EXHIBIT 10.34
SERVICE AGREEMENT NO. 78653
CONTROL NO. 2004-04-22-0005
FTS SERVICE AGREEMENT
THIS AGREEMENT, made and entered into this 1st day of November, 2004 by and
between:
Columbia Gas Transmission Corporation
("Transporter")
AND
UGI Utilities Inc.
("Shipper")
WITNESSETH: That in consideration of the mutual covenants herein contained, the
parties hereto agree as follows:
Section 1. Service to be Rendered. Transporter shall perform and Shipper shall
receive service in accordance with the provisions of the effective FTS Rate
Schedule and applicable General Terms and Conditions of Transporters FERC Gas
Tariff, Second Revised Volume No. 1 (Tariff), on file with the Federal Energy
Regulatory Commission (Commission), as the same may be amended or superseded in
accordance with the rules and regulations of the Commission. The maximum
obligation of Transporter to deliver gas hereunder to or for Shipper, the
designation of the points of delivery at which Transporter shall deliver or
cause gas to be delivered to or for Shipper, and the points of receipt at which
Shipper shall deliver or cause gas to be delivered, are specified in Appendix A,
as the same may be amended from time to time by agreement between Shipper and
Transporter, or in accordance with the rules and regulations of the Commission.
Service hereunder shall be provided subject to the provisions of Part 284. 223
of Subpart. G of the Commission's regulations. Shipper warrants that service
hereunder is being provided on behalf of Shipper.
Section 2. Term. Service under this Agreement shall commence as of May 15, 2004,
and shall continue in full force and effect until October 31, 2029. Pre-granted
abandonment shall apply upon termination of this Agreement, subject to any right
of first refusal Shipper may have under the Commission's regulations and
Transporter's Tariff.
Section 3. Rates. Shipper shall pay Transporter the charges and furnish
Retainage as described in the above-referenced Rate Schedule, unless otherwise
agreed to by the parties in writing and specified as an amendment to this
Service Agreement. Transporter may agree to discount its rate to Shipper below
Transporter's maximum rate, but not less than Transporter's minimum rate. Such
discounted rate may apply to: a) specified quantities (contract demand or
commodity quantities); b) specified quantities above or below a certain level or
all quantities if quantities exceed a certain level; c) quantities during
specified time periods; d) quantities at specified points, locations, or other
defined geographical areas; and e) that a specified discounted rate will apply
in a specified relationship to the quantities actually transported (i.e., that
the reservation charge will be adjusted in a specified relationship to
quantities actually transported). In addition, the discount agreement may
include a provision that if one rate component which was at or below the
applicable maximum rate at the time the discount agreement was executed
subsequently exceeds the applicable maximum rate due to a change in
Transporter's maximum rate so that such rate component must be adjusted downward
to equal the new applicable maximum rate, then other rate components may be
adjusted upward to achieve the agreed overall rate, so long as none of the
resulting rate components exceed the maximum rate applicable to that rate
component. Such changes to rate components shall be applied prospectively,
commencing with the date a Commission order accepts revised tariff sheets.
However, nothing contained herein shall be construed to alter a refund
obligation under applicable law for any period during which rates had been
charged under a discount agreement exceeded rates which ultimately are found to
be just and reasonable.
SERVICE AGREEMENT NO. 78653
CONTROL NO. 2004-04-22-0005
FTS SERVICE AGREEMENT
Section 4. Notices. Notices to Transporter under this Agreement shall be
addressed to it at Xxxx Xxxxxx Xxx 0000, Xxxxxxxxxx, Xxxx Xxxxxxxx 00000-0000,
Attention: Manager-Customer Services and notices to Shipper shall be addressed
to it at:
UGI Utilities Inc.
X.X. Xxx 00000
Xxxxxxx, XX 00000-0000
ATTN: Xxxxxxx Xxxx
until changed by either party by written notice:
SERVICE AGREEMENT NO. 78653
CONTROL NO. 2004-04-22-0005
FTS SERVICE AGREEMENT
Section 5. Superseded Agreements. This Service Agreement supersedes and
cancels, as of the effective date hereof, the following Service Agreements: NIA.
UGI UTILITIES INC.
By: /s/
---------------------------------------
Name: Xxxxx X. Xxxxx
Title: President & CEO
UGI Utilities, Inc.
Date: 11/1/04
COLUMBIA GAS TRANSMISSION CORPORATION
By: ______________________________________
Name: ______________________________________
Title: ______________________________________
Date: ______________________________________
Revision No. 0
Control No. 2004-04-22-0005
Appendix A to Service Agreement No. 78653
Under Rate Schedule FTS
Between (Transporter) Columbia Gas Transmission Corporation
and (Shipper) UGI Utilities Inc.
Transportation Demand 42,000 Dth/Day
Primary Receipt Points
Minimum
Maximum Receipt
Daily Pressure Hourly
Scheduling Scheduling Point Measuring Measuring Point Quantity Obligation Flowrate
Point No. Name Point No. Name Dth/Da (psig) 1/ (Dth/hour).l/
-------------------------------------------------------------------------------------------------
C23 PENNSBURG-23 631929 PENNSBURG 500
(74-000577)
022 EAGLE-25 632170 EAGLE C.S. 41,500
(74-000011)
Revision No. 0
Control No. 2004-04-22-0005
Appendix A to Service Agreement No. 78653
Under Rate Schedule FTS
Between (Transporter) Columbia Gas Transmission Corporation
and (Shipper) UGI Utilities Inc.
Primary Delivery Points
Minimum
Maximum Delivery
Daily Delivery Design Daily Pressure Hourly
Scheduling Scheduling Point Measuring Measuring Point Obligation Quantity Aggregate Daily Obligation Flowrate
Point No. Name Point No. Name (Dth/day) 1/ (Dth/Day) 1/ Quantity 1/ (psig) 1/ (Dth/hour)1/
72-23 UGI CORP-23 600012 ROSEDALE 500 XX00 XX00
72-23 UGI CORP-23 600018 BOYERTOWN 1,893 FN02
72-25 UGI CORP-25 600019 MILLWAY 12,000 FN02
72-25 UGI CORP-25 600033 MT. JOY 2,906 FN02
72-25 UGI CORP-25 600036 LITITZ 3,000 FN02
72-25 UGI CORP-25 600037 MANHEIM 545 FN02
72-25 UGI CORP-25 603470 MARIETTA 11,656 FN02
72-23 UGI CORP-23 637254 ALLENTOWN 9,500 XX00 XX00
Revision No. 0
Control No. 2004-04-22-0005
Appendix A to Service Agreement No. 78653
Under Rate Schedule FTS
Between (Transporter) Columbia Gas Transmission Corporation
and (Shipper) UGI Utilities Inc.
1/ Application of MDDOs, DDQs, and ADQs and/or minimum pressure and/or hourly
flowrate shall be as follows:
FN01 Shipper's right to deliver gas at the primary delivery points of Allentown
and Rosedale under this FTS Service Agreement on any Gas Day will be
calculated based upon a pro rata calculation, under which 1 Dth of natural
gas will be available to Shipper for delivery to Allentown or Rosedale
under the FTS Service Agreement on any Gas Day for every 4.2 Dth of
natural gas received by Transporter for Shipper's account under this FTS
Service Agreement at Pennsburg on that same Gas Day, up to the specified
MDDO for each point.
FN02 Transporter's historic practice of providing Shipper flexibility in
meeting the hourly variations in its requirements at city-gate delivery
points under its service agreements, within the daily firm obligations set
forth in Shipper's contracts, will continue unless it becomes inconsistent
with the terms of Transporter's FERC Gas Tariff, as that Tariff may be
changed from time to time, or unless Transporter issues an operational
flow order ("OFO") limiting hourly deliveries in the manner described
herein. If such an OFO is issued, Shipper will be entitled to receive
hourly deliveries of 110% of 1/24th of the quantity of gas scheduled on a
Gas Day up to a total of 42,000 Dth per Day (that is, not to exceed 1,925
Dth per Hour), or such higher quantity as may be specified in the OFO, as
its primary delivery points during any five hours falling between 5 a.m.
and 9 a.m. eastern clock time or between 5 p.m. and 9 p.m. eastern clock
time, respectively, as determined by Shipper (the "Hourly Flow Rate").
Notwithstanding the foregoing, Transporter may issue an OFO directed at
Shipper's delivery points and requiring a lower Hourly Flow Rate based
upon the occurrence of an event specified in Section 17 of the General
Terms and Conditions of Transporter's FERC Gas Tariff that materially
affects Transporter's ability to serve Market Areas 23 and/or 25 and
requiring the issuance of an OFO specifically limiting the Hourly Flow
Rate to Shipper. Transporter reserves the right, if operationally
necessary, to require that Shipper take its Hourly Flow Rate at its
citygate delivery points on a pro rata basis based on the MDDOs at those
delivery points.
Revision No. 0
Control No. 2004-04-22-0005
Appendix A to Service Agreement No. 78653
Under Rate Schedule FTS
Between (Transporter) Columbia Gas Transmission Corporation
and (Shipper) UGI Utilities Inc.
The Master list of Interconnects (MLI) as defined in Section 1 of the General
Terms and Conditions of Transporter's Tariff is incorporated herein by reference
for the purposes of listing valid secondary interruptible receipt points and
delivery points.
[X] Yes [ ] No (Check applicable blank) Transporter and Shipper have mutually
agreed to a Regulatory Restructuring Reduction Option pursuant to Section 42 of
the General Terms and Conditions of Transporter's FERC Gas Tariff.
[X] Yes [ ] No (Check applicable blank) Shipper has a contractual right of first
refusal equivalent to the right of first refusal set forth from time to time in
Section 4 of the General Terms and Conditions of Transporter's FERC Gas Tariff.
Service pursuant to this Appendix A, Revision No. 0 shall be effective May 15,
2004 through October 31, 2029.
[ ] Yes [X] No (Check applicable blank) This Appendix A, Revision No. 0 shall
cancel and supersede the Previous Appendix A, Revision No._____ effective as of
_____________, 20__, to the Service Agreement referenced above.
[ ] Yes [X] No (Check applicable blank) All Gas shall be delivered at existing
points of interconnection within the MDDO's, and/or ADQ's, and/or DDQ's, as
applicable, set forth in Transporters currently effective Rate Schedule______
Appendix A, Revision No. 0 with Shipper, which for such points set forth are
incorporated herein by reference.
With the exception of this Appendix A, Revision No.0 all other terms and
conditions of said Service Agreement shall remain in full force and effect.
UGI UTILITIES INC.
By: /s/
---------------------------------------
Name: Xxxxx X. Xxxxx
Title: President & CEO
UGI Utilities, Inc.
Date: 11/1/04
COLUMBIA GAS TRANSMISSION CORPORATION
By: ______________________________________
Name: ______________________________________
Title: ______________________________________
Date: ______________________________________
