Transportation Service shall be available and will be subject to the availability of adequate capacity on the Company's system to perform such service without detriment to the Company's other customers.
Transportation Service shall be available after the Customer has made arrangements to pay all under-collections for prior service received from the Company, including, without limitation, any under-collection existing in the Gas Cost Adjustment. Transportation Service shall be initiated at the beginning of a Gas Cost Adjustment period.
CHARACTER OF SERVICE
This Rate Schedule applies to the provision of Transportation Service. Gas Service provided hereunder shall be metered and billed separately from Gas Service provided under any other Rate Schedule.
Transportation under this rate shall be considered firm once the Customer's gas is accepted by the Company from the point where the Company's lines interconnect with the Customer's upstream pipeline transporter (Receipt Point) to the delivery point at the Customer's place of utilization (Delivery Point), subject to the interruption or curtailment provisions of the General Terms and Conditions of the Company and the terms of this rate schedule. The Company's sole obligation hereunder shall be to deliver the Customer's gas from the Receipt Point to the Delivery Point. The Company shall have no obligation to provide volumes of gas greater than that received, nor quality of gas better than that received from the Customer at the Company's Receipt Point. No storage of gas by the Company shall be available through this Transportation Service.
RATES AND CHARGES
The monthly Rates and Charges for Gas Service under this Rate Schedule shall be:
Service
Charge and Distribution Charge:
The maximum rates and charges shall be as set forth on Tariff Sheet No. 50.
Minimum
Monthly Charge:
The Minimum Monthly Charge shall be the Service Charge.
Other
Charges:
The Other Charges set forth in this Tariff for Gas Service shall be charged
to Customer, if applicable.
Late Payment
Charge:
Bills shall be rendered and due monthly. If Customer does not pay a bill for
gas service on or before the gross payment date, Customer shall be charged
a Late Payment Charge as follows:
On the
first $3.00 or less of net billing 10%
On the amount in excess of $3.00 3%
CONTRACT
Transportation Customer shall enter into a written contract that specifies the hourly and daily maximum gas requirements of Customer and any other terms reasonably required by Company. The Contract shall have an initial term of not less than one year and shall automatically extend for succeeding annual terms thereafter, subject to cancellation by either party after written notice submitted not less than ninety days prior to the end of the initial term or any succeeding annual term. However, in no event shall the contract expire during the Winter Season, unless such mid-winter termination date is mutually agreed upon.
GAS TRANSPORTATION PROVISIONS
The following Gas Transportation Provisions are applicable to Customers entering into Transportation Service Contracts.
1. Transportation Customers shall be subject to the Nomination and Balancing Provisions set forth in this tariff sheet.
2. The Company shall meter the gas at the delivery point through a Company-owned meter. Transportation Customer shall provide and maintain on the Premises at the Company's meter location electric and telephone service as required by Company for the operation of Company-owned electronic gas measurement devices and related communications equipment.
3. All volumes of natural gas transported hereunder shall be of the same quality and meet the same specifications as that delivered to the Company by the Company's own pipeline transporter.
4. Transportation Customer must have clear title and all required regulatory approvals to the gas that is to be transported and provided for gas delivery to a mutually agreeable point of receipt on the Company's system.
5. Transportation Customer may return to firm sales service upon thirty (30) days notice provided the Company can secure appropriate quantities of gas supply and capacity from the Company's pipeline transporter to supply said sales service. A Customer that has returned from transportation service to sales service must remain on sales service for not less than twelve months before returning to Transportation Service.
6. Customer shall reimburse Company for all charges incurred in connection with transportation of Customer's gas including any gas costs, penalty charges, or cashouts. In addition, the Customer shall indemnify the Company against all damages incurred as a result of Customer's actions.
7. Should Customer be unable to deliver sufficient volumes of transportation gas to the Company's system, Company will not be obligated hereunder to provide standby quantities for purposes of supplying such Customer's requirements.
8. Company shall not be required to render service under this rate schedule
to any Customer that fails to comply with any and all of the terms and conditions
of this rate schedule.
9. In its reasonable discretion, on a case-by-case basis, the Company may waive all or part of the provisions herein; provided, however, that the waiver of such provisions shall be exercised on a non-discriminatory basis.
CURTAILMENT PROVISIONS
In the event of any actual or threatened shortage of natural gas, due to any cause whatsoever, (including curtailments of total gas deliveries required to comply with supply contract limitations), the Company shall have the right to require such curtailment or interruption of gas usage as it deems necessary to avoid impairment of its gas supply to Customers served under its firm sales service rate schedules. When a curtailment is in effect pursuant to this section, gas usage by the Customer in excess of the quantity permitted for such Customer shall constitute Unauthorized Gas Usage and shall be subject to the Unauthorized Gas Usage Charge set forth in the General Terms and Conditions of this Tariff for Gas Service.
NOMINATION AND BALANCING PROVISIONS
The following Provisions shall apply to individual Customers being provided Transportation Service.
NOMINATION PROVISIONS
At least ten (10) days prior to the beginning of each month, Customer shall provide Company with nominations specifying the daily volumes of gas to be delivered into the Company's system for Customer's account. Intra-month daily nomination changes shall be allowed by the Company, provided the delivering pipeline will accept the nomination change, and only if such change will not prevent the Company from acquiring that amount of gas that the Company has nominated for its firm service customers during such period.
The Customer shall be obligated to notify Company of the exact daily quantity of its nomination to the delivering pipeline of Customer-owned gas to be delivered to Company at pipeline delivery points agreeable to Company (Daily Pipeline Nomination). Customer must provide the notice specified above prior to each change in Customer's Daily Pipeline Nomination by submitting to Company the nomination via facsimile, by no later than 10:00 AM Central Clock Time ("CCT") of the workday previous to the start date of the Daily Pipeline Nomination. Company may accept nominations submitted after the deadlines specified above within its reasonable discretion. Until Customer submits the required nomination, Customer's nominations of daily quantities shall be zero.
The nomination
form shall include the following information:
1. Start and end dates of nomination (Nomination Period);
2. Daily quantity, in dekatherms, of Customer's Daily Pipeline Nomination
(Daily Transportation Nomination) along with;
a. Delivering pipeline;
b. Shipper on the delivering pipeline;
c. Transportation contract number;
d. The pipeline delivery points and quantities; and
e. Any other information reasonably required by company to properly identify
and apply Customer's Daily Transportation Nomination.
Unless otherwise permitted by Company, the Nomination Period shall not exceed thirty-one days. When Customer is not the shipper on a pipeline, Customer shall cause the shipper to provide Company with a written statement detailing Customer's actual deliveries under Customer's Daily Pipeline Nomination during each Nomination Period by no later than one day following the end of the billing month.
Customer shall pay a NOMINATION ERROR CHARGE of $0.50 per dekatherm on the quantity difference between Customer's Daily Transportation Nomination and the actual deliveries under Customer's Daily Pipeline Nomination for each day such difference occurs.
BALANCING PROVISIONS
Customer shall be obligated to balance its total usage with the total deliveries of Customer-owned gas by the pipeline, as adjusted for prior month Over-Delivery Gas made available to Customer on an average daily basis or prior month Under-Delivery Gas made up by Customer on an average daily basis. An imbalance Quantity shall exist when the Customer's total usage is greater than or less than its total deliveries on a daily basis and/or a monthly basis. For purposes of applying the Daily and Monthly Balancing Provisions, the following definitions shall apply:
Daily Index Price: The Daily Midpoint Prices as reported in Gas Daily in the table "Daily Price Survey."
Monthly Index Price: The monthly index reported in Inside FERC's Gas Market Report, in the table "Prices of Spot Gas Delivered to Interstate Pipelines."
Daily Imbalance Provisions: Customer shall pay Company the following Daily Imbalance Charge on the portion of the Daily Imbalance Quantity that is greater than 9% of Total Daily Usage:
" 0.2 times the Daily Index Price on the portion of the Daily Imbalance Quantity
that is greater than 9%, up to and including 20% of Total Daily Usage: plus
" 0.4 times the Daily Index Price on the portion of the Daily Imbalance
Quantity that is greater than 20% of Total Daily Usage.
During an Operational Flow Order ("OFO"), the aforementioned Daily Balancing Provisions will be replaced by those specified in the section entitled Operational Flow Orders. During a Warm Weather OFO, Daily Under-Delivery Imbalance Quantities shall not be assessed the Daily Imbalance Charge. During a Cold Weather OFO, Daily Over-Delivery Imbalance Quantities shall not be assessed the Daily Imbalance Charge.
Monthly Imbalance Provisions: Monthly Imbalance Quantities shall be carried
forward to the following month and shall be considered to be received from
Customer on an average daily basis in the following month. Customer shall
pay Company the following Monthly Imbalance Charge on the portion of the Monthly
Imbalance Quantity that is greater than 5% of Total Monthly Usage:
" 0.2 times the Monthly Index Price on the portion of the Monthly Imbalance
Quantity that is greater than 5%, up to and including 15% of actual usage,
plus
" 0.4 times the Monthly Index Price on the portion of the Monthly Imbalance
Quantity that is greater than 15% of actual usage.
OPERATIONAL FLOW ORDERS
Customer agrees, when requested by the Company through an Operational Flow Order ("OFO"), to nominate and deliver gas supply to the Company's city gate in the manner instructed by the Company. Company may call a Cold Weather OFO or a Warm Weather OFO where such action is necessary, in the Company's sole judgment, to (1) protect the reliability of the Company's gas system; (2) assure deliveries of gas supplies to all of the Company's Firm Customers, (3) adhere to the various interstate pipeline companies' balancing requirements, as stated in their FERC-approved gas tariffs under which the Company is served, and/or (4) avoid high priced daily purchases detrimental to system supply Sales Customers.
During an Operational Flow Order Over-deliveries or Under-deliveries in excess of the quantity allowed shall be subject to an OFO Daily Imbalance Charge of fifteen dollars ($15.00) per dekatherm in addition to the normally applicable Daily Imbalance Charge.
TERMS AND CONDITIONS
Service hereunder shall be subject to the Company's General Terms and Conditions and to the Rules and Standards of Service for Gas Public Utilities prescribed by the Indiana Utility Regulatory Commission from time to time.