Agreement to Discount Firm Reservation Rates Between Transco and Consolidated Edison Company of New York, Inc.

Strategic Insights -

Consolidated Edison Company of New York, Inc. and Transcontinental Gas Pipe Line Company, LLC have entered into a binding agreement to discount firm reservation rates for natural gas transportation services. Under the terms of the agreement, the discounted firm reservation rate will be effective from October 1, 2020, through September 30, 2030. The discount rate will be applied to a maximum daily quantity of 57,100 dts per day, with a discount rate of $0.03577 per dt. This agreement supersedes and cancels the previous agreement effective March 1, 2019.

Key Takeaways:

  • The agreement is between Transco and Consolidated Edison Company of New York, Inc. for the transportation of natural gas.
  • The discounted firm reservation rate will be effective from October 1, 2020, through September 30, 2030.
  • The maximum daily quantity for the discounted rate is 57,100 dts per day.
  • The discount rate is $0.03577 per dt, with a minimum of the applicable minimum daily reservation rate per dt under Rate Schedule FT.
  • The agreement is subject to Transco's FERC Gas Tariff, and any modifications must be executed by both parties in a supplementary written agreement.
  • The agreement supersedes and cancels the previous agreement effective March 1, 2019.
  • The agreement was signed by Hector Alatorre, Director of Customer Services at Transcontinental Gas Pipe Line Company, LLC, on September 16, 2020.
  • The agreement is valid for a period of 10 years, from October 1, 2020, to September 30, 2030.
  • The maximum daily quantity of 57,100 dts per day will be discounted at a rate of $0.03577 per dt.

Statistics:

  • Maximum daily quantity: 57,100 dts per day
  • Discount rate: $0.03577 per dt
  • Discount period: October 1, 2020, through September 30, 2030
  • Number of years: 10 years
  • Agreement signing date: September 16, 2020

Sources:

  • Transcontinental Gas Pipe Line Company, LLC (9/16/2020). Agreement to Discount Firm Reservation Rates. DocuSign Envelope ID: 6A388568-8515-410E-AB1E-6AC1A7822219