Rate Schedule TF-1 Service Agreement

Contract No. 100009

 

THIS SERVICE AGREEMENT (Agreement) by and between Northwest Pipeline LLC (Transporter) and Puget Sound Energy, Inc. (Shipper) is made and entered into on February 19, 2019 and restates the Service Agreement made and entered into on September 21, 2015.

 

WHEREAS:
  1. Effective November 01, 1992, to conform to the provisions of the approved Joint Offer of Settlement in Docket No. CP92-79, the original Replacement Firm Transportation Agreement dated July 31, 1991, as amended November 01, 1992 (contract #100009) superseded and replaced both a Firm Sales Service Agreement dated April 05, 1989 and a Firm Transportation Agreement dated June 25, 1988, to provide a partial conversion of firm sales Contract Demand to firm Transportation Contract Demand and to establish unilateral Evergreen rights.
  2. Significant events and previous amendments of this Agreement include:

    1. By Amendment dated October 20, 1993, the conversion of Shipper's remaining firm sales Contract Demand to firm Transportation Contract Demand was implemented, effective November 01, 1993.

    2. By Amendment dated August 15, 1994, Shipper transferred a total of 5,400 Dth/day in Transportation Contract Demand and Ignacio Plant Receipt Point volume to a new firm Transportation Agreement (#100120) effective with the respective in-service dates of the following Meter Stations: Machias (817 Dth effective December 23, 1994), May Valley (1,250 Dth effective January 11, 1995) and North Puyallup (3,333 Dth effective March 09, 1995).

    3. By Amendment dated February 15, 1995, Shipper transferred 13,030 Dth/day in Transportation Contract Demand and Sumas Receipt Point volume to firm Transportation Agreement #100120, effective November 01, 1995.

    4. By Amendment dated March 25, 1996, Shipper extended the Primary Term End Date for 8,056 Dth/day of Contract Demand from Blanco Receipt Point to Issaquah Delivery Point to May 31, 2016.

    5. By Amendment dated February 01, 1998, Shipper changed its name from Washington Natural Gas Company to Puget Sound Energy, Inc. 

     

    6. By Amendment dated July 07, 2000, Shipper made a valid request to increase the Delivery Pressure at the Issaquah-Highlands, Duvall-Cottage Lake and North Seattle/Everett Delivery Points, effective August 01, 2000. 

     

    7. By Amendment dated September 21, 2000, Shipper was allocated a total of 35,541 Dth/d of temporary firm transportation capacity at receipt points south of the Green River Compressor Station, per the Amendment dated June 19, 1996.  Shipper agreed to reassign said volumes to points north of the Green River Compressor Station upon termination of the temporary capacity.  Termination notice for the temporary firm transportation capacity was given on May 10, 2000, to be effective October 01, 2000. 

     

    8. By Amendment dated November 27, 2000, Shipper made a valid request to increase the Delivery Pressure at the Monroe Delivery Point, effective December 01, 2000. 

     

    9. By Amendment dated August 15, 2002, the February 15, 1995, Exhibit C reflecting a Facility Cost-of-Service charge for an upgraded Olympia Lateral and Meter Station was terminated effective August 01, 2002.

     

    10. By Amendment dated June 13, 2003, in conjunction with the Everett Delta Lateral Project, the Primary Term for 280,247 Dth/d of Contract Demand was extended from October 31, 2004 to October 31, 2009.

    11. By restatement effective March 01, 2007, Transporter and Shipper made the following modifications:

      a. changed the Rainier/Puyallup Delivery Point to Rainier Terrace;

      b. increased the stated Delivery Pressures for the North Tacoma and South Tacoma Delivery Points;

      c. established Delivery Pressures for the Gold Bar, Sultan and Startup Delivery Points; and

      d. clarified that pressure commitments for all Delivery Points other than North Seattle/Everett will be administered at the associated custody transfer meter stations.

    12. By Amendment dated March 05, 2007, Transporter and Shipper amended the Agreement to extend the Primary Term End Date in the Agreement from October 31, 2009 to October 31, 2014, for 280,247 Dth/day of Contract Demand with the remaining 8,056 Dth/day of Contract Demand to have a Primary Term End Date of May 31, 2016, as detailed in Exhibit B. 

     

    13. By restatement dated April 20, 2010, the Delivery Pressure at the Frederickson Delivery Point was increased from 300 psig to 400 psig. 

     

    14. By restatement effective March 25, 2011, the following modifications were made pursuant to Sections 2.4 and 11.7 of the General Terms and Conditions of Transporter's Tariff:

      a. extended the Primary Term End Date for 8,056 Dth/d of Contract Demand from May 31, 2016 to October 31, 2020, and extended the Primary Term End Date for 280,247 Dth/d of Contract Demand from October 31, 2014, to October 31, 2020, rendering a single Primary Term End Date of October 31, 2020, for all 288,303 Dth/d of Contract Demand on this Agreement;

      b. removed a no longer applicable non-conforming provision related to multiple Primary Term End Dates on Exhibit B;

      c. increased the Delivery Pressure at the Black Diamond Delivery Point from 400 psig to 550 psig;

      d. increased the Delivery Pressure at the Snohomish Delivery Point from 150 psig to 240 psig; and 

      e. relocated the two non-conforming provisions related to Primary Delivery Points on Exhibit B to the Primary Delivery Point(s) section on Exhibit A. 

     

    15. By Amendment dated January 09, 2013, the Delivery Pressure at the North Seattle/Everett Delivery Point decreased from 400 psig to 310 psig.

     

    16. By restatement effective December 02, 2013, the Delivery Pressure at the South Seattle Delivery Point decreased from 260 psig to 250 psig.

     

    17. By restatement effective September 21, 2015, the Agreement was restated in its most current form of service and the Primary Term End Date was extended from October 31, 2020, to October 31, 2023 in exchange for certain advanced segmentation rights.

     

    18. Transporter and Shipper further agree to restate the Agreement with the following modifications:

      a. realign the following MDDOs in order to create and acquire additional southbound corridor rights to Jackson Prairie though a hydraulic exchange:  increase Rainier Terrace from 5,020 Dth/d to 11,020 Dth/d; increase Fredrickson from 1 Dth/d to 16,767 Dth/d; decrease Bethel School from 9,990 Dth/d to 2,060 Dth/d; increase Yelm from 700 Dth/d to 2,700 Dth/d; decrease Olympia from 13,400 Dth/d to 100 Dth/d; decrease Evergreen Shores-Black Lake from 1,000 Dth/d to 100 Dth/d; and decrease Centralia/Chehalis from 6,100 Dth/d to 3,464 Dth/d;

      b. in lieu of being subject to a Contract-specific OFO, include an acceptable means of addressing the flow requirements created by Shipper's amendment request; and

      c. extend the Primary Term End Date from October 31, 2023, to October 31 2033 in exchange for additional southbound corridor rights, granted in Agreement 134258.

 

 

THEREFORE, in consideration of the premises and mutual covenants set forth herein, Transporter and Shipper agree as follows:

  1. Tariff Incorporation. Rate Schedule TF-1 and the General Terms and Conditions (GT&C) that apply to Rate Schedule TF-1, as such may be revised from time to time in Transporter's FERC Gas Tariff (Tariff), are incorporated by reference as part of this Agreement, except to the extent that any provisions thereof may be modified by non-conforming provisions herein.
  2. Transportation Service. Subject to the terms and conditions that apply to service under this Agreement, Transporter agrees to receive, transport and deliver natural gas for Shipper, on a firm basis. The Transportation Contract Demand, the Maximum Daily Quantity at each Primary Receipt Point, and the Maximum Daily Delivery Obligation at each Primary Delivery Point are set forth on Exhibit A. If contract-specific OFO parameters are set forth on Exhibit A, whenever Transporter requests during the specified time period, Shipper agrees to flow gas as requested by Transporter, up to the specified volume through the specified transportation corridor.
  3. Transportation Rates. Shipper agrees to pay Transporter for all services rendered under this Agreement at the rates set forth or referenced herein. Reservation charges apply to the Transportation Contract Demand set forth on Exhibit A. The Maximum Base Tariff Rates (Recourse Rates) set forth in the Statement of Rates in the Tariff, as revised from time to time, that apply to the Rate Schedule TF-1 customer category identified on Exhibit A, will apply to service hereunder unless and to the extent that discounted Recourse Rates or awarded capacity release rates apply as set forth on Exhibit A or negotiated rates apply as set forth on Exhibit D. Additionally, if applicable under Section 21 or 29 of the GT&C, Shipper agrees to pay Transporter a facilities charge as set forth on Exhibit C.
  4. Transportation Term. This Agreement becomes effective on the effective date set forth on Exhibit A. The primary term begin date for the transportation service hereunder is set forth on Exhibit A. This Agreement will remain in full force and effect through the primary term end date set forth on Exhibit A and, if Exhibit A indicates that an evergreen provision applies, through the established evergreen rollover periods thereafter until terminated in accordance with the notice requirements under the applicable evergreen provision.
  5. Non-Conforming Provisions. All aspects in which this Agreement deviates from the Tariff, if any, are set forth as non-conforming provisions on Exhibit B. If Exhibit B includes any material non-conforming provisions, Transporter will file the Agreement with the Federal Energy Regulatory Commission (Commission) and the effectiveness of such non-conforming provisions will be subject to the Commission acceptance of Transporter's filing of the non-conforming Agreement.
  6. Capacity Release. If Shipper is a temporary capacity release Replacement Shipper, any capacity release conditions, including recall rights, are set forth on Exhibit A.
  7. Exhibit / Addendum to Service Agreement Incorporation. Exhibit A is attached hereto and incorporated as part of this Agreement. If any other Exhibits apply, as noted on Exhibit A to this Agreement, then such Exhibits also are attached hereto and incorporated as part of this Agreement. If an Addendum to Service Agreement has been generated pursuant to Sections 11.5 or 22.12 of the GT&C of the Tariff, it also is attached hereto and incorporated as part of this Agreement.
  8. Regulatory Authorization. Transportation service under this Agreement is authorized pursuant to the Commission regulations set forth on Exhibit A.
  9. Superseded Agreements. When this Agreement takes effect, it supersedes, cancels and terminates the following agreement(s): Service Agreement dated September 21, 2015, but the following Amendments and/or Addendum to Service Agreement which have been executed but are not yet effective are not superseded and are added to and become an Amendment and/or Addendum to this agreement: None
IN WITNESS WHEREOF, Transporter and Shipper have executed this Agreement as of the date first set forth above.
  
Puget Sound Energy, Inc. Northwest Pipeline LLC
By: /S/ By: /S/
Name: BILL DONAHUE Name: MIKE RASMUSON
Title: MANAGER, NATURAL GAS RESOURCES Title: DIRECTOR, MARKETING SERVICES

 

EXHIBIT A

Dated and Effective February 19, 2019

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 100009)

between Northwest Pipeline LLC

and Puget Sound Energy, Inc.

SERVICE DETAILS

  1. Transportation Contract Demand (CD): 288,303 Dth per day
  2. Primary Receipt Point(s):
      Point ID Name Maximum Daily Quantities (Dth)    
      75 CLAY BASIN RECEIPT 58,906    
      80 GREEN RIVER GATHERING 2,209    
      297 SUMAS RECEIPT 77,875    
      401 STARR ROAD RECEIPT 75,936    
      543 OPAL PLANT 35,541    
      552 WESTGAS ARKANSAS 8,897    
      554 BLANCO RECEIPT 14,775    
      564 BLANCO HUB-TW (56498) 14,164    
      Total288,303
  3. Primary Delivery Point(s):
      Point ID Name Maximum Daily Delivery Obligation (Dth)   Delivery Pressure (psig)  
      232 TOLEDO400 400    
      233 WINLOCK400 400    
      243 CENTRALIA/CHEHALIS3,464 400    
      245 YELM2,700 400    
      246 BETHEL SCHOOL2,060 150    
      247 FREDRICKSON16,767 400    
      250 SOUTH TACOMA26,640 450    
      251 RAINIER TERRACE11,020 200    
      257 CAMERON VILLAGE (EAST AUBURN)50 150    
      258 BLACK DIAMOND2,830 550    
      259 COVINGTON4,100 300    
      260 LAKE FRANCIS4,755 150    
      263 ISSAQUAH HIGHLANDS28,850 475    
      264 NORTH BEND/SNOQUALMIE10,250 400    
      265 REDMOND28,876 400    
      268 DUVALL-COTTAGE LAKE5,000 400    
      271 ECHO LAKE700 150    
      273 BARTELHEIMER233 150    
      275 SNOHOMISH1,930 240    
      277 LAKE STEVENS1,666 150    
      278 GRANITE FALLS8,820 250    
      450 MAPLE HEIGHTS750 200    
      451 SOUTH SEATTLE48,000 250    
      475 MONROE1,196 250    
      476 SULTAN (MONROE)1 250    
      477 STARTUP (MONROE)1 250    
      478 GOLD BAR (MONROE)1 250    
      481 NORTH SEATTLE/EVERETT83,600 310    
      482 NORTH TACOMA80,700 300    
      483 LITTLE ROCK TAP1,140 150    
      484 EVERGREEN SHORES-BLACK LAKE100 350    
      545 RAINIER150 400    
      547 OLYMPIA100 400    
      Total377,250  
    Specified conditions for Delivery Pressure, pursuant to Section 2.4 of the General Terms and Conditions:
      1. Measurement for Goldbar, Startup and Sultan delivery points presently occurs at the Monroe delivery point.
      2. For delivery points listed on Exhibit A, Transporter's delivery pressure commitment under Section 2.4 of the General Terms and Conditions of Transporter's tariff will be satisfied by Transporter maintaining the pressures set forth on Exhibit A at the outlet of its respective meter stations where custody transfer measurement occurs for such downstream delivery points, excluding the pressure commitment for the North Seattle/Everett delivery point which resides at Shipper's town border station at the end of the lateral.
  4. Customer Category:
    1. Large Customer
    2. Incremental Expansion Customer: No
  5. Recourse, Discounted Recourse, or Negotiated Rate Transportation Rates:

    (Negotiated Rates are on Exhibit D if attached.)

    1. Reservation Charge (per Dth of CD): Maximum Base Tariff Rate, plus applicable surcharges
    2. Volumetric Charge (per Dth): Maximum Base Tariff Rate, plus applicable surcharges
    3. Additional Facility Reservation Surcharge Pursuant to Section 3.4 of Rate Schedule TF-1 (per Dth of CD): None
    4. Rate Discount Conditions Consistent with Section 3.5 of Rate Schedule TF-1: Not Applicable
    5. Negotiated Rate Conditions Consistent with Section 3.7 of Rate Schedule TF-1: Not Applicable
  6. Transportation Term:
    1. Primary Term Begin Date: November 01, 1992
    2. Primary Term End Date: October 31, 2033

      Specified conditional service agreement extensions pursuant to Section 11.9 of the General Terms and Conditions of the Tariff: None

    3. Evergreen Provision: Yes, grandfathered unilateral evergreen under Section 12.3 of Rate Schedule TF-1
  7. Contract-Specific OFO Parameters: None

    Specified contract-specific OFO conditions or alternative actions:

    In lieu of being subject to a Contract-specific OFO, Transporter has determined the following to be an acceptable means of addressing the flow requirements created by Shipper's amendment request. Transporter will calculate Shipper's Must-flow OFO obligations by adding the following vacated capacity associated with the point amendments back to Shipper's corridor rights used for calculating Shipper's Must-flow OFO obligations:

    CorridorVacated Corridor Rights
    Rainier Terrace to Fredrickson6,000
    Fredrickson to Bethel School22,766
    Bethel School to Yelm14,836
    Yelm to Olympia Line16,836

  8. Regulatory Authorization: 18 CFR 284.223
  9. Additional Exhibits:

    Exhibit B No

    Exhibit C No

    Exhibit D No

    Exhibit E No