1
Exhibit 10.4
FIRM TRANSPORTATION SERVICE AGREEMENT
THIS AGREEMENT is made and entered into this 26th day of October, 1993 by and
between
PACIFIC GAS TRANSMISSION COMPANY, a California corporation (hereinafter
referred to as "PGT"),
and
PACIFIC GAS & ELECTRIC COMPANY, a corporation existing under the laws of the
State of California (hereinafter referred to as "Shipper").
WHEREAS, PGT owns and operates a natural gas interstate pipeline transmission
system which extends from a point of interconnection with the pipeline
facilities of Alberta Natural Gas Company Ltd. (ANG) at the International
Boundary near Kingsgate, British Columbia, through the states of Idaho,
Washington and Oregon to a point of interconnection with Pacific Gas and
Electric Company at the Oregon-California border near Malin, Oregon; and
WHEREAS, Shipper desires PGT, on a firm basis, to transport certain
quantities of natural gas from Kingsgate, British Columbia to Malin, Oregon for
ultimate delivery to Shipper, a local distribution company; and
WHEREAS, puruant to FERC Order No. 636, et. seq., PGT will unbundle its firm
transportation and sales services, and PGT and Shipper will execute a new
service agreement for unbundles firm transportation service; and
WHEREAS, this Agreement will supersede any prior agreements between PGT and
Shipper for firm gas sales or firm transportation,and willincorporate the
transportation rights thereunder into this Agreement; and
WHEREAS, PGT is willing to transport certain quantities of natural gas for
Shipper, on a firm basis,
NOW, THEREFORE, the parties agree as follows:
I
GOVERNMENTAL AUTHORITY
1.1 This Firm Transportation Agreement ("Agreement") is made pursuant to the
regulations of the Federal Energy Regulatory Commission (FERC) contained in 18
CFR Part 284, as amended from time to time.
2
I
GOVERNMENTAL AUTHORITY
(continued)
1.2 This Agreement is subject to all valid legislation with respect to the
subject matters hereof, either state or federal, and to all valid present and
future decisions, orders, rules, regulations and ordinances of all duly
constituted governmental authorities having jurisdiction.
1.3 Shipper shall reimburse PGT for any all filing fees incurred by PGT in
seeking governmental authorization for the initiation, extension, or
termination of service under this Agreement and Rate Schedule FTS-1. Shipper
shall reimburse PGT for such fees at PGT's designated office within ten (10)
days of receipt of notice from PGT that such fees are due and payable.
Additionally, Shipper shall reimburse PGT for any and all penalty fees or fines
assessed PGT caused by the negligence of Shipper in not obtaining all proper
Canadian and domestic import/export licenses, surety bonds or any other
documents and approvals related to the Canadian exportation and subsequent
domestic importation of natural gas transported by PGT hereunder.
II
QUANTITY OF GAS AND PRIORITY OF SERVICE
2.1 Subject to the terms and provisions of this Agreement and PGT's
Transportation General Terms and Conditions contained in PGT's FERC Gas Tariff
First Revised Volume No. 1-A (Transportation General Terms and Conditions)
applicable to Rate Schedule FTS-1, daily receipts of gas by PGT from Shipper at
the point(s) of receipt shall be equal to daily deliveries of gas by PGT to
Shipper at the point(s) of delivery; provided, however, Shipper shall deliver
to PGT an additional quantity of natural gas at the point(s) of receipt as
compressor station fuel, line loss and unaccounted for gas as specified in the
Statement of Effective Rates and Charges of PGT's FERC Gas Tariff First Revised
Volume No. 1-A which by this reference is made a part hereof. Any limitations
of the quantities to be received from each point of delivery shall be as
specified on the Exhibit A attached hereto.
2.2 The maximum quantities of gas to be delivered by PGT for Shipper's
account at the point(s) of delivery are set forth in Exhibit A.
2.3 In providing service to its existing or new customers, PGT will use the
priorities of service specified in Paragraph 18 of PGT's Transportation General
Terms and Conditions on file with the FERC.
2.4 Prior to initiation of service, Shipper shall provide PGT with any
information required by the FERC, as well as the information identified in
Paragraphs 21, 28, and 29 of PGT's Transportation General Terms and Conditions
applicable to Rate Schedule FTS-1.
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3
III
TERM OF AGREEMENT
3.1 This Agreement shall become effective November 1, 1993, and shall
continue in full force and effect until October 31, 2005. Thereafter, this
Agreement shall continue in effect from year to year unless Shipper gives PGT
twelve (12) months prior written notice of termination of this Agreement. The
Agreeement shall terminate twelve (12) months after such notice.
IV
POINTS OF RECEIPT AND DELIVERY
4.1 The primary point of receipt of gas deliveries to PGT is as designated
in Exhibit A, attached hereto.
4.2 The primary point of delivery of gas to Shipper is as designated in
Exhibit A, attached hereto.
4.3 Shipper shall deliver or cause to be delivered to PGT the gas to be
transported hereunder at pressures sufficient to deliver such gas into PGT's
system at the point(s) of receipt. PGT shall deliver the gas to be transported
hereunder to or for the account of Shipper at the pressures existing in PGT's
system at the point(s) of delivery.
4.4 Pursuant to Paragraph 28 of PGT's Transportation General Terms and
Conditions, Shipper may designate other receipt and/or delivery points as
secondary receipt or delivery points.
V
OPERATING PROCEDURES
5.1 Shipper shall conform to the operating procedures set forth in PGT's
Transportation General Terms and Conditions.
5.2 Nothing in Section 5.1 shall compel PGT to transport gas pursuant to
Shipper's request on any given day. PGT shall have the right to interrupt or
curtail the transport of gas for the account of Shipper pursuant to PGT's
Transportation General Terms and Conditions applicable to Rate Schedule FTS-1.
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4
VI
RATE(S), RATE SCHEDULES, AND
GENERAL TERMS AND CONDITIONS OF SERVICE
6.1 Shipper shall pay PGT each month for services rendered pursuant to this
Agreement in accordance with PGT's Rate Schedule FTS-1, or superseding rate
schedule(s) on file with and subject to the jurisdiction of the FERC.
6.2 Shipper shall compensate PGT each month for compressor station fuel,
line loss and other unaccounted for gas associated with this transportation
service provided herein in accordance with PGT's Rate Schedule FTS-1, or
superseding rate schedule(s), on file with and subject to the jurisdiction of
the FERC.
6.3 This Agreement in all respects shall be and remains subject to the
applicable provisions of Rate Schedule FTS-1, or superseding rate schedule(s)
and of the applicable Transportation General Terms and Conditions of PGT's FERC
Gas Tariff, First Revised Volume No. 1-A on file with the FERC, all of which
are by this reference made a part hereof.
6.4 PGT shall have the unilateral right from time to time to propose and
file with the FERC such changes in the rates and charges applicable to
transportation services pursuant to this Agreement, the rate schedule(s) under
which this service is hereunder provided, or any provisions of PGT's
Transportation General Terms and Conditions applicable to such services.
Shipper shall have the right to protest any such changes proposed by PGT and to
exercise any other rights that Shipper may have with respect thereto.
VII
MISCELLANEOUS
7.1 This Agreement shall be interpreted according to the laws of the State
of California.
7.2 Shipper agrees to indemnify and hold PGT harmless for refusal to
transport gas hereunder in the event any upstream or downstream transporter
fails to receive or deliver gas as contemplated by this Agreement.
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VII
MISCELLANEOUS
(continued)
7.3 Unless herein provided to the contrary, any notice called for in this
Agreement shall be in writing and shall be considered as having been given if
delivered by registered mail or telex with all postage or charges prepaid, to
either PGT or Shipper at the place designated below. Routine communications,
including monthly statements and payment, shall be considered as duly delivered
when received by ordinary mail. Unless changed, the addresses of the parties
are as follows:
"PGT" PACIFIC GAS TRANSMISSION COMPANY
Room 1900
160 Spear Street
San Francisco, California 94105-1570
Attention: President & CEO
"Shipper" PACIFIC GAS & ELECTRIC COMPANY
77 Beale Street, Room 1611
Mail Code: B16A, PO Box 770000
San Francisco, CA 94177
Attention: Manager, Gas Services Department
7.4 A waiver by either party of any one or more defaults by the other
hereunder shall not operate as a waiver of any future default or defaults,
whether of a like or of a different character.
7.5 This Agreement may only be amended by an instrument in writing executed
by both parties hereto.
7.6 Nothing in this Agreement shall be deemed to create any rights or
obligations between the parties hereto after the expiration of the term set
forth herein, except that termination of this Agreement shall not relieve
either party of the obligation to correct any quantity imbalances or Shipper of
the obligation to pay any amounts due hereunder to PGT.
7.7 Exhibits A and C attached hereto are incorporated herein by refernce and
made a part hereof for all purposes.
5
6
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
PACIFIC GAS TRANSMISSION COMPANY
By: Paula G. Rosput
Name: Paula G. Rosput
Title: Senior Vice President
Date: October 26, 1993
PACIFIC GAS & ELECTRIC COMPANY
By: William R. Mazotti
Name: William R. Mazotti
Title: Vice President-Gas
Services Operations
Date: October 26, 1993
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EXHIBIT A
to the
FIRM TRANSPORTATION SERVICE AGREEMENT
Dated _________________________________ Between
PACIFIC GAS TRANSMISSION COMPANY
And
PACIFIC GAS & ELECTRIC COMPANY
Receipt Delivery Maximum Daily Quantity (MDQ)
Point(1) Point(1) (Delivered) MMBtu/d
Summer(2) Winter(3)
Kingsgate, Malin, 1,023,120(4) 1,081,990
British Columbia Oregon
(1) Pursuant to Paragraph 29 of PGT's Transportation General Terms and
Conditions, Shipper may designate other receipt and delivery points as
"secondary receipt" and "secondary delivery" points. For example, Shipper
may designate Stanfield, Oregon and/or Spokane, Washington as secondary
receipt points.
(2) Summer -- months of May through October.
(3) Winter -- months of November through April.
(4) In accordance with FERC's October 1, 1993, order at Docket No. RS92-46
Shipper's firm summer MDQ (Delivered) may exceed 1,023,120 MMBtu/d to the
extent firm capacity is available on PGT's original system. However, under
no circumstances may Shipper's firm Summer MDQ (Delivered) exceed 1,081,990
MMBtu/d.
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8
EXHIBIT C
to the
FIRM TRANSPORTATION SERVICE AGREEMENT
Dated _________________________________ Between
PACIFIC GAS TRANSMISSION COMPANY
And
PACIFIC GAS & ELECTRIC COMPANY
Type of Replacement Service:
Replacement Shipper:
Receipt Point:
Delivery Point:
Maximum Daily Quantity:
Commencment of Credit:
Termination of Credit:
Level of Credit: _____ percent of the maximum rate defined as
_______________________________________________
_______________________________________________
_______________________________________________
applicable for service under Rate Schedule FTS-1
Other Terms and Conditions:
(1) ________________________________________________________________________
(2) ________________________________________________________________________
(3) ________________________________________________________________________
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PACIFIC GAS TRANSMISSION COMPANY
RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
1. AVAILABILITY
This rate schedule is available to any party (hereinafter called "Shipper")
qualifying for service pursuant to the Commission's Regulations contained
in 18 CFR Part 284, and who has executed a Firm Transportation Service
Agreement with PGT in the form contained in this FERC Gas Tariff First
Revised Volume No. 1-A.
2. APPLICABILITY AND CHARACTER OF SERVICE
This rate schedule shall apply to firm gas transportation services
performed by PGT for Shipper pursuant to the executed Firm Transportation
Service Agreement between PGT and Shipper. PGT shall receive from Shipper
such daily quantities of gas up to the Shipper's Maximum Daily Quantity as
specified in the executed Firm Transportation Service Agreement between PGT
and Shipper and redeliver an amount equal to the quantity received less
applicable compressor station fuel, line loss and other unaccounted for gas
associated with the specific transportation service. This transportation
service shall be firm and not subject to curtailment or interruption except
as provided in the Transportation General Terms and Conditions.
Firm transportation service shall be subject to all provisions of the
executed Firm Transportation Service Agreement between PGT and Shipper and
the applicable Transportation General Terms and Conditions.
3. RATES
Shipper shall pay PGT each month the sum of the Reservation Charge,
applicable Reservation Surcharge, the Firm Transportation Charge and other
applicable surcharges for the quantities of natural gas delivered. The
rate(s) and the Maximum Daily Quantity set forth in PGT's current Statement
of Effective Rates and Charges for Transportation of Natural Gas in this
FERC Gas Tariff First Revised Volume No. 1-A are applied to transportation
service rendered under this rate schedule.
3. RATES
3.1 Reservation Charge
The monthly Reservation Charge shall be the currently effective
rate times the distance, in pipeline miles, from the point(s) of
receipt to the point(s) of delivery times the Shipper's Maximum
Daily Quantity delivered.
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RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.2 Reservation Surcharge
Shippers converting to firm transportation under Rate Schedule
FTS-1 from Rate Schedules T-1, T-2 or T-3 of PGT's Second Revised
Volume No. 1 tariff shall pay a Reservation Surcharge. The
Reservation Surcharge shall be calculated in the following manner:
The currently effective T-1, T-2 or T-3 Reservation Surcharge Rate
times the distance, in pipeline miles, from the point(s) of receipt
to the point(s) of delivery times the Shipper's Maximum Daily
Quantity delivered. The Reservation Surcharge Rates are stated on
the Statement of Effective Rates and Charges of PGT's First Revised
Volume No. 1-A tariff.
Shipper's obligation to pay the Reservation Charge and applicable
Reservation Surcharge is independent of Shipper's ability to obtain
export authorization from the National Energy Board of Canada,
Canadian provincial removal authority, and/or import authorization
from the United States Department of Energy, and shall begin with
the execution of the Firm Transportation Service Agreement by both
parties. The Reservation Charge and Reservation Surcharge due and
payable shall be computed beginning in the month in which service
is first available (prorated if beginning in the month in which
service is available on a date other than the first day of the
month). Thereafter, the monthly Reservation Charge and Reservation
Surcharge shall be due and payable each month during the Initial
(and Subsequent) Term(s) of the Shipper's executed Firm
Transportation Service Agreement and is unaffected by the quantity
of gas transported by PGT to Shipper's delivery point(s) in any
month.
3.3 Firm Transportation Charge
The monthly Firm Transportation Charge shall be the product of the
following:
(a) The quantities of gas delivered during the month (MMBtu);
(b) An amount no less than the Minimum Delivery Rate, nor greater
than the Maximum Delivery Rate set forth in the Statement of
Effective Rates and Charges for Transportation of Natural Gas
in this FERC Gas Tariff First Revised Volume No. 1-A; and
(c) The distance, in pipeline miles, from the point(s) of receipt
to the point(s) of delivery.
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RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.4 Delivery Rate Surcharge
Shippers converting from Rate Schedule T-3 of PGT's Second Revised
Volume No. 1 tariff shall receive a credit calculated as the
product of the Delivery Rate Surcharge, the quantities of gas
delivered during the month and the distance, in pipeline miles,
from the point(s) of receipt to the point(s) of delivery. The
Delivery Rate Surcharge is stated on the Statement of Effective
Rates and Charges of PGT's First Revised Volume No. 1-A Tariff.
3.5 Shipper shall pay the Maximum Monthly Reservation Charge,
applicable Reservation Surcharge, and the Maximum Delivery Rate for
service under this rate schedule unless PGT offers to discount the
Monthly Reservation Charge, Reservation Surcharge or the Delivery
Rate or all to Shipper under this rate schedule. If PGT elects to
discount the Monthly Reservation Charge, Reservation Surcharge or
the Delivery Rate or all, PGT shall, up to forty-eight (48) hours
prior to such discount, by written notice, advise Shipper of the
effective date of such charges and the quantity of gas so affected;
provided, however, such discount shall not be anticompetitive or
unduly discriminatory between individual shippers. The rates for
service under this rate schedule shall not be discounted below the
Minimum Monthly Reservation Charge, the Minimum Delivery Rate, and
applicable GSR and ACA Surcharges.
3.6 Gas Supply Restructuring (GSR) Transition Cost Surcharge
Shipper shall pay a GSR Transition Cost Surcharge for PGT's
approved GSR costs as defined in Paragraph 30 of the Transportation
General Terms and Conditions. This surcharge is stated on the
Statement of Effective Rates and Charges and is defined in
Paragraph 30 of the Transportation General Terms and Conditions.
The surcharge shall be the product of the surcharge rate, the
quantities of gas delivered during the month and the distance in
pipeline miles from the point(s) of receipt to the point(s) of
delivery.
3.7 Backhauls or upstream deliveries shall be subject to the same
charges as forward haul or downstream transportation arrangements
except that no gas shall be retained by PGT for compressor station
fuel, line loss and other unaccounted-for gas.
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RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
3. RATES (Continued)
3.8 Direct Bills
PG&E shall pay a Direct Bill for 100% of the costs allocated to the
Direct Bill portion of Approved Gas Supply Restructuring (GSR)
Costs excluding the amount to be collected from the Northwest
Shippers as defined in Paragraph 30 of the Transportation General
Terms and Conditions and credited against the Direct Bill portion
of Approved GSR Costs as defined in Paragraph 30 of the
Transportation General Terms and Conditions. In accordance with
Paragraph 30.5(b) of the Transportation General Terms and
Conditions, PG&E may elect to pay its Direct Bill in a lump sum or
select one of three payment plans as shown on the Statement of
Rates and Charges for Transportation of Natural Gas.
3.9 Capacity Release
(a) Releasing Shippers:
Shipper shall have the option to release capacity pursuant
to the provisions of PGT's capacity release program as
specified in the Transportation General Terms and
Conditions. Shipper may release its capacity, up to
Shipper's Maximum Daily Quantity under this rate schedule,
in accordance with the provisions of Paragraph 28 of PGT's
Transportation General Terms and Conditions of this FERC
Gas Tariff, First Revised Volume No. 1-A. Shipper shall
pay a fee associated with the marketing of capacity by PGT
(if applicable) in accordance with Paragraph 28 of the
Transportation General Terms and Conditions. This fee
shall be negotiated between PGT and the Releasing Shipper.
(b) Replacement Shippers:
Shipper may receive released capacity service under this
rate schedule pursuant to Paragraph 28 of the
Transportation General Terms and Conditions and is
required to execute a service agreement in the form
contained for capacity release under Rate Schedule FTS-1
in this First Revised Volume No. 1-A.
Shipper shall pay PGT each month the rates for
transportation service under this rate schedule and as set
forth in PGT's current Statement of Effective Rates and
Charges in this First Revised Volume No. 1-A. The rates
to be paid shall be the sum of the Reservation Charge, any
applicable Reservation Surcharge and GSR Transition Cost
Surcharge, Delivery Rate and other applicable surcharges
or penalties.
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RATE SCHEDULE FTS-1
FIRM TRANSPORTATION SERVICE
(Continued)
The rates paid by Shipper receiving capacity release
transportation service shall be adjusted as provided on
Exhibit R in the executed Transportation Service Agreement
For Capacity Release between PGT and Shipper.
4. FUEL AND LINE LOSS
Shipper shall furnish to PGT quantities of gas for compressor station fuel,
line loss and other utility purposes, plus other unaccounted for gas used
in the operation of PGT's combined pipeline system between the
International Boundary near Kingsgate, British Columbia and the
Oregon-California boundary for the transportation quantities of gas
delivered by PGT to Shipper, based upon the effective fuel and line loss
percentages in accordance with Paragraph 37 of the General Terms and
Conditions.
5. TRANSPORTATION GENERAL TERMS AND CONDITIONS
All of the Transportation General Terms and Conditions except Paragraph 19
are applicable to this rate schedule, unless otherwise stated in the
executed Firm Transportation Service Agreement between PGT and Shipper.
Any future modifications, additions or deletions to said Transportation
General Terms and Conditions, unless otherwise provided, are applicable to
firm transportation service rendered under this rate schedule, and by this
reference, are made a part hereof.
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PACIFIC GAS TRANSMISSION COMPANY
TRANSPORTATION GENERAL TERMS AND CONDITIONS
TABLE OF CONTENTS
Paragraph
No. Provision Sheet
- --------- ---------------------------------------------- ---------
No.
1 Definitions 52
2 Gas Research Institute Charge Adjustment Provision 55
3 Quality of Gas 56
4 Measuring Equipment 58
5 Measurements 60
6 Inspection of Equipment and Records 61
7 Billing 61
8 Payment 62
9 Notice of Changes in Operating Conditions 63
10 Force Majeure 63
11 Warranty of Eligibility for Transportation 64
12 Possession of Gas and Responsibility 64
13 Indemnification 65
14 Arbitration 65
15 Governmental Regulations 66
16 Miscellaneous Provision 66
17 Transportation Service Agreement 66
18 Scheduling of Receipts and Deliveries 67
19 Operating Provisions for Interruptible Transportation Service 69
20 Operating Provisions for Firm Transportation Service 70
21 Operating Provisions for Interruptible and Firm
Transportation Service 72
22 Annual Charge Adjustment (ACA) Provision 85
23 Shared Operating Personnel and Facilities 85
24 Complaint Procedures 86
25 Information Concerning Availability and Pricing
of Transportation Service and Capacity for
Transportation 87
26 Market Centers 88
27 Planned PGT Capacity Curtailments and Interruptions 88
28 Capacity Release 89
29 Flexible Receipt and Delivery Points 119
30 Gas Supply Restructuring Transition Costs 123
31 Former Buyer's Obligation for Unrecovered
Account No. 191 Amounts 127
32 Equality of Transportation Service 129
33 Right of First Refusal Upon Termination of
Firm Shipper's Service Agreement 130
34 Electronic Bulletin Board 132
35 Crediting of Interruptible Transportation Revenues 137
36 Capacity Relinquishment 139
37 Fuel, Line Loss and Other Unaccounted For Gas
Adjustment 140
(Continued)
15
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS
1.1 The word "day" shall mean a period of twenty-four (24)
consecutive hours, beginning and ending at 7:00 o'clock a.m.
Pacific Standard Time or such other time as Shipper and PGT may
agree upon.
1.2 The word "month" shall mean a period extending from the
beginning of the first day in a calendar month to the beginning
of the first day in the next succeeding calendar month.
1.3 The term "Maximum Daily Quantity" shall mean the maximum daily
quantity in MMBtu of gas which PGT agrees to receive inclusive
of an allowance for compressor station fuel, line loss and
other unaccounted for gas and transport for the account of
Shipper on each day during each year during the term of
Shipper's Transportation Service Agreement with PGT.
1.4 The term "marketing affiliate" shall mean Pacific Gas and
Electric Company.
1.5 The word "gas" shall mean natural gas.
1.6 The term "cubic foot of gas" shall mean that quantity of gas
which, at a temperature of sixty degrees (60 degrees)
Fahrenheit and at a pressure of 14.73 pounds per square inch
absolute, occupies one (1) cubic foot.
1.7 The term "Mcf" shall mean one thousand (1,000) cubic feet of
gas and shall be measured as set forth in Paragraph 5 hereof.
The term "MMcf" shall mean one million (1,000,000) cubic feet
of gas.
1.8 The term "Btu" shall mean British Thermal Unit. The term
"MMBtu" shall mean one million (1,000,000) British Thermal
Units.
1.9 The term "gross heating value" shall mean the number of
Btu's in a cubic foot of gas at a temperature of sixty degrees
(60 degrees) Fahrenheit, saturated with water vapor, and at an
absolute pressure equivalent to thirty (30) inches of mercury
at thirty-two degrees (32 degrees) Fahrenheit.
1.10 The term "psig" shall mean pounds per square inch gauge.
(Continued)
16
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.11 Releasing Shipper: A firm transportation Shipper which intends
to post its service to be released to a Replacement Shipper,
has posted the service for release, or has released its
service.
1.12 Replacement Shipper: A Shipper which has contracted to utilize
a Releasing Shipper's service for a specified period of time.
1.13 Posting Period: The period of time during which a Releasing
Shipper may post, or have posted by the pipeline, all or a part
of its service for release to a Replacement Shipper.
1.14 Release Term: The period of time during which a Releasing
Shipper intends to release, or has released all or a portion of
its contracted quantity of service to a Replacement Shipper.
1.15 Bid Period: The period of time during which a Replacement
Shipper may bid to contract for a parcel which has been posted
for release by a Releasing Shipper.
1.16 The term "Agent" as defined in connection with PGT's Market
Center Service is any party which contracts with PGT for Market
Center Service and which itself is not a Shipper on PGT.
1.17 Parcel: The term utilized to describe an amount of capacity,
expressed in MMBtu/d, from a specific receipt point to a
specific delivery point for a specific period of time which is
released and bid on pursuant to the capacity release provisions
contained in Paragraph 28 of these Transportation General Terms
and Conditions.
1.18 Primary Release: The term used to describe the release of
capacity by a Releasing Shipper receiving service under a Part
284 firm transportation rate schedule.
1.19 Secondary Release: The term used to describe the release of
capacity by a Replacement Shipper receiving service under a
Part 284 firm transportation rate schedule.
(Continued)
17
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.20 Bid Reconciliation Period: The period of time subsequent to
the Bid Period during which bids are evaluated by PGT.
1.21 Match Period: The period of time subsequent to the Bid
Reconciliation Period and before the notification deadline for
awarding capacity for Prearranged Deals C and D during which
the Prearranged Shipper may match the highest bid(s) any higher
bids for the Parcel.
(Continued)
18
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
2. GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION
2.1 Purpose: PGT has joined with other gas enterprises in the
formation of, and participation in, the activities and
financing of the Gas Research Institute (GRI), an Illinois Not
For Profit corporation. GRI has been organized for the purpose
of sponsoring Research, Development and Demonstration (RD&D)
programs in the field of natural and manufactured gas for the
purpose of assisting all segments of the gas industry in
providing adequate, reliable, safe, economic and
environmentally acceptable gas service for the benefit of gas
consumers and the general public.
For the purpose of funding GRI's approved expenditures, this
Paragraph 2 establishes a GRI Adjustment Charge to be
applicable to PGT's Rate Schedules ITS-1 and FTS-1, in this
FERC Gas Tariff First Revised Volume No. 1-A; provided,
however, such charge shall not be applicable to Shippers which
are interstate pipelines and which include in their rates a
charge for RD&D by GRI.
2.2 Basis for the GRI Adjustment Charges: The rate schedule
specified in Paragraph 2.1 hereof shall include an increment
for a GRI Adjustment Charge for RD&D. Such GRI Adjustment
Charge shall be that increment, adjusted to PGT's pressure base
and heating value if required, which has been approved by
Federal Energy Regulatory Commission Orders approving GRI's
RD&D expenditures. The GRI Adjustment Charge shall be
reflected in the current Statement of Effective Rates and
Charges for Transportation of Natural Gas in this FERC Gas
Tariff First Revised Volume No. 1-A.
2.3 Filing Procedure: The notice period and proposed effective
date of filings pursuant to this paragraph shall be as
permitted under Section 4 of the Natural Gas Act; provided,
however, that any such filing shall not become effective unless
it becomes effective without suspension or refund obligation.
2.4 Remittance to GRI: PGT shall remit to GRI, not later than
fifteen (15) days after the receipt thereof, all monies
received by virtue of the GRI Adjustment Charge, less any
amounts properly payable to a Federal, State or Local authority
relating to the monies received hereunder.
(Continued)
19
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. QUALITY OF GAS
3.1 Quality Standards: The gas which Shipper delivers hereunder to
PGT for transport (and the gas which PGT transports hereunder
for Shipper) shall be merchantable gas at all times complying
with the following quality requirements:
(a) Heating Value: The gas delivered hereunder shall have a
gross heating value of not less than nine hundred
seventy-five (975) Btus per cubic foot, but with the
consent of Shipper, PGT may deliver gas at a lower gross
heating value.
(b) Freedom from Objectionable Matter: The gas delivered
hereunder:
(1) Shall be commercially free from sand, dust, gums,
crude oil, impurities and other objectionable
substances which may be injurious to pipelines or
which may interfere with its transmission through
pipelines or its commercial utilization.
(2) Shall not have a hydrocarbon dew-point in excess of
fifteen degrees (15 degrees) Fahrenheit at pressures
up to eight hundred (800) psig.
(3) Shall not contain more than one-quarter (1/4) grain
of hydrogen sulfide per one hundred (100) cubic
feet.
(4) Shall not contain more than ten (10) grains of total
sulphur per one hundred (100) cubic feet.
(5) Shall not contain more than two percent (2%) by
volume of carbon dioxide.
(6) Shall not contain more than four (4) pounds of water
vapor per one million (1,000,000) cubic feet.
(7) Shall not exceed one hundred ten degrees (110
degrees) Fahrenheit in temperature at the point of
delivery.
(8) Shall be as free of oxygen as it can be kept through
the exercise of all reasonable precautions, and
shall not in any event contain more than four-tenths
of one percent (.04%) by volume of oxygen.
(Continued)
20
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. QUALITY OF GAS (Continued)
3.2 Quality Tests:
(a) The quality specifications of the gas received by PGT
hereunder shall be determined by tests which PGT shall
cause to be made at the International Boundary or such
other locations on PGT's system if required accordance
with this Paragraph 3.2.
(b) The gross heating value of gas delivered hereunder shall
be determined from read-outs of continuously operating
measuring instruments. The method shall consist of one
or more of the following:
(1) calorimeter
(2) gas chromatograph
(3) any other method mutually agreed upon by the parties.
Measurement of gross heating value with the calorimeters
shall comply with the standards set forth in the American
Society for Testing and Materials' ASTM D 1826-83 or any
subsequent revisions. Analysis of gas with gas
chromatographs shall comply with the standards set forth
in ASTM D 1945-81 or any subsequent revisions.
Calculation of the gross heating value from compositional
analysis by gas chromatography shall comply with the
standards set forth in ASTM D 3588-81 or any subsequent
revisions.
PGT or its agent shall calibrate and maintain the gross
heating value measurement device at intervals as agreed
upon by PGT and Shipper. Shipper shall have access to
PGT's devices and shall be allowed to inspect the devices
and all charts or other records of measurement at any
reasonable time.
(Continued)
21
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
3. QUALITY OF GAS (Continued)
3.2 Quality Tests (Continued)
(c) Tests shall be made to determine the total sulphur,
hydrogen sulfide, carbon dioxide and oxygen content of
the gas, by approved standard methods in general use in
the gas industry, and to determine the hydrocarbon
dew-point and water vapor content of such gas by methods
satisfactory to the parties. Tests shall be made
frequently enough to ensure that the gas is conforming
continuously to the quality requirements. Shipper shall
have the right to require PGT to have remedied any
deficiency in quality of the gas and, in the event such
deficiency is not remedied, the right, in addition to all
other remedies available to it by law, to refuse to
accept such deficient gas until such deficiency is
remedied.
4. MEASURING EQUIPMENT
4.1 Installation: Unless PGT and Shippers agree otherwise, all gas
volume measuring equipment, devices and materials at the
point(s) of receipt and/or delivery shall be furnished and
installed by PGT at Shipper's expense including the tax-on-tax
effect. All such equipment, devices and materials shall be
owned, maintained and operated by PGT. Shipper may install and
operate check measuring equipment provided it does not
interfere with the use of PGT's equipment.
4.2 Testing Meter Equipment: The accuracy of either PGT's or
Shippers measuring equipment shall be verified by test, using
means and methods acceptable to the other party, at intervals
mutually agreed upon, and at other times upon request. Notice
of the time and nature of each test shall be given by the
entity conducting the test to the other entity sufficiently in
advance to permit convenient arrangement for the presence of
the representative of the other entity. If, after notice, the
other entity fails to have a representative present, the
results of the test shall nevertheless be considered accurate
until the next test. If any of the measuring equipment is
found to be registering inaccurately in any percentage, it
shall be adjusted at once to read as accurately as possible.
All tests of such measuring equipment shall be made at the
expense of the entity conducting the same, except that the
other entity shall bear the expense of tests made at its
request if the inaccuracy is found to be two percent (2%) or
less.
(Continued)
22
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
4. MEASURING EQUIPMENT (Continued)
4.3 Correction and Adjustment: If at any time any of the measuring
equipment is registering inaccurately by an amount exceeding
two percent (2%) at a reading corresponding to the average
hourly rate of flow, the previous readings of such equipment
shall be corrected to zero error for any period definitely
known or agreed upon, or if not so known or agreed upon,
one-half (1/2) of the elapsed time since the last test. If the
measuring equipment is out-of-service, the volume of gas
delivered during such period shall be determined:
(a) By using the data recorded by any check measuring
equipment accurately registering; or
(b) If such check measuring equipment is not registering
accurately but the percentage of error is ascertainable
by a calibration test, by using the data recorded,
corrected to zero error; or
(c) If neither of the methods provided in (a) and (b) above
can be used, by estimating the quantity delivered, by
reference to deliveries under similar conditions during a
period when the equipment was registering accurately.
No correction shall be made in the recorded volumes of
gas delivered hereunder for measuring equipment
inaccuracies of two percent (2%) or less, and in no event
shall inaccuracies less than 25 Mcf be considered for
adjustment.
(Continued)
23
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
5. MEASUREMENTS
5.1 Metering: The gas shall be metered by one or more orifice,
turbine, or displacement-type meters, at the discretion of PGT.
When orifice meters are used, they shall be installed and
maintained, and volumes shall be measured, in accordance with
the methods prescribed in ANSI/API 2530. When turbine meters
are used, they shall be installed and maintained, and volumes
shall be measured, in accordance with methods prescribed in AGA
Report No. 7 or any subsequent revision. When displacement
meters are used, the number of Mcf delivered hereunder shall be
computed by including factors for pressure, temperature and
deviation from Boyle's Law. To accurately determine the
deviation from Boyle's Law, a quantitative analysis of the gas
components shall be made at reasonable intervals with such
apparatus as shall be agreed upon by both parties.
5.2 Specific Gravity: The specific gravity of the gas delivered
hereunder shall be determined from the read-outs of
continuously operating measuring instruments. The method shall
consist of one of the following:
(a) gravitometer
(b) gas chromatography
(c) other instruments acceptable to both parties
Analysis of chromatographs shall comply with the standards set
forth in ASTM D 1945-81 or any subsequent revision.
Calculation of the specific gravity from compositional analysis
by gas chromatography shall comply with the standards set forth
in ASTM D 3588-81 or any subsequent revision. Measurement of
the specific gravity with a gravitometer shall comply with the
standards set forth in ASTM D 1070-73 or any subsequent
revision.
5.3 Flowing Temperature: The arithmetic average of readings each
day shall be deemed the gas temperature and used in computing
the volumes of gas metered for each day unless another method
is mutually agreed upon by both parties.
(Continued)
24
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
6. INSPECTION OF EQUIPMENT AND RECORDS
6.1 Inspection of Equipment and Data: PGT and Shipper shall have
the right to inspect equipment installed or furnished by the
other, and the charts and other measurement or test data of the
other, at all times during business hours; but the reading,
calibration and adjustment of such equipment and changing of
charts shall be done only by the entity installing or
furnishing same. Unless PGT and Shipper otherwise agree, each
shall preserve all original test data, charts and other similar
records in such party's possession, for a period of at least
six (6) years.
6.2 Information for Billing: When information necessary for
billing by PGT is in the control of Shipper, Shipper shall
furnish such information, estimated if actual is not available,
to PGT on or before the third (3rd) working day of the month
following the month transportation service was rendered. If
shipper furnishes estimated information, the actual information
shall be furnished to PGT on or before the sixth (6th) working
day of the month following the month transportation service was
rendered.
6.3 Verification of Computations: PGT and Shipper shall have the
right to examine at reasonable times the books, records and
charts of the other to the extent necessary to verify the
accuracy of any statement, charge or computation made pursuant
to these Transportation General Terms and Conditions and to the
rate schedules to which they apply, within twelve (12) months
of any such statement, charge or computation.
7. BILLING
7.1 Billing under Rate Schedules FTS-1 and ITS-1: On or before the
twentieth (20th) day of each month, PGT shall render a bill to
each Shipper under Rate Schedule FTS-1 and a bill to each
Shipper under Rate Schedule ITS-1, for the service rendered
during the preceding month.
(Continued)
25
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
8. PAYMENT
8.1 Payment under Rate Schedules FTS-1 and ITS-1: On or before the
last day of each month, each Shipper under Rate Schedule FTS-1
and each Shipper under Rate Schedule ITS-1 shall pay to or upon
the order of PGT in lawful money of the United States at PGT's
office in San Francisco, California, the amount of the bill
rendered by PGT during the month in accordance with Paragraph
7.1 of these Transportation General Terms and Conditions.
8.2 Interest on Unpaid Amounts: Should Shipper fail to pay the
amount of any bill rendered by PGT when such amount is due,
interest thereon shall accrue from the due date until paid at
the rate of interest effective from time to time under 18 CFR
Section 154.67.
8.3 Remedies for Failure to Pay: If such failure to pay continues
for thirty (30) days after payment is due, PGT, in addition to
any other remedy it may have, may suspend further delivery of
gas until such amount is paid, unless Shipper in good faith
disputes the amount owing and pays such amount as it concedes
to be correct. Either party may submit to arbitration in
accordance with Paragraph 14 of these Transportation General
Terms and Conditions any dispute as to the amount due PGT
hereunder.
8.4 Late Billing: If presentation of a bill by PGT is delayed
after the date specified in Paragraph 7.1 hereof, then the time
for payment shall be extended correspondingly unless Shipper is
responsible for such delay.
8.5 Adjustment of Billing Error: In the event an error is
discovered in any bill rendered by PGT, the amount of such
error shall be adjusted, provided that claim therefor shall
have been made within twelve (12) months from the date such
bill was rendered. The adjustment shall be made within thirty
(30) days of such timely claim.
(Continued)
26
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
9. NOTICE OF CHANGES IN OPERATING CONDITIONS
PGT and Shipper shall each ensure that the other is notified from time to
time as necessary of expected changes in the rates of delivery or receipt
of gas, or in the pressures or other operating conditions, and the reason
for such expected changes, so that they may be accommodated when they
occur.
10. FORCE MAJEURE
10.1 If either party shall fail to perform any obligation imposed
upon it by these Transportation General Terms and Conditions or
by an executed Transportation Service Agreement, and such
failure shall be caused, or materially contributed to, by force
majeure which means any acts of God, strikes, lockouts, or
other industrial disturbances, acts of public enemies,
sabotage, wars, blockades, insurrections, riots, epidemics,
landslides, lightning, earthquakes, floods, storms, fires,
washouts, extreme cold or freezing weather, arrests and
restraints of rulers and people, civil disturbances,
explosions, breakage of or accident to machinery or lines of
pipe, hydrate obstructions of lines of pipe, inability to
obtain pipe, materials or equipment, legislative,
administrative or judicial action which has been resisted in
good faith by all reasonable legal means, any acts, omissions
or causes whether of the kind herein enumerated or otherwise
not reasonably within the control of the party invoking this
paragraph and which by the exercise of due diligence such party
could not have prevented the necessity for making repairs to,
replacing, or reconditioning machinery, equipment, or
pipelines, not resulting from the fault or negligence of the
party involving this paragraph, such failure shall be deemed
not to be a breach of the obligation of such party, but such
party shall use reasonable diligence to put itself in a
position to carry out its obligations. Nothing contained
herein shall be construed to require either party to settle a
strike or lockout by acceding against its judgment to the
demands of the opposing parties.
(Continued)
27
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
10. FORCE MAJEURE (Continued)
10.2 No such cause as described in Paragraph 10.1 affecting the
performance of either party shall continue to relieve such
party from its obligation after the expiration of a reasonable
period of time within which by the use of due diligence such
party could have remedied the situation preventing its
performance, nor shall any such cause relieve either party from
any obligation unless such party shall give notice thereof in
writing to the other party with reasonable promptness; and like
notice shall be given upon termination of such cause.
10.3 No cause whatsoever, including without limitation the failure
of PGT to perform and the causes specified in Paragraph 10.1,
shall relieve Shipper from its obligations to make payments
due, including the payments of reservation charges, for the
duration of such cause.
11. WARRANTY OF ELIGIBILITY FOR TRANSPORTATION
Any Shipper transporting gas on the PGT system under this FERC Gas Tariff
First Revised Volume No. 1-A warrants for itself, its successors and
assigns, that it will have at the time of delivery of the gas to PGT
hereunder good title to such gas and that all gas delivered to PGT for
transportation hereunder is eligible for the requested transportation in
interstate commerce under applicable rules, regulations or orders of the
FERC, or other agency having jurisdiction. Shipper will indemnify PGT and
save it harmless from all suits, actions, damages, costs, losses, expenses
(including reasonable attorney fees) and costs connected with regulatory
proceedings, arising from breach of this warranty.
12. POSSESSION OF GAS AND RESPONSIBILITY
PGT shall be deemed to be in control and possession of, and responsible
for, all gas delivered from the time that such gas is received by it at the
point of receipt to the time that it is delivered at the point of delivery.
(Continued)
28
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
13. INDEMNIFICATION
Shipper agrees to indemnify and hold harmless PGT, its officers, agents,
employees and contractors against any liability, loss or damage whatsoever
occurring in connection with or relating in any way to the executed
Transportation Service Agreement, including costs and attorneys' fees,
whether or not such liability, loss or damage results from any demand,
claim, action, cause of action, or suit brought by Shipper or by any
person, association or entity, public or private, that is not a party to
the executed Transportation Service Agreement, where such liability, loss
or damage is suffered by PGT, its officers, agents, employees or
contractors as a direct or indirect result of any breach of the executed
Transportation Service Agreement or sole or concurrent negligence or gross
negligence or other tortious act(s) or omission(s) by Shipper, its
officers, agents, employees or contractors.
14. ARBITRATION
Any arbitration provided for or agreed to by Shipper and PGT shall be
conducted in accordance with the following procedures and principles: Upon
the written demand of either PGT or Shipper and within ten (10) days from
the date of such demand, each entity shall appoint an arbitrator and the
two arbitrators so appointed shall promptly thereafter appoint a third. If
either PGT or Shipper shall fail to appoint an arbitrator within ten (10)
days from the date of such demand, then the arbitrator shall be appointed
by a Superior Court of the State of California in accordance with the
California Code of Civil Procedure. If the two arbitrators shall fail
within ten (10) days from their appointment to agree upon and appoint the
third arbitrator, then upon the application of either PGT or Shipper such
third arbitrator shall be appointed by a Superior Court of the State of
California in accordance with the California Code of Civil Procedure.
The arbitrators shall proceed immediately to hear and determine the matter
in controversy. The award of the arbitrators, or a majority of them,
shall be made within forty-five (45) days after the appointment of the
third arbitrator, subject to any reasonable delay due to unforeseen
circumstances. The award of the arbitrators shall be drawn up in writing
and signed by the arbitrators, or a majority of them, and shall be final
and binding on both PGT and Shipper, and PGT and Shipper shall abide by the
award and perform the terms and conditions thereof. Unless otherwise
determined by the arbitrators, the fees and expenses of the arbitrator
named for each party shall be paid by that party and the fees and expenses
of the third arbitrator shall be paid in equal proportion by both PGT and
Shipper.
(Continued)
29
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
15. GOVERNMENTAL REGULATIONS
These Transportation General Terms and Conditions, the rate schedules to
which they apply, and any executed Transportation Service Agreement are
subject to valid laws, orders, rules and regulations of duly constituted
authorities having jurisdiction.
16. MISCELLANEOUS PROVISION
16.1 Waiver of Default: No waiver by either PGT or Shipper of any
default by the other in the performance of any provisions of an
executed Transportation Service Agreement shall operate as a
waiver of any continuing or future default, whether of a like
or different character.
16.2 Assignability: An executed Transportation Service Agreement
shall bind and inure to the respective successors and assignees
of PGT and Shipper thereto, but no assignment shall release
either party thereto from such party's obligations without the
written consent of the other party, which consent shall not be
unreasonably withheld; provided, however, nothing contained
herein shall give Shipper the right to reassign or broker its
right to ship the quantities of gas specified in the
Transportation Service Agreement on PGT's system to others.
Further, nothing contained herein shall prevent either party
from pledging, mortgaging or assigning its rights as security
for its indebtedness and either party may assign to the pledgee
or mortgagee (or to a trustee for the holder of such
indebtedness) any money due or to become due under any service
agreement.
16.3 Effect of Headings: The headings used throughout these
Transportation General Terms and Conditions, the rate schedules
to which they apply, and the executed Transportation Service
Agreements are inserted for reference purposes only and are not
to be considered or taken into account in construing the terms
and provisions of any paragraph nor to be deemed in any way to
qualify, modify or explain the effects of any such terms or
provisions.
17. TRANSPORTATION SERVICE AGREEMENT
17.1 Form: Shipper shall enter into a contract with PGT utilizing
PGT's appropriate standard form of Transportation Service
Agreement.
17.2 Term: The term of the Transportation Service Agreement shall
be agreed upon between Shipper and PGT at the time of the
execution thereof.
(Continued)
30
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. SCHEDULING OF RECEIPTS AND DELIVERIES
18.1 Priority 1 - Firm Service
Firm transportation service under this FERC Gas Tariff First
Revised Volume No. 1-A shall be provided when, and to the
extent that, firm capacity is available in PGT's existing
facilities.
PGT shall provide service first for firm transportation
Shippers for service at Shipper's primary receipt and delivery
points in accordance with the applicable executed service
agreements and rate schedules.
Next, PGT will provide firm transportation service for service
at Shipper's secondary receipt and delivery points in
accordance with the applicable executed service agreements and
rate schedules.
If full service cannot be provided, PGT shall provide service
on a pro rata basis according to the respective total Maximum
Daily Demand or Maximum Daily Quantity, as appropriate,
specified in each executed service agreement, first for service
at Shipper's primary receipt and delivery points and second for
service at Shipper's secondary receipt and delivery points.
When capacity is constrained at the receipt point,
interruptible transport through that point will be curtailed
first (in reverse order of the first-come, first-served (FCFS)
queue), followed by secondary receipt firm transport (pro rata
based on MDQ) and finally by primary receipt firm transport
(pro rata based on MDQ).
When capacity in constrained along PGT's mainline,
interruptible transport will be curtailed first (in reverse
order of the FCFS queue) followed by all firm transport (pro
rata based on MDQ at that point).
When capacity is constrained at the delivery point,
interruptible transport through that point will be curtailed
first (in reverse order of the FCFS queue), followed by
secondary delivery firm transport (pro rata based on MDQ) and
finally by primary delivery firm transport (pro rata based on
MDQ).
(Continued)
31
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. SCHEDULING OF RECEIPTS AND DELIVERIES (Continued)
18.1 Priority 1 - Firm Service (Continued)
These provisions also apply for capacity released under PGT's
capacity release program, and are subject to the terms and
conditions as specified in executed firm service agreement
between PGT and Shipper. All service under the capacity
release program shall be considered firm for purposes of
priority of service.
Priority 2 - Interruptible Service
Interruptible transportation service under this FERC Gas Tariff
First Revised Volume No. 1-A shall be provided when, and to the
extent that, capacity is available in PGT's existing
facilities, which capacity is not subject to a prior claim
under a pre-existing contract, service agreement, certificate
or under Priority 1 - Firm Service. PGT will provide
interruptible transportation service among all Shippers
requesting interruptible transportation service, as set forth
in Paragraph 21 of these Transportation General Terms and
Conditions, on a first-come, first-served basis as approved by
the Commission in Docket No. CP87-159-000.
18.2 Reserved.
18.3 If, on any day, PGT determines that the capacity of its
mainline system, or any portion thereof including the points at
which gas is tendered for transportation, is insufficient to
serve transportation requirements which are otherwise scheduled
to receive service on such day, or to accept the quantities of
gas tendered, capacity which requires allocation shall be
allocated in a manner which results in curtailment of capacity,
to zero if necessary, first to the last quantities scheduled,
and then sequentially in reverse order to the scheduling
provided for in Paragraph 18.1, except that mid-gas day
nomination increases by interruptible Shippers shall not bump
those interruptible Shipper's volumes already confirmed for
that gas day.
18.4 Upon termination of the executed Transportation Service
Agreement Shipper's priority of service will terminate.
(Continued)
32
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. SCHEDULING OF RECEIPTS AND DELIVERIES (Continued)
18.5 PGT shall contract with Shippers requesting interruptible
transportation service under this FERC Gas Tariff First Revised
Volume No. 1-A on a first-come, first-served basis.
18.6 A Shipper receiving service under ITS-1 or FTS-1 shall not lose
its priority for purposes of this Paragraph 18 by the renewal
or extension of term of that service; provided, however, any
renewal or extension must be pursuant to a rollover or
evergreen provision of the Service Agreement. Shipper's
pre-existing priority shall not apply, however, to any
increase in transportation quantity or new primary points of
delivery.
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE
The provisions of this Paragraph 19 shall be applicable to interruptible
transportation service under Rate Schedule ITS-1 contained in this FERC Gas
Tariff First Revised Volume No. 1-A.
Interruptible transportation service under this FERC Gas Tariff First
Revised Volume No. 1-A shall be provided when, and to the extent that,
capacity is available in PGT's existing facilities, which capacity is not
subject to a prior claim under a pre-existing contract, service agreement,
certificate or under another class of service. Available interruptible
capacity shall be allocated by PGT on a first-come, first-served basis as
provided in Paragraph 18 and as determined by the date and time PGT
receives a completed request for service under this FERC Gas Tariff which
conforms to Paragraph 21 of these Transportation General Terms and
Conditions. In the event where natural gas tendered by Shipper to PGT at
the receipt point(s) for transportation, or delivered by PGT to Shipper
(or for Shipper's account) at the delivery point(s), is commingled with
other natural gas at the time of measurement, the determination of
deliveries applicable to Shipper shall be made in accordance with operating
arrangements satisfactory to Shipper, PGT and any third party transporting
to or from PGT's system.
(Continued)
33
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
19. OPERATING PROVISIONS FOR INTERRUPTIBLE TRANSPORTATION SERVICE (Continued)
If Shipper fails to nominate and tender gas within the later of: (a)
fifteen (15) days after initial notification by PGT of the availability of
service, (b) receipt of any necessary regulatory approvals, or (c) the
installation of any necessary facilities, Shipper's priority date shall be
deemed null and void, and the day Shipper first tenders gas to PGT at any
receipt point shall be Shipper's new assigned priority date for service.
Shipper's priority date designation pursuant to Section 2.3 of the
Transportation Service Agreement shall not be deemed null and void, nor
shall the Shipper's request for service be deemed null and void if
Shipper's failure to nominate and tender gas is caused by an event of force
majeure as defined in PGT's Transportation General Terms and Conditions.
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE
The provisions of this Paragraph 20 shall be applicable to firm
transportation service under Rate Schedule FTS-1 contained in this FERC Gas
Tariff First Revised Volume No. 1-A. Firm transportation service under
this FERC Gas Tariff First Revised Volume No. 1-A shall be provided when,
and to the extent that, PGT determines that firm capacity is available on
PGT's existing facilities. PGT shall not be required to provide firm
transportation service in the event firm capacity is unavailable.
For capacity that becomes available other than the circumstances identified
in Paragraphs 28 and 33, requests for firm capacity shall be accommodated
in the following manner and subject to the following conditions and
limitations:
20.1 In order to be eligible for firm capacity, a party requesting
service (requestor) must be deemed credit-worthy per Paragraph
21.7 and submit a valid request in accordance with the
provisions herein.
20.2 PGT will post on its Electronic Bulletin Board (EBB) available
capacity. A requestor that submits a valid request may submit
a bid via the EBB for the available capacity subsequent to
PGT's posting of such capacity on the EBB. The Bid Period will
be 5 business days, during which time other requestors with
valid requests may submit a bid. All bids not withdrawn prior
to the close of the Bidding Period shall be binding. At the
end of the Bidding Period, PGT will evaluate the bids and
determine the bid(s) having the greatest economic value as
determined in Paragraph 20.3.
(Continued)
34
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE (Continued)
20.3 After the close of the Bidding Period, PGT may tender a Service
Agreement for execution to the requestor(s) submitting the
bid(s) having the greatest economic value for the capacity
available, subject to the provisions of Paragraph 20.5. The
criteria for determining which requestor(s) has submitted the
bid(s) with the greatest economic value shall be the Net
Present Value (NPV) of the reservation charge as calculated at
Paragraph 28 that requestor(s) would pay at the rates
requestor(s) has bid, which shall not be less than the Minimum
Rate nor greater than the Maximum Rate, as stated on the
currently effective Statement of Rates and Charges governing
such service, over the term of service specified in the
request. If the economic values of separate service requests
are equal, then service shall be offered to such requestors on
a pro-rata basis.
20.4 If PGT accepts the winning bid(s) and tenders a Service
Agreement, requestor(s) shall complete and return the Service
Agreement within thirty (30) days.
20.5 PGT shall not be obligated to tender or execute a Service
Agreement for service at any rate less than the Maximum Rate
set forth in the Statement of Effective Rates and Charges
applicable to the service requested.
(Continued)
35
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
21.1 Requests for interruptible and firm transportation service
hereunder shall be made by providing the following information
in writing utilizing PGT's Transportation Request Form to PGT:
PACIFIC GAS TRANSMISSION COMPANY
TRANSPORTATION REQUEST FORM
Gentlemen:
________________________________ (Shipper) hereby requests gas transportation
service from Pacific Gas Transmission Company (PGT) in accordance with
Paragraph 21.1 of the Transportation General Terms and Conditions of PGT's
tariff and concurrently provides the following information relative to this
request:
1. Shipper's Name ___________________________________________
Business Address __________________________________________
State or Province of Incorporation ________________________
2. Requesting Party ____________________ Title _______________
Contact Name ________________________ Phone _______________
3. Shipper's Status: LDC ____ Intrastate ____ End User ____
(Check one) Producer ____ Marketer/Broker __________
Gatherer ____ Interstate ____
Other __________________________________
4. Type of Service Requested: (Check all applicable)
a. Part 284 Interruptible ____
b. Part 284 Firm ____*
c. New Service ____
d. Amendment to PGT Contract #_______
e. Add/Change Receipt/Delivery Point ____
f. Authority to Bid for Released Capacity ____
* PGT will accept requests for firm transportation service. At such
time that firm capacity may become available, PGT will evaluate such
requests. Currently, no excess firm capacity is available on the PGT
system.
5. Type of Authority: Blanket Section 7 (Part 284, Subpart G) ____
Section 311(a) (Part 284, Subpart B) ____
(Continued)
36
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.1 (Continued)
6. If Shipper requests service under Section 311(a), provide the following
information concerning the party on whose behalf the transportation will be
provided (the "On Behalf of" party):
(a) The exact legal name of the "On Behalf Of" party:
_______________________________________________________________________
(b) The "On Behalf Of" party's address (if other than Shipper):
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
(c) Is the "On Behalf Of" party:
A Local Distribution Company ______
An Intrastate Pipeline ______
7. If Shipper requests service under Section 311(a), Shipper must provide a
certification that the service qualifies under 18 C.F.R. Section 284.102.
To enable PGT to verify that the requested transportation service will
qualify under 18 C.F.R. Section 284.102, the certification must provide
facts showing that:
(a) the "On Behalf Of" party will have physical custody of and
transport the natural gas at some point; or
(b) the "On Behalf Of" party will hold title to the natural gas at some
point, which may occur prior to , during, or after the time that the
gas is transported by PGT, for a purpose related to the "On Behalf Of"
party's status and function as an intrastate pipeline or its status
and function as a local distribution company; or
(c) the gas will be delivered to a customer that is either located in the
"On Behalf Of" party's service area, if the "On Behalf Of" party is a
local distribution company, or is physically able to receive direct
deliveries of gas from the "On Behalf Of" party, if the "On Behalf Of"
party is an interstate pipeline, and that "On Behalf Of" party has
certified that it is on its behalf that PGT will be providing the
requested transportation service. (The "On Behalf Of" party's
certification must be submitted with the Transportation Request Form.)
(Continued)
37
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.1 (Continued)
8. The intended use of the gas is:
_____ utility or pipeline system supply
_____ end use by industry or commerce
_____ other (specify)
9. Requested Commencement Date _______________ (not to exceed
3 months from request date)
Termination Date __________________
Evergreen clause desired (Complete for Part 284 Interruptible or Firm
Service only): Yes _____ No _____
10. Transportation Quantities:
a) Total Maximum Daily Quantity (MDQ): __________ MMBtu/day
b) Total quantity for contract period: __________ MMBtu
11. Notices to:
_______________________________________________________
Mailing Address
_______________________________________________________
City State Zip
_______________________________________________________
Street Address (if P.O. Box was used above)
_______________________________________________________
City State Zip
_______________________________________________________
Attention Title
_______________________________________________________
Telephone Number Fax Number
(Continued)
38
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.1 (Continued)
Invoices to: _______________________________________________________
Mailing Address
_______________________________________________________
City State Zip
_______________________________________________________
Street Address (if P.O. Box was used above)
_______________________________________________________
City State Zip
_______________________________________________________
Attention Title
_______________________________________________________
Telephone Number Fax Number
(Continued)
39
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.2 No transportation service will be conducted for the account of
Shipper by PGT until PGT has received the completed service
request form, unedited and complete as to form, and Shipper has
been advised by PGT that the transportation service may commence.
21.3 Reserved for future use
21.4 PGT shall not be required to perform or continue service on
behalf of any Shipper that fails to comply with the terms
contained in this Paragraph 21 and any and all terms of the
applicable rate schedule and the terms of Shipper's executed
Transportation Service Agreement with PGT.
21.5 Upon request of PGT, Shipper shall from time to time submit
estimates of daily, monthly and annual quantities of gas to be
transported, including peak day requirements.
21.6 Nominations: Request for nomination of gas delivery shall be
provided by Shipper via the Electronic Bulletin Board (EBB) , to
PGT's Gas Control no later than 10:00 a.m. Pacific Time for
deliveries during the following day. The request by the
downstream Shipper or customer, via the nomination process, for
gas from a designated upstream Shipper and the corresponding
supplier nomination designating the same downstream nomination as
an acceptable customer is PGT's notice that a valid contractual
arrangement between the two parties is in existence. PGT requires
that a valid Shipper designate, in writing, those individuals who
will be authorized to place nominations for gas on the system.
(Continued)
40
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.6 (Continued)
Requests for nomination may be amended during the gas day provided
the appropriate gas supply adjustment is made at the Shipper's
receipt point. Such amended requests will become effective when
system operating conditions, as determined by PGT, permit the
changes to occur. Requests for nomination are for a daily rate,
and will be delivered at a uniform hourly rate of requested
quantity divided by 24. Requests for nomination, as amended by
Shipper and received by PGT, shall remain in effect, whether or
not deliveries are made, until a new or amended request is
provided by Shipper and received by PGT. PGT reserves the right
to reject any request for nomination that is less than 24 Mcf/day.
PGT's primary method of nomination transmission shall be the
Electronic Bulletin Board (EBB). If and only if, the EBB system
fails between PGT and Shippers shall PGT accept nominations via
alternative means such as fax.
Initial Service: For purposes of scheduling commencement of
initial transportation service five (5) business days prior to the
day on which Shipper desires service to commence, or such lesser
period of time as mutually agreed upon by PGT and Shipper,
Shipper will provide PGT a completed Customer Nomination Form
provided to:
Pacific Gas Transmission Company
Gas Control Department
East 5105 3rd Avenue
P.O. Box 4389
Spokane, Washington 99212
Phone - 509-534-0657
Fax - 509-671-2225
(Continued)
41
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.7 Credit-worthiness
21.7 (A) Credit-worthiness for Firm Transportation Service
(1) PGT shall not be required to perform or to continue
transportation service under this FERC Gas Tariff First Revised Volume
1-A on behalf of any Shipper who is or has become insolvent or who,
after PGT's request, fails within a reasonable period to establish or
confirm credit-worthiness. Shippers shall provide, initially and on a
continuing basis, financial statements, evidence of debt and/or credit
ratings, and other such information as is reasonably requested by PGT
to establish or confirm Shipper's qualification for service. Credit
limits will be established based on the level of requested service and
Shipper credit-worthiness as established by the following:
(a) Credit-worthiness must be evidenced by at least a long term
bond (or other senior debt) rating of BBB or an equivalent
rating.
Such rating may be obtained in one of three ways:
(1) The rating will be determined by Standard and Poors or
another recognized U.S. or Canadian debt rating service;
(2) If Shipper's debt is not rated by a recognized debt rating
service, an equivalent rating as determined by PGT, based
on the financial rating methodology, criteria and ratios
for the industry of the Shipper as published by the above
rating agencies from time to time. In general, such
equivalent rating will be based on the audited financial
statements for the Shipper's two most recent fiscal years,
all interim reports, and any other relevant information;
(Continued)
42
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.7 (A) Credit-worthiness for Firm Transportation Service (Continued)
(3) Shipper may, at its own expense, obtain a private rating
from a recognized debt rating service, or request that an
independent accountant or financial advisor, mutually
acceptable to PGT and the Shipper, prepare an equivalent
evaluation based on the financial rating methodology,
criteria, and ratios for the industry of the Shipper as
published by the above rating agencies from time to time;
or
(b) Approval by PGT's lenders.
(2) If Shipper does not establish or maintain credit-worthiness as
described above, Shipper has the option of receiving transportation
service under this FERC Gas Tariff by providing to PGT one of the
following alternatives:
(a) A guarantee of Shipper's financial performance in a form
satisfactory to PGT and for the term of the Gas Transportation
Agreement from a corporate affiliate of the Shipper or a third
party either of which meets the credit-worthiness standard
discussed above.
(b) Other security acceptable to PGT's lenders.
(Continued)
43
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.7 (B) Credit-worthiness for Interruptible Transportation Service
(1) PGT shall not be required to perform or to continue interruptible
transportation service under this FERC Gas Tariff First Revised Volume
No. 1-A on behalf of any Shipper who is or has become insolvent or
who, at PGT's request, fails within a reasonable period to
demonstrate credit-worthiness. Shipper's credit-worthiness shall be
determined by providing proof of least two of the items listed below:
(a) A long-term bond or commercial paper rating from Standard and
Poors or Moody's equivalent to a "Ba" or better, or a
commercial paper rating from Standard and Poors or Moody's
equivalent to Prime-3 or better.
(b) Audited financial statements for the two preceding years
showing good financial strength.
(c) An estimated financial strength rating by Dun and Bradstreet
sufficient to cover the credit to be extended and a
corresponding Dun and Bradstreet composite credit appraisal of
"fair" or better.
(Continued)
44
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.7 (B) Credit-worthiness for Interruptible Transportation Service
(Continued)
(d) A demonstration by the Shipper that the Company has sufficient
financial capacity or backing to warrant an extension of
credit. This demonstration could include proof of banking
relationships sufficient to cover the service agreement, or a
detailed listing of credit references within the industry,
exhibiting a good credit history.
(2) If Shipper does not demonstrate credit-worthiness, Shipper has the
option of receiving interruptible transportation service under
this FERC Gas Tariff First Revised Volume No. 1-A if Shipper
provides PGT a letter of credit in an amount equal to the cost of
performing the maximum level of service requested for a three (3)
month period of time. The letter of credit must be from a credit
worthy financial institution and be in place before the
Transportation Service Agreement can be signed. The Shipper also
has the option of receiving transportation service if Shipper
prepays for transportation services on a month-to-month basis
pursuant to the following terms:
(a) For a calendar month in which transportation service is
desired (delivery month), Shipper must notify PGT no later
than eight (8) business days prior to the commencement of
delivery month (estimation date) of its estimation of the
maximum, cumulative gas deliveries (monthly estimation)
desired for the delivery month. (For Shipper's initial
monthly estimation, the delivery month, or remaining portion
thereof, shall commence eight (8) days after the estimation
date.) Notice of monthly estimation may be telephonic or
written; telephonic notices must be confirmed in writing and
received by PGT within five (5) business days. PGT will
advise Shipper within forty-eight (48) hours of the
estimation date of the exact dollar amount of the prepayment.
Shipper shall not deliver or receive gas in excess of the
monthly estimation during delivery month.
(Continued)
45
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.7 (B) Credit-Worthiness for Interruptible Transportation Service
(Continued)
(b) No later than three (3) business days (settlement date) prior
to commencement of delivery month, Shipper shall pay to PGT
and PGT shall have received from Shipper lawful money of the
United States in an amount equal to the prepayment amount
provided to Shipper by PGT described above.
(c) On or before the twentieth (20th) day following delivery
month, PGT shall provide a statement to Shipper detailing the
transportation service provided during the delivery month.
The statement will reconcile the amount prepaid in accordance
with the monthly estimation, with the actual cost of
transportation service provided, and provide a credit to
Shipper, if applicable. Any such credit will be deducted
from the prepayment for the following month. Should the
Shipper elect not to receive transportation services for the
following month, Shipper shall so notify PGT in writing; PGT
will issue a check to the Shipper within seven (7) business
days following receipt by PGT of such notice.
21.7 (C) Credit-worthiness for Firm and Interruptible Transportation
Service
For purposes of this FERC Gas Tariff First Revised Volume No. 1-A the
insolvency of a Shipper shall be evidenced by the filing by such
Shipper or any parent entity thereof (hereinafter collectively
referred in this paragraph to as "the Shipper") of a voluntary
petition in bankruptcy or the entry of a decree or order by a court
having jurisdiction in the premises adjudging the Shipper as bankrupt
or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in
respect of the Shipper under the Federal Bankruptcy Act or any Act or
any other applicable federal or state law, or appointing a receiver,
liquidator, assignee, trustee, sequestrator (or other similar
official) of the Shipper
(Continued)
46
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.7 (C) Credit-worthiness for Firm and Interruptible Transportation
Service (Continued)
or composition of or in respect of the Shipper under the Federal
Bankruptcy Act or any Act or any other applicable federal or
state law, or appointing a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Shipper
or of any substantial part of its property, or the ordering of
the winding-up liquidation of its affairs, with said order or
decree continuing unstayed and in effect for a period of sixty
(60) consecutive days.
21.8 Shipper shall not be entitled to receive transportation service
under this FERC Gas Tariff First Revised Volume No. 1-A if
Shipper is not current in its payments to PGT for any charge,
rate or fee authorized by the Commission for transportation
service; provided, however, if the amount not current pertains to
a bona fide dispute, including but not limited to force majeure
claims relating to this FERC Gas Tariff, Shipper shall be
entitled to receive or continue to receive transportation service
if Shipper posts a bond satisfactory to PGT to cover the payment
due PGT.
(Continued)
47
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.9 A penalty shall be charged by PGT and paid in dollars by any
Shipper who, upon notification by PGT of the existence of an
overage in deliveries and/or takes, fails to correct such daily
overage within a minimum of forty-eight (48) hours, except in
those instances where it is necessary for PGT to protect the
integrity of its system. The applicable penalty shall be
applied if:
(a) The daily quantities exceed 10 percent or 50 MMBtu,
whichever is greater, of Shipper's Maximum Daily
Quantity, as specified in the executed Transportation
Service Agreement.
Penalty: The penalty shall be $5 for each MMBtu of
gas exceeding the 10 percent or 50 MMBtu limits
specified therein. In the event Shipper does not
balance within 45 days, commencing with the third day
after Shipper's receipt of notification from PGT,
PGT shall also charge $5/MMBtu for any remaining net
balance of overdeliveries which exists at the
conclusion of such 45-day period.
(b) The Shipper delivers or causes to be delivered to an
individual delivery point a quantity which, after
appropriate reductions, exceeds by 10 percent or 50
MMBtu, whichever is greater, the quantities received
from PGT for delivery to the delivery point.
Penalty: The penalty shall be $5 for each MMBtu of
gas exceeding the 10 percent or 50 MMBtu limits
specified therein. In the event Shipper does not
balance within 45 days, commencing with the third
day after Shipper's receipt of notification from PGT,
PGT shall also charge $5/MMBtu for any remaining net
balance of overdeliveries which exists at the
conclusion of such 45-day period.
(Continued)
48
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.9 (Continued)
(c) The Shipper takes quantities from PGT which exceed by
more than 10 percent or 50 MMBtu, whichever is
greater, the quantities received by PGT after
appropriate reductions and the Shipper does not
correct the excess takes in two (2) days or less.
Penalty: The penalty shall be $5/MMBtu which shall
apply to the total remaining net balance at the end
of the 45-day period (inclusive of takes in excess of
the limits occurring prior to commencement of the 45
day period), less any previously assessed penalty
amounts; provided, however, such penalty charge shall
not be less than zero.
(d) The quantity of gas which PGT, at Shipper's request,
has scheduled for delivery to PGT on any day exceeds
the quantity actually delivered to PGT on such day by
10 percent of the scheduled quantity or 50 MMBtu,
whichever is greater.
Penalty: The penalty shall be equivalent to the
otherwise applicable transportation rate multiplied
by the amount by which the quantity scheduled for
delivery to PGT, minus the greater of 10 percent or
50 MMBtu exceeds the actual quantity delivered to
PGT multiplied by the pipeline distance.
21.10 In the event that any penalty would otherwise be applicable
under these provisions as a direct consequence of any action
or failure to take action by PGT or the failure of any
facility under PGT's control, or an event of force majeure as
defined in these Transportation General Terms and Conditions,
said penalty shall not apply.
21.11 The payment of a penalty in dollars pursuant to Paragraph 21.9
shall under no circumstances be considered as giving any
shipper the right to deliver or take overrun quantities.
(Continued)
49
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
21. OPERATING PROVISIONS FOR INTERRUPTIBLE AND FIRM TRANSPORTATION SERVICE
(Continued)
21.12 Balancing of thermally equivalent quantities of gas received and
delivered shall be achieved as nearly as feasible on a daily
basis, with any cumulative imbalance accounted for on a monthly
basis. Imbalances shall be carried forward to the following
month and corrected to the extent possible. PGT and Shipper
shall use their best efforts to eliminate any cumulative
imbalance between receipts and deliveries of gas as soon as
possible but no later than sixty (60) days after the termination
of the Service Agreement. Transportation of gas during this sixty
day period shall be for balancing purposes only.
21.13 PGT shall not be obligated to install additional facilities, other
than those specified in Paragraph 4.1 herein, that are required to
provide service under this FERC Gas Tariff First Revised Volume
No. 1-A; provided, however, PGT may install or Shipper may pay
all of the expenses incurred for installing additional
facilities on a nondiscriminatory basis and under terms that
are mutually agreeable. In the event PGT incurs the cost of
installing additional facilities on behalf of a Shipper, Shipper
shall pay, in addition to the rate(s) stated in the applicable
rate schedule, the prorated(based on Transportation Contract
Demand) cost of service attributable to any such additional
facilities until such time as a different allocation procedure is
specified by Commission order.
21.14 If Shipper fails, within 30 days of the date of PGT's tendering
the Transportation Service Agreement to Shipper, to execute and
deliver to PGT said Agreement, Shipper's transportation request
for service, and its assigned priority date referenced in Section
2.3 of the Agreement, shall be deemed null and void. The date on
which PGT receives the executed Transportation Service Agreement
shall serve to establish Shipper's new assigned priority date.
(Continued)
50
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
22. ANNUAL CHARGE ADJUSTMENT (ACA) PROVISION
22.1 Purpose: PGT shall recover from Shippers the annual charge
assessedto PGT by the Federal Energy Regulatory Commission for
budgetary expenses pursuant to Section 154.38(d)(6) of the
Commission's regulations and Order No. 472 issued May 29, 1987.
PGT shall recover this charge by means of an Annual Charge
Adjustment (ACA); a per unit rate equivalent to the unit rate
assessed against PGT by the Commission shall be included in PGT's
transportation rates. (During the period that this ACA provision
is in effect, PGT shall not recover in a Natural Gas Act Section 4
rate case annual charges recorded in FERC Account No. 928 assessed
to PGT by the Commission pursuant to Order No. 472.)
22.2 Filing Procedure: The notice period and proposed effective date
of filings pursuant to this paragraph shall be as permitted under
Section 4 of the Natural Gas Act; provided, however, that any such
filing shall not become effective unless they become effective
without suspension or refund obligation.
22.3 ACA Unit Rate Adjustment: PGT's ACA unit rate shall be the unit
rate used by the Commission to determine the annual charge
assessment to PGT, and shall be reflected in the Statement of
Effective Rates and Charges of this FERC Gas Tariff First Revised
Volume No. 1-A.
22.4 Affected Rate Schedules: The ACA provision shall apply to all
rate schedules contained in PGT's FERC Gas Tariff First Revised
Volume No. 1-A.
23. SHARED OPERATING PERSONNEL AND FACILITIES
PGT and its marketing affiliate do not share any operating personnel. PGT
does not share any facilities with its marketing affiliate. To the extent
PG&E elects service under Rate Schedule USS-1, PGT employees involved with
the implementation of USS-1 service will operate independently from PGT's
pipeline operating employees.
(Continued)
51
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
24. COMPLAINT PROCEDURES
24.1 Any Shipper or potential Shipper may register a complaint
regarding requested or provided transportation service. The
complaint may be communicated to PGT primarily by use of PGT's
Electronic Bulletin Board (EBB) and secondarily either orally,
and/or in writing. Oral complaints should be made to PGT's
Manager of Gas Control, telephone (509) 534-0657. Written
complaints should be sent via registered or certified mail,
facsimile (FAX No. (509) 536-2735) , or hand delivered to:
Pacific Gas Transmission Company
East 5105 3rd Avenue
P.O. Box 4389
Spokane, WA 99212
Attention: Gas Control Manager
Oral, written and EBB-submitted complaints must contain the following
minimum information:
- Shipper or potential Shipper's name, address, and FAX and
telephone numbers;
- Shipper or potential Shipper's contact representative;
- A clear, concise statement of the complaint.
Each complaint will be recorded in PGT's Transportation Service
Complaint Log maintained by PGT's Gas Control Department located in
Spokane . Complaints will be logged by date and time received by
PGT.
24.2 PGT will initially respond to each complaint within forty-eight
(48) hours after PGT receives it. PGT will provide a written
response to each complaint within thirty (30) days after PGT
receives it. PGT's written response will be sent to Shipper or
potential Shipper by certified or registered mail If the complaint
was filed by the EBB, then PGT shall respond via the EBB. A copy
of all complaints will be filed in the Transportation Service
Complaint Log.
(Continued)
52
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
25. INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION SERVICE
AND CAPACITY AVAILABLE FOR TRANSPORTATION
25.1 Any affiliated or nonaffiliated Shipper or potential Shipper
may obtain information concerning the availability and pricing
of PGT's transportation services and the pipeline capacity
available for transportation by:
(a) Contacting PGT at:
Pacific Gas Transmission Company
Marketing and Transportation Department
160 Spear Street, Suite 1919
San Francisco, CA 94105-1570
Telephone: (415) 973-6169
Inquiries may be made orally or in writing.
Upon request, PGT will provide to any Shipper or potential
Shipper a copy of its FERC Gas Tariff, First Revised Volume
No. 1- A, as well as any published notices concerning
discounts then available to existing Shippers on the PGT
system.
(b) Subscribing to PGT's twenty-four (24) hour Electronic Bulletin
Board by calling 1-800-238-2781. The Electronic Bulletin
Board provides current information concerning the availability
and pricing of transportation service on the PGT system,
including all effective rates and discount notices, and
capacity available for transportation.
25.2 The procedures to be followed by a potential Shipper
requesting transportation service from PGT or by an existing
Shipper requesting an amendment to its existing service or
additional service from PGT are specified in Paragraph 21 of
these Transportation General Terms and Conditions.
(Continued)
53
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
25. INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION
SERVICE AND CAPACITY AVAILABLE FOR TRANSPORTATION (Continued)
25.3 The procedures to be followed by Shippers for submitting
nominations for transportation service are specified in Paragraph
21 of these Transportation General Terms and Conditions.
26. MARKET CENTERS
The Market Center is defined as a point of interconnection between PGT and
other pipelines and local distribution companies. PGT shall provide for
Market Centers on PGT. Parties wishing to use Market Centers on the PGT
system shall sign an agreement with PGT for this service. At these Market
Centers, Agents other than the pipeline Shippers, trade gas quantities
without actively shipping the gas either upstream or downstream of the
Market Center.
Agents must nominate for the gas transactions in accordance with the
nomination procedures of the Transportation General Terms and Conditions of
First Revised Volume No. 1-A. An Agent's nomination for upstream supply
and downstream delivery must match the corresponding upstream Shipper
nomination and the downstream customer request.
27. PLANNED PGT CAPACITY CURTAILMENTS AND INTERRUPTIONS
27.1 When PGT needs to temporarily curtail or interrupt service to any
Shipper hereunder for the purpose of making planned alterations or
repairs, PGT shall give Shipper as much notice as possible of the
process so that each Shipper's firm transportation requirements
are taken into account in the planning process.
27.2 In the spring of each year PGT shall publish on its electronic
bulletin board (EBB) to all Shippers a schedule of planned major
maintenance and repairs which affect system capacity. The
schedule shall show the estimated delivery point capacity for the
next 12 months.
27.3 On a daily basis PGT shall post, on its EBB, capacity for each
forthcoming gas day plus the estimated capacity for the next two
gas days.
(Continued)
54
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE
28.1 Eligibility to Release
Any firm Shipper which contracts for firm transportation service
under Part 284 of the Commission's regulations (Releasing Shipper)
is eligible to release all or part of its capacity (Parcel) for
use by another party (Replacement Shipper). Any Replacement
Shipper which has previously contracted for a Parcel may also
release its capacity to another party as a secondary release
subject to the terms and conditions described herein.
Upon releasing a Parcel, consistent with the terms and conditions
described herein, all Releasing Shippers shall remain ultimately
liable for all reservation charges billable for the originally
contracted service. The Releasing Shipper, whether a primary or
secondary capacity holder, must post the capacity it seeks to
release on PGT's Electronic Bulletin Board (EBB) prior to the
close of the Posting Period defined herein.
A Releasing Shipper may release all of its capacity for the
remainder of the term of its contract and extinguish its
contractual obligations to PGT provided that: 1) the Replacement
Shipper for this capacity is creditworthy pursuant to PGT's credit
standards; 2) that the rate paid by the Replacement Shipper be no
less than the rate contracted between the Releasing Shipper and
PGT for the maximum volume, for the remaining term of the contract
or the Releasing Shipper's maximum tariff rate; and 3) the release
is for all of the Releasing Shipper's capacity. The release may
be structured such that the right of first refusal may transfer to
the Replacement Shipper even if the release has recall provisions
and has been recalled by the Releasing Shipper at the end of the
service agreement.
(Continued)
55
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.2 Types of Release
A Releasing Shipper may release a Parcel for a term (Release Term)
up to or equivalent to the remaining term under its service
agreement with PGT. Types of releases include:
Rapid Release - one month or less, is not prearranged, requires
bidding and is restricted to options 1 or 2 for the allocation of
Parcels without recall provisions or special terms or conditions.
Short term - three months or less, is not prearranged and requires
bidding.
Medium Term - over three months up to two years, is not
prearranged, and requires bidding .
Long term - equal to or greater than two years, is not
prearranged, and requires bidding .
Prearranged Deal-A - less than one calendar month . This type of
release is prearranged and does not require bidding. This release
cannot be rolled-over, renewed or otherwise extended beyond the
term described above unless the Releasing Shipper follows the
posting and bidding procedures that apply to the particular term
sought contained in this Paragraph 28. The Releasing Shipper may
not re-release this Parcel to the same Replacement Shipper until
30 days after the term of the initial release has ended.
Rollovers are permitted without bidding or a waiting period
provided the Prearranged Shipper agrees to pay the maximum rate
and meet all the other terms and conditions of the release.
Prearranged Deal-B - equal to or greater than one month at the
maximum rate bid pursuant to the methodology selected by Releasing
Shipper. This type of release is prearranged and does not require
bidding.
Prearranged Deal-C - one month up to two years at a rate less than
the maximum rate bid pursuant to the methodology selected by the
Releasing Shipper. This type of release is prearranged, allows
for bidding, and allows the right of first refusal. (Continued)
56
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.2 Types of Releases (Continued)
Prearranged Deal-D - two years or longer at a rate less than the
maximum rate bid pursuant to the methodology selected by the
Releasing Shipper. This is type of release is prearranged, allows
for bidding, and allows the right of first refusal .
28.3 Notice Requirements
Any Releasing Shipper electing to release capacity shall submit a
notice via PGT's EBB that it elects to release firm capacity. The
notice shall set forth the following information:
(a) Releasing Shipper's legal name, contract number, and the name,
title, address, telephone number, and fax number of the
individual responsible for authorizing the release of
capacity.
(b) Rate schedule of the Releasing Shipper.
(c) Whether bidders will bid on the reservation charge or a
volumetric equivalent of the maximum reservation charge
applicable to the Parcel on a 100% load-factor basis. If a
volumetric rate is used, Releasing Shipper must indicate
whether bids on a reservation charge basis will be accepted as
well and if so must specify the method of evaluating the two
types of bids.
(d) Daily quantity of capacity to be released, expressed in
MMBtu/d, at the designated delivery point(s). (This must not
exceed Releasing Shipper's maximum contract demand available
for capacity release and shall state the minimum quantity
expressed in MMBtu/d acceptable for release.)
(Continued)
57
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.3 Notice Requirements (Continued)
(e) The term of the release, identifying the date release is to
begin and terminate. The minimum release term acceptable to
PGT shall be one day.
(f) Whether the Releasing Shipper is willing to consider release
for a shorter period of time than that specified in (e) above
and if so, the minimum acceptable period of release.
(g) The receipt and delivery point.
(h) Whether Option 1, 2, or 3 shall be used to determine the
highest valued bid. If Option 3 is selected, Releasing
Shipper must describe the criteria by which bids are to be
evaluated.
(i) Whether the Releasing Shipper wants PGT to market its released
capacity.
(j) Whether the Releasing Shipper requests to waive the
creditworthiness requirements and agrees in such event to
remain liable for all charges.
(k) Whether Releasing Shipper is a marketing or other affiliate of
PGT.
(l) If release is a prearranged release, the Prearranged Shipper
must be qualified pursuant to the criteria of Paragraph
28.6(a) unless waived above. Releasing Shipper shall include
the Prearranged Shipper bid information pursuant to Paragraph
28.6(b) with its release information and shall indicate
whether the Prearranged Shipper is affiliated with PGT or the
Releasing Shipper.
(m) Any special nondiscriminatory terms and conditions applicable
to the release.
(Continued)
58
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.3 Notice Requirements (Continued)
(n) Tie-breaker method preferred: (1) pro rata, (2) lottery, (3)
order of submission (first-come/first-serve), (4) other.
Other method must be objectively stated, administratively
feasible as determined by PGT and nondiscriminatory. If none
are selected, the system defaults to pro rata.
(o) Recall provisions. These provisions must be objectively
stated, nondiscriminatory, applicable to all bidders,
operationally and administratively feasible as determined by
PGT and in accordance with PGT's tariff.
(p) The minimum rate (percentage of: reservation charge or a
volumetric equivalent of the maximum reservation charge
applicable to the Parcel on a 100% load-factor basis)
acceptable to Releasor for this Parcel.
(q) Whether the Releasing Shipper is willing to accept contingent
bids that extend beyond the close of the Bid Period and, if
so, any nondiscriminatory terms and conditions applicable to
such contingencies including the date by which such
contingency must be satisfied (which date shall not be later
than the last day upon which PGT must award capacity) and
whether, or for what time period, the next highest bidder(s)
will be obligated to acquire the capacity should the winning
contingent bidder be unable to satisfy the contingency
specified in its bid.
(r) Whether the Releasing Shipper wants to specify a longer
bidding period for its Parcel than specified at Paragraph
28.8.
(Continued)
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.3 Notice Requirements (Continued)
(n) Tie-breaker method preferred: (1) pro rata, (2) lottery, (3)
order of submission (first-come/first-serve), (4) other.
Other method must be objectively stated, administratively
feasible as determined by PGT and nondiscriminatory. If none
are selected, the system defaults to pro rata.
(o) Recall provisions. These provisions must be objectively
59
stated, nondiscriminatory, applicable to all bidders, operationally and
administratively feasible as determined by PGT and in accordance with PGT's
tariff.
(p) The minimum rate (percentage of: reservation charge or a
volumetric equivalent of the maximum reservation charge
applicable to the Parcel on a 100% load-factor basis)
acceptable to Releasor for this Parcel.
(q) Whether the Releasing Shipper is willing to accept contingent
bids that extend beyond the close of the Bid Period and, if
so, any nondiscriminatory terms and conditions applicable to
such contingencies including the date by which such
contingency must be satisfied (which date shall not be later
than the last day upon which PGT must award capacity) and
whether, or for what time period, the next highest bidder(s)
will be obligated to acquire the capacity should the winning
contingent bidder be unable to satisfy the contingency
specified in its bid.
(r) Whether the Releasing Shipper wants to specify a longer
bidding period for its Parcel than specified at Paragraph
28.8.
(Continued)
60
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.4 Marketing of Capacity Fee
PGT may act as a facilitator between a Releasing Shipper and a
Replacement Shipper(s) that wishes to contract for that Releasing
Shipper's capacity. All such Parcels must be posted on the EBB
initially. A posting of a Parcel facilitated by PGT will include
both the Parcel by the Releasing Shipper and the bid by the
Prearranged Shipper. A marketing of capacity fee shall be
negotiated between PGT and Releasing Shipper in a
nondiscriminatory manner. Such a fee will apply when: a
Releasing Shipper requests PGT to market released capacity, PGT
actively markets such capacity beyond posting on the EBB, and such
marketing results in capacity being released to a Replacement
Shipper.
28.5 Posting of a Parcel
The posting of a Parcel constitutes an offer to release the
capacity provided a willing Replacement Shipper submits a valid
bid consistent with PGT's Transportation General Terms and
Conditions. The posting must contain the information contained in
Paragraph 28.3. Any specific conditions posted by the Releasing
Shipper must be operationally feasible, nondiscriminatory to other
shippers, and in conformance with PGT's tariffs. If the Parcel is
being released as a secondary release, then any recall provisions
included in the primary release which may affect the re-release of
this capacity must be included in the terms and conditions of the
secondary release. Each Parcel will be reviewed by PGT prior to
posting on the EBB for bidding. The receipt of a valid release
will be acknowledged by the issuance of a release confirmation to
the Releasing Shipper's EBB mailbox by PGT.
It is the Releasing Shipper's sole responsibility to provide
release and Prearranged Shipper bid information in advance of the
close of the Posting Period.
(Continued)
61
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.5 Posting of a Parcel (Continued)
Releasing Shippers who elect to release capacity and select Option
3 for the highest valued bid methodology and/or include, in their
release, nondiscriminatory recall provisions and/or special terms
and conditions are required to submit their request to release
capacity by 12:00 p.m. Pacific Time at least two business days
before the close of the Posting Period. This is to ensure
adequate time for PGT to review and validate that the Option 3
criteria and/or any recall and special terms and conditions are
not discriminatory.
All Prearranged Shipper bids are subject to the Prearranged
Shipper(s) meeting the preliminary qualifications as defined in
Paragraph 28.6(a) for Replacement Shippers.
A Parcel may be revised or withdrawn by the Releasing Shipper at
any time prior to the close of the Posting Period. A Parcel
cannot be revised after the close of the Posting Period. Parcels
may be withdrawn subsequent to the close of the Posting Period and
up until the close of the Bid Period only in situations where the
Releasing Shipper has an unanticipated need for the capacity. In
such instances, Releasing Shipper shall notify PGT via the EBB of
its need to withdraw the Parcel due to an unanticipated need for
the capacity. The withdrawal or revision of a Parcel will
terminate all bids submitted for that Parcel to date. Replacement
Shippers will need to resubmit their bids for the Parcel if the
Parcel is resubmitted for release.
(Continued)
62
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel
(a) Preliminary Qualification
To bid for a Parcel, a Replacement Shipper must: pre-qualify
by submitting a completed request for authority to bid for a
Parcel, meet PGT's credit criteria, and execute an FTS-1
service agreement for capacity release as set forth in these
Transportation General Terms and Conditions.
Replacement Shippers may carry out these requirements through
the use of PGT's EBB. Replacement Shippers are encouraged to
pre-qualify in advance of any postings on PGT's EBB as credit
requirements will take differing amounts of time to process
depending on the particular financial profile of Replacement
Shippers. The pre-qualification process will authorize a
pre-set maximum monthly financial exposure level for the
Replacement Shipper. Such exposure levels may be adjusted by
PGT periodically re-evaluating a Replacement Shipper's
credit-worthiness.
Releasing Shippers may exercise their option to waive the
credit requirements for any Replacement Shipper wishing to bid
on a Parcel posted by that Releasing Shipper. Such waiver
must be made on a nondiscriminatory basis. PGT must be
informed of such waiver via the EBB before it will authorize
such Replacement Shipper's participation with respect to that
particular Parcel. In this instance, no pre-set maximum
monthly financial exposure level is applicable.
Should a Releasing Shipper waive the credit requirements for a
Replacement Shipper, the Releasing Shipper shall be liable for
all charges incurred by the Replacement Shipper in the event
such Replacement Shipper defaults on payment to PGT for such
capacity release service.
(Continued)
63
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel (Continued)
(a) Preliminary Qualification (Continued)
The execution of the FTS-1 service agreement for capacity
release is to be signed "electronically" by the Replacement
Shipper. The Replacement Shipper shall execute the FTS-1
service agreement for capacity release (exhibits excluded)
through the use of an authorization code procedure on the EBB.
Upon notification by PGT of an award of a Parcel, PGT shall
complete Exhibit R with the particulars of the awarded Parcel
and Replacement Shipper shall execute, electronically, Exhibit
R to the FTS-1 service agreement for capacity release.
A hard copy of the FTS-1 service agreement for capacity
release, including Exhibit R (signed by hand by PGT and
Replacement Shipper), will follow subsequent to the awarding
of a Parcel.
A Replacement Shipper that subsequently obtains additional
Parcels is not required to execute an additional FTS-1 service
agreement for capacity release; rather, for each such
additional Parcel obtained, an additional Exhibit R
(designated sequentially "Exhibit R-2", "Exhibit R-3", etc.)
will be executed and amended to such Replacement Shipper's
FTS-1 service agreement for capacity release.
Once the Replacement Shipper has met PGT's preliminary
contractual and credit requirements, PGT will amend the
Replacement Shipper's authorization to add access to the
bidding and releasing portions of PGT's capacity release
program on its EBB. This authorization, in combination with
the Replacement Shipper's password, which will be unique and
known only by the Replacement Shipper, will entitle the
(Continued)
64
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel (Continued)
(a) Preliminary Qualification (Continued)
Replacement Shipper to submit a bid for a Parcel. Once a
Replacement Shipper has acquired capacity, authority is
granted to the Replacement Shipper to release that capacity.
The execution of the FTS-1 service agreement for capacity
release and use of this authorization to submit a bid or to
release capacity will constitute an obligation on the part of
the Replacement Shipper to be bound by the terms and
conditions of PGT's capacity release program as set forth in
these Transportation General Terms and Conditions.
(b) Submitting a Bid
All bids must be submitted through the use of PGT's EBB. Such
bids shall be "open" for all participants to review. The
particulars of all bids will be available for review but not
the identity of bidders. PGT will post the identity of the
winning bidder(s) only.
A Replacement Shipper cannot request that its bid be "closed",
nor can a Releasing Shipper specify that "closed" bids be
submitted on its releases. A Replacement Shipper may submit
only one bid per Parcel posted at any one point in time. Bids
received after the close of the Bid Period shall be invalid.
The Replacement Shipper may bid for no more than the quantity
of the Parcel posted by the Releasing Shipper. Simultaneous
bids for more than one Parcel are permitted.
(Continued)
65
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel (Continued)
(b) Submitting a Bid (Continued)
A valid bid to contract for a Parcel must contain the
following information:
(1) Replacement Shipper's legal name, address, telephone and
fax numbers and the name and title of the individual
responsible for authorizing the bid.
(2) The identification of the Parcel bid on.
(3) Term of service requested. The term of service must not
exceed the term included in the Parcel.
(4) Percentage of the applicable maximum rate, as identified
in the Parcel, that Replacement Shipper is willing to pay.
A Replacement Shipper may not bid below the minimum
applicable charge or rate nor above the maximum authorized
charge or rate for the Parcel.
(5) The quantity desired not to exceed the quantity contained
in the Parcel, expressed on a MMBtu/d delivered basis and
greater than the minimum quantity acceptable to
Replacement Shipper.
(6) Under Options 1 or 2 acceptance or rejection of all recall
provisions and special nondiscriminatory terms and
conditions of service associated with the release.
Rejection of any terms results in an invalid bid.
(7) Whether or not Replacement Shipper is an affiliate of the
Releasing Shipper.
(8) A statement as to whether or not Replacement Shipper is
affiliated with PGT.
(Continued)
66
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.6 Bidding for a Parcel (Continued)
(b) Submitting a Bid (Continued)
(9) An affirmative statement that Replacement Shipper agrees
to be bound by the terms and conditions of Rate Schedule
FTS-1 and PGT's capacity release provisions in its
tariff.
(10) Whether the bid is a contingent bid and the
contingencies which must be satisfied by the date
specified by the Releasing Shipper in its posting
of the Parcel.
(c) Confirmation of Bids
The receipt of a valid bid by PGT will be acknowledged by the
issuance of a bid confirmation to the Replacement Shipper's
EBB mailbox by PGT. It is the Replacement Shipper's sole
responsibility to verify the correctness of the submitted bid
and to take any corrective action necessary by resubmitting a
bid when notified of an invalid or incomplete bid by PGT via
the EBB. This must be done before the close of the Bid
Period.
(d) Withdrawn or Revision of Bids
A previously submitted bid may be withdrawn or revised and
resubmitted at any time prior to the close of the Bid Period
with no obligation on the Replacement Shipper's part.
Resubmitted bids must be equal to or greater in value than the
initial bids. Lower valued bids will be invalid.
(Continued)
67
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels
(a) Primary Allocation
Winning bids for Parcels shall be awarded based on one of
the following three options to be selected by the
Releasing Shipper when posting a Parcel:
Option 1 - Price
Bids will be given priority based on the maximum rate bid as
represented by a Replacement Shipper's bid of the
percentage of: the maximum authorized reservation charge
or a volumetric equivalent of the maximum reservation
charge applicable to the Parcel on a 100% load factor
basis. Releasing Shippers using a volumetric rate and
wishing to accept reservation charge bids will be
considered an Option 3 criteria. In this instance
Releasing Shipper must define the method for evaluating
such bids. A bid queue will be maintained for each
individual Parcel.
Option 2 - Net Present Value
Bids will be given priority based on the net present value
per MMBtu for the term of the bid according to the following
formula:
n
(1 + i) -1
Present Value per unit = P * R * _________
n
i (1 + i)
where: P = percent of the rate or charge that the
Replacement Shipper is willing to pay.
(Continued)
68
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(a) Primary Allocation (Continued)
R = Rate or charge calculated as: The maximum authorized
reservation charge (or a volumetric equivalent of the maximum
reservation charge applicable to the Parcel on a 100% load
factor basis) in effect at the time of the bid for service
from the same receipt point to the same delivery point under
the Releasing Shipper's rate schedule.
i = FERC's annual interest rate divided by 12.
n = number of periods for which the bidder wishes to contract,
not to exceed the maximum periods to be released by the
Releasing Shipper. For releases greater than or equal to one
month, the period is the number of months. For releases less
than one month the period is the number of days.
A bid queue will be maintained for each individual Parcel.
Option 3 - Releasing Shipper's Criteria for Highest Valued Bids
Bids will be given priority based on the criteria established
by the Releasing Shipper for determining the highest valued
bids. The criteria must be objectively stated, applicable to
all potential bidders, operationally and administratively
feasible as determined by PGT, nondiscriminatory, and in
conformance with PGT's tariff. A bid queue will be maintained
for each individual Parcel.
If Releasing Shipper does not specify an option for
determining best bid, Option 2 will be the default option used.
Under all options, PGT will evaluate and rank all bids for
Parcels.
(Continued)
69
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(b) Right of First Refusal
In the case of a Prearranged Shipper's bid for a Parcel with a
term equal to one month or greater, at a rate other than at
the highest valued bid, pursuant to the methodology specified
by the Releasing Shipper, if the bid submitted by a subsequent
Replacement Shipper exceeds the value of the Prearranged
Shipper's bid, the Prearranged Shipper will be allowed to
match the higher valued bid. The Prearranged Shipper will be
allowed 1 business day for releases up to two years and 5
business days for releases beyond two years from the close of
the Bid Reconciliation Period to match the higher valued bid,
otherwise, the allocation will be awarded to subsequent
Replacement Shipper(s) in accordance with the primary and
secondary allocation mechanisms.
(c) Secondary Allocation
To the extent there is more than one Replacement Shipper
submitting a winning bid, the Parcel shall be allocated based
on one of the following tie-breaker methodologies to be
selected by the Releasing Shipper: pro rata, lottery, order
of submission (first come/first serve), or by a method
designated by the Releasing Shipper. Releasing Shipper's
method must be objectively stated, applicable to all bidders,
nondiscriminatory, administratively feasible as determined by
PGT and in accordance with PGT's tariffs.
(Continued)
70
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(d) Confirmation of Allocation
Upon each completion of an allocation, the successful
Replacement Shipper(s) will be notified of the terms under
which they have contracted for the awarded Parcel. The
notification will be provided in the form of a notice in the
Replacement Shipper's EBB mailbox. The notice will include an
Exhibit R to the Replacement Shipper's Rate Schedule FTS-1
service agreement for capacity release which specifies the
pertinent terms of the Replacement Shipper's bid as well as
any additional terms specified by the Releasing Shipper. The
Releasing Shipper will be notified of the terms under which
its Parcel has been awarded. The notification will be
provided in the form of a notice in the Releasing Shipper's
EBB mailbox. The notification will include an Exhibit C to
the Releasing Shipper's service agreement which specifies the
pertinent terms of the credit to be applied to the Releasing
Shipper as a result of the awarding of Parcel to the
Replacement Shipper(s). In the case of multiple Replacement
Shippers and Parcels, an Exhibit C to the Releasing Shippers'
service agreement will be generated for each Parcel and
Replacement Shipper. The Exhibit C's shall be numbered
sequentially as Exhibit C-1, C-2, etc.
(e) Purging of Expired Bids
All unfulfilled bids, as well as any unfulfilled portions of
bids which receive a partial award, will become ineffective as
of the completion of bid reconciliation and the close of the
Bid Period. Each unsuccessful Replacement Shipper which has
bid shall receive a notice in its EBB mailbox indicating the
ineffectiveness of the bid.
(Continued)
71
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.7 Allocation of Parcels (Continued)
(e) Purging of Expired Bids (Continued)
Information regarding all bids for all Parcels shall be archived
off-line before being purged from the system.
28.8 Scheduling of Parcels, Bids and Notifications
(a) Rapid Release - one month or less, not prearranged.
Posting Period - up to 12:00 p.m. Pacific Time on the 3rd business
day before the commencement of the Release Term.
Bid Period - a period of 1 business day subsequent to the close of
the Posting Period. The Bid Period closes at 2:00 p.m. Pacific
Time on the 2nd business day before the commencement of the
Release Term. Notification of the results of the bidding for
Parcels will be posted at 2:00 p.m. Pacific Time on the 2nd
business day prior to the commencement of the Release Term.
(b) Short-Term - three months or less, not prearranged.
Posting Period - up to 12:00 p.m. Pacific Time 8 business days
prior to the commencement of the Release Term.
Bid Period - a period of 3 business days subsequent to the close
of the Posting Period. The Bid Period closes at 2:00 p.m.
Pacific Time 5 business days prior to the commencement of the
Release Term.
Bid Reconciliation Period - a period of 3 business days subsequent
to the close of the Bid Period. The Bid Reconciliation Period
closes at 2:00 p.m. Pacific Time 2 business days prior to the
commencement of the Release Term at which time notification of the
results of the bidding for Parcels will be posted.
(Continued)
72
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.8 Scheduling of Parcels, Bids and Notifications (Continued)
(c) Medium-Term - over three months up to two years, not prearranged.
Posting Period - up to 12:00 p.m. Pacific Time on the 17th
business day before the commencement of the Release Term.
Bid Period - a period of 10 business days subsequent to the close
of the Posting Period. The Bid Period closes at 2:00 p.m.
Pacific Time on the 7th business day before the commencement of
the Release Term.
Bid Reconciliation Period - a period of 5 business days subsequent
to the close of the Bid Period. The Bid Reconciliation Period
closes at 2:00 p.m. Pacific Time 2 business days prior to the
commencement of the Release Term, at which time notification of
the results of the bidding for Parcels will be posted.
(d) Long Term - two years or longer, not prearranged.
Posting Period - up to 12:00 p.m. Pacific Time on the 30th
business day before the commencement of the Release Term.
Bid Period - a period of 20 business days subsequent to the close
of the Posting Period. The Bid Period closes at 2:00 p.m.
Pacific Time on the 10th business day before the commencement of
the Release Term.
Bid Reconciliation Period - a period of 8 business days subsequent
to the close of the Bid Period. Notification of the results of
the bidding for Parcels will be posted not later than 2:00 p.m.
Pacific Time 2 business days prior to the commencement of the
Release Term.
(Continued)
73
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.8 Scheduling of Parcels, Bids and Notifications (Continued)
(e) Prearranged Deal-A - less than one calendar month.
Releasing Shipper must inform PGT via the EBB of the particulars
of the prearranged deal by 12:00 p.m. Pacific Time on the 2nd
business day before the commencement of the Release Term.
Posting Period - PGT will post the particulars of the prearranged
deal no later than 12:00 p.m. Pacific Time 2 business days after
the commencement of the Release Term.
(f) Prearranged Deal-B - equal to or greater than one month at the
highest valued bid pursuant to the methodology selected by the
Releasing Shipper.
Posting Period - Releasing Shipper must submit the particulars of
the prearranged deal to PGT for posting on the EBB no later than
12:00 p.m. Pacific Time 2 business days before the commencement of
the Release Term.
(g) Prearranged Deal-C - one month up to two years.
Posting Period - up to 12:00 p.m. Pacific Time on the 10th
business day before the commencement of the Release Term.
Bid Period - a period of 5 business days subsequent to the close
of the Posting Period. The Bid Period closes at 2:00 p.m.
Pacific Time on the 5th business day before the commencement of
the Release Term.
Bid Reconciliation Period - a period of 2 business days subsequent
to the close of the Bid Period. The Bid Reconciliation Period
closes at 2:00 p.m. Pacific Time on the 3rd business day before
the commencement of the Release Term.
(Continued)
74
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.8 Scheduling of Parcels, Bids and Notifications (Continued)
(g) Prearranged Deal-C - one month up to two years (Continued)
Match Period - a period of 1 business day subsequent to the close
of the Bid Reconciliation Period. The Match Period closes at 2:00
p.m. Pacific Time on the 2nd business day before the commencement
of the Release Term. At that time results of the bidding shall be
posted no later than 2:00 p.m. Pacific Time on the 2nd business
day before the commencement of the Release Term.
(h) Prearranged Deal-D - two years or longer.
Posting Period - up to 12:00 p.m. Pacific Time on the 30th
business day before the commencement of the Release Term.
Bid Period - a period of 20 business days subsequent to the close
of the Posting Period. The Bid Period closes at 2:00 p.m.
Pacific Time on the 10th business day before the commencement of
the Release Term.
Bid Reconciliation Period - a period of 3 business days subsequent
to the close of the Bid Period. The Bid Reconciliation Period
closes at 2:00 p.m. Pacific Time on the 7th business day before
the commencement of the Release Term.
Match Period - a period of 5 business days subsequent to the close
of the Bid Reconciliation Period. The Match Period closes at 2:00
p.m. Pacific Time on the 2nd business day before the commencement
of the Release Term. At that time the results of the bidding
shall be posted no later than 2:00 p.m. Pacific Time on the 2nd
business day before the commencement of the Release Term.
(Continued)
75
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.9 Crediting, Billing Adjustments and Refunds
(a) Eligibility
PGT shall provide revenue credits to any Releasing Shipper which
releases capacity to a Replacement Shipper pursuant to the
provisions of Paragraph 28.
(b) Monthly Crediting Procedure
Revenue credits for released capacity shall be credited monthly as
an offset a Releasing Shipper's reservation charge (or the
volumetric equivalent of the reservation charge on a 100%
load-factor basis applicable to the Releasing Shipper. This shall
also be referred to in this Paragraph 28.9 as the equivalent
volumetric rate) payable to PGT under the applicable rate schedule
for the service that has been released. PGT shall credit each
month to the Releasing Shipper's account 100% of the revenues from
the charges invoiced to the Replacement Shipper(s) for the
reservation charge (or equivalent volumetric rate).
(c) Billing Adjustments
PGT shall apply the revenues received from Replacement Shippers
first to the reservation charge (or equivalent volumetric rate)
next to the GRI reservation surcharge, applicable Gas Supply
Restructuring Surcharge, delivery rate, GRI and ACA charges and
any applicable interest and penalties billed to the Replacement
Shipper.
Should Replacement shipper default on payment to PGT of the
reservation charge (or equivalent volumetric rate) PGT shall bill
Releasing Shipper for such unpaid charges and apply interest to
such adjustments in accordance with the provisions of Paragraph 8
of the Transportation General Terms and Conditions.
(Continued)
76
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
28.9 Crediting, Billing Adjustments and Refunds (Continued)
(d) Excess Revenue Credits
Releasing Shipper is entitled to excess revenue credits resulting
when the reservation charge (or equivalent volumetric rate)
revenues actually received by PGT from the Replacement Shipper(s)
exceed the reservation charge (or equivalent volumetric rate)
revenues which would have been received by PGT from the Releasing
Shipper if capacity was not released.
(e) Refunds
PGT shall track all changes in its rates approved by the
Commission. In the event the Commission orders refunds of any
such rates charged by PGT and previously approved, PGT shall make
corresponding refunds to all affected Shippers including Shippers
receiving capacity release service.
In such instances when rates to Replacement Shippers are reduced,
PGT shall make corresponding adjustments to the crediting of
revenues to Releasing Shippers for the period such refunds are
payable.
(Continued)
77
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
28. CAPACITY RELEASE (Continued)
(RAPID CAPACITY RELEASE TIMELINE GRAPH)
(SHORT TERM CAPACITY RELEASE TIMELINE GRAPH)
(MEDIUM TERM CAPACITY RELEASE TIMELINE GRAPH)
(LONG TERM CAPACITY RELEASE TIMELINE GRAPH)
(PRE-ARRANGED DEAL-A CAPACITY RELEASE TIMELINE GRAPH)
(PRE-ARRANGED DEAL-B CAPACITY RELEASE TIMELINE GRAPH)
(PRE-ARRANGED DEAL-C CAPACITY RELEASE TIMELINE GRAPH)
(PRE-ARRANGED DEAL-D CAPACITY RELEASE TIMELINE GRAPH)
78
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. FLEXIBLE RECEIPT AND DELIVERY POINTS
29.1 Firm Service
(a) Addition of a Receipt Point
Any firm Shipper receiving service under Part 284 of the
Commission's regulations is entitled to use the receipt point
specified in its service agreement as a primary receipt point. A
firm Shipper may add a secondary receipt point, provided the
secondary receipt point is downstream of the primary receipt point
at any time during the life of the contract.
A firm Shipper may add secondary receipt points, provided the
secondary receipt points are downstream of the primary receipt
point, at any time during the life of the contract. In this
instance, firm Shippers who are billed under a reservation charge
and a delivery rate will continue to be billed reservation charges
based on the primary receipt point while delivery rates, including
fuel, will be calculated on the receipt point actually used.
Service at the secondary receipt point will be allocated pro rata
to all firm Shippers using the point as a secondary receipt point
after service is allocated to firm Shippers using the receipt
point as a primary receipt point.
To the extent additional meter station capacity or other
facilities are required to effect the receipt point change, PGT
will construct the additional capacity consistent with Paragraph
21.13.
(b) Changing a Receipt Point
A firm Shipper may change primary receipt points to a downstream
receipt point but will continue to be billed reservation charges
based on the original primary receipt point. Changes in receipt
points will be permitted provided sufficient receipt point
capacity exists at the receiving meter station and subject to any
operating constraints. To the extent additional meter station
capacity or other facilities are required to effect the receipt
point change, PGT will construct the additional capacity at the
firm Shipper's expense consistent with Paragraph 21.13
(Continued)
79
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued)
29.1 Firm Service (Continued)
(c) Addition of a Delivery Point
Each firm Shipper is entitled to an allocation of its MDQ to a
delivery point(s) as its primary delivery point(s).
A firm Shipper may add secondary delivery points provided the
secondary delivery points are upstream of the primary delivery
point, at any time during the life of the contract. In this case,
the firm Shipper will continue to be billed any applicable
reservation charges based on the primary delivery point; however,
delivery rates, including fuel, will be calculated based on the
delivery point actually used. Service at the secondary delivery
point will be allocated pro rata to all firm Shippers using the
point as a secondary delivery point after service is allocated to
firm Shippers using the delivery point as a primary delivery
point.
A firm Shipper with primary deliveries allocated to a minor
delivery point may add secondary delivery points to its contract
provided that the addition of the secondary delivery point does
not materially impact service to other firm Shippers.
To the extent additional meter station and subject to any
operating constraints capacity is required to effect the delivery
point(s) change, PGT will construct the additional capacity
consistent with Paragraph 21.13.
(Continued)
80
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued)
29.1 Firm Service (Continued)
(d) Changing a Delivery Point
A firm Shipper may change primary delivery points, to a upstream
delivery point but will continue to be billed reservation charges
based on the original primary delivery point. Changes in delivery
points will be permitted provided sufficient delivery point
capacity exists at the delivery meter station. To the extent
additional meter station and subject to any operating constraints
capacity is required to effect the delivery point change, PGT will
construct the additional capacity at the firm Shipper's expense
consistent with Paragraph 21.13
A firm Shipper with primary deliveries allocated to a minor
delivery point may change primary delivery points in its contract
provided that the change of primary delivery point does not
materially impact service to other firm Shippers.
29.2 Interruptible Service
(a) Change of a Receipt/Delivery Point
Interruptible Shippers will have the right to flexible receipt and
delivery points, at a lower priority than firm or released
services.
(b) Addition of a Receipt Point
Except as otherwise provided in this paragraph, Shippers receiving
service under any Part 284 interruptible transportation rate
schedule may add any receipt point downstream of the primary
receipt point on the PGT system at any time during the life of the
contract with no effect on the Interruptible Shipper's previously
granted interruptible transportation priority. However, requests
by an interruptible Shipper to increase its total MDQ and/or to
add an upstream receipt point will be considered a new request for
service and assigned an interruptible priority at the end of PGT's
interruptible queue.
(Continued)
81
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued)
29.2 Interruptible Service (Continued)
(c) Addition of a Delivery Point
An Interruptible Shipper may request interruptible service at
additional delivery points at any time. The request of an
additional downstream delivery point, or a request to increase the
delivery quantity at an existing delivery point, will be assigned
an interruptible priority at the end of PGT's interruptible queue
on a first-come first-served basis.
(Continued)
82
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS
30.1 Purpose
This Paragraph 30 establishes the means by which PGT shall recover GSR
Costs. PGT will make one or more separate rate filings to recover GSR
Costs pursuant to this Paragraph 30.
30.2 Definitions
The following defines certain terms as they are used in this Paragraph
30:
(a) "Gas Supply Restructuring Costs" shall mean amounts in cash or
other consideration eligible for recovery under Order Nos. 500, et
seq., or 528, et seq., or 636, et seq., or which are incurred to
restructure, reform or terminate the existing International
Contract between PGT and A&S and underlying A&S gas supply
contracts, or to resolve claims by Canadian gas suppliers related
to past or future liabilities or obligations of PGT or A&S under
the International Contract and underlying A&S gas supply
contracts.
(b) "The Initial GSR Cost Collection Period" will consist of the three
(3) years commencing with the effective date of the rate filing to
recover GSR Costs. An Initial GSR Cost Collection Period shall
apply to each rate filing PGT makes to recover GSR Costs.
(c) "Carryover GSR Cost Collection Period" will consist of the
extension of the Initial GSR Collection Period in accordance with
Paragraph 30.6 hereof to complete the full recovery (but no
overrecovery) of PGT's GSR Costs.
(d) "Approved GSR Costs" shall mean those GSR costs as defined in
Paragraph 30.2(a) above, which are approved by FERC for recovery
by PGT through the Transition Cost Recovery Mechanism as defined
in this Paragraph 30.
(e) "Northwest Shippers", for purposes of this paragraph, are defined
as Washington Natural Gas Company, Cascade Natural Gas Company,
Washington Water Power Company/WP Natural Gas and Northwest
Natural Gas Company.
(Continued)
83
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS (Continued)
30.3 Applicability of GSR Transition Costs
GSR Transition Costs shall be applicable to all Shippers except those
firm Shippers paying incremental rates on PGT which are also
Supporting Parties to the FERC-approved settlement in Docket No.
RS92-46-000.
30.4 Recovery of Surcharge Amounts
PGT shall recover from each Shipper meeting the applicability criteria
defined in Paragraph 30.3 the affected Shipper's GSR Surcharge amounts
and Direct Bill, if applicable, during the Initial GSR Cost Collection
Period and shall continue to recover such amounts during any
applicable Carryover GSR Cost Collection Period as necessary to
complete the full recovery (but no overrecovery) of PGT's GSR Costs.
30.5 Transition Cost Recovery Mechanism
(a) Absorption -- PGT's shareholder shall absorb 25% of all Approved
GSR Costs.
(b) Direct Bill -- 25% of all Approved GSR Costs will be recovered by
PGT through a Direct Bill. A Direct Bill will be assessed to PG&E
for 100% of the Direct Bill amount, excluding the amount to be
collected from the Northwest Shippers and credited against the
Direct Bill portion as defined in Paragraph 30.5(d). PG&E may pay
its Direct Bill in a lump sum, plus carrying charges on the
principal amount accrued, in accordance with Paragraph 30.5(e)
until the payment is made. In lieu of paying the Direct Bill in a
lump sum, PG&E may elect one of three payment schedules. PG&E's
Direct Bill amount and the monthly amount due under each extended
payment option, which shall include carrying charges accrued on
the unpaid balance in accordance with Paragraph 30.5(e), shall be
specified in the Statement of Effective Rates and Charges of First
Revised Volume No. 1-A.
(c) GSR Transition Cost Surcharge -- 50% of all Approved GSR Costs
will be recovered by PGT through a volumetric MMBtu-mile
surcharge. The GSR Transition Cost Surcharge shall include any
applicable carrying charges accruing on the unrecovered balance.
The GSR Transition Cost Surcharge shall be stated in the Statement
of Effective Rates and Charges of PGT's FERC Gas Tariff First
Revised Volume No. 1-A as the same may change from time to time,
depending on PGT's GSR Costs.
(Continued)
84
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS (Continued)
30.5 Transition Cost Recovery Mechanism (Continued)
(d) Northwest Shippers' GSR Cost Responsibility -- All Northwest
Shippers (excluding Washington Natural Gas Company) shall pay a
Direct Bill and Washington Natural Gas shall pay a GSR transition
cost surcharge (different from that provided in (c) above) for
their share of GSR transition costs. The Northwest Shippers'
responsibility shall be equal to 1.3 percent of the Approved GSR
costs that are not absorbed by PGT and in any event shall not
exceed a total of $1,454,000. Of this amount, one-third, up to
$485,000, will be credited against the amount allocated to the
Direct Bill as described in Paragraph 30.5(b), and two-thirds, up
to $969,000, will be credited against the amount allocated to the
GSR surcharge provided in Paragraph 30.5(c). The amounts
allocated to the Northwest Shippers as a group will be allocated
among the individual Northwest Shippers based on the percentages
shown below and will not exceed the applicable total amount for
each Shipper.
Total
Percentage Amount
Washington Natural Gas Company 55.02% up to $ 800,000
Cascade Natural Gas Corporation 24.07% up to 350,000
Washington Water Power Company/
WP Natural Gas 18.57% up to 270,000
Northwest Natural Gas Company 2.34% up to 34,000
Total Northwest Shippers 100.00% $1,454,000
Washington Water Power Company/WP Natural Gas (WWP), Cascade
Natural Gas Corporation (CNG), and Northwest Natural Gas Company
(NNG) will be billed and will pay immediately all amounts of the
Approved GSR Costs allocated to them up to the total maximums
noted above. The total amount allocated to Washington Natural Gas
Company (WNG) will be recovered through a volumetric surcharge
over a three-year amortization period based on the approved
commodity throughput for WNG. Any amounts not recovered at the
end of the 36-month amortization period will be due and payable in
one lump sum. Once the maximum GSR Costs applicable to Northwest
Shipper(s), as such amounts may be adjusted pursuant to the
application of rolled-in rates on the PGT system, have been
collected then the GSR Cost tariff provisions will no longer apply
to such Northwest Shipper(s).
(Continued)
85
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS (Continued)
30.5 Transition Cost Recovery Mechanism (Continued)
(e) Carrying Charges -- Carrying charges shall accrue beginning on
the effective date of PGT's filing to recover GSR costs or the
date PGT initiates payment for GSR costs, whichever is later.
Carrying charges shall be calculated in accordance with Section
154.67 of the Commission's regulations.
30.6 Reconciliation
(a) At the conclusion of the Initial GSR Cost Collection Period, PGT
will determine its GSR Costs and the actual amounts of GSR
Transition Cost Surcharge revenues.
(b) If PGT's collections hereunder shall equal or exceed its GSR
Costs, PGT shall file to terminate further collections hereunder.
The amount of any excess collected shall be repaid to all Shippers
affected hereby in proportion to the principal amount of GSR
Transition Cost Surcharge payments they have provided pursuant to
this Paragraph 30. Within ninety (90) days of the termination of
collections pursuant to this Paragraph 30, PGT will submit a
report to the Commission setting out a comparison of its GSR costs
and the amounts collected hereunder and any repayments to be
provided hereunder. Within thirty (30) days of the Commission's
approval of such report, repayments, with applicable carrying
charges, shall be paid.
(c) If PGT's collections hereunder are less than its GSR Costs, PGT
shall be permitted to recover such deficiency, including carrying
charges, during the Carryover GSR Cost Collection Period by filing
with the Commission GSR Transition Cost Surcharges within ninety
(90) days of the conclusion of the Initial GSR Cost Collection
Period. The GSR Transition Cost Surcharge will be determined by
dividing the remaining GSR costs by the applicable quantities
underlying PGT's then-effective rates. The GSR Transition Cost
Surcharge shall be effective on the first day of the month
following Commission approval of such filing.
(Continued)
86
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
31. FORMER BUYER'S OBLIGATION FOR UNRECOVERED ACCOUNT NO. 191 AMOUNTS
31.1 Purpose
This Paragraph 31 establishes the disposition of PGT's FERC Account
No. 191 as it exists on the day preceding the effectiveness of PGT's
Compliance Filing in Docket No. RS92-46-000.
31.2 Disposition of Account No. 191 Amounts
Upon the effectiveness of PGT's Compliance Filing in Docket No.
RS92-46, PGT shall be permitted to direct bill to Pacific Gas and
Electric Company (PG&E): (1) the total unrecovered amounts remaining
in PGT's FERC Account No. 191; and (2) direct bill all prior period
billing adjustments which PGT shall become obligated to pay, if such
prior period adjustments arise from services provided or Gas purchased
prior to the effectiveness of this Paragraph 31. Upon the
effectiveness of this Paragraph 31, the unrecovered Account No. 191
Deferred Account Balance shall be adjusted to include a final
reconciliation of amounts for exchange transactions and transportation
imbalances recorded in Account No. 806. If the balance of PGT's FERC
Account No. 191 shall be a credit balance, or PGT later receives
refunds from its suppliers for services provided prior to the
effectiveness of this Paragraph 31, PGT shall refund such balance or
refunds to PG&E.
31.3 Amount of Direct Bills and Refund
The amount of the Direct Bill and Refunds to PG&E shall consist of a
prior Period Adjustment Component, as described in Paragraph 31.4
hereof. Each component shall reflect demand and commodity charges, as
may be appropriate.
31.4 Calculation of Prior Period Adjustment Component
(a) The Prior Period Adjustment Component of PG&E's Direct Bill shall
be computed by adding the commodity and demand portions of each
prior period adjustment which has been charged or refunded to PGT,
as the case may be and which have not been reflected in PGT's
deferred account prior to application of this Paragraph 31. The
Prior Period Adjustment component shall be limited to a nine-
month period which shall commence on the effective date of this
tariff.
(Continued)
87
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
31. FORMER BUYER'S OBLIGATION FOR UNRECOVERED ACCOUNT NO. 191 AMOUNTS
(Continued)
31.4 Calculation of Prior Period Adjustment Component (Continued)
(b) Carrying charges on all such amounts shall be calculated using the
methods specified in Section 154.67 of the Commission's
regulations.
31.5 Nature of Obligations
(a) The entire amount of PG&E's obligation to PGT as described in this
Paragraph 31, including its subsections, shall be deemed to be due
on the day prior to the date this Paragraph becomes effective.
(b) PGT shall invoice PG&E for the Direct Bill component hereunder on
or after the tenth day of the month following the effectiveness of
this Paragraph 31. The entire amount of PG&E's unrecovered
Account No. 191 Direct Bill Amount shall be payable ten (10) days
thereafter. Should PG&E fail to pay any amount which shall become
due hereunder interest thereon shall accrue at the rate computed
using the factors specified in Section 154.67 of the Commission's
regulations, until such time as the full amount due has been paid
or collected.
(c) PG&E shall have the option, in lieu of a lump sum payment of the
total Direct Bill for its obligation for unrecovered Account No.
191 amounts, of paying twelve (12) consecutive monthly payments
equal to 1/12th of such amount. Carrying charges on the total
unrecovered Account No. 191 Direct Bill amount shall commence on
the effective date of this Paragraph 31 and shall be calculated
and included on each monthly invoice to the extent PG&E elects the
twelve (12) month payment option. Notwithstanding such election,
PG&E may, at any time, pay the entire amount of its unpaid share
of the unrecovered Account No. 191 Direct Bill amount to PGT, with
no further obligation for carrying charges.
(Continued)
88
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
31. FORMER BUYER'S OBLIGATION FOR UNRECOVERED ACCOUNT NO. 191 AMOUNTS
(Continued)
31.5 Nature of Obligations (Continued)
(d) The Prior Period Adjustment component shall be filed six (6) and
twelve (12) months after the effective date of this Paragraph 31.
Additional unrecovered Account No. 191 amounts will be direct
billed in accordance with Paragraph 31.5(b), and refunds of
Account No. 191 amounts will be paid by PGT to PG&E after approval
of the Commission. The filing made twelve (12) months after the
effective date of this Paragraph 31 shall constitute PGT's final
flowthrough of the Prior Period Adjustment component.
(e) Carrying charges on unpaid unrecovered Account No. 191 Direct Bill
amounts in the event PG&E elects to extend its payments in
accordance with Paragraph 31.5(c) for the Prior Period component
shall be calculated using the methods specified in Section 154.67
of the Commission's regulations.
(f) PGT will provide an accounting of the costs involved in the
closeout of Account No. 191, and will provide any refund to PG&E
within 60 days after the effective date of the tariff provisions
submitted by PGT at Docket No. RS92-46-000 and, if necessary,
subsequent adjustments will be refunded to or collected from PG&E
within 60 days of these adjustments.
32. EQUALITY OF TRANSPORTATION SERVICE
PGT hereby states that the terms and conditions of service for all
unbundled sales and transportation services provided in PGT's FERC Gas
Tariff Second Revised Volume No. 1 and First Revised Volume No. 1-A, are
provided on a basis that is equal in quality for all Shippers. All
Shippers can access all sellers of gas and receive the same quality of
service on PGT whether their gas supplies are purchased from PGT or any
other seller. Furthermore, no preference is accorded to any affiliate of
PGT for sales and transportation services provided by PGT.
(Continued)
89
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE AGREEMENT
Firm Shippers (original capacity holders) under PGT's firm
transportation rate schedules of First Revised Volume No. 1-A shall have
the right of first refusal at the termination of their service agreements.
Original capacity holders must notify PGT one year prior to termination of
their intent to terminate the service agreement.
One year prior to the expiration of the service agreement, PGT will
post a notice on its EBB that the original capacity holder's service
agreement will terminate in one year and the original capacity holder has
either elected or not elected to terminate.
33.1 In the event original capacity holder elects termination, PGT
shall subject this capacity to a bidding process. PGT shall
require bids be submitted no later than 6 months prior to the
service agreement expiration. The bid period will be 2 months.
PGT will announce the bid winner(s) 1 month after the close of the
bid period. Tied bids will be awarded on a pro rata basis.
Winning Shipper(s) and PGT must execute a new firm transportation
service agreement prior to service commencement.
33.2 In the event original capacity holder does not elect termination,
PGT will commence open bidding 6 months prior to the service
agreement termination. The bid period will be 1 month. The
original capacity holder will have 1 month from the close of the
bid period to match the highest bid(s). PGT will announce the
winning bid(s) within 1 month after the close of the match period.
If the original capacity holder matches the highest bid(s), the
capacity is awarded to the original capacity holder. If the
original capacity holder does not match the highest bid(s), the
original capacity holder's bid shall be rejected. If there is
more than one winning bid, PGT shall award capacity on a pro rata
basis. New Shippers must execute a firm transportation service
agreement with PGT prior to service commencement. Original
capacity holder is allowed to retain a portion of its capacity by
matching price and term according to the procedure outlined in
this provision.
(Continued)
90
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE AGREEMENT
(Continued)
33.3 Bids shall be evaluated on the net present value incorporating
price and term. The price shall be the rate Shippers are willing
to pay up to the maximum authorized rate. The maximum term is 20
years.
33.4 If there are no competing bids other than that of the original
capacity holder, the rate and terms of continuing service is to be
negotiated between existing capacity holder and PGT. In addition,
in this instance, if the existing capacity holder agrees to pay
the maximum authorized rate, the existing capacity holder may
determine the term it desires and PGT must extend its contract to
the existing capacity holder accordingly.
33.5 Shippers who terminate their service agreements are not liable for
any reservation charges or other charges applicable to the new
Shipper contracting for this capacity.
33.6 Only bona fide bids will be accepted. A bona fide bid offer shall
be: (a) submitted via PGT's EBB; (b) accepted in principle; and
(c) pursuant to an arms-length transaction. If the Service
Agreement is not executed within 30 days, the request for capacity
shall expire without prejudice to the prospective Shipper's right
to submit a new request for capacity. PGT shall then notify the
Shipper via the EBB of the acceptable offer, if any, having the
next greatest economic value in accordance with the provisions of
this Paragraph. If there is no other acceptable offer, the
Shipper may continue service in accordance with this Paragraph.
(Continued)
91
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC BULLETIN BOARD
34.1 General
PGT shall use US GasNet as an interim step to full implementation of
Order No. 636 on its Electronic Bulletin Board (EBB), "Pacific Trail".
PGT shall post capacity for release beginning October 14, 1993. On
November 1, 1993, PGT will utilize "Pacific Trail" for capacity
release. PGT shall maintain an EBB which will provide a range of
electronic pipeline services and information to all parties on a
nondiscriminatory basis. The EBB is available to any party that has
compatible equipment for electronic communication and transmission of
data. Access to the EBB is obtained by contacting PGT's Gas Control
Department at 1-800-238-2781 and requesting a user identification.
The EBB will operate 24 hours a day; however, certain functions may be
limited to specific operating times during the business day. There is
no charge to use the EBB.
PGT shall exercise reasonable efforts to ensure the accuracy and
security of information presented on the EBB.
34.2 Menu of Services and Information
PGT's EBB will provide the following main menu of services and
information:
(a) Capacity Release
(b) Bulletins and Capacity Available
(c) Nominations
(d) Submit Request for Firm or Interruptible Service
(e) Interruptible Transportation Queue
(f) Tariffs and Rates
(g) Account Status of Shipper
(h) Marketing Affiliate Information
(i) Buy-Sell Transactions in California
(j) Offers to Purchase Capacity
(k) Procedures for Filing Complaints
(l) E-mail to Other Shippers/PGT System Administrator
(m) EBB Mailbox
(Continued)
92
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC BULLETIN BOARD (Continued)
34.2 Menu of Services and Information (Continued)
(a) Capacity Release
The capacity release menu would allow the following options:
(1) Review Available Released Parcels
(2) Submit/Check Status of Request for Authority
to\ Bid/Release Capacity
(3) Post/Withdraw Capacity for Release
(4) Submit/Withdraw Bid for Released Capacity
(5) Review the Status of Shipper's Active Bids
(6) Review the Status of Shipper's Active
Released Parcels
(7) Review Shipper's Authority to Bid for Released
Capacity
(8) Review Transaction Log of Previous Releases
(b) Bulletins and Capacity Available
The bulletins and capacity available menu would allow
the following options:
Capacity Availability Information:
(1) At Receipt Points
(2) At Major Delivery Points
(3) At Minor Delivery Points
(4) Projected Capacity
(5) PGT Maintenance Schedules
(6) Whether the Capacity is Available From PGT or
Through PGT's Capacity Release Program
(7) Operational Bulletins
(8) Regulatory Bulletins (including: (1) any
assignment by PGT of any portion of its
international contract if PG&E reduces its
firm sales rights and (2) the posting of
notices of conversion)
(c) Nominations
(1) Submit Nominations to PGT Gas Control
(2) Review Confirmation
(3) E-mail to Gas Control
(Continued)
93
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC BULLETIN BOARD (Continued)
34.2 Menu of Services and Information (Continued)
(d) Submit Request for Firm or Interruptible Service
(e) Interruptible Transportation Queue
(f) Tariffs and Rates
The tariffs and rates menu would allow the following
options:
(1) Transportation Rates
(2) Transportation Rate Discounts (including
negotiated ITS-1 rates)
(3) First Revised Volum No. 1-A - Tariff
(4) Second Revised Volume No. 1 - Tariff
(g) Account Status of Shippers
(h) Marketing Affiliate Information
The marketing affiliate information would allow the following options:
(1) Transportation request data
(2) Receipt/delivery point data
(3) Delivery point discount data
(i) Buy-Sell Transactions in California
PGT will provide the following information:
(1) Rate Schedule Under Which Buy/Sell
Transaction Is Conducted
(2) Name of End User
(3) Maximum Daily Amount To Be Purchased and
Transported
(4) Receipt and Delivery Points
(5) Term of Service
(6) Other Terms and Conditions
(Continued)
94
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC BULLETIN BOARD (Continued)
34.2 Menu of Services and Information (Continued)
(j) Offers to Purchase Capacity
PGT shall post the following information on offers to purchase capacity:
(1) Legal Name of Offerer
(2) Name, telephone Number, Fax Number, Address
of Contact Person and Alternate Contact
Person
(3) Firm or Interruptible Service Requested
(4) Amount of Capacity Sought
(5) Term Sought
(6) Other Information
(k) Procedures for Filing Complaints
The Procedures for filing complaints menu offers the
following options:
(1) Review Complaint Procedure
(2) Enter a Complaint
(3) Send E-Mail to PGT System Administrator
(l) E-Mail to other Shippers/PGT Systems Administrator
(m) EBB Mailbox
(Continued)
95
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
34. ELECTRONIC BULLETIN BOARD (Continued)
34.3 Historical Information
PGT will back up daily transaction information on the EBB.
This historical information shall be kept for a three-year
period and may be archived off-line. Information that may be
accessed includes Parcel information and bid information
associated with that Parcel, including the identity of the
winning bid and bidder.
PGT will provide access to historical data in one of the
following manners:
(a) Direct access by parties via the EBB. In such cases,
data may be viewed, down loaded to a computer or
printed by the party.
(b) PGT may elect to archive historical data off-line.
Parties may access this data by sending a written or
an electronic mail request to the PGT Capacity
Release System Administrator requesting such
historical data. PGT will make such information
available to Shippers.
(Continued)
96
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
35. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES
Interruptible Transportation Revenue Credits
(a) Applicability. Revenue credits from interruptible
transportation revenues received by PGT from Rate Schedule ITS-1
Shippers shall be provided to PGT's firm Shippers under Rate Schedules
FTS-1, T-1, T-2 and T-3 (Eligible Shippers), excluding Shippers
receiving service under a Capacity Release Service Agreement.
(b) Crediting Percentage. PGT shall credit to Eligible Shippers
90 percent of interruptible transportation revenues received during
each 12-month period, commencing November 1st of each year, but only
to the extent that such transportation revenues exceed the amount of
fixed costs which were allocated to interruptible transportation (Cost
Allocation Amount) by PGT as part of designing PGT's effective
transportation rates during such 12-month period. Costs allocated to
interruptible service include costs allocated to existing facilities
per Docket No. RP90-109-000 and to expansion facilities per Docket No.
CP89-460-000. To the extent that PGT is required to provide
interruptible transportation revenue credits during any period during
which this Paragraph 35 shall be or shall have been in effect for less
than 12 months, a "Short Period", PGT shall pro rate the Cost
Allocation Amount by the number of days during such Short Period as
compared to the total number of days in such 12 months. To calculate
the interruptible transportation revenue credit due under the
provisions of this paragraph, where applicable, such pro rated Cost
Allocation Amount shall be compared to PGT's actual interruptible
revenues for the Short Period.
(c) Timing of Credits. Within 45 days after November 1st of each
12-month period or after the end of a Short Period, if applicable, PGT
shall determine the total amount of the applicable Rate Schedule ITS-1
revenues received during the 12-month period or Short Period and the
distribution of the interruptible revenue credits due to Eligible
Shippers as described below. Such revenue credits shall be reflected
as a credit billing adjustment in the next invoices rendered to the
Eligible Shippers. In the event that such credit billing adjustment
would result in a credit total invoice to any Shipper, PGT will refund
the excess credit billing adjustment to the Shipper in cash within 15
days after determination of the amount of the credit due to the
Shipper.
(Continued)
97
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
35. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES (Continued)
Interruptible Transportation Revenue Credits (Continued)
(d) Exclusion. Revenue credits shall not be awarded for that
portion of interruptible revenues that are attributable to: (1)
relate to the recovery by PGT of variable costs, which portion shall
be equal to the minimum usage charge for Rate Schedule FTS-1, (2) the
recovery of Gas Supply Restructuring (GSR) costs to be recovered by a
GSR volumetric surcharge under Rate Schedule ITS-1, and (3) relate to
other volumetric surcharges such as GRI and ACA.
(e) Distribution Method. Interruptible transportation revenue
credits shall be credited to each Eligible Shipper on a pro rata basis
in proportion to the reservation revenues received during the 12-month
period or Short Period from each Eligible Shipper divided by the total
reservation revenue for each Eligible Shipper received during such
period. The reservation revenues shall include the reservation
charges which the Eligible Shippers actually pay prior to the
distribution of all revenue credits, and including reservation charges
applicable to capacity which was released into PGT's Capacity Release
Programs during the 12-month period year or Short Period by the
Eligible Shipper.
(f) PGT shall pay interest to Eligible Shippers on any revenue
credits from the date such credits accrue. Such interest shall be
calculated based upon the rate of interest specified in Section
154.67(c) of the Commission's regulations.
(Continued)
98
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
36. CAPACITY RELINQUISHMENT
Firm capacity holders are permitted to permanently relinquish capacity up
to 60 days after issuance of an order accepting this tariff sheet by the
FERC approving PGT's compliance filing at Docket No. RS92-46-000 or the
effective date of the filing, whichever is later.
PGT shall permit such capacity relinquishment only if a qualified
Replacement Shipper(s) is found willing to assume the capacity for at least
the remaining contract term and agrees to pay the Reservation Charge,
including surcharges, the Relinquishing Shipper is obligated to pay.
PGT shall post a notice of relinquishment on the EBB for competitive
bidding. Bids must be for at least the minimum term of the remaining
contract term but may not be for a term of more than the remaining contract
term plus 20 years. Bids will be evaluated on a net present value basis
utilizing the formula defined in Paragraph 28. Tie bids will be awarded on
a pro-rata basis.
99
GENERAL TERMS AND CONDITIONS
(Continued)
37. ADJUSTMENT MECHANISM FOR FUEL, LINE LOSS, AND OTHER UNACCOUNTED FOR GAS
PERCENTAGES
The effective fuel and line loss percentages under Rate Schedules FTS-1 and
ITS-1 shall be adjusted downward to reflect reductions and may be adjusted
upward to reflect increases in fuel usage and line loss in accordance with
this Section 37.
37.1 Computation of Effective Fuel and Line Loss Percentage
The effective fuel and line loss percentage shall be the sum of the
current fuel and line loss percentage and the fuel and line loss
surcharge percentage.
37.2 The Current Fuel and Line Loss Percentage
(a) For each month, the current fuel and line loss percentage
shall be determined in accordance with Section 37.2(c) hereof.
The current fuel and line loss shall be effective from the
first day of such month and shall remain in effect for the
month.
(b) The current fuel and line loss percentage to be applicable for
the month shall be posted on PGT's Electronic Bulletin Board
not less than seven (7) days prior to the beginning of the
month.
(c) The current fuel and line loss percentage for the month shall
be determined on the basis of (1) the estimated quantities of
gas to be delivered by PGT for the account of Shippers during
such month and (ii) the projected quantities of gas that shall
be required for fuel and line loss during such month, adjusted
for overrecoveries or underrecoveries of fuel and line loss
during such month preceding the month in which the current
fuel and line loss percentage is posted; provided, that the
percentage shall not exceed the maximum current fuel and line
loss percentage and shall not be less than the minimum current
fuel and line loss percentage set forth on the Statement of
Effective Rates and Charges.
(Continued)
100
GENERAL TERMS AND CONDITIONS
(Continued)
37. ADJUSTMENT MECHANISM FOR FUEL, LINE LOSS AND OTHER UNACCOUNTED FOR GAS
PERCENTAGES (Continued)
37.2 The Current Fuel and Line Loss Percentage (Continued)
(d) At least thirty (30) days prior to July 1 and January 1, PGT
shall file with the Commission schedules supporting the
current fuel and line loss percentages applicable during the
six (6) months ending April 30 and October 31, respectively.
37.3 The Fuel and Line Loss Surcharge Percentage
(a) For each six (6) month period beginning July 1 and January 1,
the fuel and line loss surcharge percentage shall be
determined in accordance with Section 37.3(c) hereof. The
fuel and line loss surcharge percentage shall become effective
on July 1 and January 1 and shall remain in effective for the
six (6) month period ending December 31 and June 30,
respectively.
(b) At least thirty (30) days prior to each July 1 and January 1,
PGT shall file with the Commission and post, as defined by
Section 154.16 of the Commission's regulations, the fuel and
line loss surcharge percentage, together with supporting
documentation.
(c) The fuel and line loss percentage shall be computed by (i)
determining PGT's actual fuel and line loss for the six (6)
month period ending April 30, if the effective date is July 1,
or October 31, if the effective date is July 1, or October 31,
if the effective date is January 1, (ii) subtracting the
actual quantities retained by PGT during such six (6) month
period, and (iii) dividing the result by the estimated
quantities of gas to be delivered by PGT for the account of
Shippers during the six month period beginning with the
effective date of the fuel and line loss surcharge percentage.
If the percentage so determined is 0.0001% or less, the fuel
and line loss surcharge percentage shall be deemed to be zero.
101
Graphic Appendix List to Exhibit 10.4 of the Form 10-K
Description
The substantive information conveyed by the Rapid Capacity Release (equal to or
less than one month) Time-line graph (appearing in Paragraph 28) is described
in the body of the electronic document in Paragraphs 28.2 and 28.8 as permitted
by Item 304 of Regulation S-T.
The substantive information conveyed by the Short Term Capacity Release (three
months or less) Time-line graph (appearing in Paragraph 28) is described in the
body of the electronic document in Paragraphs 28.2 and 28.8 as permitted by
Item 304 of Regulation S-T.
The substantive information conveyed by the Medium Term Capacity Release (over
three months up to two years) Time-line graph (appearing in Paragraph 28) is
described in the body of the electronic document in Paragraphs 28.2 and 28.8 as
permitted by Item 304 of Regulation S-T.
The substantive information conveyed by the Long Term Capacity Release (two
years or longer) Time-line graph (appearing in Paragraph 28) is described in
the body of the electronic document in Paragraphs 28.2 and 28.8 as permitted by
Item 304 of Regulation S-T.
The substantive information conveyed by the Capacity Release for Pre-Arranged
Deal-A (less than one calendar month) Time-line graph (appearing in Paragraph
28) is described in the body of the electronic document in Paragraphs 28.2 and
28.8 as permitted by Item 304 of Regulation S-T.
The substantive information conveyed by the Capacity Release for Pre-Arranged
Deal-B (equal to or greater than one month at highest value bid) Time-line
graph (appearing in Paragraph 28) is described in the body of the electronic
document in Paragraphs 28.2 and 28.8 as permitted by Item 304 of Regulation
S-T.
The substantive information conveyed by the Capacity Release for Pre-Arranged
Deal-C (one month up to two years) Time-line graph (appearing in Paragraph 28)
is described in the body of the electronic document in Paragraphs 28.2 and 28.8
as permitted by Item 304 of Regulation S-T.
The substantive information conveyed by the Capacity Release for Pre-Arranged
Deal-D (two years or longer) Time-line graph (appearing in Paragraph 28) is
described in the body of the electronic document in Paragraphs 28.2 and 28.8 as
permitted by Item 304 of Regulation S-T.