Saltville Gas Storage Company L.L.C.
Original Volume No. 1
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Effective Date: 04/01/2009, Docket: RP05-157-015, Status: Effective
Original Sheet No. 25 Original Sheet No. 25
STATEMENT OF NEGOTIATED RATES
Customer Name: Knoxville Utilities Board
Contract Number: 420031 1/
Rate Schedule: FSS
Demand Rate: 2/ 3/ 4/
Commodity Rate: 2/ 3/ 4/
Term of Negotiated Rate: The term of the Negotiated Rates extends from April 1, 2009 through
March 31, 2015 under the Service Agreement. 2/
Quantity: MSQ = 100,000 Dth; MDWQ = 10,000 Dth/d; MDIQ = 5,000 Dth/d
Receipt Point(s): 44760
Delivery Point(s): 44770
1/ The designated service agreement does not deviate in any material respect from the form of
Service Agreement contained in Saltville's Tariff.
2/ During the Term of Negotiated Rate the following rates shall apply:
Monthly Space Reservation Charge which shall be the product of $1.659 multiplied by the
Maximum Storage Quantity divided by twelve (12).
Monthly Injection Reservation Charge of $3.322 Dth/d which shall be the product of $3.322
multiplied by the Maximum Daily Injection Quantity.
Monthly Withdrawal Reservation Charge of $1.657 Dth/d which shall be the product of $1.657
multiplied by the Maximum Daily Withdrawal Quantity.
Storage Injection Charge of $0.05 per each dth injected
Storage withdrawal Charge of $0.05 per each dth withdrawn
Excess Injection Charge of $0.05 per each dth injected
Excess withdrawal Charge of $0.05 per each dth withdrawn
The Negotiated Rates specified above shall be all-inclusive and Customer shall not be charged
any additional surcharges or fuel and lost and unaccounted for, or electric power charges.
In the event that the maximum recourse rates for firm storage service are established by a
final and non-appealable order in the Natural Gas Act Section 4 general rate case filed by
Saltville on March 4, 2008 ("2008 Rate Case") at a level below the Negotiated Rates, Customer
shall have the right to make a one-time election to pay and, in lieu of these Negotiated
Rates, if it so elects shall pay the currently effective maximum recourse rates under
Saltville's Tariff, as such rates may change from time to time, including all applicable
charges and surcharges associated with Customer's Service for the remainder of the Primary
Term. Customer's right to elect to pay the maximum recourse rates shall be exercised, if at
all, within 30 days after the Commission order in the 2008 Rate Case becomes final and non-
appealable, and if exercised such election shall be effective starting on the first day of
the calendar month following Customer's notice to Saltville of such election.. Saltville
shall have no refund obligation related to prior payments of the Negotiated Rates.
3/ Pursuant to Section 3.2 of the FSS Rate Schedule of Saltville's FERC Gas Tariff, the rates
set forth above shall constitute Negotiated Rates and, unless Customer exercises its one-time
election described in footnote 2 above, the applicable rates for service under the Service
Agreement during the Primary Term shall remain as stated above. Except as explicitly
provided in footnote 2 above, the Negotiated Rates shall replace the otherwise generally
applicable maximum recourse rate, rate component, charge or credit in Saltville's FERC Gas
Tariff, and these maximum recourse rates shall not apply to or be available to Customer for
service under the Service Agreement during the Primary Term (to the extent that such recourse
rates are inconsistent with the rates set forth above), notwithstanding any adjustments to
such generally applicable maximum recourse rate, rate component, charge or credit which may
become effective during the Primary Term.