Southern Operations Area - Allocation Terms and Conditions Sample Clauses

Southern Operations Area - Allocation Terms and Conditions. [No Settlement] Union currently facilitates movement to direct purchase through an allocation/assignment of TransCanada PipeLines Limited (“TCPL”) firm transportation (FT) capacity. This approach has been in place since direct purchase began and was last confirmed by the Board in its E.B.R.O. 493/494 Decision. The remaining amount of TCPL capacity has been declining and now represents a very small proportion of Union’s remaining system portfolio. Effective November 1, 2000, Union is proposing to allocate/assign upstream transportation based on a “vertical slice” of Union’s upstream transportation portfolio. The vertical slice will include all upstream transportation portfolio components including spot gas and will be updated to reflect Union’s portfolio each November 1. This methodology will apply to all system customers electing either a bundled direct purchase or unbundled service as well as to the annual administration of Daily Contract Demand (DCQ) changes as of the unbundling start date. All existing direct purchase assignments/allocations (i.e. 100% TCPL FT and FST) will be grandfathered which leaves existing direct purchase customers responsible for TCPL capacity even if existing direct purchase customers elect the unbundled service. The initial allocation of capacity to all system customers electing either the bundled or unbundled service through the vertical slice will allow them to make their own upstream arrangements upon the expiry of the transportation contracts underlying the vertical slice. The primary terms and conditions associated with upstream transportation assignments for the unbundled service in the Southern Operations Area are: • Subject to the agreement on Issue 1.2.3, a 22-day commitment to deliver volumes at Parkway at Union’s call (Parkway commitment equal to the capacity allocated/assigned to customers with a Parkway delivery point at the time a switch from system gas to direct purchase is facilitated and/or the weighted average Parkway portfolio percentage as adjusted annually to reflect changes in an REM’s upstream transportation portfolio and to reflect customers moving between REM’s). • Customer required to take a mandatory assignment or allocation of Union’s existing upstream contracts for the remaining terms of those contracts (ie. for the remaining customers on system gas supply and electing to move to a direct purchase option). • One year perpetual evergreening agreements. The one year evergreening assignments will autom...
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