Rate Schedule TF-1 Service Agreement

Contract No. 138077

 

THIS SERVICE AGREEMENT (Agreement) by and between Northwest Pipeline LLC (Transporter) and Puget Sound Energy, Inc. (Shipper) is made and entered into on March 21, 2024 and restates the Service Agreement made and entered into on December 16, 2009.

 

WHEREAS:
  1. The Olympia meter station and cross-over ("Meter Station Upgrade") was modified to deliver up to 70,248 Dth/day (in-service November 17, 2008) and the installation of one mile of 12" lateral ("Lateral") was constructed pursuant to the Facilities Agreement between Transporter and Shipper dated May 23, 2008. The Lateral along with the existing six-inch lateral are capable of delivering 70,248 Dth/day. The Meter Station Upgrade and Lateral are referred to collectively as Delivery Facilities.
  2. Significant events and previous amendments of this Agreement include:

    1. Prior to the Olympia lateral expansion, the Olympia meter station and lateral had a total capacity of 33,320 Dth/day. Shipper had contracted for such capacity under Service Agreements 100120, 100056, 100009 and 100311. Following the Olympia meter station upgrade and lateral expansion, the total capacity of the Olympia meter station and lateral was 70,248 Dth/day. When Service Agreement 138077 was executed, the Contract Demand incorrectly included the capacity that was already under contract. Accordingly, Transporter and Shipper corrected the Contract Demand on Service Agreement 138077 to 36,928 Dth/day to reflect only the incremental capacity created by the Olympia meter station and lateral expansion.

    2. Transporter and Shipper further agree to restate the Agreement in its most current form of service, extend the Primary Term End Date from December 3, 2024, to March 31, 2033, remove the Evergreen Provision, remove Exhibit C and include an Exhibit D with Shipper's updated payment responsibilities.

 

 

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 December 16, 2009, 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: RON ROBERTS Name: GARY VENZ
Title: VP, ENERGY SUPPLY Title: Director Commercial Services

 

EXHIBIT A

Dated and Effective March 21, 2024

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 138077)

between Northwest Pipeline LLC

and Puget Sound Energy, Inc.

SERVICE DETAILS
  1. Transportation Contract Demand (CD): 36,928 Dth per day
  2. Primary Receipt Point(s):
      Point ID Name Maximum Daily Quantities (Dth)    
      735 OLYMPIA LATERAL IN-LINE TRANS 36,928    
      Total36,928
  3. Primary Delivery Point(s):
      Point ID Name Maximum Daily Delivery Obligation (Dth)   Delivery Pressure (psig)  
      547 OLYMPIA36,928 400    
      Total36,928  
    Specified conditions for Delivery Pressure, pursuant to Section 2.4 of the General Terms and Conditions: None
  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: During the Negotiated Rates Period as outlined on Exhibit D of the agreement, subsections a. through d. above will not apply
  6. Transportation Term:
    1. Primary Term Begin Date: December 04, 2009
    2. Primary Term End Date: March 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: No
  7. Contract-Specific OFO Parameters and/or Alternative Actions in lieu of a Contract-Specific OFO:

    None

  8. Subordinate rights apply as defined in GT&C Section 1 Secondary Firm Service Rights with a Scheduling and Curtailment Priority per GT&C Section 12.1(b)(ii): No
  9. Regulatory Authorization: 18 CFR 284.223
  10. Additional Exhibits:

    Exhibit B No

    Exhibit C No

    Exhibit D Yes

    Exhibit E No

EXHIBIT D

Dated and Effective March 21, 2024, (subject to Commission acceptance)

to the

Rate Schedule TF-1 Service Agreement

(Contract No. 138077)

between Northwest Pipeline LLC

and

NEGOTIATED RATE PROVISIONS

(Pursuant to Section 3.7 of Rate Schedule TF-1)

  1. The Negotiated Rate Provisions will take effect on December 04, 2024 and will remain in effect for a period of eight(8) years through March 31, 2033 (Negotiated Rates Period).


    2. (Description of Negotiated Rate Provisions)

     

    The negotiated rate for service hereunder is comprised of the following components:

    1. Shipper will pay Transporter a monthly fee of $1,667 for the ongoing Operation and Maintenance attributable to the Delivery Facilities. This charge will be payable on or before the twenty-fifth (25th) day of each month and continue through the term of this Agreement. If Shipper fails to make payment of such invoice(s) within thirty (30) days of the initial invoice date, interest shall accrue on the unpaid portion of the billing(s) at the then applicable FERC Refund Interest Rate, including the collection of any reasonable attorney's fees, which may be incurred in collection of any payments due.

    2. Annually, Shipper will reimburse Transporter for all otherwise un-recovered capital expenditures incurred for repairs, and/or any modifications that are made to the Delivery Facilities as a result of any laws, rules, regulations and orders of any duly constituted authority having jurisdiction.

    3. In the event FERC ever requires an allocation of non-Delivery Facilities costs to Transportation service hereunder, such allocated costs will be fully reimbursed by Shipper on a monthly basis, pursuant to the payment procedure set forth in paragraph 1 above.

    4. For all scheduled nominations under this Agreement involving a receipt and/or delivery point not located on the Delivery Facilities, Shipper will pay a rate equivalent to the then Maximum Currently Effective rate for Rate Schedule TF-1 service under Transporter's Tariff.