AMENDMENT TO THE FIRM TRANSPORTATION SERVICE AGREEMENT BETWEEN
SAN DIEGO GAS & ELECTRIC COMPANY AND PACIFIC GAS AND ELECTRIC COMPANY
Pacific Gas and Electric Company (PG&E) and San Diego Gas &
Electric Company (SDG&E) hereby agree to amend the Firm
Transportation Service Agreement (FTSA) between them, dated
December 31, 1991, as follows:
1. For the "Negotiated Period" as defined in Section 11,
SDG&E's rate for gas transportation service under the FTSA
shall be a "Negotiated Rate".
1.1. NEGOTIATED RATE:
The "Negotiated Rate" shall be $ 0.28 per decatherm.
SDG&E shall pay PG&E each month an amount calculated
as follows. SDG&E shall pay a reservation charge
equal to the Negotiated Rate times the number of
calendar days in the month times the Maximum Daily
Quantity. There shall be no usage charge.
1.2. The payment provisions of PG&E's tariffs shall apply.
1.3. During the Negotiated Period, SDG&E shall have a one-
time option to elect to pay the standard tariff rates
applicable to Expansion deliveries to the Southern
Terminus for delivery off system. If SDG&E elects to
pay standard tariff rates, SDG&E shall not be able to
revert to the Negotiated Rate.
2. Following the Negotiated Period, SDG&E shall pay rates and
charges as specified in the CPUC-approved tariff applicable
to firm Expansion service, with the exception that such
rates and charges shall be no higher than a rate calculated
using the methodology in effect at the time the rates and
charges are calculated, with a Line 401 capital cost of $736
million, and a utility capital structure. SDG&E shall pay
rates on an SFV basis.
3. Upon a CPUC decision on the PEBA balance, the owing party
shall pay all amounts due in a manner consistent with the
CPUC decision. Payment of the balance shall be independent
of the monthly payments calculated in Section 1.1.
4. SDG&E agrees that PG&E may transfer all or part of its
ownership interest in Line 401 without SDG&E's consent and,
if PG&E's successor in interest assumes all of PG&E's
obligations under the FTSA, PG&E shall have no further or
continuing obligations to SDG&E, its successor, or its
assignees.
5. SDG&E agrees that, if PG&E or its successor in interest at
any time seeks, in accordance with California Public
Utilities Commission (CPUC) Resolution L-244, to transfer
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Line 401 to the jurisdiction of the Federal Energy
Regulatory Commission, SDG&E will neither oppose such a
transfer nor claim that such a transfer violates any
provision of the FTSA.
6. As consideration for PG&E's agreement to the Negotiated Rate
set forth in paragraph 1, effective immediately, and for the
remainder of the 30-year term of the FTSA, SDG&E irrevocably
waives rights it has under the "Uniform Terms of Service"
set forth in the March, 1994 Amendment to the FTSA, and
relinquishes all claims it may have either arising under or
relating in any way to rights under that provision.
7. For the period beginning on the first day of the Negotiated
Period and ending on the last day of the Negotiated Period,
SDG&E agrees to deliver all gas transported under this
amendment off PG&E's system, using the delivery point
specified in Exhibit A attached to the original FTSA.
Following the Negotiated Period, SDG&E shall have a right to
whatever delivery point options are available in effective
CPUC-approved tariffs applicable to long-term firm Expansion
service.
8. Within five calendar days of execution of this amendment by
both SDG&E and PG&E, SDG&E agrees to withdraw with prejudice
all opposition to PG&E's positions in all phases of the
consolidated PEPR/ITCS cases; including the so-called
`statewide ITCS' issue.
9. SDG&E agrees to: (a) actively support approval by the CPUC
of this amendment, without modification or condition; and
(b) actively support PG&E's Gas Accord before the CPUC.
10. Within 60 days of execution of this amendment, PG&E shall
file the amendment with the CPUC by advice letter.
11. The Negotiated Period shall begin on the date the CPUC
approves this amendment and shall continue until the later
of (a) five years from the date or (b) the end of the Gas
Accord period, as approved by the CPUC.
12. As consideration for SDG&E's agreement to execute this
amendment by December 2, 1996 without the limited protection
of a favored-nations provision granting SDG&E the right to
take possible subsequent arrangements PG&E might agree to
with other firm Expansion shippers under the August 12, 1996
letter, PG&E shall pay to SDG&E the sum of $150,000 within
thirty (30) calendar days from the date this amendment is
approved by the CPUC.
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13. Prior to any future expansion of PG&E's Line 400/401 system,
PG&E agrees to offer SDG&E the option to reduce its firm
transportation commitment by the lesser of SDG&E's contract
demand, the proposed amount of the new expansion, or, if
applicable, a pro rata share (with other firm Expansion
Shippers) of the amount of the new expansion.
14. Each provision of this amendment is agreed to by the parties
as quid pro quo consideration for each of the other
provisions, so that no provision of this amendment is
separable from the others for any purpose. If any provision
of this amend is deleted, this amendment shall be null and
void and of no binding effect on any party.
For SDG&E: For PG&E:
By: __________________________By: ___________________________
Title:__________________________Title:___________________________
Date: __________________________Date: ___________________________
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