COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- of-Service Category 3. Csh_aCll be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:
(1) The Alternate Fuel is Number 2 fuel oil.
(2) The cost of the alternate fuel (identified as "K") shall include:
(a) The net average price for No. 2 fuel oil in effect on the third Monday of the current month, F.O.B., Charleston, South Carolina, plus four cents (4.0¢), plus
(b) Four cents (4.0¢) per gallon for freight to the Buyer's facility, plus
(c) One cent (1.0¢) per gallon for handling charges.
(3) Number 2 fuel oil shall be considered as having 135,800 BTU's per gallon or 0.1358 dekatherms per gallon, which is identified as "dt".
(4) The following formula utilizes the above valuesand shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise the Buyer verbally or in writing, prior to the beginning of each billing period that Seller will:
(1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or
(2) Notify the Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than the as- fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate specified in this Service Agreement.
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Xxxxx's cost of natural gas used in Priority• of-Service Category 3C shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:
(1) The Alternate Fuel is No.
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- of-Service Category 3D shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate fuel, it is understood and agreed that: ' 4
(1) The Alternate Fuel is Propane utilized after being mixed with air.
(2) The cost of the alternate fuel (identified as "K") shall include:
(a) The average posted price per gallon posted for Cheraw, South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus
(b) Three cents (3.0¢) per gallon for freight to Buyer's facility, plus
(c) Vaporization fuel cost of one cent (1.0¢) per gallon, plus
(d) Compressed air and plant operation of one-half cent (0.5¢) per gallon.
(3) Propane shall be considered as having 91,600 BTU's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt".
(4) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas.
(5) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the average price of propane by reference to the BUTANE-PROPANE NEWSLETTER. Based on the average price of propane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise Buyer, verbally or in writing, prior to the beginning of each billing period that Seller will:
(1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or
(2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than of the as- fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement. (C) COMPETITIVE ...
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Xxxxx's cost of natural gas used in Priority- of-Service Category 3 Cs_hCall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:
(1) The Alternate Fuel is No. 2 Fuel Oil.
(2) The cost of the alternate fuel (identified as "K") shall include:
(a) The net average price for No. 2 fuel oil in effect on the third Monday of the current month, F.O.B., Charleston, South Carolina, plus one cent (1.0¢), plus,
(b) Three and five-tenths cents (3.5¢) per gallon for freight to the Buyer's facility, plus
(c) One cent (1 .0¢) per gallon for handling charges. _/'A/2"/C v,, Number 2 fuel oil shall be considered as havingS_TUPqOJ°°O --s per gallon or_e_h_rms per gallon, which is identified as "dt". The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise the Buyer verbally or in writing, prior to the beginning of each billing period that Seller will:
(1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or
(2) Notify the Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel. In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than the as- fired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate specified in this Service Agreement.
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- of-Service Category 3D shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate fuel, it is understood and agreed that:
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Xxxxx's cost of natural gas used in Priority• of-Service Category 3C shall be competitive ,:vith the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:
(1) The Alternate Fuel is Propane utilized after being mixed with air.
(2) The cost of the alternate fuel (identified as "K") shall include: South Carolina, as published in the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Xxxxx's cost of natural gas used in Priority• of-Service Category 3C shall be competitive with the as-fired cost of alternate' fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:
(1) The Alternate Fuel is Propane utilized after being mixed with air.
(2) The cost of the alternate fuel (identified as "K") shall include: BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, plus
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- of-Service Category 3E shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the altemate fuel, it is understood and agreed that:
(1) The Alternate Fuel is Number 4 fuel oil.
(2) The cost of the alternate fuel (identified as "K") shall include:
(a) Cost per gallon,
(b) Freight to Buyer's facility, and
(c) One Cent (1.0¢) per gallon for handling charges.
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- of-Service Category 6_ shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Xxxxx's cost of natural gas used in Priority-of-Service Categ01y 3F shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas. For the purpose of the computation to obtain the as-fil'ed cost of the alternate fuel, it is understood and agreed that '
(1) The Alternate Fuel is Number 2. fuel oil. I ! I i (OCFbcaptg(Bor)fo1egnaefaur.saeloi"n0csyltgliKroid¢lhnehlon)ia"rctt (cTNg53o.t0f2afdh)h_urc.olsol1ecoeml-rfok3(uflmsuiabnat5ldreasute8elht Iqeaafbetsutd,nipqytmotBuah(ydr.euaWv’irStibrodeiteruta.ieintbelmtvoelnftByenihWrviaoicasfgneodvdausohlnl Ihatae:nhlSfBflvttuhtedoeupelernirylpnlrtlsaen.thi,eucacscragteroatroh-eteacftereund (bNfLp21atBtiduoehlgn)otoelhuarfeawdwiatliliaentyitsitodfhvhse,gegday-erierralfclrati Xxxx(cwogbi2otrntacearBohehaif5fsetialatlwsesemlutStuolxdlfncdltiepe,hoiwnegniyinirbeconlarvaTrot)nsnrifaetaelfethnertcsglntewionlhgedsutirtiestgoeaepetensdf In the event Seller offers deliver gas to Buyer at a price greater than the as-fiied cost of the altemate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natmal gas as determined by this paragraph, exceed the cost as determined under the Base Rate ofthis Service Agreement. During any period of suspended service, Xxxxx agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration bSSyBefhorlautlieoroitenCyfluhrvuFeRl.eoosdru in Wl'iting, Seller shall price natmal gas delivered to Buyer pursuant to the Base Rate of this Service Agreement.
C. CREDITWORTHINESS Seller, in order to satisfy itself of the ability of the Buyer to meet its obligations llllcler the contract, may conduct periodic reasonable credit reviews in accordance with standard commercial practices. Xxxxx agrees to assist in these reviews by providing financial information and at the request of the Seller, will maintain such credit suppmi or surety including but not limited to, an unconditional and irrevocable letter of credit to provide adequate security for protection against the risk ofnonpayment.
