Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-003, Status: Effective

Original Sheet No. 554 Original Sheet No. 554




Small Customer General Transportation Service

SGL-SL, SGL-1, SGL-2, SGL-3, and SGL-4

(Customers with SGL Winter Contract Demands of Less than 7,500 MMBtu/d and Total

Firm Contract Demands Not Exceeding 10,000 MMBtu/d)




5. Minimum Contribution to Fixed Costs


Beginning on November 1, 2001, Customer agrees to pay a Minimum Contribution to

Fixed Costs (MCFC) for any Responsibility Period (defined as November 1 through

October 31) when the aggregate quantities transported by all Customers under this

Rate Schedule during the Responsibility Period total less than the aggregate Annual

Minimum SGL Quantities (AMQ) of all Customers under this Rate Schedule and the

Customer transports less than the Customer's Annual Minimum SGL Quantity.


For each Customer served under this Rate Schedule, the AMQ equals the product of

the Customer's Annual Contract Demand (i.e., the sum of Customer's Daily Contract

Demands) for the Responsibility Period multiplied by twenty percent (20%). For

each zone, the AMQ is calculated by multiplying twenty percent (20%) by the sum of

each Customer's Annual Contract Demands for the Responsibility Period. The MCFC

applicable to each Customer is calculated by multiplying (1) the respective zone's

fixed costs per MMBtu embedded in the currently effective one-part rate for service

under this Rate Schedule by (2) the net deficiency of all Customers defined as the

amount by which the AMQ of all Customers in the zone exceeds the aggregate

quantities transported by all customers in that zone under this Rate Schedule for

the Responsibility Period, then multiplied by (3) the ratio of the Customer's net

deficiency (the amount by which the Customer's AMQ exceeds the Customer's actual

quantity transported) to the net deficiency of all customers in that zone.


The MCFC charge shall be billed to Customer in three equal installments in the

succeeding months January through March. SGL customers receiving only SGL service

to its city gate and receiving no transportation of FT, capacity release or IT,

nor any other secondary deliveries, during the entire responsibility period, shall

not be billed an MCFC charge.


6. Daily Overruns


6.1 Unauthorized Overrun Quantity


If Customer takes under this rate schedule on any day a quantity of gas which is greater

than the applicable Contract Demand, the excess shall constitute an Unauthorized Overrun