Common use of COMPETITIVE FUEL RATE Clause in Contracts

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.

Appears in 1 contract

Samples: Service Agreement

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COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3. Csh_aCll 3 Ds_hDall 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:: L (1) The Alternate Fuel is Number 2 fuel oilPropane. (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¢), plusCost per gallon, (b) Four cents (4.0¢) per gallon for freight Freight to the Buyer's facility, plusand (c) One cent Cent (1.0¢) per gallon for handling charges. (3) Number 2 fuel oil Propane shall be considered as having 135,800 91,600 BTU's per gallon or 0.1358 0.0916 dekatherms per gallon, which is identified as "dtdr". (4) The following formula utilizes the above valuesand values and shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference used to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using of the procedure outlined abovealternate 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 Xxxxx's written declaration) that Xxxxx'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 advise the Buyer verbally or respond to Buyer, in writing, prior to the beginning of each the next billing period that Seller willwill either: (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 of this Service Agreement. During any period of suspended service, Xxxxx agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shall price natural gas delivered to Buyer pursuant to the Base Rate of this Service Agreement.

Appears in 1 contract

Samples: Service Agreement

COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- Priority• of-Service Category 3. Csh_aCll 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 2 fuel oil. (2) The cost of the alternate fuel fhel (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¢), plusCost per gallon, (b) Four cents (4.0¢) per gallon for freight Freight to the Buyer's facility, plusand (c) One cent Handling Charges. If, at any time during the term of the Service Agreement, Buyer can establish by reasonable evidence (1.0¢i.e. a vendor's invoice, bona fide written quotation, equivalent proof or Buyer's written declaration) per gallon 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 handling chargesthe 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) Number 2 fuel oil shall be considered as having 135,800 BTU's per gallon or 0.1358 dekatherms per gallonBuyer agrees to respond to Seller, 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 verbally by reference to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oiltelephone, 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 the next ensuing calendar month, that Seller will:Buyer accepts or rejects Seller's offer. (14) 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 fuelBuyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder. . (5) In the event Seller offers Buyer rejects Seller's offer, and elects to deliver gas to Buyer at a price greater than the as- fired cost of the alternate fueltransport Buyer's own gas, then Buyer may either accept delivery 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 natural gas at the price offered by Seller through two hundred and fifty dollars ($250.00) per month as a prompt verbal notice confirmed standby charge. This charge shall be in writing or discontinue receiving gas addition to any other monies charged 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 standby volumes delivered in this Priority• of-Service AgreementCategories 3E & 6 from Seller's system supply.

Appears in 1 contract

Samples: Service Agreement

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3. Csh_aCll _6shall 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 No. 2 fuel oilFuel 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 Three and four-tenths cents (4.0¢3.4¢) 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 values and shall be usedto calculatethe used to calculate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified 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 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.

Appears in 1 contract

Samples: Service Agreement

COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- Priority• of-Service Category 3. Csh_aCll 1 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 "fat" 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¢), plusCost per gallon, (b) Four cents (4.0¢) per gallon for freight Freight to the Buyer's facility, plusand (c) One cent Cent (1.0¢) per gallon for handling charges. (3) Number 2 Fat" fuel oil shall be considered as having 135,800 BTU's 130,000 BTU!s per gallon or 0.1358 dekatherms per gallon, which is identified as "dt".or (4) The following formula fonnula utilizes the above valuesand values and shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference used to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using of the procedure outlined abovealternate fuel (identified as "C"): If, at any time during the tenn 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 advise the Buyer verbally or respond to Buyer, in writing, prior to the beginning of each the next billing period that Seller willwill either: (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 asor 4 SCEG06-fired cost of the alternate fuel. 009 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- 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 confinned in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined detennined by this paragraph, paragraph exceed the cost as determined detennined under the Base Rate specified in of this Service Agreement. During any period of suspended service, Buyer agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shall price natural gas delivered to Buyer pursuant to the Base Rate of tins Service Agreement.

Appears in 1 contract

Samples: Service Agreement

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3. Csh_aCll 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 alternate fuel, it is understood and agreed that: (1) The Alternate Fuel is Number No. 2 fuel oilFuel 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 values and shall be usedto calculatethe used to calculate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified 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.

Appears in 1 contract

Samples: Transportation Agreement

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 Categories 3E (CHEMICAL RECOVERY) & 8 (POWER DEPARTMENT) 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 Altemate Fuel is Number 2 fuel 6_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¢), plusCost per gallon, (b) Four cents (4.0¢) per gallon for freight Freight to the Buyer's facility, plusand (c) One cent Cent (1.0¢) per gallon for handling charges. (3) Number 2 6 fuel oil shall be considered as having 135,800 150,000 BTU's per gallon or 0.1358 0.1500 dekatherms per gallon, which is identified as "dt". (4) The following formula utilizes the above valuesand values and shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference used 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 (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 Buyer's written declaration) that Buyer's as-fired cost of the alternatefuel to replacenaturalgasis lessthanthecostof naturalgas,then Buyer shall advise Sellerin writing, by the twenty-fifth (25th)of thecalendarmonth, that the costof naturalgasfor the next ensuingbilling periodwill exceedtheas- fired costof thealternatefuel. Sellerwill respondto Buyer,in writing, prior to thebeginningof thenext billing periodthat Sellerwill either: (1) Lower thepriceof naturalgasto theas-firedcostof thealternatefuel and deliver gas, ,or (2) Notify the Buyer of the price at which Seller will Sellerwill deliver gas in the event Seller elects not Sellerelectsnotto lowertheprice to lower the price to the astheas-fired cost of the alternate fuelfiredcostof thealternatefuel. In the event Seller elects to Sellerelectsto lower the price of gas to gasto the as-fired cost firedcost of the alternate fuelalternatefuel, Buyer may not discontinue the purchase of natural gas hereunderBuyermaynot discontinuethepurchaseof naturalgashereunder. In the event Seller offers to Selleroffersto deliver gas to Buyer at Buyerat a price greater than greaterthan the as- fired cost of the alternate fuelthealternatefuel, then Buyer may either accept delivery mayeitheracceptdelivery of natural gas at gasat the price offered by Seller through priceofferedby Sellerthrough a prompt verbal notice confirmed in promptverbalnotice confirmedin writing or discontinue receiving gas for the next billing discontinuereceivinggasfor thenextbilling period. In no event will eventwill the cost of natural gas naturalgas as determined by determinedby this paragraph, exceed the ,exceedthe cost as determined under determinedundertheBaseRateof this ServiceAgreement. During anyperiodof suspendedservice,Buyer agreesto continueto invoke the Base Rate specified in CompetitiveFuelRateprovisioneachmonth for considerationby Seller. Should Buyer fail or refuseto invokethe CompetitiveFuelRatein writing, Seller shall price natural gasdeliveredto Buyer pursuantto the BaseRate of this Service Agreement.

Appears in 1 contract

Samples: Service Agreement

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3. Csh_aCll 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 No. 2 fuel oilFuel 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 and five-tenths cents (4.0¢4.5¢) per gallon for freight to the Buyer's facility, plus's (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 values and shall be usedto calculatethe used to calculate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified 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.

Appears in 1 contract

Samples: 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 3. Csh_aCll 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. (2) The cost of the alternate fuel (identified as "K") shall include: (a) The net average price Thenetaverageprice for No. 2 fuel 2_fuel oil in effect on the third effecton thethird Monday of the current monththecurrentmonth,F.O.B.,CharlestonS, F.O.B., Charleston, South Carolina, plus four cents (4.0¢), outhCarolina,plus, (b) Four cents (4.0¢) per gallon for Fourcents(4.0¢)pergallonfor freight to the Buyer's facilityBuyer'sfacility, plus (c) One cent (1.0¢) per gallon for handling chargesOneCent(I.0¢)per gallonfor handlingcharges. (3) Number 2 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 values and shall be usedto calculatethe used to calculate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified 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 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 monitor the changes in the price of No. 2 2_ fuel oil by reference to the OIL BUYERS' BUYER'S 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 respond to Buyer, in writing, prior to the beginning of each the next billing period that Seller willwill either: (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 of this Service Agreement. During any period of suspended service, Buyer agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shall price natural gas delivered to Buyer pursuant to the Base Rate of this Service Agreement.

Appears in 1 contract

Samples: Agreement Between Sce&g and Cytec Surface Specialties, Inc.

COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- Priority• of-Service Category 3. Csh_aCll 1 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 fLlel (identified as "K"!1KI1) 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¢), plusCost per gallon, (b) Four cents (4.0¢) per gallon for freight Freight to the Buyer's facility, plusand (c) One cent Cent (1.0¢) per gallon for handling charges. (3) Number {2 fuel oil shall be considered as having 135,800 150,000 BTU's per gallon or 0.1358 dekatherms 0.1500 dekathenns per gallon, which is identified as "dt". (4) The following formula utilizes the above valuesand values and shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference used to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using of the procedure outlined abovealternate fuel (identified as "C"): 5 SCEG06-009 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 advise the Buyer verbally or respond to Buyer, in writing, prior to the beginning begimling of each the next billing period that Seller willwill either: (1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or (2) Notify the 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. '-'++hi's 0. + 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 th.e purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than the as- as• fired cost of the alternate fuel, then Buyer may either accept delivery ddivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed confinned 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, paragraph exceed the cost as determined under the Base Rate specified in this Service Agreement.as

Appears in 1 contract

Samples: 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 3. Csh_aCll 7 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 altemate fuel, it is understood and agreed that: (1) The Alternate Fuel is Number 2 fuel oil. Should any other alternate fuel be employed in the future, the Agreement will be amended to properly #47582 Rev 7/04 reflectthechange. (2) The cost of the alternate fuel Thecostof thealternatefuel (identified as "Kidentifiedas"K") shall includeshallinclude: (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¢), plusCost per gallon, (b) Four cents (4.0¢) per gallon for freight Freight to the Buyer's facility, plusand (c) One cent Cent (1.0¢) per gallon for handling charges. (3) Number 2 fuel oil shall be considered as having 135,800 139,000 BTU's per gallon or 0.1358 0.1390 dekatherms per gallon, which is identified as "dt". (4) The equipment using Number 2 fuel oil shall be considered as 84% thermally efficient, and using natural gas shall be considered as 82% thermally efficient, resulting in an efficiency factor (identified as "E") of 0.9762 (5) The following formula utilizes the above valuesand values and shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference used to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using of the procedure outlined abovealternate 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 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 advise the Buyer verbally or respond to Buyer, in writing, prior to the beginning of each the next billing period that Seller willwill either: (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 of this Service Agreement. During any period of suspended service, Buyer agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shall price natural gas delivered to Buyer pursuant to the Base Rate of this Service Agreement.

Appears in 1 contract

Samples: Service Agreement

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COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3. Csh_aCll 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 Number 2 fuel oil. (2) The cost of the alternate altenaate 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., CharlestonChm'xxxxxx, South Carolina, plus four cents (4.0¢), plus, (b) Four and three tenths cents (4.0¢4.3¢) per gallon for freight to the Buyer's facility, plus (c) One cent eem (1.0¢) per gallon for handling charges. (3) Number 2 fuel oil shall be considered as having 135,800 135 800 BTU's per gallon or 0.1358 dekatherms per gallon, which is identified as "dtdr". (4) The following formula utilizes the above valuesand values and shall be usedto calculatethe used to calcdate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified 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 writingwaiting, 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 flae 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 c.ost of natural gas as determined by this paragraph, exceed the cost as determined under detel:rnined trader the Base Rate specified in this Service Agreement. , CANCELLATION In the event that this contract is cancelled by Buyer for any reason, the Buyer, in addition to all other sums due under this Agreement, shall pay to the Seller a cancellation charge which is Seller's investment in facilities required to provide service to Buyer less accumulated depreciation, plus the costs of removal and less salvage. , CREDITWORTHINESS Seller, in order to satisfy itself of the ability of the Buyer to meet its obligations under 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 support or surety including, but not limited to, an unconditional and irrevocable letter of credit to provide adequate security for protection against the risk of nonpayment.

Appears in 1 contract

Samples: Contract for Natural Gas Service

COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- Priority• of-Service Category 3. Csh_aCll 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 Number 2 fuel oil. (2) The cost of the alternate fuel (identified as No. Fuel Oil. "K") shall include: (a) The net average price for No. 2 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 and three-tenths cents (4.0¢4.3¢) per gallon for freight to the Buyer's facility, plus (c) One cent (1.0¢l.0¢) per gallon for handling charges. (3) Number 2 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 values and shall be usedto calculatethe used to calculate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified as "C"): Seller will monitor the changes in the price of No. 2 2: fuel oil by reference to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 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 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- 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.

Appears in 1 contract

Samples: Service Agreement for Natural Gas and Transportation Agreement

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- of-Service Category 3. Csh_aCll 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 Number No. 2 fuel oilFuel Oil. (2) The cost of the alternate fuel (identified as "K") shall include:: ' 4 (a) (b) (c) 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 non-bulk premium of two cents (4.0¢)2.0¢) per gallon, plus (b) Four plus Five cents (4.0¢5.0¢) per gallon for freight to the Buyer's facility, plus (c) plus One cent (1.0¢) per gallon for handling charges. (34) Number 2 fuel oil shall be considered as having 135,800 13_!_5800 BTU's per gallon or 0.1358 dekatherms per gallon, which is identified as "dt". (4) . The following formula utilizes the above valuesand values and shall be usedto calculatethe used to calculate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified 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.

Appears in 1 contract

Samples: Service Agreement

COMPETITIVE FUEL RATE. It is the intent of the Agreement that BuyerXxxxx's cost of natural gas used in Priority- Priority• of-Service Category 3. Csh_aCll 2 shall be competitive with the as-fired cost of alternate fuel that Buyer Xxxxx 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¢) Cost per gallon for freight to the Buyer's facility, plus (c) One cent (1.0¢) per gallon for handling charges.gallon, (3) Number 2 2. fuel oil shall be considered as having 135,800 BTU's per gallon or 0.1358 dekatherms dekathenns per gallon, which is identified as "dt". (4) The following formula fonnula utilizes the above valuesand values and shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference used to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using of the procedure outlined abovealternate fuel (identified as "C"): If, at any time during the tenn of the Service Agreement, Buyer can establish by reasonable evidence (i.e. a vendor's invoice, bona fide written quotation, equivalent proof or Xxxxx's written declaration) that Xxxxx'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 advise the Buyer verbally or respond to Buyer, in writing, prior to the beginning of each the next billing period that Seller willwi!! either: (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- 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 confinned in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as detennined by this paragraph, exceed the cost as detennined under the Base Rate of this Service Agreement. During any period of suspended service, Xxxxx agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shall price natural gas delivered to Buyer pursuant to the Base Rate of this Service Agreement. (1) Seller acknowledges that Xxxxx also has the capability to use transported gas to satisfY Buyer's requirements in Priority-of-Service Category 2. Xxxxx and Seller hereby agree that Xxxxxx has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance with the procedures of this Paragraph 7(C). (2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end -of each calendar month of the price at which Seller is able to sell Interruptible gas to Buyer for the next ensuing calendar month to displace transportation gas. (3) Xxxxx agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Xxxxx accepts or rejects Xxxxxx's offer. (4) In the event Xxxxx accepts Xxxxxx'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 Xxxxx's own gas, then Buyer shall have no obligation to purchase any gas from Seller's system supply. (6) 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 of this Service Agreement.

Appears in 1 contract

Samples: Contract for Natural Gas Service

COMPETITIVE FUEL RATE. It is the intent of the Agreement that Buyer's cost of natural gas used in Priority- Priority• of-Service Category 3. Csh_aCll 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 Number 2 fuel oilPropane utilized after being mixed with air. (2) The cost of the alternate fuel (identified as "K"11 K.11 ) shall include: : pgearllo .(P3sbr)oeaplal edpegwekairdalh"ltediohcntneh"t,(4T)uhseing (ucT5as)haiCulistsecn-gsf(ufg=iuaianldresaKsge.elt (fVFCotdcbatpafhMafnht)o)noipaocluetoeicv(iBcuhdpmrleimpnfreo4nupeaplrsedfnoUeltfin.elnepoloht5rtrTrudyTtesrnis¢seze,i ebpaticehllhraiintogd tpaSBwhSmbrwewecUoecoiloaildtlhipavlhTelcllntalavelecrteoAi nhrbe.utsoreyNlt 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:,er (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 of the as- as• fired cost of the alternate fuelfoel, then Buyer may either accept delivery delive1y 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 of this Service Agreement.

Appears in 1 contract

Samples: Natural Gas Agreement

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 3E (THERMAL OXIDIZER) shall be competitive with the as-fired cost of alternate fuel that the 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 No. 2 fuel oilFuel 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¢), plusCost per gallon, (b) Four cents (4.0¢) per gallon for freight Freight to the Buyer's facility, plusand (c) One cent 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 "dtdr". (4) The following formula utilizes the above valuesand values and shall be usedto calculatethe as-firedcostof thealternatefuel (identifiedas"C"): Seller will monitor the changes in the price of No. 2 fuel oil by reference used to the OIL BUYERS' GUIDE. Based on the posted price of No. 2 fuel oil, Seller will calculate the as-fired cost using of the procedure outlined abovealternate 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 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 advise the Buyer verbally or respond to Buyer, in writing, prior to the beginning of each the next billing period that Seller willwill either: (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. During any period of suspended service, Buyer agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shall price natural gas delivered to Buyer pursuant to the Base Rate of this Service Agreement.

Appears in 1 contract

Samples: 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 3. Csh_aCll 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 purposeof the computation to computationto obtain the as-fired cost of the alternate fuel, it is understood and agreed thatunderstoodandagreedthat: (1) The Alternate Fuel AlternateFuel is Number 2 fuel oilPropane utilized after being mixed with air. (2) The cost of the alternate altemate fuel (identified as "K") shall include: (a) The net average posted price per gallon posted for No. 2 fuel oil Lexington, South Carolina, as published in effect the BUTANE-PROPANE NEWSLETTER on the third Monday of the current month, F.O.B., Charleston, South Carolina, plus four cents (4.0¢), plus (b) Four Two cents (4.0¢2.0¢) per gallon for freight to the Buyer's facility, plus (c) One Vaporization fuel cost of one cent (1.0¢) per gallon for handling charges.gallon, plus (3d) Number 2 fuel oil Compressed air and plant operation of one-half cent (0.5¢) per gallon. Propane shall be considered as having 135,800 91.600 BTU's per gallon or 0.1358 0.0916 dekatherms per gallon, which is identified as "dt". (4) . The following formula utilizes the above valuesand values and shall be usedto calculatethe used to calculate the as-firedcostof thealternatefuel fired cost of the alternate fuel (identifiedas"Cidentified as "C"): Seller will monitor the changes in the average price of No. 2 fuel oil propane by reference to the OIL BUYERS' GUIDE. BUTANE-PROPANE NEWSLETTt_R. Based on the posted average price of No. 2 fuel oilpropane, Seller will calculate the as-fired cost using the procedure outlined above. Seller will advise the Buyer 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 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 specified in of this Service Agreement.

Appears in 1 contract

Samples: Service Agreement

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