Bangor area homeowners and Bangor area businesses, large and small, are lining up to reap the rewards of natural gas. And why not? Already used extensively in homes, in commerce and in industry throughout the United States, natural gas can help both the homeowner and the company:

  • Save money on initial installations
  • Reduce electrical costs
  • Respond flexibly to shifting fuel prices
  • Reduce air pollution
  • Slash operating and maintenance costs
  • Meet federal environmental standards and minimize compliance costs
  • Expand into new markets
  • Compete against companies outside Maine
  • Allow for Energy Tax Credits

What about safety? Properly installed and used, all major types of energy are safe. But it’s important to note that natural gas produces about half as much carbon monoxide as does oil when burned. And, because it’s lighter than air, it dissipates quickly in the unlikely event of a leak.

Bangor Gas Service Agreement

Rates & Tariffs

Rate Plan

NOTICE: Rate change for the upcoming month of Dec-17.

Rates & Charges for Natural Gas Sales and Transportation Services

Residential Service Charges*
Customer Charge $14.29 per month
Transportation Charge $0.356 per therm
Energy Charge*** $0.739 per therm
Past Gas Cost Adjustment*** $0.069 per therm
Small C&I Firm Sales Service Charges*
Customer Charge $15.20 per month
Transportation Charge $0.279 per therm
Energy Charge*** $0.739 per therm
Past Gas Cost Adjustment*** $0.069 per therm
Small C&I Transportation Service Charges*
Customer Charge $15.20 per month
Transportation Charge $0.279 per therm
Large C&I Firm Sales Service Charges
Customer Charge $357.00 per month
Transportation Charge $0.297 per therm
Energy Charge*** $0.739 per therm
Past Gas Cost Adjustment*** $0.069 per therm
Large C&I Firm Transportation Service** Charges
Customer Charge $357.00 per month
Transportation Charge $0.297 per therm
Interruptible Service Negotiated Rates (See Rate Schedule Sheet 55)
Negotiated Service
Customer Charge Negotiated Rates (See Rate Schedule Sheet 57)
Transportation Charge Negotiated Rates (See Rate Schedule Sheet 57)

Rates do not include taxes or other charges that may be levied by governmental bodies with the exception of the MPUC and Public Advocate annual fee assessments under 35A M.R.S.A., Section 116. The Transportation Charge includes a portion of the assessments. Such taxes or other charges (except annual fee assessments) will be reflected as seperate line items on Customers’ bill.
** Customer will be required to pay the cost of installing the necessary electronic metering device needed to take service under this rate schedule.
*** See ENERGY CHARGE RATE SCHEDULE SHEET 49.1 for current prices. The ENERGY CHARGE OPTIONS are fully described on RATE SCHEDULE SHEETS 49.2 and 49.3.

Energy Charge Options

Rates & Charges for Natural Gas Sales Only

Rate Schedule Charges
Standard Price Option (SPO)
Price Current Month1 $0.739 per therm
SPO Past Gas Cost Adjustment $0.069 per therm
Fixed Price Option (FPO)
Fixed Price2 $ Unavailable per therm
FPO Past Gas Cost Adjustment $ Unavailable per therm

1. Bangor Gas estimates the Standard Price Option (SPO) Energy Charge rate based on predicted gas prices as published by NYMEX, New York Mercantile Exchange, at Henry Hub, including related costs as more fully described in the Company’s Tariff, Section IV, Cost of Gas Adjustment Computation (CGA). The actual Energy Charge for the month may fluctuate with market prices. The actual costs could be under or over the estimated costs. Differences between the actual and estimated costs and revenues collected during the month will be reflected in the next month’s SPO Past Gas Cost Adjustment, either increasing or decreasing it. For good reason the Commission may allow the company to exceed the rate cap. Please see Bangor Gas’ web site (www.bangorgas.com) or call its offices for current pricing.

Tariff

PRELIMINARY STATEMENT

1. General
The Company shall furnish service under its rate schedules and these Terms and Conditions, as approved from time to time by the Maine Public Utilities Commission (“MPUC”), except when service is provided by a separate written contract. Copies of currently effective Terms and Conditions are available at the offices of the Company. These documents may be revised, amended, supplemented, or otherwise changed from time to time in accordance with the Laws of Maine, and such changes, when effective, shall be subject to the MPUC Rules and Regulations as effectively as though originally incorporated therein. Subject to MPUC Rules and Regulations, all contracts made by the Company shall be binding upon, and oblige, and inure to the benefit of, the successors and assigns, heirs, executors, and administrators, of the parties thereto. The Company may from time to time offer promotional allowances for the purpose of encouraging the selection, use or increased usage of the Company’s service.

2. Service Territory
Subject to the requirements contained herein, the Company will provide natural gas service to the following municipalities in Maine: Bangor, Bradley, Brewer, Bucksport, Eddington, Hampden, Hermon, Lincoln, Milford, Old Town, Orono, Orrington, and Veazie.

1.Overview
The Company’s Alternative Rate Plan (“ARP”) approved by the Commission in Docket No. 2012-00598 established new rates as set forth in this tariff. These rates are applicable to all of Bangor Gas’s tariffed delivery service customers, including those in the Loring Division of Bangor Gas. Bangor Gas may seek different rates for its Loring Division customers pursuant to 35-A M.R.S. § 307. Under this ARP, the Company will be subject to certain metrics as established in the Service Quality Program to be separately approved by the Commission. This ARP is due to expire on December 31, 2021.

TERMS AND CONDITIONS-ALL CUSTOMERS

1. Definitions

Account: Any person or entity taking service at a single location.

Account Balance: The total amount owed by a Customer that has been properly billed by the Company in accordance with Chapter 810 of the MPUC Rules and Regulations.

Actual Reading: Is a meter reading obtained by a Company employee or its agent from either the meter or a remote registration device attached thereto.

Amount Overdue: An amount that the Company has properly billed to a Customer that has not been paid in full by the due date of the bill as provided in Chapter 810 of the MPUC Rules and Regulations. The due date shall not be less than 30 days after the bill is mailed or hand delivered to the Customer.

Applicant: Any person who applies for gas service and who is not currently a Customer of the Company.

Balancing Account: An account in which expenses are compared with actual revenues derived from rates designed to recover those expenses. Any resulting over- or under collection, plus interest, is owed from or due to ratepayers, respectively. Account balances are amortized in future rates, as approved by the Commission.

Base Level of Usage: Shall mean a normal level of usage based upon the previous three (3) years of usage or, absent such history, a reasonable estimate by the Company.

Bill: A written statement from the Company to a Customer that states the amount owed by the Customer for the current billing period, the amount overdue, the account balance, late fees, and any other charges lawfully owed by the Customer.

British Thermal Unit (BTU): One British Thermal unit is the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit.

Business Day: Is any Monday through Friday when the Company business offices are open.

Ccf: One hundred cubic feet of gas containing not less than 1,000 BTU per cubic foot.

City Gate: The point at which Company facilities interconnect with the interstate pipeline(s).

Collection Fee: Shall mean the amount charged to a Customer if the Company sends an agent to the Customer’s premises to disconnect service due to non-payment and the overdue amount is paid pursuant to Section 10 of Chapter 810 of the MPUC Rules and Regulations.

Commission: Shall mean the Maine Public Utilities Commission or the MPUC.

Company: Shall mean Bangor Gas Company, LLC or Utility.

Cost-of-Service Regulation: Regulation of public utilities that uses the utility s costs as the bases in determining utility rates and charges.

Cubic Foot (CF): Shall be that amount of gas which occupies one cubic foot at an absolute pressure of 14.73 pounds per square and a temperature of 60 degrees Fahrenheit.

Customer: Any person(s), partnership, corporation or other entity (a) who is currently purchasing as customer of record, or (b) whose application for service has been accepted, or (c) is receiving the benefit of the use when no other party has made application to be a Customer. The term Customer may also include Agents, Brokers, and Marketers of natural gas services.

Day: Shall mean a period of twenty-four (24) consecutive hours beginning and ending at 10:00 AM Eastern Time.

Dekatherm (Dth): Shall be the quantity of heat energy equal to one million (1,000,000) BTUs.

Delivery Point: Shall mean a physical interconnection between the Company and the Customer, as specified in the Customer s executed service agreement, at which the Company may deliver gas to the Customer or for the Customer s account.

Deposit: Payment held as security for future payment or performance and that is reimbursable after the Customer establishes that the circumstances that originally justified the request for payment no longer exist.

Disputes: A grievance of a Customer or applicant about the Company s application of any provision of Chapter 810 of the MPUC Rules and Regulations.
Firm Service: Service that cannot be curtailed except in the case of necessary alterations or repairs, and in the case of emergency.

Gross Domestic Product-Price Index (GDP-PI): A measure of inflation based on the change in value of all consumer goods produced in a given period (usually one year).
Interruptible Service: Gas service that can be curtailed at the sole discretion or the Companyupon proper notification as established by tariff or contract.

Late Payment: Is any payment made after the date payment was due.

Main Line: The pipe(s) used by the Company for the distribution of gas other than the service line.

Mcf: Shall mean one thousand (1000) cubic feet.

Meter or Meter Assembly: Any of Bangor Gas meters, regulators, piping, valves, vents, relief valves, gauges and/or other apparatus, including remote meter reading devices required to measure and control flow or pressure of natural gas.

Month: Shall mean a period beginning at 10:00 AM Eastern Time on the first day of the calendarmonth and ending at 10:00 AM Eastern Time on the first day of the following month.

MPUC Rules and Regulations: Shall mean the Maine Public Utilities Commission Rules and Regulations, a copy of which is available at any business office of the Company.

Multi-Unit Residential Dwelling: An apartment or condominium building, duplex, court group, housing project, trailer park, mobile home park or any group of single family dwellings on a single premises.

Non-Residential Service: Gas service supplied directly by the Company, that does not qualify for the service under the Residential Rate Schedule.

Payment: Is considered to be made on the date when it is received by the Company or one of its authorized collection agents.

Premises: A piece of land or real estate, including buildings and other appurtenances thereon where a Customer receives Service.

Public Right-of-Way: The territorial limits of any street, avenue, road or way (other than a limited access thoroughfare) that is for any highway purpose under the jurisdiction of the State of Maine or the legislative body of any county, city, town, village, or other municipal authority and is open to the public use.

Rate Schedule(s): Bangor Gas approved tariffs on file with the Commission describing rates and charges for Service.

Residential Customer: Shall mean a Customer in a house, apartment, mobile home or singlemeter, multi-unit structure that is provided with gas service for personal, family, or household use or a Customer whose gas is utilized exclusively in connection with religious purposes by any corporation or association organized and conducted in good faith for religious purposes.

Return on Equity: The return to investors on the capital invested, expressed as a percentage.

Service: The delivery and all other activities incidental to the delivery of natural gas by Bangor Gas to the Customer.

Service Line: All piping, including associated metering and pressure reducing appurtenances that transports gas below grade from gas main to the outlet flange of the meter assembly located adjacent to the wall of a Customer’s building.

Single-Family Dwelling Unit: A house, apartment, flat, condominium, townhouse, house trailer, mobile home, room or suite of rooms, or any residential unit which contains cooking facilities and is intended or designed for occupation by a person or family as a residence for living, eating and sleeping.

Standby: Service for emergency or backup purposes only, to equipment installed and used for an alternative energy source. Such service shall be negotiated by the Customer and Company.

Summer Period: Defined as the billing period from May 1 through October 31.

Tampered Equipment: Is any service related equipment that has been subjected either to unauthorized interference so as to reduce the accuracy or eliminate the measurement of gas service, or to unauthorized connection occurring after the Company has physically disconnected service.

Tariff Schedules: The entire body of effective rates, charges, and rules collectively of the utility, as set forth herein, and including title page, preliminary statements, rate schedules, rules and sample forms.

Tariff Sheet: An individual page of the tariff schedule.

Temporary Service: Service supplied for a limited period at a location where the facilities devoted especially to the service are not expected to have further usefulness at that location after the service in question has been discontinued, and includes any service where the useful life of the installation is substantially less than that which would normally be expected of such facilities. Service shall also be considered temporary for any applicant or Customer who intends to take service from the Company for any period of less than thirty-six (36) months at the time of application.

Therm: Shall mean the quantity of heat energy equal to one hundred thousand (100,000) BTUs.

Therm Factor: Shall be a factor obtained by the division of the total quantity of Dekatherms (Dth) purchased by the Company over a period of time by the total quantity of Mcfs purchased over that same period of time, to four decimal places.

Unauthorized Use: The unreasonable interference or diversion of utility services including tampering with meters, unmetered service that flows through a device connected between service line and customer-owned facilities, or restoring service without authorization.

Upstream Pipeline: Shall mean an interstate pipeline, intrastate pipeline or local producer or distribution company to which the Company is physically connected and from which the Company may take deliveries of gas.

Utility: Shall mean Bangor Gas Company, LLC or the Company.

Utility System: The pipeline transmission and distribution system and related facilities located in Maine and operated by the Company.

Winter Period: Defined as the period from November 1 through April 30.

A. Application Procedures
All application procedures shall be performed in accordance with Section 4 of Chapter 810 and Chapter 860 of the MPUC Rules and Regulations for residential and non-residential customers, respectively. Application for gas service may be made at any business office of the Company. Whether or not a signed application for service is made by the Customer and accepted by the Company, the rendering of gas service by the Company and its use by the Customer shall be deemed a contract between the parties and subject to all provisions of the Tariff, as in effect from time to time, applicable to the service.

The application or the depositing of any sum of money by the applicant shall not require the Company to render service until the expiration of such time as may be reasonably required by the Company to determine if applicant has complied with the provisions of these Terms and Conditions and as may reasonably be required by the Company to install the required service facilities.

The Company shall not be required to serve any applicant if the distance of the premises to be served from an existing suitable distribution main, or the difficulty of access thereto, is such that the estimated annual income (revenue excluding gas costs) from the service applied for is insufficient to yield a reasonable return to the Company unless such application is accompanied by a cash payment or an arrangement satisfactory to the Company guaranteeing a stipulated revenue for a definite period of time or both. (See Service and Main Line Extensions and System Improvements section)

Except as otherwise specifically provided for under a rate or elsewhere herein, all rates are predicated on a period of service at one location of not less than twelve (12) consecutive months.

B. Temporary Use
Where service under the rate schedules is to be used for temporary purposes only, the Customer may be required to pay the cost of installation and removal of equipment required to render service in addition to payments for gas consumed. Said costs or installation and removal may be required to be paid in advance of any construction by the Company.

C. Unauthorized Use
Unauthorized connection to the Company’s gas service facilities, or use of service obtained from the Company without authority or through false pretense, may be terminated by the Company without notice if a clear and present danger to life, health, physical property, or the utility’s ability to serve other Customers exists. In any event, the use of service without proper notification to the Company will, in addition to any lawful remedies which the Company may have, render the user liable for the service so unlawfully used at the rate or rates applicable thereto; the amount thereof to be determined by the Company by measurement where possible, otherwise by estimate.

D. Election of Rate Schedules
Upon application for service or upon request, the applicant or Customer shall elect the applicable rate schedule best suited to the Customer s or applicant s requirements. The Company will upon request assist in making such election but does not guarantee that the Customer will be served under the most favorable rate schedule at all times. The Company shall not be held responsible for a Customer’s failing to elect the most favorable rate schedule and will not refund the difference in charge(s) under different rate schedules applicable to the same class of service.  Upon notification of any material changes in the Customer’s equipment installations or load conditions, the Company will assist in determining if a change in rate schedules is desirable or necessary. Customer shall not be allowed more than one (1) such change in rate schedule within any twelve (12) month period unless such subsequent change is ordered or approved by the MPUC or required by an emergency condition beyond the control or the Customer. When new rates become effective, the Customer may change rate schedules at that time, regardless of whether the 12-month period has elapsed.

A. Payment Obligation
The supply of service for any purpose, at any location, is contingent upon payment of all charges provided in the rate schedules as applicable to the location and the character of service.  Unless otherwise specifically provided in the rate, bills for service shall be net and shall be due and payable upon presentation. The Company will submit bills for gas service and collection of payment thereof in accordance with the applicable provisions of Chapters 810 and 860 of the MPUC Rules and Regulation.

B. Charge for Late Payment:
As provided for in Chapter 870 of the MPUC Rules and Regulations, a late payment charge of 1% per month (12% per annum) will be assessed on all balances that remain unpaid at the end of each billing period. Said period will be no less than thirty (30) days from date of postmark.  When bills are paid by mail, the postmark on the envelope will be considered as the date of payment. A payment is late and subject to the late payment charge if it has not been received within thirty (30) days of the postmark on the payment envelope.

C. Charge for Returned Checks
As provided for in Chapter 870 of the MPUC Rules and Regulations, the Company will charge Customers a fee equal to the greater of $5.00 per check or the amount the bank charges the utility, not to exceed $15.00, for Customer checks returned for non-payment to the utility by a bank.

D. Deposits
The Company’s right to require a deposit from a residential or non-residential Customer shall be governed by the MPUC Rules and Regulations, Chapters 810 and 860, respectively. The Company will pay interest on all cash deposits at such rate and interval as specified by Chapter 870 of MPUC Rules and Regulations.

The Company reserves the right to designate the locations and specifications for all its piping, meters, fixtures, and fittings and to determine the amount of space, which must be left unobstructed for the installation and maintenance thereof. Applicant may request an alteration of such designation but, if consented to by the Company, the excess cost of such revised designation over and above the cost of the original Company design shall be borne by Applicant. In the event modifications to Customer’s premises are performed that may prevent access to Company facilities or create an unsafe condition, Company will correct such condition at Customer’s expense.

Whenever the Company installs facilities including service lines, service connections or appurtenant facilities, at the request of an Applicant who does not take service within 60 days from the installation of such facilities, Applicant shall bear the entire reasonable expense of providing, placing and constructing such facilities. Upon gas delivery Applicant or Customer will be entitled to a refund for such part of the facilities expense as the Company is herein before willing to assume.

The Customer shall make or procure satisfactory conveyance to the Company of all necessary easements and rights-of-way, including right or convenient access to the Company’s property for furnishing adequate, safe and continuous service or for the removal of the Company’s property upon termination of service.

The Company shall not be required to install service(s) where the business to be secured will not be taking service from the Company for a reasonable duration.

Ordinarily and at the utility’s sole discretion, no new service pipes or main extensions are installed during winter conditions (when frost is in the ground) unless the Customer defrays the extra expenses and provided any required excavation is not prohibited by the local government having jurisdiction.

A. Net Investment Test and Contributions in Aid of Construction Calculation

In areas in which the Company is authorized to operate, mains will be extended pursuant to these Terms and Conditions, and the MPUC Rules and Regulations. Gas service will be provided under the rate schedules set forth in Section VI hereafter, and system improvements will be undertaken for Customers connected and converted load subject to the following Net Investment Test.

Estimated Annual Transportation Revenues is defined as the estimated annual transportation revenue to be derived by the Utility from the investment net of gas costs. The Estimated Annual Transportation Revenues must be greater than or equal to 22% of the cost to the Company of the main extension and service(s) (the Company Cost ). The Company will provide customers (the initial customer(s) ) requesting an extension or improvement an allowance for such work not to exceed five times the Estimated Annual Transportation Revenues . The customers requesting the extension or system improvement will be required to pay the Company any amount by which the Company cost exceeds the Estimated Annual Transportation Revenues multiplied by three (the Excess Cost ). The allowance provided by the Company for main and service line extensions will be applied to service line extensions first, with any remaining portion being used for the main extension.

In addition to the Excess Cost, the initial customer(s) will be required to pay the Company the net present value of the federal and state income tax less the benefit of tax depreciation on the Excess Cost, using the Company s marginal income tax rates. The sum of the Excess Cost and the income taxes net present value comprise the Contribution in Aid of Construction ( CIAC ), which is derived by multiplying the Excess Cost by 1.378.  Payment of the CIAC will be apportioned among the initial customers according to their relative cost and usage. Payment will be required in advance or in accordance with installment program provisions in effect at the time that the installment contract is signed. The installment program provisions will be on file with the MPUC.

B. Subsequent Customer Contributions and Refunds
If the connection of a subsequent customer(s) results in additional cost exceeding the Net Investment Test for such customer(s), then such customer(s) will be required to pay the Company for such additional cost and income tax net present value effects. If the cost of connecting a subsequent customer(s) does not exceed the Net Investment Test for such customer(s), no payment is required from such additional customer(s).

If during the period of five years immediately following the date of construction completion, additional customers (the subsequent customer ) request connection to a main extension or system improvement for which a CIAC was paid, the CIAC will be recalculated. Such recalculation will result in a refund of some or all of the CIAC to the initial customer(s) if such subsequent customer(s) produces net revenue in excess of costs under the Net Investment Test. A refund will be made in accordance with paragraph C below. No refunds will be made after the fifth year following the date of construction completion.

C. Refund of Original Contributions
In the event that any portion of the original Excess Cost is subject to a refund as described in paragraph B, above, the amount of such refund shall be the difference between the recalculated and the original Excess Cost, as adjusted to reflect income tax net present value effects per the following table.

Year of Percent of Net Present Value
Refund Tax Adder to be Refunded
1 100%
2 83%
3 74%
4 66%
5 60%

The percentages stated are to be applied only to the applicable income tax net present value that was charged on the portion of the Excess Cost being refunded.

For example, if the Excess Cost was $1,000 and the full amount is to be refunded in the third year after it was received, the amount of tax which was collected on that amount should first be determined by multiplying $1,000 by 0.378 = $378 tax. Therefore, multiply $378 (tax only) times 0.74 (applicable percentage) = $280 (amount of tax to be refunded) plus $1,000 = $1,280 (total amount of refund).

All property of the Company installed in or upon the Customer’s premises used and useful in supplying service is placed there under the Customer’s protection. All reasonable care shall be exercised to prevent loss of or damage to such property and, ordinary wear and tear excepted, the Customer will be held liable for any such loss of property or damage thereto and shall pay to the Company the cost of necessary repairs or replacements.

The Customer will be held responsible for all costs associated with breaking the seals, tampering or interfering with the Company’s meter or other equipment of the Company installed on the Customer’s premises and no one except employees of the Company will be allowed to make any repairs or adjustments to any meter or other piece of apparatus belonging to the Company except that Customer may operate the shut-off valve in case of emergency.

The Customer shall not, directly or indirectly, sell, sublet, assign, or otherwise transfer to others gas purchased from the Company or any part thereof without the consent of the Company. This rule does not apply to a public utility company purchasing gas in bulk expressly for the purpose of distributing it to others. Gas service must not be used in such a manner as to cause unusual fluctuations or disturbances in the Company’s supply system, and, in the case of violation of this rule, the Company may discontinue service, or require the Customer to modify his installation and/or equipment with approved controlling devices. The service supply pipe, regulators, meters and equipment supplied by the Company for each Customer have definite capacities. The Customer shall notify the Company of any substantial changes in service requirements or location of appliances.

The Company will use reasonable diligence in furnishing an uncurtailed and uninterrupted supply of gas except where rate schedules provide otherwise. The Company may interrupt its service hereunder for the purpose of making necessary alterations and repairs, but only for such time as may be reasonable or unavoidable, and the Company shall give to the Customer, except in case of emergency, reasonable notice of its intention to do so.

Whenever the Company deems an emergency that warrants interruption or limitation in the service being rendered, such interruption or limitation shall not constitute a breach of contract and shall not render the Company liable for damages suffered thereby or excuse the Customer from further fulfillment of the contract.

When it is necessary for the Company to interrupt the supply of natural gas, the Company shall have the sole discretion to determine who should be curtailed subject a general guideline that interruptions shall occur by customer class using the priority shown below. Within customer class, interruption shall occur based on total per-unit contribution to margin, with the lowest contribution customers interrupted first. Customer class interruption shall occur in the following order:

a) Standby Customers
b) Interruptible Customers
c) Commercial and Industrial Customers
d) Residential Customers

The Company’s filed rates for gas services are predicated on the delivery of gas, as far as practicable, for a thirty- (30) day period. Meters will be read at approximately thirty- (30) day intervals except as defined below.

The Company may, however, at its option, read some or all meters in alternate months, and render a monthly or bi-monthly bill. If a monthly bill is rendered in the intervening months it shall be based upon an estimated consumption of gas, which bill will be due and payable when rendered. When a meter reading is obtained and an actual quantity of gas is determined, that quantity previously billed the Customer on an estimated basis will be deducted from the total quantity used during the period and a bill rendered for the remaining quantity.

In the event a meter reading cannot be obtained at the regularly scheduled time, whether monthly or in alternate months, postcards (postage pre-paid) may be used by the Company to obtain the reading. If the Customer marks the card accurately and returns it in the time described thereon, or makes a timely call to the Company at the telephone number provided, the pertinent bill will be based on the Customer reading; otherwise, it will be estimated. Bills rendered for gas service on an estimated basis shall have the same force and effect as those based upon actual meter readings, subject to the provisions of Chapter 810 of the MPUC Rules and Regulations including Section 6 thereof.  Bills rendered for gas service based on Customer meter reads are subject to correction and rebilling, if necessary, when the Company next reads the Customer s meter.

The Company will provide each Customer with a standard meter for each applicable rate schedule. Customers that take service under a Rate Schedule that requires an electronic metering device will be required to pay the Company for the cost of these non-standard facilities, including any necessary communication facilities.

The Company may furnish and install such regulating and/or flow control equipment and devices as it deems to be in the best interests of the Customer served, or of the gas system as a whole.

Before installation, and periodically thereafter, each meter shall be tested and shall be considered commercially accurate if it measures within two percent (2%) of accuracy. After each test each meter shall be sealed. This seal shall not be broken by any person, not expressly authorized by the Company.

Meters in use shall be tested at the request of the Customer, if desired, within fifteen (15) days from the time the request is made. If the meter has been tested within the preceding six months, the deposit of a fee of twenty-five dollars ($25.00) will be required for the test. If the meter is found to be in error by more than two percent (2%), the deposit shall be promptly refunded. If the meter is not found to be in error by as much as two percent (2%), such deposit shall be retained by the Company and Customer shall be responsible for the cost of performing such test.

If upon testing, the meter is found to register in excess of two percent (2%) fast, billings will be adjusted to compensate for the excess for a period equal to one half (1/2) of the time elapsed since the previous meter test, but not to exceed six (6) months, and the difference refunded to the Customer. If upon testing, the meter is found to register in excess of two percent (2%) slow, the Company shall charge the Customer for the unbilled gas supplied for the previous six (6) months or since the last test, whichever is the shorter period. No part of the minimum monthly bill will be refunded.

In the event of stoppage or failure of any meter to register, the Customer will be billed for estimated consumption during such period based upon Customer s use of gas in a similar period of like use or on the basis of check meter readings, if available and accurate.

A separate bill will be rendered for each meter used by the Customer unless, for the convenience of the Company, multiple meters are used for measurement of the same class or service, in which case a bill will be rendered for the total amount registered by all meters.

In general, monthly bills will be based on meter readings for the thirty (30) day period. Bills will be adjusted to compensate for errors in meter registration, in the reading thereof, or in the application of rate schedules to intervals of greater or lesser duration than 30 days. Such adjustments shall be limited to the Customer last served at the particular location.

In case of tampering or unauthorized use, probable consumption will be billed as determined by the maximum quantity of gas estimated to have been consumed by the various appliances of the Customer.

The Company will provide maintenance and repair service on a charge basis except for the following:

1. For Investigating any call indicating the following conditions, even though the investigation may show no such condition or may show that the condition is not associated with gas or gas equipment: (a) gas leak; (b) gas odor; (c) fire; (d) high, low or loss of pressure; (e) improper combustion; (f) abnormal appliance operation that could be hazardous, such as heating or water heating equipment that will not shut off; and (g) any call indicating a potential hazard.

2. For Investigating and Making Necessary Repairs where investigation shows that gas quality or delivery through Company owned facilities is at fault; or where there is a leak involving Company owned facilities. Company owned facilities are the mains, services, regulators, meters and associated pipeline up to and including the meters.

3. Investigating and Making Safe any potentially hazardous condition associated with Customer owned Facilities. Customer owned Facilities are piping from the meter outlet and equipment connected to this piping.

Making Safe means to temporarily or permanently correct a situation with a minor repair or, where a minor repair is insufficient to correct the condition, to shut off the gas to the equipment. If the Customer feels that it is necessary to have the equipment involved made operable and it requires parts or more than a minor amount of labor, the Customer will be charged. Customer will be charged for all materials and for any labor in excess of that required to make a minor repair.

The Company s intent is to provide sufficient labor, at no charge, to Make Safe, but to charge Customer for repair work requested by Customer requiring material or labor beyond minor repair that does not involve potentially hazardous conditions.

4. For Service Calls where the Company s records show that the equipment involved has been serviced by a Company representative within the prior 30 days for the same condition and the required service is not due to independent damage or attempted repair by the Customer or a third party.

5. Investigation of high bill complaints.

A. Company Equipment
Safety requirements and procedures for the Company s system are in accordance with Chapter 420 of the MPUC Rules and Regulations.

B. Customer Equipment
All Customers’ piping and equipment beyond Company’s meter and accessories thereto, necessary to utilize service furnished by the Company, shall be installed and maintained by a plumber or gas pipefitter in accordance with the National Fuel Gas Code and be owned and maintained by the Customer at his expense.

The Customer shall bring his piping to a point for connection to the Company’s meter or meters at a location satisfactory to the Company. The Company is not required to install servicesupply lines prior to the time that the piping of the premises is actually in progress, and the structure sufficiently completed to provide a safe and suitable terminus for the service-supply lines. Prior to meter installation, each applicant or Customer must provide Company with a written safety check form completed by a licensed service technician.

C. Access to Premises
The Company reserves the right to inspect and approve the Customer’s installation of all pipe and equipment to utilize the Company’s gas, but such inspection or failure to make inspection, or the fact that the Company may connect to such installation, shall not make the Company liable for any loss, injury or damage which may be occasioned by the use or such installation or equipment used there from. The Company will refuse to provide gas service to any installation it considers to be unsafe.

The Company shall have the right to enter the premises of the Customer at all reasonable hours for the purpose of making such inspection of the Customer’s installation as may be necessary for the proper application of the Company’s rate schedules and terms and conditions; for installing, removing, testing or replacing its apparatus or property; for reading meters; and for the entire removal of the Company’s property in event of termination of service to the Customer for any reason.

A. Termination Initiated by Company
The disconnection of a Customer and provisions for restoration of service shall be governed by MPUC Rules and Regulations, Chapters 810 and 860. The Company will charge a reconnection fee of $25.00 during normal business hours. For reconnection after normal business hours, the Company will charge a reconnection fee of $80.00. For purposes of this section, normal Company business hours shall be from 8:00 a.m. until 4:00 p.m. Monday through Friday excluding Holidays and the charge shall be determined as of the time the Company receives the request from the customer.

B. Termination Initiated by Customer
If the Customer wishes the gas service to be terminated he shall give notice at the office of the Company at least five (5) days prior to the time that such termination shall become effective, subject to any existing agreement between Customer and Company. The Customer will be held liable both for any gas that may pass through the meter and safe custody of the Company’s property until five (5) days after such notice shall have been given, provided that the meter and/or other movable equipment shall not have been removed within that time by the Company.

Notice to discontinue service prior to the expiration of a contract term will not relieve a Customer from any minimum, or guarantee payment under any contract or rate.

If, by reason of any act, neglect, or default of a Customer, the Company’s service is suspended, or the Company is prevented from supplying service in accordance with the terms of any special contract it may have entered into with the Customer, the monthly minimum charge for the unexpired portion of the contract term shall become due and payable immediately as liquidated damages in lieu of the anticipated returns from said contract.

Any dispute a Customer has regarding the Company s service will be handled in accordance with Chapters 810 and 860 of the MPUC Rules and Regulation.

The Company will not be liable for any injury, casualty, or damage resulting in any way from the supply or use of gas or from the presence or operation of the Company s structures, equipment, pipes, appliances or devices on the Customer s premises, except injuries or damages resulting from negligence of the Company.

Neither of the parties hereto shall be liable in damages to the other for any act, omission or circumstances occasioned by or in consequence of any acts of God, strikes, lockouts, acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lighting, earthquakes, fires, storms, floods, washouts, arrests and restraints of rulers and peoples, civil disturbances, explosions, breakage or accident to machinery or lines of pipe, failure of transportation pipeline, the binding order of any court or governmental authority which has been resisted in good faith by all reasonable legal means, and any other cause, whether of the kind herein enumerated or otherwise, not reasonably within the control of the party claiming suspension and which by the exercise of due diligence such party is unable to prevent or overcome. Failure to prevent or settle any strike or strikes shall not be considered to be a matter within the control of the party claiming suspension.

The prices and charges for service under all service classifications, including the Minimum Charge, will be subject to any taxes or other charges levied by governmental bodies.

Cost of Gas Adjustment Filing

The purpose of this clause is to describe the rules and procedures under which Bangor Gas adjusts its rates for gas sales to recover the costs of gas supplies, subject to the jurisdiction of the Maine Public Utilities Commission. This includes all costs of gas delivered at the city gate into the Bangor Gas distribution systems. Further, this clause establishes procedures for tracking actual costs of gas and revenues received and adjusting rates to collect any difference. These procedures are in accordance with the Orders approving the Company’s Cost of Gas Adjustment methodologies in Docket 2003-111.

The Cost of Gas Adjustment (CGA) specifies two rate components:

  1. Energy Charge (Current Gas Cost)
  2. Past Gas Cost Adjustment

Bangor Gas currently maintains two portfolios of gas for its sales Customers, a Standard Price Option and Fixed Price Option, each with a separate Energy Charge and Past Gas Cost Adjustment. These rate components are described in detail below. They are both applicable to all Bangor Gas tariffs that involve the purchase of gas from the utility.

A. Standard Price Option (SPO)
The SPO CGA shall be filed with the MPUC on a monthly basis to be effective for the monthly period beginning the first day of the month and shall be designed to recover the projected cost of gas for that month. The SPO CGA shall also include a Past Gas Cost Adjustment amount to true up past monthly gas costs and revenues. Unless the Commission suspends the filing for purposes of investigation, it will become effective by law, on the effective date.

B. Fixed Price Option (FPO)
The FPO CGA shall be filed with the MPUC on or about August 21st to be effective for the six-month winter period beginning November 1st and ending April 30th and shall be designed to recover the projected cost of gas for that winter period. The FPO CGA shall also include a Past Gas Cost Adjustment amount to true-up prior winter period gas costs and revenues. Unless the Commission suspends the filing for purposes of investigation, it will become effective by law, on the effective date.

C. True-up Period
The Past Gas Cost Adjustment true-up period shall be the next like period for which the over or under-collection occurred: for the SPO the true-up period shall be the next month and for the FPO the true-up period shall be the next six-month winter period.  The Past Gas Cost Adjustment reconciliation shall be applied over the respective true-up period.

D. Notification
The Company shall make available at its office and web site the SPO and FPO Cost of Gas Adjustment rate components – the Energy Charge and the Past Gas Cost Adjustments, with effective dates.

The Energy Charge is a rate component designed to capture the expected cost of gas for the upcoming period. This charge shall be the Company’s best estimate for that period. The Energy Charge will be expressed in cents per therm, and computed to the nearest one-tenth cents.

This cost of gas estimate will include:

  1. The cost of gas purchased at the city gate. This includes all firm, interruptible, intra-month, spot or other purchases made at the Bangor Gas City Gate from suppliers, marketers, pipelines, traders, or any other entity, including transportation Customers of Bangor Gas who must sell gas to remain in balance.
  2. Any gas purchased at a hub or basin for transport to the Bangor Gas System.
  3. Any transportation charges on interstate pipelines or collection systems for gas purchased not at the City Gate for transportation to the Bangor Gas System. This includes reservation charges, variable charges, in-kind fuel charges, for firm or interruptible transportation and any charges for purchases of capacity on a secondary market.
  4. Any storage charges from third parties associated with storing gas for use of the Bangor Gas Customers. This will include any reservation charges for storage inventory capacity, injection capacity or withdrawal capacity, as well as any variable (including in-kind) charges associated with moving the gas into or out of storage.
  5. A carrying charge for any gas held in storage. This will be calculated at the utility’s short run interest rate, and at the estimated average gas cost for the month.
  6. Any balancing fees or charges on non-Bangor Gas transmission systems related to gas that is in the sales portfolio of Bangor Gas.
  7. Any in-kind charges, which will be evaluated at the estimated average gas cost in the Bangor Gas Portfolio.
  8. Any costs or benefits associated with options or futures transactions included in the Bangor Gas Portfolio.
  9. Any taxes or levies on the gas purchased for the Bangor Gas Portfolio.
  10. Any other charges for gas buying activities proposed by Bangor Gas and approved by the Maine PUC.

The Past Gas Cost Adjustment is a true-up amount that ensures Customers pay exactly the cost of gas incurred by the utility. The actual costs of gas and the revenue received from Customers are recorded into Gas Cost Balancing Accounts. When the Gas Cost Adjustment is filed, any expected over-under-collected balance in the Gas Cost Balancing Account shall be amortized into rates through the Past Gas Cost Adjustment, such that the balance of the Gas Cost Balancing Account is expected to be zero at the end of the true-up period. These accounts will be interest bearing.

The Past Cost of Gas Adjustment will be expressed in cents per therm, and computed to the nearest one-tenth cents. This charge shall be calculated by taking the estimated amount in the Gas Cost Balancing Account, at the end of the current period, and dividing it by the estimated throughput for all sales customers for the upcoming true-up period.

A. Gas Cost Balancing Accounts
Bangor Gas Company will maintain balancing accounts for each portfolio of gas. These accounts will balance all costs of gas against all revenues received for gas sales for the respective portfolio.

B. Accounting Treatment:
Adjustments will be recorded on a monthly basis to these accounts, respectively, as follows:

  1. A debit entry will be made for all costs of gas for the month including:
    1. The cost of gas purchased at the city gate. This includes all firm, interruptible, intra-month, spot or other purchases made at the City Gate of the Bangor Gas System from suppliers, marketers, pipelines, traders, or any other entity, including transportation Customers of Bangor Gas who must sell gas to remain in balance.
    2. Any gas purchased at a hub or basin for transport to the Bangor Gas System.
    3. Any transportation charges on interstate pipelines or collection systems for gas not purchased at the city gate for transportation to the Bangor Gas System. This includes reservation charges, variable charges, in-kind fuel charges, for firm or interruptible transportation and any charges for purchases of capacity on a secondary market.
    4. Any storage charges from third parties associated with storing gas for use of the Bangor Gas Customers. This will include any reservation charges for storage inventory capacity, injection capacity or withdrawal capacity, as well as any variable (including in-kind) charges associated with moving the gas into or out of storage.
    5. A carrying charge for any gas held in storage. This will be calculated at the utility’s short run interest rate. The carrying charge will be calculated as the utility’s short-run Interest Rate times the average inventory of gas in storage times the monthly average cost of gas, exclusive of any transportation charges.
    6. Any balancing fees or charges on non-Bangor Gas transmission systems related to gas that is in the portfolio of Bangor Gas.
    7. Any in-kind charges will be evaluated at the monthly average cost of gas in the Bangor Gas Portfolio.
    8. Any costs associated with options or futures transactions included in the Bangor Gas Portfolio.
    9. Any taxes or levies on the gas purchased for the Bangor Gas Portfolio.
    10. Any other charges for gas buying activities proposed by Bangor Gas and approved by the Maine PUC.
  2. A credit entry will be made for:
    1. Any refunds received from suppliers, storage providers, or pipelines.
    2. Any revenue from off-system sales of gas from the portfolio, or any sales for balancing purposes.
    3. All revenue received from Customers under the Current Cost of Gas rate component. This will be the rate component times the sales during the month.
    4. All revenue received from Customers under the Past Gas Cost Adjustment rate component. This will be the rate component times the sales during the month.

The current month balance in each account, respectively, shall equal the sum of the adjustments discussed in the previous section.

The accumulated month-ending balance in each account, respectively, shall equal the sum of:

  1. The current month balance; plus the account balance at the beginning of the month; plus any adjustments applicable to the account balance at the beginning of
    the month; plus
  2. The monthly interest rate multiplied by one-half the sum of the account balance a the beginning of the month plus the account balance at the end of the month

C. Interest Rate
In accordance with the MPUC Rules and Regulations, Section 5 of Chapter 430, interest shall accrue on the over/under-collected gas cost in each account. The interest rate used  will be the Company’s average short-term cost of borrowing for the applicable month.

D. Monthly Amortization
The Past Gas Cost Adjustment rate component will be calculated by dividing an estimate of the over-under-collected balance by an estimate of the expected gas throughput for the upcoming true-up period so that any expected over-under-collected balance in the respective GCBA is amortized over the next true-up period.

A. Annual Report
The Company will file an annual report of its cost of gas activities, by July 1 each year. The report will contain information regarding:

1. Summary of its actual gas costs and actual sales for the period of May 1 of the prior year through April 30 of the current year;
2. Procedures employed to assure that minimum prices are paid for gas purchased;
3. Policies followed to assure long-term supply of gas at reasonable prices;
4. Summary of financial and statistical data, with any necessary reconciliation to data presented in the gas utility’s Annual Report;
5. Name of person or firm making audit, whether or not that person is an employee of the gas utility; and
6. A disclosure of any ownership or corporate relationship between the gas utility, its directors, its officers, or its employees who are engaged in the acquisition of gas, and the seller of gas to such utility.

B. Annual Review
The Company will participate in an annual review of its past and proposed Cost of Gas activities on August 15 of each year or on such other dates as the Commission shall establish.

TERMS AND CONDITIONS — APPLICABLE TO TRANSPORTATION CUSTOMERS

These Transportation Terms and Conditions are applicable to service rendered by the Company to Customers pursuant to Transportation Rates set forth in the Small C&I Transportation and Large C&I Transportation Service tariffs, and special transportation contracts.

Actual Transportation Quantity: The quantity of gas actually received during the Gas Day by the Company at the Point of Receipt, net of Fuel Reimbursement, where applicable, for the account of Customer for redelivery at the Point of Delivery during the same Gas Day.

Aggregation Group: A group of Customers that combines their loads for purposes of nomination, scheduling and imbalance trading.

Aggregator: A designated agent that aggregates customers loads into an Aggregation Group.

Average Cost: The Company’s average cost of gas for the Gas Day.

Avoidable Cost: The variable cost of the Company’s avoidable source of supply for the Gas Day.

Calendar Day: A period of twenty-four (24) consecutive hours beginning at 12 midnight, Eastern Time (E.T.).

Customer: Any party that has executed an agreement with the Company for transportation service.

Customer s Maximum Hourly Flow: The maximum hourly gas a Customer can use in a given period equal to any maximum hourly limits for delivery of gas to the Customer, during the same period, imposed by the Customer s Transporting Pipeline.

Customer’s Supplier: The person, company or other party from whom Customer has purchased the gas to be transported by the Company.

Customer’s Transporting Pipeline: The person or persons, company or companies, or other party or parties, engaged in the business of rendering transportation service of natural gas in interstate commerce subject to the jurisdiction of the Federal Energy Regulatory Commission, which the person(s), company(s), or party(s) is/are transporting gas for Customer’s account to a Point of Receipt of the distribution facilities of the Company.

Daily Overtake Quantity: An imbalance in which the difference between the Actual Transportation Quantity and the Gas Usage is a negative number, i.e., where Gas Usage exceeds the Actual Transportation Quantity.

Daily Overtake Tolerance: The daily tolerance on daily overtake quantities expressed as a percentage.

Daily Undertake Quantity: An imbalance in which the difference between the Actual Transportation Quantity and the Gas Usage is a positive number, i.e., where Gas Usage is less than the Actual Transportation Quantity.

Fuel Reimbursement: A quantity in therms by which gas received for Customer’s account at the Point of Receipt is reduced in order to compensate the Company for gas loss and unaccounted for gas.

Gas Day: A period of twenty-four (24) consecutive hours beginning at 8 am, E.T., and ending at 8 am, the next calendar day.

Gas Usage: The actual quantity of gas used by the Customer during the Gas Day as measured by the Company’s metering equipment at the Point of Delivery.

Imbalance: The difference, during any Gas Day, between the Actual Transportation Quantity and the amount nominated and confirmed.

Marginal Cost: The variable cost of the Company’s marginal source of supply for the Gas Day.

Nomination Form: The required form for submitting initial or subsequent transportation nominations an example of which is attached to Customer’s service agreement.

Operational Flow Order: Company requirement to transportation Customers and third-party suppliers of gas that a specified volume of gas be delivered for the purpose of maintaining the operational integrity of the Bangor Gas distribution system.

Period Imbalance: The aggregate imbalance during the month.

Period Index Price: The Period Index Price shall be the Maritimes and Northeast Pipeline Index Price, inclusive of any zone, location or transportation charges and also inclusive of any allowance for fuel assessed by Maritimes and Northeast Pipeline and upstream pipelines.

Point of Delivery: A location where the Company’s distribution facilities are interconnected with the Customer’s facility and where the Customer’s gas will be delivered by the Company. The Point of Delivery is identified within the Customer s transportation agreement.

Point of Receipt: An interconnection between the Customer’s Transporting Pipeline and the distribution facilities of the Company where gas will be received by the Company for transportation in its service territory. The Point of Receipt is identified within the transportation agreement.

Scheduled Transportation Quantity: The quantity of gas scheduled by the Company to be received during the Gas Day at the Point of Receipt, net of Fuel Reimbursement, where applicable, for the account of Customer for redelivery at the Point of Delivery during the same Gas Day.

Customer shall provide to the Company in the form specified by the Company, at least twenty-four (24) hours prior to its upstream transportation pipeline’s deadline for first-of-the-month nominations, a nomination of its daily transportation requirements for each day during the month. Customer will have the right, on or after the first day of the month, to submit a new nomination or to revise an existing nomination for any day during the month with at least twentyfour (24) hours notice, or such lesser time as agreed upon with the Company, prior to the start of the gas day to be adjusted. Customer shall submit the completed Nomination Form within the specified time by facsimile. In so far as practicable, Customer shall arrange for delivery of the Scheduled Transportation Quantity at a uniform rate throughout the Gas Day.

Company will attempt to confirm with the operators of upstream pipelines transporting Customer’s gas that the volumes nominated will be delivered to the designated Point of Receipt. If such nomination is confirmed, it will be scheduled for delivery to Customer at the designated Point of Delivery. Customer’s nomination will be rejected in whole or in part if the upstream pipeline does not confirm that deliveries have been scheduled for Customer or if Customer’s nomination exceeds confirmed deliveries for the Customer. In the event that the Company is unable to schedule Customer’s nominations for delivery, Company will notify Customer of the volumes it has scheduled to be received at the Point of Receipt and delivered at the Point of Delivery on Customer’s behalf. Company will make a best efforts attempt to notify Customer in advance of the Gas Day.

A. Daily Balancing and Maximum Hourly Flows

The Customer shall use its best efforts to achieve a balance between its gas deliveries and requirements on a daily basis. On any given Gas Day in the month, should the Company be in a penalty situation with its upstream pipelines, the Company shall assign imbalance penalties assessed to the Company by upstream pipelines to sales and transportation customers, based on the extent that each group caused such penalties. The portion of any such penalties assigned to transportation customers shall be further assigned to individual transportation customers based on the extent to which each transportation Customer caused such penalties. The penalties, if any, assigned to each transportation Customer, shall be assessed on the Customer’s monthly bill with appropriate supporting documentation.

Notices posted on the electronic bulletin board of Customer’s Transporting Pipeline that requires Customer to adhere to a maximum hourly flow rate, shall also be deemed notification to Customer that Maximum Hourly Flows will be in effect on Company’s distribution facilities for the same period as specified by the Customer s Transporting Pipeline. Customer’s Maximum Hourly Flow will be established by Company personnel based on an allocation of even hourly flows of daily receipts of gas scheduled in the relevant period in accordance with the applicable pipeline’s transportation tariff. All gas usage in excess of Customer’s Maximum Hourly Flow rate will be subject to an unauthorized overrun penalty of $2.00 per Ccf. Company will make a best efforts attempt to notify Customer of its Maximum Hourly Flow; however, it is Customer’s responsibility to contact Company personnel to obtain its Maximum Hourly Flow; however.

B. Monthly Cash Out of Imbalances
The Customer shall use its best efforts to achieve a balance between its gas deliveries and requirements on a monthly basis. Imbalances between the volumes of gas delivered for the Customer net of the applicable fuel reimbursement and the volumes of gas used by the Customer will be cashed-out each month so that no imbalances will be carried forward to subsequent months. Monthly imbalance penalties associated with the cash-out mechanism are based on the relative magnitude of the imbalance compared to Customer’s actual usage. Imbalances of less than the monthly tolerance of 5% are not subject to a monthly imbalance penalty.

The Company shall purchase all positive Period Imbalance quantities at the prices listed below:

Imbalance Levels Prices for Period Imbalances
0% to <5% 100% Period Index Price
>5% to <10% 90% Period Index Price
>10% to <15% 80% Period Index Price
>15% to < 20% 70% Period Index Price
>20% to <25% 60% Period Index Price
>25% 50% Period Index Price

The Customer shall purchase all negative Period Imbalance quantities at the prices listed below:

Imbalance Levels Prices for Period Imbalances
0% to <5% 100% Period Index Price
>5% to <10% 110% Period Index Price
>10% to <15% 120% Period Index Price
>15% to < 20% 130% Period Index Price
>20% to <25% 140% Period Index Price
>25% 150% Period Index Price

If at anytime during the month, Customer’s total imbalance level exceeds 30% of the total amount used in the prior month, the Customer will be required, upon 48 hours prior notice from the Company, to initiate corrective actions to balance its account within the following 10-day period.

C. Exchange of Imbalances
Customers may enter into agreements to trade offsetting imbalances up until two days after the close of the billing period during which the imbalances occurred. Upon Customer’s request, Company will provide Customer with data on the imbalances of other Customers that have previously authorized such disclosure. All imbalance exchange transactions must be confirmed to the Company in writing by both parties on or before the third day after the close of the billing period. Any Customer trading an imbalance may trade up to, but not beyond, a zero balance.  The Company has the right to reject any proposed trade arrangements if the marginal cost of the overtake quantity is significantly different from the avoided cost of the undertake quantity. By approving the proposed trade arrangement, the Company assumes no responsibilities for enforcing any of the terms of the arrangement between the parties to any such agreement.

D. Limitations of Balancing Service:
If the Company determines, at its sole discretion, that a transportation Customer is intentionally acting so as to financially gain from the provisions for Monthly Imbalance Charges or Credits as provided for in the Company’s Transportation Terms and Conditions, the Company shall, upon such a determination, first provide an Initial Notification of Balancing Limitations by telephone or telephone facsimile. The Initial Notification shall include a description of corrective actions that the Customer must take, and shall have a deadline of not less than twenty-four (24) hours for initiating the corrective actions. If the transportation Customer does not satisfy the requirements set forth in the Initial Notification, the Company shall issue a Second Notification of Balancing Limitations. Starting with the first full month following the issuance of the Second Notification, the Period Index Prices for positive imbalance quantities provided for in Section 5.B shall be increased by a Balancing Surcharge of $0.10 per Ccf and the Period Index Prices for  negative imbalance quantities provided for in Section 5.B shall be decreased by a Balancing Surcharge of $0.10 per Ccf. The Balancing Surcharge shall remain in effect until the transportation Customer satisfies the provisions of the Initial Notification of Balancing Limitations. The Company may charge the Balancing Surcharge of $0.10 per Ccf starting with the first full month after issuing a Notification of Balancing Limitations – Repeat Offender to any Customer that has been issued an Initial Notification according to the provisions of this section one (1) time previously in the last thirty (30) days or two (2) times previously in the last ninety (90) days. The Balancing Surcharge shall remain in effect until the transportation Customer satisfies the provisions of the Notification of Balancing Limitations -Repeat Offender.

The Company’s determination as to restrictions on Balancing Services pursuant to this section may be appealed to the Commission.

Customers may designate an agent (e.g., gas marketer, broker, or producer) to satisfy certain requirements on its behalf. The Customer must notify the Company in writing of any Agent(s) that it has designated to perform initial and subsequent nominations and to receive scheduling notices from the Company. Once notified, Company will rely on information provided by Customer’s agent for nomination and scheduling purposes and all notices provided by the Company to Customer’s agent shall be deemed to have been provided to the Customer.

Designated agents may aggregate loads into an Aggregation Group for purposes of nominating and scheduling delivery of gas for transportation by the Company, as well as for trading imbalances.  All Customers within an Aggregation Group must have the same designated Point of Receipt. The agent wishing to act as an Aggregator on behalf of any Aggregation Group must submit to the Company demonstration that establishes to the satisfaction of the Company the credit worthiness of the Aggregator. The Aggregator shall be responsible for submitting and receiving notices, making nominations and performing other administrative duties required pursuant to Customer’s transportation agreements. Imbalance charges and credits and any applicable overrun charges or penalties shall be based on the combined activity of the Aggregation Group. The Aggregator acting on behalf of an Aggregation Group shall be liable for all imbalance charges and credits, imbalance penalties and Unauthorized Overrun Charges allowed for in the Company’s Transportation Terms and Conditions. The Aggregator shall be presented with a summary invoice for the total month’s transportation related activities provided to the Aggregation Group.

Billing for monthly customer charges and transportation charges for quantities actually delivered shall be based on the readings at each individual meter and load profile of the Customer at such meter. The individual parties in the Aggregation Group shall be liable for all rates, charges and surcharges allowed for in the Company’s Transportation Rate Schedules related to transportation services provided to each Customer individually. Each Customer shall be presented with an invoice for that Customer’s individually billed transportation activities.

Notwithstanding the above provision that the Aggregator shall have primary liability for all imbalance charges and credits, in the event of a default of payment on the part of the Aggregator, the Company reserves the right to seek performance directly from the individual members of the Aggregation Group for each member’s pro rata share of any such charges, based upon the transportation services provided to each Customer during the period related to the Aggregator’s default.

In the event that Company determines in its judgment that it must curtail deliveries of firm services, Company will curtail and/or interrupt firm sales and firm transportation customers based on end-use priority in accordance with the Company’s currently effective curtailment policy, as described in Section III-Service Continuity. Company will compensate Customer for all relinquished gas quantities at the highest of the following prices: (i.) Company’s daily marginal cost of gas, (ii.) Company’s average cost of gas, (iii.) the cost of Customer’s relinquished supply including the variable cost of supply, pipeline variable charges and 100% load factor equivalent of pipeline fixed charges.

The Company may issue an Operational Flow Order requiring delivery of specified volumes of gas in order to maintain operational integrity of the system. An Operational Flow Order may be issued as a blanket order to all transportation customers, or to individual Customers or Aggregation Groups whose actions jeopardize system integrity. Shippers who fail to deliver specified volumes of gas pursuant to an Operational Flow Order shall subject to a penalty of $2.00 per Ccf for all deficient deliveries.

The Company shall not be deemed to be in control and possession of the transportation gas until such gas has been delivered to the Company by the Customer’s Transporting Pipeline at the Point of Receipt. Thereafter, the Company shall be deemed to be in control or possession of gas delivered to it by the Customer’s Transporting Pipeline on behalf of Customer until the gas has been delivered to Customer at the Point of Delivery, after which Customer shall be deemed to be in control and possession thereof.

Gas shall be and remain the property of the Customer while being transported and delivered by the Company. The Customer shall be responsible for maintaining all insurance it deems necessary to protect its property interest in such gas, before, during and after receipt by the Company.

The Company shall not be liable for curtailment of service or loss of gas as a result of any governmental agency with jurisdiction to regulate, allocate, or control gas supplies or the ability of the Company to render transportation service, and regardless of any defect in such law, regulation, or order.

In the event that the Company provides a Firm Transportation Customer with as much notice as practicable of curtailment of service, and thereby reduces the quantity scheduled for delivery, the total quantity taken by the Customer may not exceed one hundred two percent (102%) of the revised Scheduled Transportation Quantity. If, on any Gas Day, after notice of curtailment the total quantity of gas taken by Customer exceeds one hundred two percent (102%) of Customer’s revised Scheduled Transportation Quantity, and the Company has not authorized such excess quantity, then all such Gas Usage constitute Unauthorized Use and is subject to a penalty charge of $2.00 per Ccf in addition to any other applicable charges.

In the event that the Company does not curtail the Scheduled Transportation Quantity, but does provide the Customer with as much notice as practicable that its Daily Overtake Tolerance is limited to two percent (2%) of the Scheduled Transportation Quantity, any Gas Use in excess of that limit shall constitute Unauthorized Use and is subject to a penalty charge of $2.00 per Ccf in addition to any other applicable charges.

Notice by the Company shall be provided to the Customer or its agent either by telephone or telephone facsimile, at the Company’s discretion; notice need not be provided in writing.

Customer shall warrant that it has entered into the necessary agreements with a third-party for the purchase of a gas supply which it wants Bangor Gas to transport and that it has entered into the necessary transportation agreements for the delivery of gas supply to the Point of Receipt.

In addition, Customer shall warrant that at the time of delivery of its gas supply to the Point of Receipt, Customer shall have good title to such gas, free of all liens, encumbrances and claims whatsoever. Customer shall indemnify the Company and save it harmless from all suits, actions, debts, accounts, damage, costs, losses and expenses arising from or out of any adverse legal claims of third parties to or against said gas supply.

The Company will install, at Customer s cost, a device that the Company will attach to its metering equipment at the Point of Delivery for the purpose of monitoring Gas Usage. The Customer shall be responsible to supply a dedicated electrical supply and a telephone line at a location acceptable to Company and capable of transmitting information collected from the monitoring device to the Company’s computer system. The Customer shall be responsible for the maintenance and service of the telephone line. Should a dedicated phone line be required, it is the responsibility of the Customer to schedule the installation, and the Customer is responsible for any associated cost including the monthly service charge. Transportation service shall not commence until the automated metering equipment is in place and operational.

In addition to other payments provided for herein, Customer shall pay to the Company the amount of any assessment or tax, on the transportation of gas, in effect at the time service is provided, which the Company may hereafter be required to pay or collect by any federal, state or local law.

The Company shall retain a percentage of all gas delivered to the Point of Receipt by Customer’s Transporting Pipeline, Fuel Reimbursement Rate, to compensate for the Company s system lost and unaccounted for gas. The Company’s Fuel Reimbursement Rate shall be adjusted semi-annually in accordance with the review and approval thereof by the Maine Public Utilities Commission at the time of each seasonal CGA filing.

RATE SCHEDULE

AVAILABILITY
Available to all Individually and master metered residential customers that consist of living quarters, human needs space heat, hot water, and general cooking. The residential rate includes service to an apartment(whether privately owned or publicly subsidized), condominium building, duplex, court group, housing project, trailer park, mobile home park, or any group of single family dwellings on a single premises and excludes institutional living quarters.

RATE
The applicable Customer Charge, Transportation Charge, Energy Charge and Past Gas Cost Adjustment currently in effect for this rate schedule are set forth in the Rate Summary Schedule of this tariff. The rates listed in the Rate Summary Schedule are subject to adjustment by any Cost of Gas Adjustment in effect. In addition, the rates do not include Maine state sales tax, which will be an additional charge when applicable.

MINIMUM BILL
The minimum monthly bill for gas service will be the amount of the Customer Charge listed in the Rate Summary Schedule.

TERM OF CONTRACT
Contract for service shall be for a period of one (1) year.

TERMS AND CONDITIONS
Service provided under this rate schedule is subject to the Terms and Conditions of the Company as filed with the Maine Public Utilities Commission.

AVAILABILITY
Available to non-residential customers whose average natural gas use will not exceed 50,000 therms annually. Separate meters, separate accounts, and separate locations may not be combined for billing under this Rate Schedule.

RATE
The applicable customer charge, transportation charge, energy charge and Past Gas Cost Adjustment currently in effect for this rate schedule are set forth in the Rate Summary Schedule of this tariff. The rates listed in the Rate Summary Schedule are subject to adjustment by any Cost of Gas Adjustment in effect. In addition, the rates do not include Maine state sales tax, which will be an additional charge when applicable.

MINIMUM BILL
The minimum monthly bill for gas service will be the amount of the Customer Charge listed in the Rate Summary Schedule.

TERM OF CONTRACT
Contract for service shall be for a period of one (1) year.

TERMS AND CONDITIONS
Service provided under this rate schedule is subject to the Terms and Conditions of the Company as filed with the Maine Public Utilities Commission.

AVAILABILITY
Available to large commercial and industrial customers, who are primarily engaged in the sale of goods or services, manufacturing, schools, institutions, and governmental agencies, that use in excess of 50,000 therms of natural gas annually. Separate meters, separate accounts, and separate locations may not be combined for billing under this Rate Schedule. To determine eligibility for this class of service, and for each of the rate blocks provided within this rate class, Customers’ actual load for the previous 12 months must be greater than or equal to the minimum annual threshold. For new customers, or customers installing new equipment, Company shall determine eligibility based on Company’s estimation of
Customer’s future load.

RATE
The applicable Customer Charge, Transportation Charge, Energy Charge and Past Gas Cost Adjustment currently in effect for this rate schedule are set forth in the Rate Summary Schedule of this tariff. The rates listed in the Rate Summary Schedule are subject to adjustment by any Cost of Gas Adjustment in effect. In addition, the rates do not include Maine state sales tax, which will be an additional charge when applicable.

MINIMUM BILL
The minimum monthly bill for gas service will be the amount of the Customer Charge listed in the Rate Summary Schedule.

TERM OF CONTRACT
Contract for service shall be for a period of one (1) year.

TERMS AND CONDITIONS
Service provided under this rate schedule is subject to the Terms and Conditions of the Company as filed with the Maine Public Utilities Commission.

AVAILABILITY
Service hereunder is available for firm transportation by the Company of natural gas owned by the Customer to any single location for small commercial and industrial customers (non-residential customers with average natural gas use not greater than 50,000 therms annually). Such gas usage must be for the Customer’s exclusive use and not for resale. Customer receiving service under this rate schedule must have executed a transportation service contract with the Company.

RATE
The applicable Customer Charge and Transportation Charge currently in effect for this rate schedule are set forth in the Rate Summary Schedule of this tariff. The rates do not include Maine state sales tax, which will be an additional charge when applicable.

MINIMUM BILL
The minimum monthly bill for gas service will be the amount of the Customer Charge listed in the Rate Summary Schedule.

COST OF NON-STANDARD FACILITIES
Customers will be required to pay for the cost of installing the necessary electronic metering device needed to take service under this rate schedule.

TERMS AND CONDITIONS
The Company’s General Terms and Conditions and its Transportation Terms and Conditions, where not inconsistent with any specific provisions hereof, and the executed Firm Transportation Agreement between the Customer and the Company are made a part of this Rate Schedule.

AVAILABILITY
Service hereunder is available for firm transportation of natural gas by the Company to any single location for large commercial and industrial customers (non-residential customers with average natural gas use exceeding 50,000 therms annually). Such gas usage must be for the Customer’s exclusive use and not for resale. Customer receiving service under this rate schedule must have executed a transportation service contract with the Company and must have annual usage that complies with the annual minimum throughput specified for this rate class.

RATE
The applicable Customer Charge and Transportation Charge currently in effect for this rate schedule are set forth in the Rate Summary Schedule of this tariff. The rates do not include Maine state sales tax, which will be an additional charge when applicable.

MINIMUM BILL
The minimum monthly bill for gas service will be the amount of the Customer Charge listed in the Rate Summary Schedule.

COST OF NON-STANDARD FACILITIES
Customers will be required to pay for the cost of installing the necessary electronic metering device needed to take service under this rate schedule.

TERMS AND CONDITIONS
The Company’s General Terms and Conditions and its Transportation Terms and Conditions, where not inconsistent with any specific provisions hereof, and the executed Firm Transportation Agreement between the Customer and the Company are made a part of this Rate Schedule.

AVAILABILITY
Available to commercial and industrial customers, subject to an adequate supply of natural gas and delivery capability at the location of the Customers’ facilities, who have an operational standby system with sufficient alternative fuel capability to replace gas service for a reasonable period of interruption.  Company shall, at its sole discretion, interrupt service upon two-hour notice to the Customer. All gas and transportation services purchased under this rate schedule shall be separately measured from any gas purchased under any other rate schedule. Separate meters, separate accounts, and separate locations may not be combined for billing under this Rate Schedule.

RATE
Rates for this service shall be individually negotiated with the Company by each Customer. Rates offered under this Rate Schedule shall recognize the value derived by Company of Customer’s ability and willingness to interrupt service when called upon by the Company. The applicable Customer Charge, Transportation Charge, Energy Charge, and Past Gas Cost Adjustment currently in effect for Customer’s otherwise applicable Rate Schedule are set forth in the Rate Summary Schedule of this tariff. In addition, the rates do not include Maine state sales tax, which will be an additional charge when applicable.

MINIMUM BILL
The minimum monthly bill for gas service will be the amount of the Customer Charge listed in the Rate Summary Schedule of the Customer’s otherwise applicable rate class.

COST OF NON-STANDARD FACILITIES
Customers will be required to pay for the cost of installing the necessary electronic metering device needed to take service under this rate schedule.

CURTAILMENT
The Customer must be capable of being 100% curtailed on two hours notice. In case of non-compliance, Company shall have the right to shut off service when necessary, in Company’s sole opinion, to protect service to customers taking firm service.

UNAUTHORIZED GAS USE
In the event a Customer fails to discontinue the use of gas after two hours notice that service under this schedule is curtailed, Customer shall pay a rate of $2.50 per therm for all gas so used, in addition to the regular commodity charge for such gas.

Customer shall be liable for any penalties incurred by the Company resulting from any imbalances created from Customer’s failure to take scheduled quantities of gas or Customer’s delivery of gas exceeding scheduled quantities.

VERICATION OF STANDBY FACILITY
The Company reserves the right to conduct an on-site inspection of such facilities at any time to determine whether the facilities are properly installed, maintained, functioning and capable of serving the Customer’s energy requirement as specified in the Customer’s contract.

TERM OF CONTRACT
Contract for service shall be for a period of one (1) year.

TERMS AND CONDITIONS
Service provided under this rate schedule is subject to the Terms and Conditions of the Company as filed with the Maine Public Utilities Commission.

Pursuant to Commission Supplemental Order in Docket No. 97-795, dated February 17, 1999, the Company may, from time to time, enter into special contracts with customers for gas supply, distribution and transportation and related managerial services without prior approval of the Maine Public Utilities Commission. These contracts will be filed with the Commission as they are entered into, along with an explanation of the Company’s view of the relationship of the contract price to the Company’s short-run marginal costs. The filing will be made on a confidential basis.

Availability

The Budget Payment Plan (BPP) option is available to eligible customers to help avoid and budget against high energy bills in the winter months by spreading those costs throughout the year. It is the intent of this Plan to make a customer’s monthly payments as level as practical, subject to reconciliation at the end of the twelve month budget period when monthly bills will be compared to actual amounts due, and a charge or credit will be applied to the customer representing the “customer’s balance amount”. However, during this twelve month budget period it may be determined by the Company to be necessary to change (increase or decrease) the amount billed monthly to the customer on the Plan in an effort to avoid the buildup of a large positive or negative amount in the customer’s balance amount, that would otherwise be required to be paid or reimbursed at the end of the billing year.

The BPP normally commences with the October bill and ends with the following September bill, and is subject to the following conditions:

  1. Eligible Customers:
    1. Eligible customers include:
      1. Residential meter that is individually metered and has a minimum of twelve (12) months of gas usage history;
      2. Residential master-meter, excluding sub-metering facilities, that use less than 5,000 therms per year and has a minimum of twelve (12) months of gas usage history;
      3. Commercial and full requirements customers that use less than 5,000 therms per year, and have a minimum of twelve (12) months of gas usage history; and
      4. Other residential and commercial meters where sufficient information is available to allow the Company to reasonably estimate annual gas usage.
    2. Eligibility requirements include:
      1. Customer has no outstanding arrears on their account at the time their plan starts, or agrees to amortize the arrears amount.
      2. In the event that a customer has been involuntarily removed from BPP for non-payment, customer has made payment of all past due amounts.
    3. Participation is subject to approval by the Company.
    4. Eligible customers may join in any month.

Billing

  1. For customers participating in this Payment Plan:
    1. Subject to adjustment to monthly amounts (as further described below), anticipated bills for the budget period will be equally apportioned among the lesser of twelve (12) months, or the remaining months of the budget period to the settlement month, regardless of the actual consumption during the month;
    2. The following September, will be the settlement month, at which time bills for actual use will be balanced against the amounts billed and,
    3. Any over- or under- billings will be calculated in the settlement month and resolved through adjustments to the revised BPP monthly amount for the upcoming period beginning with the October bill, unless the customer elects to withdraw from the Plan (as further described below).
  2. Late payment charges will apply to unpaid balances of the BPP monthly amount.

Adjustments to the BPP Monthly Amounts

  1. The Company will monitor the difference between actual usage and the BPP monthly amounts and may adjust the BPP monthly amounts upward or downward beginning with the April bill if necessary to help avoid large positive or negative balances in the settlement month.
  2. In unusual circumstances positive or negative adjustments to the BPP monthly amounts may be made at any time as necessary to help avoid large positive or negative balances in the settlement month.

Withdrawing from the Plan

  1. Participating customer may voluntarily withdraw from the Plan at any time. Any over- or underpayment balance will be credited or charged respectively at the time of customer withdrawal.

About Natural Gas

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