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Agreement to Discount Firm Reservation Rates and Amendment to Service Agreement Between Transco and Consolidated Edison Company of New York

Strategic Insights

— 2 min read

Transcontinental Gas Pipe Line Company, LLC (Transco) and Consolidated Edison Company of New York (Con Edison) have entered into an agreement to discount firm reservation rates under Rate Schedule FT of Transco's FERC Gas Tariff. The agreement, signed on September 16, 2020, will supersede the previous agreement effective March 1, 2019. The new agreement will reduce the firm reservation rates for Con Edison's maximum daily quantity of 354 dekatherms per day by $0.03577 per dekatherm per day.

The agreement will be effective from October 1, 2020, to September 30, 2030, and will apply to the transportation contract quantity specified in the applicable service agreement, Transco Contract Number 1002239. The discounted firm reservation rate will be calculated based on the maximum rate under Rate Schedule FT for Zone 3 to Zone 6, as amended from time to time, minus the aforementioned discount rate. The agreement also includes provisions for the charging of applicable reservation rate surcharges under Rate Schedule FT, which will be in addition to the discounted firm reservation rate.

Additionally, the agreement specifies the following points of receipt for Con Edison's gas:

  • Discharge side of Seller's Compressor Station 45 at the Existing Point of Interconnection between Seller's Southwest Louisiana Lateral and Seller's Mainline Beauregard Parish, Louisiana (Station 45 TP#7101)
  • Suction side of Seller's Compressor Station 50 at the Existing Point of Interconnection between Seller's Central Louisiana Lateral and Seller's Mainline Evangeline Parish, Louisiana (Station 50 TP#6948)
  • Discharge side of Seller's Compressor Station 54 at Seller's Washington Storage Field, St. Landry Parish, Louisiana (Station 54 TP#6727)
  • Suction side of Seller's Compressor Station 62 on Seller's Southeast Louisiana Lateral in Terrebonne Parish, Louisiana (Station 62 TP#7141)
  • Suction side of Seller's Compressor Station 65 at the Existing Point of Interconnection between Seller's Southeast Louisiana Lateral and Seller's Mainline St. Helena Parish, Louisiana (Station 65 TP#6685)

Key Takeaways:

  • The agreement will reduce the firm reservation rates for Con Edison's maximum daily quantity by $0.03577 per dekatherm per day.
  • The agreement will be effective from October 1, 2020, to September 30, 2030.
  • The discounted firm reservation rate will be calculated based on the maximum rate under Rate Schedule FT for Zone 3 to Zone 6, as amended from time to time, minus the aforementioned discount rate.
  • The agreement includes provisions for the charging of applicable reservation rate surcharges under Rate Schedule FT.
  • The points of receipt for Con Edison's gas are specified in the agreement.

Statistics:

  • Con Edison's maximum daily quantity: 354 dekatherms per day
  • Discount rate: $0.03577 per dekatherm per day
  • Effective date: October 1, 2020
  • Expiration date: September 30, 2030

Sources:

  • Transcontinental Gas Pipe Line Company, LLC. (2020). Contract No.: 2020 - Gas - Contract No.73 Superseding Contract No.: NA Consolidated Edison Company of New York, Inc. With Transcontinental Gas Pipe Line Company, LLC.
  • Transcontinental Gas Pipe Line Company, LLC. (2020). Amendment to Service Agreement.
  • Federal Energy Regulatory Commission. (2020, April 30). Letter Order in Docket No. CP20-121.

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