GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
19. CAPACITY RELEASE
19.2 Types of Release
PREARRANGED RELEASES - BIDDING NOT REQUIRED (continued)
(2) A release for more than one year at the maximum applicable
tariff rate does not require bidding.
(3) A permanent release of a long-term contract at the maximum
applicable tariff rate when the remaining term is less than
three hundred and sixty-five (365) days does not require
bidding.
(4) Asset Management Agreements. A release of capacity to an
Asset Manager is exempt from bidding if the release contains a
condition that the Releasing Shipper may call upon the
Replacement Shipper to deliver to or purchase from the
Releasing Shipper a volume of gas up to 100 percent of the
daily contract demand of the released transportation capacity.
If the capacity release is for a period of one year or less,
the Asset Manager's delivery or purchase obligation must apply
on any day during a minimum period of the lesser of five
months (or 155 days) or the term of the release. If the
capacity release is for a period of more than one year, the
Asset Manager's delivery or purchase obligation must apply on
any day during a minimum period of five months (or 155 days)
of each twelve-month period of the release, and on five-
twelfths of the days of any additional period of the release
not equal to twelve months.
Payments or other consideration exchanged between the
Releasing and Replacement Shippers in a release to an Asset
Manager are not subject to the maximum rate.
(5) Retail Access Programs. A release to a marketer participating
in a state-regulated retail access program is exempt from
bidding when the released capacity will be utilized by the
Replacement Shipper to provide the gas supply requirement of
retail customers pursuant to a retail access program approved
by the state agency with jurisdiction over the local
distribution company that provides delivery service to such
retail customers.
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Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: January 9, 2009 Effective on: July 30, 2008
Filed to comply with order of the Federal Energy Regulatory Commission, Docket
No. RM08-1, et al., issued June 19, 2008, 23 FERC ¶ 61,286 |