Iowa Admin. Code r. 199-19.13 - Transportation service
(1)
Purpose. This subrule requires gas distribution utility
companies to transport natural gas owned by an end user on a nondiscriminatory
basis, subject to the capacity limitations of the specific system. System
capacity is defined as the maximum flow of gas the relevant portion of the
system is capable of handling. Capacity availability shall be determined using
the total current firm gas flow, including both system and transportation
gas.
(2)
End user
rights. The end user purchasing transportation services from the
utility shall have the following rights and be subject to the following
conditions:
a. The end user shall have the
right to receive, pursuant to agreement, 100 percent of the gas delivered by it
or on its behalf to the transporting utility (adjusted for a reasonable volume
of lost, unaccounted-for, and company-used gas).
b. The volumes which the end user is entitled
to receive shall be subject to curtailment or interruption due to limitations
in the system capacity of the transporting utility. Curtailment of the
transportation volumes will take place according to the priority class,
subdivision, or category which the end user would have been assigned if it were
purchasing gas from the transporting utility.
c. During periods of curtailment or
interruption, the party is entitled to a credit equal to the difference between
the volumes delivered to the utility and those received by the end user,
adjusted for lost, unaccounted-for, and company-used gas. The credit shall be
available at any time, within the conditions of the agreement.
d. The end user shall be responsible for all
costs associated with any additional plant required for providing
transportation services to the end user.
(3)
Transportation service
charges. Transportation service shall be offered to at least the
following classes:
a. Interruptible
distribution service with system supply reserve.
b. Interruptible distribution service without
system supply reserve.
c. Firm
distribution service with system supply reserve.
d. Firm distribution service without system
supply reserve.
(4)
Transportation service charges and rates. All rates and
charges for transportation shall be based on the cost of providing the service.
a. "System supply reserve" service shall
entitle the end user to return to the system service to the extent of the
interstate pipeline capacity purchased. The charge shall be at least equal to
the administrative costs of monitoring the service, plus any other costs
(including but not limited to gas demand costs which are directly assignable to
the end user).
b. End users without
system supply reserve service may only return to system service by paying an
additional charge and are subject to the availability of adequate interstate
pipeline capacity. An end user wishing to receive transportation service
without system supply reserve must pay the utility for the discounted value of
any contract between the utility and the end user remaining in effect at the
time of beginning transportation service. The discounted values shall include
all directly assignable and identifiable costs (including but not limited to
gas costs).
c. The utility may
require a reconnection charge when an end user receiving transportation service
without system supply reserve service requests to return to the system supply.
The end user shall return to the system and receive service under the
appropriate classification as determined by the utility.
d. The end user electing to receive
transportation service shall pay reasonable rates for any use of the
facilities, equipment, or services of the transporting utility.
(5)
Reporting
requirements. A natural gas utility shall be required to provide a
copy of information concerning transportation contracts upon request of the
commission, commission staff, or the office of consumer advocate.
(6)
Written notice of risks.
The utility must notify its large volume users as defined in 19.14(1)
contracting for transportation service in writing that unless the customer buys
system supply reserve service from the utility, the utility is not obligated to
supply gas to the customer. The notice must also advise the large volume user
of the nature of any identifiable penalties, any administrative or reconnection
costs associated with purchasing available firm or interruptible gas, and how
any available gas would be priced by the utility. The notice may be provided
through a contract provision or separate written instrument. The large volume
user must acknowledge in writing that it has been made aware of the risks and
accepts the risks.
Notes
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