Rate Schedule TF-1 Service Agreement

Contract No. 100056

 

THIS SERVICE AGREEMENT (Agreement) by and between Northwest Pipeline LLC (Transporter) and Puget Sound Energy, Inc. (Shipper) is made and entered into on February 22, 2019 and restates the Service Agreement made and entered into on September 21, 2015.

 

WHEREAS:
  1. Shipper originally entered into Contract No. 100056 on June 29, 1990 pursuant to the procedures set forth in Transporter's open season notification for the Expansion I project certified in Docket No. CP91-780.
  2. Significant events and previous amendments of this Agreement include:

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

     

    2. By Amendment dated November 05, 1998, Shipper made a valid request to reallocate 1,014 Dth/d from the Rivergate (Oregon Steel) Delivery Point to the Portland West/Scappoose Delivery Point.

     

    3. 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.

     

    4. By Amendment dated September 21, 2000, Shipper was allocated a total of 4,000 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.

     

    5. 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.

     

    6. By Amendment dated February 19, 2001, Shipper made a valid request to reallocate 1,900 Dth/d of existing Contract Demand at the Redmond Delivery Point to the Novelty Hill Delivery Point, effective March 01, 2001.

     

    7. 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; and

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

     

    8. By Amendment dated March 05, 2007, Transporter and Shipper extended the Primary Term End Date from March 31, 2008, to October 31, 2010.

     

    9.  By restatement effective February 12, 2008, the Primary Term End Date of the Agreement was extended from October 31, 2010 to October 31, 2013, for 82,216 Dth/day of Contract Demand, and the Primary Term End Date for the remaining 17,784 Dth/day of Contract Demand was extended to October 31, 2018, as detailed in Exhibit B.

     

    10.  By restatement effective March 25, 2011, Transporter and Shipper made the following modifications 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 82,216 Dth/d of Contract Demand from October 31, 2013 to October 31, 2020, and extended the Primary Term End Date for 17,784 Dth/d of Contract Demand from October 31, 2018 to October 31, 2020, rendering a single Primary Term End Date of October 31, 2020, for all 100,000 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 Snohomish Delivery Point from 150 psig to 240 psig; and

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

     

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

     

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

     

    13. By restatement effective December 09, 2014, Transporter and Shipper relocated a delivery condition on Exhibit A to Exhibit B because it is a non-conforming provision. The non-conforming provision, which clarifies the corridor rights for certain delivery points, was added to the Agreement by amendment dated June 25, 1993 and reflected in Transporter's August 11, 1993 report to the Commission in Docket No. ST93-5123. The delivery condition was placed on Exhibit B in a restatement of the Agreement dated March 1, 2007 but inadvertently relocated to Exhibit A in a subsequent contract restatement dated March 25, 2011.

     

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

     

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

      a. realign the following MDDOs and surrender certain southbound corridor rights in order to acquire additional northbound corridor rights:  increase Sedro/Woolley from 3,000 Dth/d to 15,329 Dth/d; decrease North Seattle/Everett from 15,000 Dth/d to 12,721 Dth/d; increase North Tacoma from 5,300 Dth/d to 14,450 Dth/d; increase Rainier Terrace from 1,000 Dth/d to 5,000 Dth/d; decrease South Tacoma from 8,000 Dth/d to 4,000 Dth/d; decrease Deer Island from 9,200 Dth/d to zero; decrease Portland West/Scappoose from 9,014 Dth/d to zero; and decrease Rivergate from 986 Dth/d to zero;

      b. eliminate the non-conforming language in Exhibit B that limits corridor rights for service to the Deer Island, Rivergate (Oregon Steel) and Portland West/Scappoose delivery points to domestic supply sources, as it no longer applies;

      c. 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

      d. extend the Primary Term End Date from October 31, 2023, to October 31, 2028 in exchange for additional northbound corridor rights, granted herein.

 

 

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 22, 2019

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 100056)

between Northwest Pipeline LLC

and Puget Sound Energy, Inc.

SERVICE DETAILS

  1. Transportation Contract Demand (CD): 100,000 Dth per day
  2. Primary Receipt Point(s):
      Point ID Name Maximum Daily Quantities (Dth)    
      75 CLAY BASIN RECEIPT 4,000    
      80 GREEN RIVER GATHERING 18,784    
      297 SUMAS RECEIPT 58,000    
      543 OPAL PLANT 4,000    
      564 BLANCO HUB-TW (56498) 15,216    
      Total100,000
  3. Primary Delivery Point(s):
      Point ID Name Maximum Daily Delivery Obligation (Dth)   Delivery Pressure (psig)  
      92 KERN RIVER MUDDY CREEK DELIV.3,000 450    
      232 TOLEDO150 400    
      234 CHEHALIS RURAL TAP100 150    
      242 MCMILLAN50 150    
      243 CENTRALIA/CHEHALIS200 400    
      246 BETHEL SCHOOL3,670 150    
      250 SOUTH TACOMA4,000 450    
      251 RAINIER TERRACE5,000 200    
      257 CAMERON VILLAGE (EAST AUBURN)200 150    
      259 COVINGTON1,500 300    
      260 LAKE FRANCIS3,200 150    
      263 ISSAQUAH HIGHLANDS5,750 475    
      264 NORTH BEND/SNOQUALMIE5,000 400    
      265 REDMOND6,100 400    
      268 DUVALL-COTTAGE LAKE3,000 400    
      275 SNOHOMISH100 240    
      278 GRANITE FALLS230 250    
      284 SEDRO/WOOLLEY15,329 500    
      451 SOUTH SEATTLE8,000 250    
      467 PORTLAND WEST/SCAPPOOSE0 450    
      468 RIVERGATE (OREGON STEEL)0 400    
      470 DEER ISLAND0 400    
      475 MONROE300 250    
      481 NORTH SEATTLE/EVERETT12,721 310    
      482 NORTH TACOMA14,450 300    
      483 LITTLE ROCK TAP50 150    
      484 EVERGREEN SHORES-BLACK LAKE900 350    
      545 RAINIER100 400    
      547 OLYMPIA5,000 400    
      608 NOVELTY HILL M/S1,900 500    
      Total100,000  
    Specified conditions for Delivery Pressure, pursuant to Section 2.4 of the General Terms and Conditions:

    1. 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 the 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: April 01, 1993
    2. Primary Term End Date: October 31, 2028

      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 South Tacoma4,000

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

    Exhibit B No

    Exhibit C No

    Exhibit D No

    Exhibit E No