporter an Alternate Rate that is calculated as follows:
Alternate Rate = (Net Daily Spread - Index Spread Adjustment) +
Where: Net Daily Spread = ("SoCalGas" price* - "Kern River, Opal Plant
price*) - fuel**
Index Spread Adjustment = the lesser of $0.65 or (Net Daily Spread x
Applicable Surcharges = ACA or future surcharges that Kern River does
not have the ability to discount.
*Price is shown in Platts' Gas Daily, "Daily Price Survey, Flow Date Midpoint,"
for the day of scheduled transportation.
**Fuel is the product of (i) fuel and lost and unaccounted-for gas
reimbursement factor under Rate Schedule KRF-1 for rolled-in rate service and
(ii) price at "Kern River, Opal Plant."
In no event will the Alternate Rate, less applicable surcharges, be less than
the highest Daily Reservation/Demand Rate under Rate Schedule KRF-1 for Rolled-
in Rate Service, as such rates may change from time to time in accordance with
the Natural Gas Act.
4/ The term of the agreement is for a period beginning December 1, 2002 up
to and including December 31, 2002, and month to month thereafter.
5/ For scheduled transportation at receipt and delivery points shown on
Exhibit "A," up to Shipper's Maximum Daily Quantity at those points, Shipper
will pay Transporter a Total Backhaul Rate of $0.17 per Dth.
6/ The term of the agreement is for a period beginning December 1, 2002 up
to and including November 30, 2003 and year to year thereafter.