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Rate U7 Description
Rate U7 is a Union South Storage and Delivery Rate for Unbundled Customers
Service short name - U7
Service description
The U7 service is an unbundled storage and transportation service that allows customers to tailor contract parameters to meet their individual needs.
The U7 service provides the customer with the ability to separately contract for and manage storage.
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.
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
Service Features
Transportation
Customers electing the U7 service are required to forecast consumption daily and to nominate a combination of upstream receipts on Union and storage withdrawals to meet their forecast consumption.
The unbundled service also allows customers greater freedom to move gas on and off Union's system.
Under this service, a customer receives:
- A single contract that deals with the receipt of gas by Union and the subsequent delivery of gas to the end use plant(s).
- A level of delivery service to point(s) of consumption, which can be firm, interruptible, or a combination of firm and interruptible.
Upstream Transportation
Customer is responsible for their transport to Union at their contractual receipt point(s).
Storage: (Space & injection/withdrawal)
Customer can contract for storage space, injection and withdrawal parameters to manage the variances between receipts on Union's system and consumption at the customer's facilities.
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 customer has three options:
- Option #1) Cost based firm injection/withdrawal rights of 1.2% of customers cost based storage space.
- Option #2) Firm injection/withdrawal services above 1.2% at market based rates.
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Option #3) Interruptible injection/withdrawal
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.
U7 customer has full access to the contracted storage and must nominate injections and withdrawals out of storage to meet plant requirements or to take advantage of market opportunities.
Within contract parameters, the U7 customer nominates daily receipts, consumption, injections to and withdrawals from storage. The U7 customer has the flexibility to divert or sell gas before it arrives at Dawn. Further, the U7 customer can access contracted storage at any time to sell gas to a third party. The U7 customer can also contract for ex-franchise HUB services.
Special Features
- Billing Contract Demand, available to U7 customers with new or incremental loads greater than 1,200,000 m3 per day.
- Multiple Redelivery Points
Charges & Fees
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Firm Delivery and Storage services are priced based on a demand and commodity rates within U7 rate schedule.
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Interruptible delivery service is priced within a negotiated range.
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Fixed Monthly Charge
Other Fees
- Authorized Overrun Services on injections, withdrawals and delivery
- Unauthorized Overrun Services on injections, withdrawals and delivery
- Nominations Variances
- Delayed Payment
Contract Reference
For contract information please contact your Account Manager.
Terms & Conditions
- General Terms and Conditions (GT&C)
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.