Rate T-1 Description

Rate T-1 is a Union South Storage and Transportation Rate for Contract Carriage Customers

Service short name T-1 Service

Service description

Union's T-1 service is a storage and transportation service that allows customers to tailor contract parameters to meet their individual needs.

The transportation or delivery service to the customers' facilities, can be firm or interruptible, or a combination of firm and interruptible. Each delivery point at your facility has its own specific delivery parameters.

One contract covers both upstream and delivery to your facility with customized parameters for each location.

T-1 Service Characteristics

Delivery to Customer Facility - customized parameters for each point of consumption
Storage – Space and injection / withdrawal rights are customized
Balancing – Occurs daily.  Customer is responsible to operate within contract parameters

Service Eligibility

Available to customers in Union’s Southern Delivery Zone.

Applicable to customers who have:

• combined firm and interruptible service minimum annual transportation of natural gas is 5,000,000 m³ or greater and
• meters with electronic recording at each Point of Consumption; and
• site specific energy measuring equipment installed at each Point of Consumption that will be used in determining energy balances; and
• had Union determine transportation and/or storage capacity  availability

For the purposes of qualifying for a rate class, the total quantities of gas consumed or expected to be consumed on the customer’s contiguous property will be used, irrespective of the number of meters installed.

Service Features

Transportation

• T-1 service is a no-notice delivery service. A T-1 customer does not need to nominate gas for consumption
• Customer delivers to receipt point as outlined in Schedule 1
• Union delivers to facility based on actual consumption
• Union provides intra-day balancing service
• Union manages daily differences between receipts and consumption
• If customer does not elect to have T-1 storage, then customer is responsible for managing the daily difference between receipts and consumption
• Overrun charges will apply to any daily balancing in excess of contracted amounts, performed by Union

Upstream Transportation

• Customer is responsible for delivering gas to Union at their contractual receipt point(s)
• Customers initiating direct purchase arrangements, who previously received Gas Supply service, must also accept, unless otherwise authorized by Union, an assignment from Union of transportation capacity on upstream pipeline systems

Storage: (Space & Injection/withdrawal)

• T-1 customers can contract for storage. Contracting for storage, while optional, is to manage the variances between receipts on Union's system and consumption at the plant
• The customer can elect to take no storage or obtain their storage services from a third party storage provider
  • If space, injection and withdrawal are contracted from Union
  • The maximum level of deliverability available at cost based rates is the greater of Obligated DCQ or firm DC - Obligated DCQ.

Transition

T-1 customers (existing prior to April 29, 2008) can retain at their option, their cost-based space, injection and withdrawal until October 31, 2011 at which time they must transition to the new allocation process.

• The maximum amount of storage space, available at cost based rates is determined using one of three applicable Board approved formulas

• To the extent customers desire storage space in excess of that determined through the applicable Board approved formula, they can contract in the market for additional storage services or can request market based supplemental services

Special Features

• Billing Contract Demand, available to T-1 customers with new or incremental loads greater than 1,200,000 m³ per day.
• Multiple Redelivery Points

Charges & Fees

• Firm Transportation and Storage services are priced based on a demand and commodity rates within the T-1 rate schedule
• Interruptible delivery service is priced within a negotiated range
• Fixed Monthly Charge

Other Fees

• Authorized Overrun Services on annual storage space, injections, withdrawals and transportation
• Unauthorized Overrun Services on annual storage space, injections, withdrawals and transportation
• Supplemental Charges as provided in Schedule "A"
• Delayed payment

Contract Reference

• Standard T-1 Contract

Terms & Conditions

• General Terms and Conditions (GT&C)

Setting Contract Parameters

• Schedule 1 - Details and defines contract parameters
• Schedule 1a - Supplemental Services Parameters
• Schedule 2 - T-1 specific Terms and Conditions

Contract Term

• Minimum of 1 year

Contract Renewal

• Evergreen unless 3 months notice given by either party

Other Services Available

• Union provides additional operating flexibility for customers at Dawn through ex-franchise HUB services, transactional services and R1

If you have questions please contact your Account Manager.