9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
This Agreement ("Agreement") is made and entered into this 1st day of
September, 1994, by and between Algonquin Gas Transmission Company, a
Delaware Corporation (herein called "Algonquin"), and Connecticut
Natural Gas Corporation (herein called "Customer" whether one or more
persons).
WHEREAS, Algonquin and Customer entered into a Service Agreement dated
June 1, 1993, for service under Rate Schedule AFT-1; and
WHEREAS, Algonquin and its customers entered into a settlement
agreement in Algonquin's Docket Nos. RP93-14-000, et al. which
provided, among other things, for revised daily and annual contract
entitlements under Rate Schedules AFT-1, AFT-E, AFT-1S and AFT-ES; and
WHEREAS, the Federal Energy Regulatory Commission issued an order on
July 8, 1994, approving the settlement in Docket Nos. RP93-14-000, et
al; and
WHEREAS, Algonquin and Customer desire to execute a superseding
service agreement under Rate Schedule AFT-1 in accordance with the
terms of the settlement as approved by the Commission's July 8, 1994
order;
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained, the parties do agree as follows:
ARTICLE I
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SCOPE OF AGREEMENT
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1.1 Subject to the terms, conditions and limitations hereof and of
Algonquin's Rate Schedule AFT-1, Algonquin agrees to receive from
or for the account of Customer for transportation on a firm basis
quantities of natural gas tendered by Customer on any day at the
Point(s) of Receipt; provided, however, Customer shall not tender
without the prior consent of Algonquin, at any Point of Receipt
on any day a quantity of natural gas in excess of the applicable
Maximum Daily Receipt Obligation for such Point of Receipt plus
the applicable Fuel Reimbursement Quantity; and provided further
that Customer shall not tender at all Point(s) of Receipt on any
day or in any year a cumulative quantity of natural gas, without
the prior consent of Algonquin, in excess of the following
quantities of natural gas plus the applicable Fuel Reimbursement
Quantities:
9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
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ARTICLE I
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SCOPE OF AGREEMENT
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(Continued)
Maximum Daily Transportation Quantity (MMBtu)
---------------------------------------------
Nov 16 - Apr 15 23,712*
Apr 16 - May 31 15,808
Jun 1 - Sep 30 0
Oct 1 - Nov 15 15,808
*MDTQ to be utilized in applying monthly Reservation Charge
Maximum Annual Transportation Quantity 5,034,848 MMBtu
1.2 Algonquin agrees to transport and deliver to or for the account
of Customer at the Point(s) of Delivery and Customer agrees to
accept or cause acceptance of delivery of the quantity received
by Algonquin on any day, less the Fuel Reimbursement Quantities;
provided, however, Algonquin shall not be obligated to deliver at
any Point of Delivery on any day a quantity of natural gas in
excess of the applicable Maximum Daily Delivery Obligation.
ARTICLE II
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TERM OF AGREEMENT
-----------------
2.1 This Agreement shall become effective as of the date set forth
hereinabove and shall continue in effect for a term ending on and
including April 15, 2004 ("Primary Term") and shall remain in
force from year to year thereafter unless terminated by either
party by written notice one year or more prior to the end of the
Primary Term or any successive term thereafter. Algonquin's
right to cancel this Agreement upon the expiration of the Primary
Term hereof or any succeeding term shall be subject to Customer's
rights pursuant to Sections 8 and 9 of the General Terms and
Conditions.
9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
ARTICLE II
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TERM OF AGREEMENT
-----------------
(Continued)
2.2 This Agreement may be terminated at any time by Algonquin in the
event Customer fails to pay part or all of the amount of any bill
for service hereunder and such failure continues for thirty days
after payment is due; provided Algonquin gives ten days prior
written notice to Customer of such termination and provided
further such termination shall not be effective if, prior to the
date of termination, Customer either pays such outstanding bill
or furnishes a good and sufficient surety bond guaranteeing
payment to Algonquin of such outstanding bill; provided that
Algonquin shall not be entitled to terminate service pending the
resolution of a disputed bill if Customer complies with the
billing dispute procedure currently on file in Algonquin's
tariff.
ARTICLE III
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RATE SCHEDULE
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3.1 Customer shall pay Algonquin for all services rendered hereunder
and for the availability of such service under Algonquin's Rate
Schedule AFT-1 as filed with the Federal Energy Regulatory
Commission and as the same may be hereafter revised or changed.
The rate to be charged Customer for transportation hereunder
shall not be more than the maximum rate under Rate Schedule
AFT-1, nor less than the minimum rate under Rate Schedule AFT-1.
3.2 This Agreement and all terms and provisions contained or
incorporated herein are subject to the provisions of Algonquin's
applicable rate schedules and of Algonquin's General Terms and
Conditions on file with the Federal Energy Regulatory Commission,
or other duly constituted authorities having jurisdiction, and as
the same may be legally amended or superseded, which rate
schedules and General Terms and Conditions are by this reference
made a part hereof.
9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
ARTICLE III
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RATE SCHEDULE
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(Continued)
3.3 Customer agrees that Algonquin shall have the unilateral right to
file with the appropriate regulatory authority and make changes
effective in (a) the rates and charges applicable to service
pursuant to Algonquin's Rate Schedule AFT-1, (b) Algonquin's Rate
Schedule AFT-1, pursuant to which service hereunder is rendered
or (c) any provision of the General Terms and Conditions
applicable to Rate Schedule AFT-1. Algonquin agrees that
Customer may protest or contest the aforementioned filings, or
may seek authorization from duly constituted regulatory
authorities for such adjustment of Algonquin's existing FERC Gas
Tariff as may be found necessary to assure that the provisions in
(a), (b), or (c) above are just and reasonable.
ARTICLE IV
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POINT(S) OF RECEIPT
-------------------
Natural gas to be received by Algonquin for the account of Customer
hereunder shall be received at the outlet side of the measuring
station(s) at or near the Primary Point(s) of Receipt set forth in
Exhibit A of the service agreement, with the Maximum Daily Receipt
Obligation and the receipt pressure obligation indicated for each such
Primary Point of Receipt. Natural gas to be received by Algonquin for
the account of Customer hereunder may also be received at the outlet
side of any other measuring station on the Algonquin system, subject
to reduction pursuant to Section 6.2 of Rate Schedule AFT-1.
ARTICLE V
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POINT(S) OF DELIVERY
--------------------
Natural gas to be delivered by Algonquin for the account of Customer
hereunder shall be delivered on the outlet side of the measuring
station(s) at or near the Primary Point(s) of Delivery set forth in
Exhibit B of the service agreement, with the Maximum Daily Delivery
Obligation and the delivery pressure obligation indicated for each
such Primary Point of Delivery.
9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
Natural gas to be delivered by Algonquin for the account of Customer
hereunder may also be delivered at the outlet side of any other
measuring station on the Algonquin system, subject to reduction
pursuant to Section 6.4 of Rate Schedule AFT-1.
ARTICLE VI
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ADDRESSES
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Except as herein otherwise provided or as provided in the General
Terms and Conditions of Algonquin's FERC Gas Tariff, any notice,
request, demand, statement, bill or payment provided for in this
Agreement, or any notice which any party may desire to give to the
other, shall be in writing and shall be considered as duly delivered
when mailed by registered, certified, or first class mail to the post
office address of the parties hereto, as the case may be, as follows:
(a) Algonquin: Algonquin Gas Transmission Company
1284 Soldiers Field Road
Boston, MA 02135
Attn: John J. Mullaney
Vice President, Marketing
(b) Customer: Connecticut Natural Gas Corporation
100 Columbus Boulevard
P. O. Box 1500
Hartford, CT 06144
Attn: Harry Kraiza, Jr.
Senior Vice President, Energy Services
or such other address as either party shall designate by formal
written notice.
9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
ARTICLE VII
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INTERPRETATION
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The interpretation and performance of the Agreement shall be in
accordance with the laws of the Commonwealth of Massachusetts,
excluding conflicts of law principles that would require the
application of the laws of a different jurisdiction.
ARTICLE VIII
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AGREEMENTS BEING SUPERSEDED
----------------------------
When this Agreement becomes effective, it shall supersede the
following agreements between the parties hereto, except that in the
case of conversions from former Rate Schedules F-2 and F-3, the
parties' obligations under Article II of the service agreements
pertaining to such rate schedules shall continue in effect.
Service Agreement No. 9W005 executed by Customer and Algonquin under
Rate Schedule AFT-1 dated June 1, 1993.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be signed by their respective agents thereunto duly authorized, the
day and year first above written.
ALGONQUIN GAS TRANSMISSION COMPANY
By: /s/ John J. Mullaney
Title: /s/ Vice President, Marketing
CONNECTICUT NATURAL GAS CORPORATION
By: /s/ Edna M. Karanian
Title: /s/ Ass't Vice Pres. Energy Planning & Procurement
9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
Exhibit A
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Point(s) of Receipt
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Dated: September 1, 1994
To the service agreement under Rate Schedule AFT-1 between
Algonquin Gas Transmission Company (Algonquin) and
Connecticut Natural Gas Corporation(Customer) concerning Point(s) of
Receipt
Primary Maximum Daily Maximum
Point of Receipt Obligation Receipt Pressure
Receipt (MMBtu) (Psig)
-------- ------------------ ----------------
Hanover, NJ (TETCO) At any pressure requested
Nov 16 - Apr 15 14,696 by Algonquin but not in
Apr 16 - May 31 9,797 excess of 750 Psig.
Jun 1 - Sep 30 0
Oct 1 - Nov 15 9,797
Lambertville, NJ At any pressure requested
Nov 16 - Apr 15 9,016 by Algonquin but not in
Apr 16 - May 31 6,011 excess of 750 Psig.
Jun 1 - Sep 30 0
Oct 1 - Nov 15 6,011
Signed for Identification
Algonquin: /s/ John J. Mullaney
Customer: /s/ Edna M. Karanian
9W005
SERVICE AGREEMENT
(APPLICABLE TO RATE SCHEDULE AFT-1)
---------------------------------
Exhibit B
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Point(s) of Delivery
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Dated: September 1, 1994
To the service agreement under Rate Schedule AFT-1 between
Algonquin Gas Transmission Company (Algonquin) and
Connecticut Natural Gas Corporation (Customer) concerning Point(s) of
Delivery
Primary Maximum Daily Minimum
Point of Delivery Obligation DeliveryPressure
Delivery (MMBtu) (Psig)
-------- ------------------- ----------------
On the outlet side
of meter stations
located at:
Cromwell, CT 230
Nov 16 - Apr 15 9,464
Apr 16 - May 31 6,309
Jun 1 - Sep 30 0
Oct 1 - Nov 15 6,309
Glastonbury, CT 150
Nov 16 - Apr 15 14,248 (Not to exceed
Apr 16 - May 31 9,499 2,350 MMBtu/hr
Jun 1 - Sep 30 0 under all Service
Oct 1 - Nov 15 9,499 Agreements)
Signed for Identification
Algonquin: /s/ John J. Mullaney
Customer: /s/ Edna M. Karanian
FMH/cl
9W005.New