20070220Application.pdf

Avista Corp.
1411 East Mission PO Box3727
Spokane, Washington 99220-3727
Telephone [phone]
Toll Free 800-727-9170
February 16,2007
State of Idaho
Idaho Public Utilities Commission
Statehouse
Boise, ill 83720
Attention: Ms. Jean Jewell, Secretary
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Application Requesting Approval of Special Agreement
Enclosed for filing with the Commission is an original and seven copies of an Application requesting approval of a
special Natural Gas Transportation Service Agreement between Avista and Potlatch Corporation.
If you have any questions regarding this filing, please call me at 509-495-4723.
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Brian J. Hirschkom
Manager, Retail Pricing
Enc.
KELLY 0, NORWOOD
VICE PRESIDENT of
STATE AND FEDERAL REGULATION
A VISTA CORPORATION
O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA TIER OF THE APPLICA nON
OF A VISTA CORPORATION REQUESTING
APPROVAL OF A NATURAL GAS
TRANSPORTATION SERVICE AGREEMENT
BETWEEN A VISTA AND
POTLATCH FOREST PRODUCTS CORP.
CASE NO. A VU-07-
APPLICATION
I. INTRODUCTION
A vista Corporation doing business as A vista Utilities (hereinafter A vista or
Company), at 1411 East Mission Avenue, Spokane, Washington, respectfully requests that the
Commission approve the proposed Natural Gas Transportation Service Agreement between
the Company and Potlatch Forest Products Corporation (hereinafter Potlatch) for service to
Potlatch's Lewiston Idaho Plant ("Plant ). A copy of the proposed agreement is provided
herewith as "Attachment I"
The Company requests that this filing be processed under the Commission s Modified
Procedure rules.
Communications in reference to this Application should be addressed to:
Kelly O. Norwood
Vice President
State and Federal Regulation
A vista Corporation
1411 E. Mission Avenue, MSC-
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
David J. Meyer
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
A vista Corporation
1411 E. Mission Avenue, MSC-
Spokane, Washington 99220
Phone: [phone]
Fax: [phone]
II. BACKGROUND
Avista has provided natural gas transportation service to Potlatch's Lewiston Idaho
Plant ("Plant ) under an existing agreement dated April 19, 1993. Under the existing
agreement, Potlatch is billed $0.0075 (0.75 cents) per therm for the first 120 000 therms used
each day, and $0.001 (0.1 cents) per therm for all usage in excess of 120 000 therms per day
for distribution service. Based on their 2006 natural gas usage of approximately 38 million
therms, A vista billed and received $264 000 in distribution charges from Potlatch for service
to the Plant. These rates for distribution service were negotiated coincident with the terms of
a firm pipeline transportation capacity release by A vista to Potlatch. A vista released 120 000
therms per day of firm (Northwest Pipeline) transportation capacity to Potlatch at full
pipeline rates from mid-1993 through November 2006.
Over the past ten years , Potlatch has increased the efficiency of its processes that
utilize natural gas and has reduced its annual natural gas consumption from 64 million therms
to 38 million therms. As a result, Potlatch has a reduced need for firm pipeline
transportation. Coincident with Potlatch's reduced need, Avista has seen considerable load
growth in the Moscow!Lewiston area and an increased need for firm pipeline capacity to
Application of A vista Corporation
serve the area. As a result of both companies' needs, a separate capacity release agreement
has recently been negotiated whereby A vista has released 60 000 therms per day of (non-
recallable) pipeline capacity at full pipeline rates and 60 000 therms per day at 85% of full
pipeline rates that is recallable by A vista at any time to serve core gas requirements.
Coincident with the negotiating of the new pipeline capacity release agreement, Potlatch
expressed their desire to negotiate a new gas distribution agreement as well.
Potlatch has a unique ability to bypass A vista s distribution facilities and take service
directly from Northwest Pipeline. Avista s distribution facilities consist of approximately
fifty feet of six-inch steel pipe and a regulator station and odorizer which Potlatch could
replicate at a one-time capital cost of approximately $75,000. These are the only Avista gas
distribution facilities between Northwest Pipeline s facilities and Potlatch's Plant. Potlatch
would not need a separate pipeline tap, as there is an existing tap that serves only Potlatch'
Plant and a separate tap that serves Avista s other customers in the Lewiston area. Potlatch'
proximity to Northwest Pipeline s facilities was the primary factor underlying the negotiation
of the proposed distribution service agreement.
IV. PROPOSED AGREEMENT
The initial term of the proposed agreement is approximately ten years, beginning on
the day following Commission approval and ending November 30 2016. The agreement will
continue in effect from year-to-year thereafter unless canceled with twelve months prior
written notice by either party. The distribution charges under the proposed agreement were
negotiated between the two companies based on: 1) Potlatch's desire to pay Avista for
Application of A vista Corporation
distribution service in the future that more reasonably reflected their alternative cost of direct-
connecting to Northwest Pipeline, and 2) Avista s desire to retain a reasonable level of
distribution charges/margin that would be reduced from the present level over time. As a
result of the negotiations , the two companies agreed on the following A vista distribution
service charge(s):
$15,417 per month through Nov. 2007 ($185 000 annually)
$12 500 per month Dec. 2007 - Nov. 2008 ($150 000 annually)
$9,250 per month Dec. 2008 - Nov. 2009 ($111 000 annually)
$6,167 per month Dec. 2009 through 2016 ($74 000 annually)
The monthly charges are fixed (non-volumetric) and are set forth in Exhibit A of the
agreement.
Based on Potlatch's usage of 38 million therms during 2006, their annual bill under
the present agreement was $264 000 (average of $22 000 per month), The proposed
distribution charge reflects a reduction in annual revenue/margin to A vista of approximately
$185,000 phased-in over the next four years. This reduction represents a contribution to the
Company s fixed costs of providing natural gas service to its customers in North Idaho. For
comparative purposes, $185 000 represents approximately 0.2% of the Company s current
Idaho natural gas revenues, Further, the margin reduction ($185 000) resulting from the
proposed agreement equates to the margin provided by approximately 800 new residential
customers. While much of the margin provided by new customers is necessary to offset the
incremental cost of providing service, the current and projected rate of growth the company is
Application of A vista Corporation
experiencing in North Idaho (approximately 2 200 customers per year) should offset a portion
of the lost revenue/margin received from Potlatch under the existing/prior agreement.
III. REQUEST FOR APPROV
A vista, therefore, respectfull y requests approval of the proposed Natural Gas
Transportation Service Agreement between A vista and Potlatch Forest Products Corporation.
Dated at Spokane, Washington this 16th day of February 2007.
A VISTA CORPORATION
BY
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Kelly O. Norwood
Vice President of
State and Federal Regulation
Application of A vista Corporation
VERIFICA TION
STATE OF WASHINGTON)
:ss
County of Spokane
, Brian Hirschkorn, being first duly sworn on oath, deposes and says: That he is the
Manager, Retail Pricing, at phone number [phone], for Avista Corporation and makes
this verification for and on its behalf of said corporation, being thereto duly authorized;
That he has read the foregoing filing, knows the contents thereof, and believes the
same to be true.
SIGNED AND SWORN to before me this 16th day of February, 2007 , by Brian Hirschkorn.
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NOTARY P LIC in and for the State of
Washington, residing at Spokane,
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Application of A vista Corporation
ATTACHMENT 1
PROPOSED AGREEMENT FOR NATURAL GAS TRANSPORTATION
SERVICE BETWEEN A VISTA CORP. & POTLATCH CORP.
Contract No. M-13466
NATURAL GAS TRANSPORTATION SERVICE AGREEMENT
THIS AGREEMJ.:NT is entered into by and between Avista Corporation dba Avista Utilities (hereinafter
referred to as "Avista ), and Potlatch .Forest Products Corporation (hereinafter referred to as
Customer ); hereinafter sometimes referred to individually, asa "Party , and collectively, as the
Parties.
RECIT ALS
WHEREAS, Customer owns and operates manufacturing plants located near the City of Lewiston, in
Nez Perce County, Idaho (hereinafter referred to, collectively, as the "Plant"
WlIEREAS, A vista is cUiTently providing natural gas transportation service to the Plant as authorized by
the Idaho Public Utilities Commission; and
WHEREAS, Customer and A vista are Parties to a Natural Gas Service Agreement dated April 19, 1993
as amended by an Addendum dated December 1 , 1999 (hereinafter referred to as the "Current
Agreement"); and
WHEREAS, the Parties desire to tenninate the Current Abrreement and enter into a Capacity Release
Agreement, designated A vista Contract No. M-13456 (hereinafter referred to as the "Capacity Release
Agreement"), and this Agreement for natural gas transportation service to Customer s Plant, as set folth
below.
NOW, THEREFORE, in consideration of the covenants and promises contained herein, the l)arties agree
as follows:
I. Definitions. Where used in this Agreement, the following terms shall have the following meanings:
1. "Agreement"means this Natural Gas Transportation Service Agreement.
1.2. "Customer-Owned Gas" means Natural Gas procured directly by Customer, or through an agent
or broker acting on Customer s behalt:
3. "Day" means a period of 24 consecutive hours coincident with Northwest Pipeline s day, which
currently begins at 7:00 a.m. Pacific Prevailing Time on any given date.
1.4. "Daily" means once each Day. If something is to be done "Daily," it should be completed by
no later than the end of each Day.
1.5. Delivery Point" for Natural Gas transported or delivered to the Plant pursuant to this
Agreement is the point at which Customer s Gas service pipe intercolmects with the outlet side
of Avista s Gas regulator station located on the Plant premises at the tenninus of Northwest
Pipeline s lateral line in the SW ~ of Section 28, Township 36N, Range SW, Nez Perce
County, Idaho.
6. "Gas" or "Natural Gas" means any mixture of hydrocarbons, or of hydrocarbons and
combustible gases, in a gaseous statc,consisting essentially of methane,
1.7. "Month" means a period coincident with Northwest Pipeline s Month, which currently begins at
7:00 a.m. Pacific Prevailing Time on the first Day of a calendar month and ends at 7:00 a.
Pacific Prevailing Time on thc first Day of the next succeeding calendar month.
8. "Northwest Pipeline" or "Pipeline means Northwest Pipeline Corporation, which is engaged in
the transportation of Natural Gas in interstate commerce.
1.9. Avista Receipt Point(s)" for Natural Gas transported pursuant to this Agreement are those
points at which Avista s distribution system interconnects with the transmission facilities of
Northwest Pipeline.
Page 1 of 6
Contract No. M-13466
1.1 0 Pipeline Delivery Pointe for Natural Gas transported pursuant to this Agreement are the
Lewiston PFI, Lewiston or Lewiston West, or a combination thereof.
11 "Commission means the Idaho Public Utilities Commission.
1.12. "FERC" means the Federal Energy Regulatory Commission.
2. Tenn of Agreement. This Agreement shall become effective upon approval of the Commission and
shall remain in effect wItH November 30 2016. Thereafter, the Agreement shall continue in effect
from year-la-year unless canceled by either Party upon written notice to the other Party not less than
twelve (12) months prior to any subsequent anniven;ary date. As used hG-rein, the anniversary date of
this Agreement shall be December 1 sl of each year.
3, Delivery and Transportation of Natural Gas
Delivery. Subject to the delivery of Customer-Owned Gas to Avista s Receipt Point(s) and
subject to the orders, rules and regulations of governmental authorities, agencies and courts
having jurisdiction over (i) Customer's acquisition of Customer-Owned Gas, (ii) the Pipeline
and/or (iii) Avista s delivelY of Gas hereunder, Avista, as provided hereill, shall cause such Gas
to be delivered to Customer at the Delivery Point. All volumes of Customer-Owned Gas
nominated and delivered to Avista s Receipt Polnt(s) shall be deemed finn service Gas and shall
be delivered by Avista to the Delivery Point, except as set forth under Sections 4 and 6 below.
Exclusive Natural Gas Transportation Service, All volumes of Natural Gas delivered to the
Plant during the tenn of this Agreement shall be transported through A vista s regulator station.
4. Volumetric Limitations and Pressure.
3.1
Vollulletric Limitation~. Because of the physical limitations of the Northwest Pipeline/Avista
gate station and ,L\vista s regulator station currently used to serve Customer s Plant, the
volumes of Customer-Owned Gas transported pursuant to this Agreement shall not exceed such
limitations of 12 000 therms per bour or 288 000 thenns per day.
Pressure. A vista shall deliver Gas to the Plant at a nominal pressure of fifty pounds per square
inch gauge (50 p,i.g,
Exceeding Demand Limit.
3.1 Subj ectto the capabilities of Avista s facilities and upon written approval of A vista, the
maximum volume described in Section 4.1 above may be increased, provided that
Customer shall provide Avista with one hundred eighty (180) days' advance written
notice to allow A vista adequate time to make any necessaJY modifications to its
facilities required to provide service hereunder. In the ,event Customer fails to provide
Avista with such notice and Avista s facilities or equipment are damaged as a result of
Customer s increased volumes, the expenses associated with the repair of any such
damaged facilities or equipment shall be the sole responsibility of Customer, and
Customer shall reimburse A vista for all repair costs.
In the event Customer exceeds the maximum volume described Section 4.1 above
A vista may, in its sole judgment, interrupt Customer s service, and A vista shall not be
liable for damages or losses to Customer occasioned by the intemlption of volumes
above such maximum volume.
4.3.
5. Nominations:
1. Daily Nominations. Customer or its agent shall report its estimated Gas supply requirements for
the Plant to Avista s Gas scheduler at least twenty-four (24) hours prior to the time nominations
are required by Northwest Pipeline for each Day, unless Customer and A vista agree, in writing,
to other procedures. Such estimated Gas supply requirement shall be considered by A vista to
represent Customer s nomination. Customer may request Avista s Gas scheduler to make any
Page 2 of 6
Contract No, M-13466
changes to its nomination prior to the beginning of each Day. Such request will be accepted to
the extent that the change does not jeopardize A vista s operations and a corresponding change is
pemlitted by Northwest Pipeline, To the extent that the foregoing requirements prove
inconsistent with the nominating procedures of Northwest Pipeline, the latter shall govem and
Customcr shall conform its nominating practices, accordingly.
5.2. Estimated Gas Req uiremcnts , Upon request by Avista, Customer shall, from time to time
submit non-binding estimates of its daily, monthly, and annual volumes of Gas that Customer
may require pursuant to this Agreement, including peak day requirements, together with such
other operating data as Avista may require in order to schedule its operation and determine its
system loads and requirements.
6. Transportation Interruption. Any volumes of Customer-Owned Gas unable to be delivered due to
operational constraints on Avista shall be held as an imbalance and shall be delivered to Customer as
soon as operationally practicable. Avista shall not be liable for damages occasioned by any
entitlement or interruption of service supplied under this Agreement.
7, Balancing by Customer.Customer or its agent shall exercise its best effolis to schedule Gas which it
causes to be delivered to Avista at Avista s Receipt Points in such a manner that Customers usage of
Gas, as metered at the Delivery Point, equals the amount of Gas so delivered to A vista by Northwest
Pipeline during each Day and for each Monthly billing cycle. Customer shall be responsible for
inibalance charges or penalties as set forth in Avista s tariff.
8. Rates and Charges.
8. I ,yista Transportation Char?es.Customer shall pay A vista for all Gas delivered to (,l1stomer
Plant in accordance with the Monthly Delivery Charges specified on the "Transportation
Charges Schedule , attached hereto and incorporated herein as "Exhibit A"
Late Charges. Payment shall be due within fifteen (IS) days of the bill mailing date (the "Due
Date ). If Customer fails to pay A vista the entire undisputed amount of any bill within thirty
(30) days following the Due Date, Avista shall have the right to charge Customer a late charge
on the unpaid balance, from the Due Date until paid in full, at a rate of 1 percent per month. In
the event Customer has a good~faith dispute regarding a billing by A vista, Customer shall not
be assessed interest on the disputed portion of such bill until resolution of the matter, unless
otherwise instl1lcted by the Commission.
9. Transportation and Billing by Others. Except as otherwise set forth in this Agreement, Avista shall
not be responsible for Customer s billing alTangements for the purchase of Customer-Owned Gas, or
for the transportation thereof by others, including Northwest Pipeline. Customer shall be responsible
for sales, use and other taxes associated with the acquisition and/or transportation, by others, of
Customer-Owned Gas.
10. Customer-Owned Gas Quality. The quality of Customer-Owned Gas shall meet the requirements, as
they may be amended, set forth in Northwest Pipeline s FERC Gas tariff.
11, Incorporated Tenns, Except as provided in this Agreement, all tenns and conditions set forth in
Avista s tariffs for Gas service, or their successor as tiled with and approved by the Commission or
that agency s successor, are incorporated herein and made a part ofthis Agreement.
12. Easements and Access to Customer s Property
12.1 Customer hereby authorizes Avista or its agent to access Avista s facilities at Customer s Plant
if necessary, and to do all work reasonably necessary on the lands of Customer to accomplish
the operation and maintenance of Avista s facilities required to provide Gas service to the
Delivery Point. Customer shall continue to grant, without cost to Avista, good and sufficient
recordable easements in a fonn satisfactory to Avista, that provides for Avista s facilities to be
located over, OD, across and/or under said lands of Customer covering rights-of-way for the
Page 3 of 6
Contract No, M-1J466
installation, operation, inspection, replacement, and maintenance of Avista s facilities required
to render the services set forth in this Agreement.
12.C"ustomer shall ensure that there is minimum clearance of not less than ten (10) feet (or greater
if required by any applicable rules or regulations) around all Avista facilities on the Plant
property to allow access for Avista s equipment, to enable Av1sta to perfonn any necessary
maintenance and repair, and to avoid any potential damage to such equipment
14. Force Majeure. As used in this Agreement
, "
Force Majeure" means the inability of either Party
hereto to perform its obligations as set forth herein as a result of unforeseeable causes beyond the
reasonable control of and without the fault or negligence of the Party claiming a Force Majeure
excuse for non-performance ("Force Majeure Event" or "Event"). Force Majeure Events may
include, but are not limited to, the following: acts of God, strikes, acts of war, riots, landslides , earth-
quakes, fires, floods, unforeseeable or unusual weather conditions, collisions, washouts, explosions
breakage or failur~ of machinery or generating equipment or lines, or any binding order, rule or
regulation of any court or governmental authority, or any other occurrence beyond the reasonable
control of either Party, whether similar or dissimilar to any of the foregoing examples, that shall
prevent or fn~strate or make impossible the perfOlmance of the Party claiming Force Majeure, The
occurrence of a Force Majeure Event effecting Avista s ability to deliver natural gas to the Point of
Delivery shall not grant Customer the right to terminate this Agreement and the duties and obligations
hereunder. A Force Majeure Event shall not relieve Customer from any minimum charge obligations
specified in Avista's applicable rate schedule, provided however, such charges shall be pro-rated
based on the actual number of days of service provided to Customer, if a Force Majeure Event
affecting Avista res1.11ts in Avista s inability to deliver natural gas hereunder for a period in excess of
forty-eigllt consecutive (48) hours. A Party claiming a Force Majeure Event shall be excused by the
non-affected Party from its course of performance under the temlS and conditions of this Agreement
solely for the length and duration such Event lasts or exists, provided that notice of such Event is
given to the other Party within three (3) business days after the Event occurs. At such time and
circumstance that the Force Majeure Event no longer exists or affects the Party claiming such Event
the Party claiming the Force Majeure Event shall resume its duties and obligations under this
Agreement as soon as reasonably practicable. In the event Avista is rendered wholly or partially
unable to perform its obligations under this Agreement due tea Force Majeure Event, Customer may
arrange for alternate delivery of gas supply during the period of such Event, and A vista shall
cooperate in obtaining analtel11ate fuel supply for Customer; provided, however, that Avista shall not
be liable for additional costs incurred to obtain such alternate fuel supply.
15, Indemnification and Hold Harmless Protection
15.1 Customer Indemnification.Customer shall indemnify and save hannless Avista from any
liability, loss, or expense, including the expense of defending against the same, arising from
or growing out of injury to persons, including death, or damage to property, which may occur
on the Gas system of the Customer on its side of the Delivery Point unless such loss is due to
the negligence of Avista. Where such claim or loss is caused by the conCUlTent negligence of
Customer, its agents or employees, and A vista, its agents or employees, Customer hereby
a!:,1fees to indemnify, defend and save Avista harmless from all such claims or losses to the
extent that such claim or loss was caused by the negligence of Customer, its agents or
employees.
15.2 Avista Indemnification Avista shall indemnify and save harmless Customer from any
liability, loss, or expense, including the expense of defending against the same, arising from
or growing out of injury to persons, including death, or damage to property, which may occur
on the Gas system of Avista on its side of the Delivery Point unless such loss is due to the
negligence of Customer. Where such claim or loss is caused by the conCUlTent negligence of
Avista, its agents or employees, al1d Customer, its agents or employees, Avista hereby agrees
to indemnify, defend and save Customer harmless from all such claims or losses to the extent
that such claim or loss was caused by the negligence of A vista, its agents or employees,
Page 4 of 6
Contract No. M -13466
15,3 Avista shall not be liable for any special, indirect, incidental , punitive, or consequential
damages arising from the operation, replacement, maintenance or repair of A vista-owned or
Customer-owned facilities, including, without limitation, Customer s loss of actual or
anticipated profits or revenue, loss by reason of shutdown, non-operation, or increased
expense of its facilities or operations, cost of capital, or claims of third parties
16. Other Agreements. This Agreement, together with the Capacity Release Agreement, supersede and
cancel the c..'urrent Agreement, as of the effective date of this Agreement. Except as otherwise
specifically referenced, this Agreement and the Capacity Release Agreement contain the full and final
expression of all tenns intended by the Parties for natural gas transportation to the Plant.
17. Assigrmlcnt.Customer shall not (by contract, operation of law or otherwise) assign this Agreement
or any right or interest in this Agreement, without providing Avista with at least thirty (30) days prior
written notice of such assignment. No such assignment, with or without prior written notice to
Avista, shall relieve Customer from its responsibilities under this Agreement, and all obligations and
liabilities incurred hereunder shall be preserved until satisfied. A vista may assign this Agreement
without consent, to any affiliated company that controls, is controlled by, or is under common control
with Avista, or to a successor in interest which acquires all or substantially all of the propelty and
assets of A vista.
18, Amendment and Waiver. This Agreement contains all of the teffils and conditions bearing upon the
subject matter and shall not be changed or varied except by written agreement executed by the Parties
through duly authorized representatives. If, at any time, the terms of this Agreement are not strictly
adhered to or enforced, they shall not thereby be deemed waived or modified, but shall at all
subsequent times and dates be deemed in full force and effect.
19, Notices. Unless otherwise specified, any notice required under this Agreement shall be given in
writing, and shall be effective from the date received by the Pm1y to which it is provided.
19.1 Notices to Avista shall be mailed or delivered to the attention of:
Avista Utilities
PO Box 3727, MSC-
1411 East Mission Avenue
Spokane, Washingto1199220-3727
Attn: Director, Energy Solutions
Contract No. M-13466
19.Notices to Customer shall be mailed or delivered to the attention of:
Potlatch Forest Products Corporation
PO Box 1016
805 Mill Road
Lewiston, ill 83501
Attn: Manager, Customer Contact Marketing
19.3 A Party may change the place or address for delivery of notices to it by giving notice to the
other Party as thus described.
20. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of
the State of Idaho, without giving effect to its principles of conflicts of law. Any litigation relating to
this Agreement not within the jurisdiction of the Commission shall be brought in the Superior Court
of Nez Perce County, Idaho,
21. Headings. The section headings in this Agreement are for convenience only and shall not be
considered pm1 of or used in the interpretation of this Agreement.
Page 5 of 6
ContTact No. M-13466
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by the
respective authorized represt.'lltatives, duly authorized as of the date(s) wlitten below.
A vista Corporation
dba Avista~Utilities
'~ ~ "-. /'
(Signature) ~
Name: Patrick Lvnch
(Print or Type)
Potlatch Forest Products Corporation
By ~.D
;;;~
(Signa
Name: Harrv Seamans
(print or Type)
Title: VP. Pulp and Paperboard Division
Date:
;~O
~~
(print or Type)
Date:
Page 6 of 6
Contract No. M-13466
Exhibit A"
Natural Gas Transportation Service Agreement No. M-13466
Flat Rate Gas Transportation Charges Schedule
Contract Monthly Delivery Total Annual Approximate Delivery
Dates Charges Delivery Charges Charge per therm
Dee 2006 through Nov 2007 15,416.$ 185,000.005
Dee 2007 through Nov 2008 500.$ 150,000.004
Dec 2008 through Nov 2009 250.$ 111 000.003
Dee 2009 through Nov 2010 166.000.002
Dee 2010 through Nov 2011 166.000,002
Dec 2011 through Nov 2012 166.000.002
Dee 2012 through Nav 2013 166.000.002
Dee 2013 through Nov 2014 166.000,002
Dee 2014 through Nov 2015 166.000.002
Dee 2015 through Nov 2016 166.000.002
* Calculations of monthly and annual charges are based on actual 12 months of usage (October 1 , 2005
through September 30 2006) of 37 270,250 therms (rounded down to 37 000,000) then multiplied times
the "per therm" delivery charge. Annual charges divided into 12 equal monthly payments,