Amendment to Non-Conforming Service Agreement and Negotiated Rate Agreement Filing Docket No. RP10-

Transcription

1 Transcontinental Gas Pipe Line Company, LLC 2800 Post Oak Boulevard (77056) P.O. Box 1396 Houston, Texas July 29, 2010 Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C Attention: Kimberly D. Bose, Secretary Reference: Transcontinental Gas Pipe Line Company, LLC Amendment to Non-Conforming Service Agreement and Negotiated Rate Agreement Filing Docket No. RP10- Ladies and Gentlemen: Pursuant to Section 4 of the Natural Gas Act ( NGA ) and Part 154 of the Federal Energy Regulatory Commission s ( Commission ) regulations thereunder, Transcontinental Gas Pipe Line Company, LLC ( Transco ) hereby submits for filing with the Commission an amendment, dated July 22, 2010, between Transco and UGI Central Penn Gas, Inc ( UGI ), formerly PPL Gas Utilities Corporation ( PPL ), to a previously filed service agreement under Rate Schedule FT (Contract No ) that contains a non-conforming Exhibit C ; and a service agreement, dated July 28, 2010, between Transco and Holcim (US) Inc. ( Holcim ) containing a negotiated rate which pertains to Rate Schedule FT firm transportation service under Transco s MarketLink Expansion Project 1 (Contract No ). In Order No. 714, the Commission adopted certain regulations addressing the filing of negotiated rate and non-conforming service agreements filed under etariff. Those regulations allow pipelines to submit agreements as entire PDF documents for inclusion in their tariffs. 2 In the instant filing, Transco proposes to create a new volume of its FERC Gas Tariff entitled Volume No. 1A into which negotiated rate and non-conforming agreements will be submitted. Both the amendment to non-conforming Contract No and Contract No containing a negotiated rate are submitted herein as part of Transco s Original Volume 1A of its FERC Gas Tariff ( Volume No. 1A ). 1 Transco s MarketLink Expansion Project was approved by the Commission by orders issued on April 26, 2000, December 13, 2000 and April 26, 2001 in Docket No. CP C.F.R (c).

2 Federal Energy Regulatory Commission July 29, 2010 Page 2 Statement of Nature, Reasons and Basis for Filing Amendment to Non-Conforming Service Agreement Contract No Sections 154.1(d) and (b) of the Commission s regulations require pipelines to file with the Commission contracts that deviate in any material aspect from the form of service agreement in the pipeline s tariff, and also require that such non-conforming agreements be referenced in the pipeline s open access transmission tariff. 3 On November 6, 2007, in Docket No. RP , Transco filed with the Commission an amendment to a 1992 Rate Schedule FT service agreement with PPL, now UGI, which incorporates into the agreement an Exhibit C that does not conform to Transco s pro forma FT service agreement. The Exhibit C set forth the terms of PPL s payment of the Facility Reimbursement Charge ( FRC ) as agreed upon by Transco and PPL in a Delivery Interconnect, Reimbursement and Operating Agreement dated September 7, 2007 ( Interconnect Agreement ) for the expansion of PPL s Avis Meter Station. Transco also filed a revised tariff sheet to add the PPL service agreement to the list of non-conforming agreements in Transco s Volume No. 1 tariff. The language on the Exhibit C was modified as follows (in redline format): Specification of Negotiated Rate and Term payment for reimbursement: The Commission accepted Transco s November 6 Filing by Letter Order issued on December 5, The Interconnect Agreement includes provisions for adjustment to the FRC to reflect the actual final cost of the Avis Meter Station Expansion. Accordingly, Transco and UGI on July 22, 2010 executed an amendment to the 1992 Rate Schedule FT service agreement to revise the FRC on Exhibit C to reflect the final costs of the Avis Meter Station Expansion ( July 22, 2010 Amendment ). Pursuant to Sections 154.1(d) of the Commission s regulations, Transco submits the July 22, 2010 Amendment as part of its Original Volume No.1A tariff. 4 Negotiated Rate Agreement Contract No The service agreement submitted herewith is the result of the permanent release 5 by St. Lawrence Cement Co., L.L.C. ( St. Lawrence ) of all of the capacity under a previously filed negotiated rate service agreement dated August 21, 2000 between St. Lawrence and Transco 3 Transco submits, in a separate filing, Part VI, Section 1, version of its FERC Gas Tariff, Fifth Revised Volume No. 1 to update its list of non-conforming service agreements. 4 The non-conforming aspects of Exhibit C submitted herewith are identical to those on the Exhibit C previously accepted by the Commission in Transco s November 6 Filing. 5 The permanent release of capacity was performed in accordance with Section of the General Terms and Conditions of Transco s FERC Gas Tariff.

3 Federal Energy Regulatory Commission July 29, 2010 Page 3 ( August 21, 2000 Agreement ). 6 St. Lawrence permanently released to Holcim the entire Transportation Contract Quantity of 1,000 Dth per day under the August 21, 2000 Agreement, effective August 1, To effectuate the release, Transco and Holcim entered into a service agreement on July 28, 2010 for 1,000 Dth per day of MarketLink firm transportation service under Transco s Rate Schedule FT ( July 28, 2010 Agreement ). The July 28, 2010 Agreement includes the negotiated rate as set forth on Exhibit C thereto. Coincident with the effective date of the permanent release, St. Lawrence s August 21, 2000 Agreement will terminate. Accordingly, pursuant to the Commission s Alternative Rate Policy Statement, 7 the tariff provisions under Transco's Rate Schedule FT that permit Transco to negotiate rates, 8 and the Commission s order in Docket No. PL entitled Modification of Negotiated Rate Policy, 9 Transco submits the July 28, 2010 Agreement for filing with the Commission. The July 28, 2010 Agreement includes the negotiated rate (the negotiated rate and all applicable charges), the exact legal name of the customer, the receipt and delivery points, the quantity of gas to be transported, the agreed-upon termination date, and the applicable rate schedule for the service. The July 28, 2010 Agreement conforms in all material respects with the form of service agreement for use under Rate Schedule FT. Effective Date, Motion and Waiver Transco respectfully requests that the Commission grant any necessary waiver of Section of its regulations and accept the July 22, 2010 Amendment effective on the date of execution and the July 28, 2010 Agreement on August 1, In the event that the Commission elects to accept and suspend the tariff records submitted herein, in accordance with section 154.7(a)(9) of the Commission s regulations, Transco moves to place such tariff records into effect at the end of the applicable suspension period. Materials Submitted Herewith In accordance with Section 154.7(a)(1) of the Commission s regulations, the following material is submitted herewith: An etariff XML filing package, filed as a zip (compressed) file, containing: 1. A Title Page for Original Volume No. 1A in RTF format with metadata attached; 2. A copy of the executed July 22, 2010 Amendment and the executed July 28, 2010 Agreement submitted as whole documents in PDF format; 6 The August 21, 2000 Agreement previously was accepted by Commission Order dated October 25, 2001 in Docket No. RP Alternatives to Traditional Cost-of-Service Ratemaking for Natural Gas Pipelines and Regulation of Negotiated Transportation Services of Natural Gas Pipelines (Alternative Rate Policy Statement), 74 FERC 61,076 (1996), reh'g and clarification denied, 75 FERC 61,024 (1996), reh'g denied, 75 FERC 61,066 (1996). 8 Transcontinental Gas Pipe Line Corp., 76 FERC 61,318 (1996) FERC 61,134 (2003).

4 Federal Energy Regulatory Commission July 29, 2010 Page 4 3. A transmittal letter in PDF format; and 4. A copy of the complete filing in PDF format for publishing in elibrary. Posting and Certification of Service In accordance with the provisions of Section 154.2(d) of the Commission s regulations, copies of this filing are available for public inspection, during regular business hours, in a convenient form and place at Transco s main office at 2800 Post Oak Boulevard in Houston, Texas. In addition, Transco is serving copies of the instant filing to its affected customers and interested state commissions. Any communications in regard to this filing should be sent to: Scott C. Turkington Director, Rates & Regulatory Transcontinental Gas Pipe Line Company, LLC P.O. Box 1396 Houston, Texas scott.c.turkington@williams.com And copies should be mailed to: David A. Glenn Marshia Younglund Senior Counsel Manager, Regulatory Affairs Transcontinental Gas Pipe Line Company, LLC The Williams Companies P.O. Box Eye Street, N.W., Suite 900 Houston, Texas Washington, D.C david.a.glenn@williams.com marshia.younglund@williams.com Respectfully submitted, TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC Filed: July 29, 2010 Marg Camardello Manager, Certificates & Tariffs marg.r.camardello@williams.com

5 FERC GAS TARIFF ORIGINAL VOLUME NO. 1A OF TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC FILED WITH THE FEDERAL ENERGY REGULATORY COMMISSION Communications Concerning This Tariff Should Be Addressed To: Transcontinental Gas Pipe Line Company, LLC Attention: Scott C. Turkington, Director, Rates & Regulatory Mailing Address: P. O. Box 1396 Houston, TX Street Address: 2800 Post Oak Boulevard Houston, TX Telephone Number: (713) Facsimile Number: (713)

6 Transcontinental Gas Pipe Line Company, LLC FERC NGA Gas Tariff Original Volume No. 1A Effective Date: July 22, 2010 Contract No UGI Central Penn, Amendment dated 7/22/2010 Option Code: A

7 AMENDMENT TO SE RVICE AGREEMENT THIS AMENDl1ENT ("Amendment") 15 entered into this «~Y'ld day of L:::fZ, I~A/, 2010 by and between TRANSCONTINENTAL GAS PI PE LINE COMPAN Y, LLC, a Delaware lim ited~~ c ompany, hereinafter referred t o as "Sellec", first party, and UGr CENTRAL PENN GAS. INC. ( formerly PPL GAS UTILITIES CORPORATION), hereinafter referred to as "Buyer", second party. WI TN ESSETH WHEREAS, Seller and Buyer are part~es to that certain Service Ag r eement, dated February 1, 1992, as amended April I, 2005, August 18, 2006 and September 7, 2007, under Seller' s Rate Schedule FT pursuant t o which Seller provides firm transportation service for Buyer u p to a Transportation Contract Quanti ty of 10,350 McE per day (Seller' s Contract # , hereinafter referred to a s "the Ser vice Agreement"); and ~ihereas, Seller and Buyer Agreement, dated September 7, 2007, 3tat l0n ; and are parties to an Interconnect, Reunhursement and Operat1on ("Interconnect Agreement") for the expansion of the AV1 S Meter WHEREAS, Seller and Buyer now desire to a mend Exhibit C to adjust the Fa cillty Reuooursement Charge ("FRC") to reflect the final costs of those cer tain interconnect facilities described in, and 1n accordance 'dith, the Interconnect Agre e ment. NOW THEREfORE, Seller and Buyer hereby agree to amend the Service Agreement as f ollows: 1. Effect1ve as of the date first above ItJritten, Exhibit C to the Service Agreement.is hereby deleted 1n its ent1rety and replaced by Exhlbit C attached hereto. 2. Except as herein amended, the Service Agreement shall remain in full force and effect pursuant to the terms thereof. IN WITNESS WHEREOF, the par ties hereto have caused this Amendment to be signed by t:he1.r respect1ve officers or representative thereunto duly a uthorized. TRANSCJNT!NENT'AL GAS PIPE LINE COMPANY, LLC, "SE:LLER") UGI CENTRAL PENN GAS, INC. ("BUYER" ) By Title

8 FORM OF SERV l CE AGREEMENT (For Use Under Seller ' s Rate Schedule FT) (Continued) EXHIBIT C Speclficat~an of payment for r e lmbursement: Ter~: 2 }ears and 3 months Fac:!.l1.ty Reimbursement Charge : S9, /month and F~na l Payment of $9, In addit ion to the rates, charges, surcharges and fuel payable by Buyer to Seller i n accordance with Art icle V ot the Service Agreement, Buye r, subject to the terms of this SerVice Agreement, and receipt and acceptance of any necessary regulatory approvals by Seller, agrees to pay Seller each month a Facility Reimbur s ement Charge ("FRe ") f Ol H.ose certain i nterconnect fa cilities described in the Interconnect, Reimbursement and operatl.ng Aqreement ("Interconnect Agreement" ) for the expansion of the Avis Meter Station. The f i r st revlsed monthly installment of t he FRe shal l b~ due October 20, 2010 and t he FRe shall remaln ::.n effect for a t erm of two years and t hree mon~h~ regardless of the t erm s tated in Artl c le IV of this service agreement. However, the Final Payment of the FRe due December 20, 2012 shall be 59, If during th~ term of t he FRe, Buyer pe rmanent ly releas $ t he Service Agreement to a " Replacement Buyer" pursuant to Section of the General Terms and Conditions of Transco' s FERC Gas Tariff Buyer, not the Replacement Buyer, shall continue to pay Transco for the FRC unless a Commission ' order, p oli(;~' or regulation p r o v~ des ot herwise. Seller aglees r,ot to file or cause to be filed wlth the FERC under Section 4 of the Natural Gas Ar:t ("NGA"J t~ see,. 'e. o r.lodify the FRC other than to adjust the FRC as necessary to reflect the f ina.!. costs of the l:1te rconnect faci l i ties described j n the Interconnect Agreement and Buyer agrees not t o flle or c ause to be file d with the FERC an'! i'lction, c laim, complaint, or other p leading unde>: SectI ons 4 or 5 of the NGA, or to si.lppon cr participat e in a.lly such proceeding lnjtiatp~ bi any uther party, relating to the fpc.

9 Transcontinental Gas Pipe Line Company, LLC FERC NGA Gas Tariff Original Volume No. 1A Effective Date: August 1, 2010 Contract No Holcim, MarketLink Agreementdated 7/28/10 Option Code: A

10 FORM OF SERVICE AGREENENT rf~r Use Under Seller's Ra~e Schedule FT ) THIS AGREEMENT entered H t o this :t.'6-t\.. day of -::s;; 0~, 2010, by and between TRANSCONTI NENTAL GAS PIPE LINE COM PANY, LLC, a Delaware limi~ liability company, hete~natter refer red to as "Seller, " f~rsl party, and HOLC IM (US).1:NC., hereinafter referred to as "Buyer, " second pal.t;y, WIT N E SS E T H WHEREAS, by order issued Apnl 26, n Dacket Nc... CP ~ 002, the Federal Ene r gy RegulCitcry Corruni ssion ("FERC" l has authorlzed Seller's MarketLink Expansion ProJect (referrf'd t o as "Market Link Project"); and WHEREAS, Selle r and St. La wrence Cement Co., L.L.C. ("St. Lawren ce") are parties to a t-:'!ar ke t Link Projec t Service Ag r eement dated August 21, (Seller's contract number ) referred to herein as the "Service AgreemeEt", under Seller's Rate Schedule FT, pursuant to which Seller provides fi rm transportation service of up to a Transportat~on Contract Quantity of l, aoo dt per day through Seller' s p~pel~ne system; and WHER~A S, pursuant to Section 42 of the General Terms and Condltlons of Seller's FERC Gas Ta~ lff, S~. Lawrence has perma nently rel eased all of i t s fi rm transportation capaclty under the Ser.vice "greem nt :: 0 Buyer, and Buyer has agreed to a ccept such permanent release, effect :. ve' as of A..lq:l ~ ~ :, 2010; dnd ~'lhe:reas, Se!~er ~s w~lling to provlde such r.ele-asl':d LulU trdnsportat~on serv.lce t o B:..: /er purst.aljt to the teuns and condltions of thls agreement. NOTd, TH EREFORE, Sel ler and Buyer agree a s [oll:)ws: ARTICLE T GAS TRANSPOxTATIOfi; SERViCE 1. Subject to the terms and prov~sions of <:his agreement ar.d of Seller's Pat '::: Scne nu..i.e l, Buyer agrees to deliver or cause to be delivered :0 Sel ler gas f o r transportatlon and Seller agr e ~ s \.:0 recel\'e, transport and redeliver natural gas to Buyer Or tor 'the account uf o9'..</",r, 0n a fi;:-m hasls, up to a Transpo rtation Contract Quantity i "'l'cq" ) of 1,000 dt per day. 2. Transportation serv~ce rendered he~eunder shall not be subjec~ to cur~ a ilment or in ~et!~p tion ex(:ept as provided in Section 11 and, ~f applicable, Sect10n 42.of t he Genercil Te r ms fl.:1(j '::':c.ndll:.ons of SeUer 's FERC Gas Tariff. AR'rICLE IT POINT(S) OF RECEIPT Buy~r shall dell.ver or cause to be de1 J v~ >:" ect gas <.;t tne po~nt (s) (If r~celpt hete.jrjde!.. 10 d pre3.'jur~ c;'.;fflcl. "On"t to allow t he gas to ente r 2eller 's p ipeline SYSt eitl at tne vaq lng p.ress... re's r ha': may e,nst l n such sys tem fr om t.l.me to t lrne',' provlded, however, the pressure of the go:: delve'::"ed or caus e d to be delive red by Buyer s hal l pot e>:ceed the may.lmum Opel'dt.lng pressule {s) cn Seller' :::; p.lpel":':1e system at such pol-ntis) of receipt. In the event the ma:<lffium.)?era'vl ng pressu:e(s} of Seller ' s p~peline system, at the po~nt(s) of recelpt hereunder, 1S from Llme tt elme ir..creased or decreased, ehen the maxim'.lm allowable pres sure(s} of the yas dellver""d.:r <,:auseci to be (jelivered by Buyer to Selle r at t he p~~nt (s) ~ f r ece i pt shall be corres~ond ~ r :g! y In~r e ased or de C L~:1sed upnn ;...r.ll ten no t if 1. catl.on of Sp l l er to B T~y e r. The POUl i::. 's) o f ::e,:r;,.li-j r [ :n ' 1:l t..d31 gas rece.lved fer t~ansp orta ti o n pursuant t o th~s agreement shall be : See E};hlb.Lt A, attached hereto, f.)r j:.oir,ts of receipt.

11 FORM OF SERVICE AGREEMENT (For Use Under Seller ' s Rate Schedule FT) (Continued) ARTICLE III POINT(S} OF DELIVERY Seller shall redel 1ver to Buyer or for the account of Buyer the gas transported hereunde r at t he f ollowlng polnt( s) of dellvery and at a pressure{s) of: See Exhiblt a, attached here~o, for p01nts of delivery and pressures. ARTICLE IV TERM OF AGREEMENT This a greement s hall be effective as of August 1, 2010 and shall remai n in force and effect until 9:00 a.m. Central Clock Time December 19, 2011 and the reafter until terminated by Seller or Buyer upon at least two (2) years written notice ; provided, however, this agreement shall t e r m~nate immedlately and, subject to the receipt of necessary authorizations, l f any, Seller may d1scoutinue service hereunder if (a) Buyer, in Seller's reasonable judgment fails to demonstrate c:erhtworthlness, and (b ) Buyer fails to provide adeq Jd.te security ln accordance '-'11t h SeCtlon 32 ~f the General Terms and Condlt1ons of Seller' s Volume No. 1 Tariff. ART I CLE V RATE SCHEDULE AND PRICE 1. Buyer shal l pay Seller for natural gas delivered t o Buyer hereunder in accordance wlt h Seller 's Ra te Schedule FT and the appl icabl e provisions of the General Terms and Conditions of Seller' 3 FERC Gas Tarlff as filed with the Fedpral Ene rgy Regulatory Commission, and as t he same may bp. legally amended or superseded from time to time. Such Rate Schedule and Genera! Terms and Conaltlons are ny thls reference made a part hereof. In the event Buyer and Seller mutually agree to a r.eg0tlaced rate pursuant to the provislons 1n SeC -::' lon 53 of the General Terms and Ccnd... tlor:s a:1o s"(. E'clfled term for serv1ce hereunder, provisions qr:lvern1ng such negotiated rate f3ncludlng surcharges, and ~erm shall be set forth on Exhlbi t C to the servlce a greement. L. Seller and Buye r agree that t he quantlty of gas that Buyer delivers or causes t o be deliver~rl ~o Seller shall lnclude the quantity of gas retalned by Seller for appllcable compressor f'.lel, ~1nf! loss make-up (and lnjectlon fuel under Seller ' s Rate SChedule GSS, if appllcable l 1n?r~v ldlng the ttansportat1on servlce hereunder, which quantity may be changed from tlme to tlme and wh.. ch w111 be specifled 1n the currently effective Sheet No. 81 of Volume No. 1 cf thts Tarj f f '...hi ch relate s to sp.rvice under thl S agreement and which is ~ncorpora t ed hert:!ln. 3. In addition t o the applicable charges for f1rm trans portation service pursuant to Section 3 of Seller ' s Rate Schedule FT, Buyer shall reimburse Sel l er for any and al l fllinq fees i ncurred as a result o f Buyer's request for serv i ce under:: Seller's Rate Schedule FT, to thf> eztent such fee s a re imposed upon Seller b y the Federal Energy P.egulatory Commi sslon or any successor governmental authonty having jurisdict10n. ARTI CLE VI MISCELLANEOUS 1. Th~s Agreement supersedes and cancels as of the effectlve date hereof the following contract 's) : Non e No wal.ver by elther party of anyone or mor e default s by t he other in the performa:::.ce ~[ any provisions 0: t hls agreement shall operate or be construed as a w a~ver of any future defaujt or defaults, whether of a llke or d1fferen t character.

12 FORM OF SERVICE AGREEMENT (For Use Under Seller's Rate Schedule FT) (Continued) 3. The interpretation and performance o f this agreement shal l be in accordance '....tt.h the laws o f the State of Texas, without recourse to the l aw governing conflict of laws, and to all present and fut ure valid laws with respect to the subject mat t er, i ncluding present and fut ure orde r s, rules and regulations of duly constituted a u thorities. 4. Thi s a greement sha ll be binding upon, and inure t o the benefi t o f the partles h e reto and their respective s u ccessors and assigns. 5. Notices t o either party shall be in wr i t ing and shal l be considered as dul y dell vered wh en mailed t o the oth er party at the following address: (a) If to Sell er: Tra nscont inental Gas Pipe Line Company, LLC P. O. Box Hous ton, Texas Attention: Customer Services (b l I f to Buyer: HOLCIM (US) INC ANN ARBOR RD. DUNDEE, MI At tention: Legal Depa rtment Such addresses may be changed from time to t ime by mai ling appropriate notice t hereo f to the o ther party by certl f ied o r register ed mail. I N l't1tness WHEREOF, the parties h e r e to have caused this agreement to be s~gned by thelr respectj v e offlcers or r epresentati ves thereunto duly authorized. TRANSCONTINENTAL GAS PIPE LINE C OMP P# ~, LLC I (S ller) Print Name Frank Ferazzi Title VP & General Manager, Williams Gas Pipeline-East

13 FORM OF SERVICE AGREEMENT (For Use Under Seller ' s Rate Schedule FT ) (Co~tinuedi Exhibit A Po~nt{s ) of Receipt The- po~nt of int erconn ec t~on ber...leen Seller and Dom~n~on Transmission lnc. at Leidy, Clinton County, Pennsylvan~a. The p o~ nt of ~nlerconnection between Seller and Nat~ondl fue l Gas Supply corporation at Leidy, Cl~nt.or. Coun'ty. Pennsylvania.

14 torm OF SERVI CE AGREEMENT (tor Use Under Selle r ' 5 Ra te Schedul e FT) (Continued) Exhlhit B Maximum Dally Capaci ty Entitlement at each POln~(s) of Delivery Delivery Point (Dt/Dajl Pressure 6th Street Port Meter Station 1,000 Shall not b e less than located a t mllepos t on Seller's Camden Lateral near the fifty (50) pounds per square lnch gauge or at such othe r intersection of woodland Avenue pressures as may be agreed a nd 6th Street i n Camden, NJ upon by Buyer and Sel ler.

15 FORM OF SERVICE AGREEMENT (For Use Under Seller's Rate Schedule FT) (Continued) EXHIBIT C Specifl cacion of Negotiated Rate and Term PrlIT.ary Term; 1 year J 4 months and 18 days Dall y Reservatlon (S l Oth) 0.30 I n addlt l on to the negotiated dal ly reservation fee, Buyer shall also be respons i ble fo r fue l retention, e l ectric p owe r charges, and all applicable surcharges for Sel ler ' s Ra t e Schedule ft Servi ce as approved by the FERC. The fuel and surcharges are determined by FERC and a re subject t o change from time t o time.