COMPETITIVE FUEL RATE Sample Clauses
The Competitive Fuel Rate clause establishes a mechanism for determining the price of fuel supplied under a contract, ensuring that the rate remains aligned with prevailing market prices. Typically, this clause specifies that the fuel price will be benchmarked against published indices or the rates offered by other suppliers in the same region, and may include provisions for periodic adjustments. Its core practical function is to protect both parties from significant price fluctuations and to ensure that the buyer receives fuel at a fair, competitive rate, thereby reducing the risk of overpayment or disputes over pricing.
COMPETITIVE FUEL RATE. (1) It is the intent Of the Agreement that ▇▇▇▇▇'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 alternate fuel, it is understood and agreed that:
(a) The Alternate Fuel is Propane utilized after being mixed with air.
(b) The cost of the altemate fuel (identified as "K") shall include:
(i) 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
(ii) One and nine-tenths cents (1.9¢) per gallon for freight to Buyer's facility, plus
(iii) Vaporization fuel cost of one cent (1.0¢) per gallon, plus
(iv) Compressed air and plant operation of one-half cent (0.5 ¢) per gallon.
(c) Propane shall be considered as having 91_k6_9_B60T0U's per gallon or 0.0916 dekatherms per gallon, which is identified as "dt".
(d) The equipment using propane-air shall be considered equally efficient using propane-air as it is using natural gas.
(e) 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 Agreem...
COMPETITIVE FUEL RATE. It is the intent of the Agreement that ▇▇▇▇▇'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 Categories 3E & 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:
(1) The Alternate Fuel is Number fuel oil.
(2) The cost of the alternate fhel (identified as "K") shall include:
(a) Cost per gallon,
(b) Freight to Buyer's facility, and
(c) Handling Charges. If, at any time during the term of the Service Agreement, Buyer can establish by reasonable evidence (i.e. a vendor's invoice, bona fide written quotation, equivalent proof or Buyer's written declaration) that Buyer's as-fired cost of the alternate fuel to replace natural gas is less than the cost of natural gas, then Buyer shall advise Seller in writing, by the twenty-fifth (25th) of the calendar month, that the cost of natural gas for the next ensuing billing period will exceed the as• fired cost of the alternate fuel. Seller will respond to Buyer, in writing, prior to the beginning of the next billing period that Seller will either: COMPETITIVE FUEL RATE (GAS-TO-GAS)
(1) Seller acknowledges that Buyer also has the capability to use transported gas to satisfy Buyer's requirements in Priority-of-Service Categories 3E & 6. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance with the procedures of this Paragraph 7(E).
(2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month of the price at v/hich Seller is able to sell Interruptible gas to Buyer for the next ensuing calendar month to displace transportation gas.
(3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Buyer accepts or rejects Seller's offer.
(4) In the event Buyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder.
(5) In the event Buyer rejects Seller's offer, and elects to transport Buyer's own gas, then Buyer shall have no obligation to purchase any gas from Seller's system supply. 6 SCEG06-009 Priority-of-Service Categories 3E & 6, Buyer agrees to pay Seller the sum of two hundred and fifty dollars ($250.00) per month as a standby charge. This charge shall be in addi...
COMPETITIVE FUEL RATE. It is the intent of the Agreement that ▇▇▇▇▇'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:
(1) The Alternate Fuel is Number 6 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
(3) Number 6_ fuel oil shall be considered as having 150,000 BTU's per gallon or 0.1500 dekatherms per gallon, which is identified as "dt".
(4) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"): If, at any time during the term of the Service Agreement, Buyer can establish by reasonable evidence (i.e. a vendor's invoice, bona fide written quotation, equivalent proof or ▇▇▇▇▇'s written declaration) that ▇▇▇▇▇'s as-fired cost of the alternate fuel to replace natural gas is less than the cost of natural gas, then Buyer shall advise Seller in writing, by the twenty-fifth (25th) of the calendar month, that the cost of natural gas for the next ensuing billing period will exceed the as-fired cost of the alternate fuel. Seller will respond to ▇▇▇▇▇, in writing, prior to the begim_ing of the next billing period that Seller will either: (1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- of-Service Category 9 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 Number 2 fuel oil.
(2) The cost of the alternate fuel shall include: (a) Costpergallon- asfired,
COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority• of-Service Category 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-fired cost of the alternate fuel, it is understood and agreed that:
(1) The Alternate Fuel is Number 2. fuel oil. "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 ▇▇▇▇▇'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 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 ofthe current month, plus
COMPETITIVE FUEL RATE. It is the intent of the Agreement that ▇▇▇▇▇'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 ▇▇▇▇▇'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:
(1) The Alternate Fuel is "fat" 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.
(3) Fat" fuel oil shall be considered as having 13 0Q=09_9_B0T0U's per gallon or
COMPETITIVE FUEL RATE. It is the intent of the Agreement that ▇▇▇▇▇'s cost of natural gas used in Priority• of-Service Category lQ shall be competitive with the as-tired 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 ls Number 2 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 i fuel oil shall be considered as having 135.800 BTU's per gallon or 0.1358 dekatherms per gallon, which is identified as 11dt11•