Rate Schedule TF-1 Service Agreement

Contract No. 100010

 

THIS SERVICE AGREEMENT (Agreement) by and between Northwest Pipeline LLC (Transporter) and Avista Corporation (Shipper) is made and entered into on June 15, 2021 and restates the Service Agreement made and entered into on October 27, 2017.

 

WHEREAS:
  1. Effective November 1, 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original Replacement Firm Transportation Agreement dated July 31, 1991 (contract #100010), as amended November 1, 1992, superceded and replaced both a firm sales Service Agreement dated April 5, 1989 and Firm Transportation Agreements dated June 25, 1988 and June 24, 1988, to provide a partial conversion of Shipper's firm sales Contract Demand to firm Transportation Contract Demand, to consolidate Firm Transportation Agreement dated June 24, 1988 (#F-01) into the Replacement Firm Transportation Agreement, and to establish unilateral evergreen rights.
  2. Significant events and previous amendments of Contract No. 100010 reflected in the contract restatement include:

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

    2. With the restatement of Agreement on October 19, 2004, a provision was added to clarify the measurement location for certain farm tap delivery points formerly listed on the Agreement with zero MDDO and a note indicating the measurement location can be found on Exhibit B of the Agreement.

    3. By amendment dated June 20, 1994, a Contract-Specific OFO (CSOFO) provision through the Columbia River Gorge was added totaling 8,182 Dth/d (10,000 Dth/d / 55% = 18,182 Dth/d * 45% = 8,182 Dth/d) associated with 10,000 Dth/d of segmented capacity through October 31, 2025.

    4. By amendment dated June 21, 1994, a CSOFO provision through the Columbia River Gorge was added totaling 1,432 Dth/d (1,750 Dth/d / 55% = 3,182 Dth/d * 45% = 1,432 Dth/d) as a result of a delivery point amendment from Spokane to Portland/Vancouver through September 30, 2009.

    5. By amendment dated March 6, 1995, the CSOFO in Recital 4 above was deleted as a result of adding a non-conforming provision to define Shipper's firm transportation corridor rights of 59,896 Dth/d eastbound and 12,996 Dth/d westbound through the Columbia River Gorge.

    6. By amendment dated November 1, 1995, in conjunction with long-term temporary capacity releases, Shipper extended the Primary Term End Date through June 30, 2016 for 8,056 Dth/d of Contract Demand from the Sumas Primary Receipt Point to the Spokane Kettle Falls Primary Delivery Point; and Shipper extended the Primary Term End Date through October 31, 2025 for 20,000 Dth/d of Contract Demand from the Clay Basin (9,365 Dth/d), Ignacio Plant (2,470 Dth/d), Opal (5,530 Dth/d) and Moxa/Opal (2,635 Dth/d) Primary Receipt Points to the Grants Pass (10,000 Dth/d), Spokane Mead (7,159 Dth/d) and Spokane Kettle Falls (2,841 Dth/d) Primary Delivery Points.

    7. By amendment dated April 25, 1996, a CSOFO provision through the Columbia River Gorge was added totaling 7,400 Dth/d (9,044 Dth/d / 55% = 16,444 Dth/d * 45% = 7,400 Dth/d) as a result of delivery point amendment of 7,891 Dth/d from Spokane to Portland West/Scappoose and 1,153 Dth/d from Spokane to Rivergate-Oregon Steel through October 31, 2004.

    8. The non-conforming provision titled Klamath Falls Receipt-Delivery Limitation linking the Klamath Falls Receipt point to the Klamath Falls Delivery point was approved by FERC on November 8, 1996 in docket No. GT97-5.

    9. By amendment dated November 27, 1996, in conjunction with a Facilities Agreement for construction of the Palouse receipt meter station, Shipper extended the Primary Term End Date through October 31, 2017 for 7,000 Dth/d of Contract Demand from the Sumas Primary Receipt Point to the Spokane Mead Primary Delivery Point.

    10. By amendment dated May 4, 1998, revised mitigated Contract Demand levels for June through September were implemented effective June 1, 1998 pursuant to the Settlement in Docket No. RP96-367.

    11. By letter dated December 14, 1998 Washington Water Power Company notified Transporter of a name change to Avista Corporation (Avista) effective January 1, 1999.

    12. By amendment dated December 17, 2001, in conjunction with a Memorandum of Understanding concerning an option for Shipper to purchase Transporter's Klamath Falls Lateral, Shipper extended the Primary Term End Date through December 31, 2012 for 129,085 Dth/d of Contract Demand. This amendment also reflects the most recent changes to primary receipt and delivery point rights.

    13. By amendment dated October 19, 2004, the following CSOFO provisions were added (1) 6,526 Dth/d from the Portland Lateral to the Washougal corridor, (2) 5,914 Dth/d from the Washougal to Plymouth corridor, and (3) 20,304 Dth/d from the Plymouth to Spokane corridor through October 31, 2012.

    14. By amendment dated December 21, 2006, Shipper extended the Primary Term End Date for 129,085 Dth/d from December 31, 2012 to October 31, 2017; and for 8,056 Dth/d from July 30, 2016 to October 31, 2017.

    15. By amendment dated December 21, 2006, the non-conforming provision on Exhibit B relating to the assignment rights was eliminated.

    16. By amendment dated December 21, 2006, the non-conforming provision on Exhibit B relating to the seasonal contract demand mitigation that expired due to the effectiveness of new rates in Docket No. RP06-416 was eliminated.

    17. By amendment dated January 17, 2007, Transporter agreed to eliminate the CSOFO provisions reflected in Recital 12 above with the recall of the segmented release capacity that created the CSOFO in consideration for Shipper agreeing to the contract term extension reflected in Recital 12 above.

    18. The non-conforming provision titled Measurement Location was approved by FERC on March 28, 2007 in Docket No. RP07-365.

    19. By amendment dated March 26, 2008, the CSOFO provision reflected in Recital 4 above was eliminated from this Agreement. The CSOFO was transferred to Shipper's TF-2 Agreement 100314 on November 17, 1996 and inadvertently retained on this Agreement as well.

    20. By amendment dated November 23, 2009, the Primary Term End Date on Exhibit A was amended from October 31, 2025 to October 31, 2035, along with modifications to the non-conforming provision relating to the Primary Term End Date on Exhibit B. 

    21. By amendment dated November 23, 2009, Exhibit B was amended in order to add a provision that gives Shipper an option to purchase the Klamath Falls lateral in exchange for the contract term extensions in recital 20 (see "Klamath Falls Lateral Purchase Option" on Exhibit B).

    22. By amendment dated November 23, 2009, Exhibit B was amended to provide Shipper with an alternative option to purchase the Klamath Falls Lateral in exchange for the contract extensions in recital 20 (see "Alternative Klamath Falls Lateral Purchase Option" on Exhibit B). In addition, the Parties added a non-conforming Alternative Primary Term End Date on Exhibit B in the event FERC denies the Alternative Klamath Falls Lateral Purchase Option.

    23. By amendment dated August 3, 2010, 17,179 Dth/d of primary delivery point rights (MDDO's) were amended from the Spokane (Kettle Falls) Primary Delivery meter to Nine Mile Falls Primary Delivery meter to facilitate the permanent disconnect of the Spokane (Kettle Falls) meter station from Transporter's system.

    24. By amendment dated August 3, 2010, Exhibit B was amended to remove the Alternative Primary Term End Dates paragraph from Exhibit B, which governs the outcome of certain non-conforming provisions should they not be approved by FERC, as Transporter received FERC approval for such non-conforming provisions on January 14, 2010 in Docket No. RP10-256-000.

    25. By amendment dated June 25, 2012, Transporter and Shipper agreed to modify this Agreement to add the following three new non-conforming provisions: (i) Moscow Settlement; (ii) Rate Treatment of Potential Turnback Capacity; and (iii) FERC Approval.

    26. By amendment dated June 25, 2012, Transporter and Shipper agreed to add a delivery pressure condition on Exhibit A to reduce the delivery pressure at the Kellogg Delivery Meter from 250 psig to 150 psig through October 31, 2017.

     

    27. By amendment dated November 20, 2012, Transporter and Shipper agreed to remove the non-conforming provision on Exhibit B titled Rate Treatment of Potential Turnback Capacity to comply with the FERC order in Docket No. RP13-125 dated November 1, 2012. In addition, the Parties agree to remove the FERC Approval non-conforming provision since it is no longer necessary. 

     

    28. By amendment dated December 3, 2012, Shipper exercised its right under the non-conforming provision on Exhibit B titled Alternative Klamath Falls Lateral Purchase Option to purchase the Klamath Falls Lateral by entering into the Klamath Falls Purchase Agreement. ("Purchase Agreement") effective January 1, 2013. In accordance with the Purchase Agreement, Transporter and Shipper agree to (i) reduce the Contract Demand from 164,141 Dth/d to 157,961 Dth/d, and eliminate the associated 6,180 Dth of MDQ and MDDOs at the Klamath Falls receipt and delivery points and (ii) remove the non-conforming provisions titled Klamath Falls Receipt-Delivery Limitation, the Klamath Falls Lateral Purchase Option and the Alternative Klamath Falls Lateral Purchase Option.

     

    29. By restatement dated October 16, 2014, Transporter and Shipper agreed to remove the non-conforming provision titled Moscow Settlement and Moscow Action Plan as a result of Transporter installing the necessary facilities on July 22, 2013 to support Avista's historical contractual rights on the lateral. Transporter also agreed to extend its existing segmentations in exchange to extend the Primary Term End Date on Exhibit B for 126,661 Dth/d of receipt point capacity scheduled to expire in 2017 and 2025 to October 31, 2026.

     

    30. By restatement dated October 27, 2017, Transporter and Shipper amended the Agreement to reduce the delivery pressure condition at the Kellogg Delivery Meter from 250 psig to 150 psig from October 31, 2017 to October 31, 2018.

     

    31. Transporter and Shipper agree to restate the Agreement to extend the Primary Term End Date associated with 126,661 Dth/d of capacity from October 31, 2026, to October 31, 2035 in exchange for certain existing segmentation rights and point amendments. As a result of the contract extension, the non-conforming provision on Exhibit B titled "Primary Term End Dates", has been removed from the Agreement.  

 

 

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 October 27, 2017, 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.
  
Avista Corporation Northwest Pipeline LLC
By: /S/ By: /S/
Name: DENNIS VERMILLION Name: GARY VENZ
Title: President and CEO Title: Director Commercial Services

 

EXHIBIT A

Dated and Effective June 15, 2021

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 100010)

between Northwest Pipeline LLC

and Avista Corporation

SERVICE DETAILS

  1. Transportation Contract Demand (CD): 157,961 Dth per day
  2. Primary Receipt Point(s):
      Point ID Name Maximum Daily Quantities (Dth)    
      4 IGNACIO PLANT 11,029    
      75 CLAY BASIN RECEIPT 9,365    
      80 GREEN RIVER GATHERING 15,418    
      297 SUMAS RECEIPT 77,801    
      401 STARR ROAD RECEIPT 9,429    
      543 OPAL PLANT 21,337    
      556 BLANCO HUB-MILAGRO (56419) 13,582    
      Total157,961
  3. Primary Delivery Point(s):
      Point ID Name Maximum Daily Delivery Obligation (Dth)   Delivery Pressure (psig)  
      179 NORTH POWDER120 150    
      180 UNION590 150    
      181 LA GRANDE5,440 200    
      188 STANFIELD DELIVERY11,960 150    
      204 GOLDENDALE850 150    
      212 STEVENSON #2240 150    
      213 STEVENSON240 150    
      343 OAKLAND100 150    
      345 SUTHERLIN/OAKLAN320 150    
      347 WINCHESTER100 150    
      351 ROSEBURG4,129 150    
      353 WINSTON/DILLARD1,070 150    
      355 ROUND PRAIRIE(ROSEBURG LUMBER)1 150    
      359 MYRTLE CREEK/RIDDLE1,120 150    
      361 CANYONVILLE250 150    
      366 GRANTS PASS18,060 300    
      375 CONNELL850 150    
      377 LIND100 150    
      379 RITZVILLE650 150    
      380 KEYSTONE50 150    
      381 SPRAGUE100 150    
      382 CHENEY (MEDICAL LAKE)2,400 150    
      383 SPOKANE WEST5,600 350    
      385 SPOKANE MEAD44,549 350    
      403 MCGUIRE2,000 150    
      404 POST FALLS2,000 250    
      409 WARDEN1,000 150    
      416 ENDICOTT200 150    
      417 COLFAX1,226 150    
      418 PALOUSE/ALBION305 150    
      419 PULLMAN6,000 150    
      420 MOSCOW7,400 150    
      421 COLTON61 150    
      422 UNIONTOWN80 150    
      423 GENESEE68 150    
      424 LEWISTON W.4,269 150    
      425 LEWISTON E.7,000 150    
      426 LEWISTON PFI4,000 150    
      522 COEUR D'ALENE W.6,000 150    
      523 COEUR D'ALENE E. (HAYDEN)4,999 150    
      524 PINEHURST480 150    
      525 PAGE MINE30 150    
      527 SMELTERVILLE162 200    
      528 KELLOGG4,126 250    
      718 NINE MILE FALLS17,179 375    
      Total167,474  
    Specified conditions for Delivery Pressure, pursuant to Section 2.4 of the General Terms and Conditions:

    Shipper agrees to accept a 150 psig pressure at the Kellogg Delivery Point instead of the pressure stated above for this point through October 31, 2018.

  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, 2035

      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 and/or Alternative Actions in lieu of a Contract-Specific OFO:

    None

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

    Exhibit B Yes

    Exhibit C No

    Exhibit D No

    Exhibit E No

EXHIBIT B

Dated and Effective June 15, 2021,

(subject to Commission acceptance)

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 100010)

between Northwest Pipeline LLC

and Avista Corporation

 

NON-CONFORMING PROVISIONS

Measurement Location

The following provision was accepted as non-conforming by the Commission on March 28, 2007 in Docket No. RP07-365.

The following provision clarifies the measurement location for certain farm tap delivery points formerly listed on the Agreement with zero MDDO and a note indicating the measurement location: Spokane Mead delivery point is also the measurement point for downstream
delivery points to Kenneth L. Byford Farm Tap, Christian School Farm Tap, Orville Coch Farm Tap, Roy Cutler Farm Tap, Flesland Farm Tap, J.T. Grant Farm Tap, William Meyers Farm Tap, Mount Saint Michaels Farm Tap, Newman Lake Farm Tap, John Preston Farm Tap, Fred Rogers Farm Tap, Scheel Farm Tap, Roy Simmons
Farm Tap, WWP Farm Tap.

Columbia River Gorge Primary Rights

The following provision was accepted as non-conforming by the Commission on November 08, 1996 in Docket No. GT97-5.

The following provision was instituted by the March 6, 1995 Amendment to replace contract specific OFO provisions associated with incorporating former contract #F-01 into Contract #100010:
Shipper will have firm transportation corridor rights of 59,896 MMBtu per day eastbound through the Columbia River Gorge and 12,996 MMBtu/d westbound through the Columbia River Gorge.