EXHIBIT 10-A-27
SERVICE AGREEMENT
between
CNG TRANSMISSION CORPORATION
and
PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED
Dated
January 24, 1996
SERVICE AGREEMENT
APPLICABLE TO TRANSPORTATION OF NATURAL GAS
UNDER RATE SCHEDULE FT
(X-74 ASSIGNMENT)
AGREEMENT made as of this 24 day of January, 1996, by and between CNG
TRANSMISSION CORPORATION, a Delaware corporation, hereinafter called "Pipeline,"
and PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC., a North Carolina
corporation, hereinafter called "Customer."
WHEREAS, Customer has elected to take assignment of a portion of the
firm transportation service entitlements provided by Pipeline to
Transcontinental Gas Pipeline Corporation ("Transco"), under Pipeline's Rate
Schedule X-74 (Lebanon- to-Leidy Service); and
WHEREAS, Pipeline has agreed to assign such entitlements to Customer
for service under part 284 of the Commission's regulations, subject to
Pipeline's ability to obtain relief from its contractual obligation to serve
Transco for a like quantity of firm transportation service, under Pipeline's
Rate Schedule X- 74.
WITNESSETH: That, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:
ARTICLE I
Quantities
A. During the term of this Agreement, Pipeline will transport for
Customer, on a firm basis, and Customer may furnish, or cause to be furnished,
to Pipeline natural gas for such transportation, and Customer will accept, or
cause to be accepted, delivery from Pipeline of the quantities Customer has
tendered for transportation.
B. The maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as set forth on Exhibit A, attached hereto.
ARTICLE II
Rate
A. Unless otherwise mutually agreed in a written amendment to this
Agreement, beginning on January 24, 1996, Customer shall pay Pipeline for
transportation services rendered pursuant to this Agreement:
1. The maximum rates and charges provided under Rate Schedule
FT set forth in Pipeline's effective FERC Gas Tariff,
including applicable surcharges and the Fuel Retention
Percentage; and
2. All additional charges applicable to Rate Schedule X-74 Ca-
pacity and set forth on Sheet No. 37 of Pipeline's effective
FERC Gas Tariff.
B. Pipeline shall have the right to propose, file and make effective
with the Federal Energy Regulatory Commission or any other body having
jurisdiction, revisions to any applicable rate schedule, or to propose, file,
and make effective superseding rate schedules for the purpose of changing the
rate, charges, and other provisions thereof effective as to Customer; provided,
however, that (i) Section 2 of Rate Schedule FT "Applicability and Character of
Service," (ii) term, (iii) quantities, and (iv) points of receipt and points of
delivery shall not be subject to unilateral change under this Article. Said rate
schedule or superseding rate schedule and any revisions thereof which shall be
filed and made effective shall apply to and become a part of this Service
Agreement. The filing of such changes and revisions to any applicable rate
schedule shall be without prejudice to the right of Customer to contest or
oppose such filing and its effectiveness.
ARTICLE III
Term of Agreement
Subject to all the terms and conditions herein, this Agreement shall be
effective as of January 24, 1996, and shall continue in effect for a primary
term through and including October 31, 2007, and from year to year thereafter,
until either party terminates this Agreement by giving written notice to the
other at least twelve months prior to the start of the next contract year.
ARTICLE IV
Points of Receipt and Delivery
The Points of Receipt and Delivery and the maximum quantities for each
point for all gas that may be received for Customer's account for Transportation
by Pipeline shall be as set forth on Exhibit A.
ARTICLE V
Incorporation By Reference of Tariff Provisions
To the extent not inconsistent with the terms and conditions of this
Agreement, the following provisions of Pipeline's effective FERC Gas Tariff, and
any revisions thereof that may be made effective hereafter are hereby made
applicable to and a part hereof by reference:
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1. All of the provisions of Rate Schedule FT, or any
effective superseding rate schedule or otherwise applicable
rate schedule; and
2. All of the provisions of the General Terms and Conditions,
as they may be revised or superseded from time to time.
ARTICLE Vl
Miscellaneous
A. No change, modification or alteration of this Agreement shall be or
become effective until executed in writing by the parties hereto; provided,
however, that the parties do not intend that this Article Vl.A. requires a
further written agreement either prior to the making of any request or filing
permitted under Article II hereof or prior to the effectiveness of such request
or filing after Commission approval, provided further, however, that nothing in
this Agreement shall be deemed to prejudice any position the parties may take as
to whether the request, filing or revision permitted under Article II must be
made under Sectio 7 or Section 4 of the Natural Gas Act.
B. Any notice, request or demand provided for in this Agreement, or any
notice which either party may desire to give the other, shall be in writing and
sent to the following addresses:
Pipeline: CNG Transmission Corporation
445 West Main Street
Clarksburg, West Virginia 26301
Attention: Vice President, Marketing and
Customer Services
Customer: Public Service Company of North Carolina, Inc.
1422 Burtonwood Avenue
Gastonia, North Carolina 28053-0698
Attention: Director - Gas Supply
or at such other address as either party shall designate by formal written
notice.
C. No presumption shall operate in favor of or against either party
hereto as a result of any responsibility either party may have had for drafting
this Agreement.
D. The subject headings of the provisions of this Agreement are inser-
ted for the purpose of convenient reference and are not intended to become a
part of or to be considered in any interpretation of such provisions
.
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IN WITNESS WHEREOF, the parties hereto intending to be legally bound,
have caused this Agreement to be signed by their duly authorized officials as of
the day and year first written above.
CNG TRANSMISSION CORPORATION
(Pipeline)
By: s\ Joseph A. Curia
Its: Vice President
PUBLIC SERVICE COMPANY OF
NORTH CAROLINA, INC.
(Customer)
By: s\ Franklin H. Yoho
Its: Senior Vice President
(Title)
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EXHIBIT A
To The FT Service Agreement
Dated January 24, 1996
Between CNG Transmission Corporation
And PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC.
(X-74 Assignment)
A. Quantities
The maximum quantities of gas which Pipeline shall deliver and which
Customer may tender shall be as follows:
1. A Maximum Daily Transportation Quantity (MDTQ) of 5,035 Dt.
2. A Maximum Annual Transportation Quantity (MATQ) of 1,837,775 Dt.
B. Point of Receipt
The Point of Receipt and the maximum quantities for such point shall be
as set forth below. Each of the parties will use due care and diligence to
assure that uniform pressures will be maintained at the Receipt Point as
reasonably may be required to render service hereunder, but Pipeline shall not
be required to accept gas at less than the minimum pressure specified herein. In
addition to the quantities specified below, Customer may increase the quantities
furnished to Pipeline at the Receipt Point, so long as such quantities, when
reduced by the fuel retention percentage specified in Pipeline's
currently-effective FERC Gas Tariff, do not exceed the quantity limitation
specified below for the Receipt Point.
1. Up to 5,035 Dt per Day at the interconnection of the facilities of
Pipeline and Texas Gas Transmission Corporation in Warren County,
Ohio, known as the Lebanon Interconnection, at a pressure of not less
than five hundred thirty-one (531) pounds per square inch gauge
("psig").
EXHIBIT A
January 24, 1996 FT Service Agreement (X-74 Assignment)
Between CNG Transmission Corporation
and Public Service Company of North Carolina, Inc.
Page 2 of 2
C. Point of Delivery
The Maximum Daily Delivery Obligation ("MDDO") stated below reflects
Pipeline's total obligation to deliver quantities to the Point of Delivery under
all firm service agreements between Pipeline and Customer, Customer's assignee,
any applicable Replacement Customer, or any other Customer. Each of the parties
will use due care and diligence to assure that uniform pressures will be
maintained at the Delivery Point as reasonably may be required to render service
hereunder, but Pipeline shall not be required to deliver gas (or to cause gas to
be delivered) at greater than the maximum pressure specified herein. The Point
of Delivery and the MDDO shall be as follows:
1. Up to 5,035 Dt per Day at the interconnection of the facilities of
Pipeline and Transcontinental Gas Pipe Line Corporation, or other
pipeline(s) in Clinton County, Pennsylvania, known as the Leidy
Interconnection, at a pressure of not greater than one thousand, two
hundred (1,200) psig.