Schedule CS-1 – Contract Gas Service

This rate schedule shall apply to natural gas volumes delivered to customers having alternate fuel capabilities and/or alternate energy choices and economic development customers when such customer has executed a contract with the District as described below.

Customer must contract with District to purchase and/or transport all of customer’s fuel requirements unless curtailed by District. The contract must specify the rate to be charged by the District to be paid by the customer and said rate shall not be subject to renegotiation during the term of the contract.

Procedure to be used in contracting for service under this rate schedule shall be as follows:

1. This rate schedule is applicable only to those commercial and industrial customers with competitive energy options. It is applicable to potential economic development customers as an incentive to locate or expand in the District service area.
2. District will negotiate the cost of gas necessary to sell and/or transport natural gas to customer. No price for gas sales shall be lower than the District’s commodity cost of purchased gas plus margin of five cents ($.05) per decatherm. No rate for transportation shall be less than five cents ($.05) per decatherm (MMBTU).
3. District reserves the right to reject any contract offered.
4. Term of contract normally will be for one month and may be automatically renewed from month to month unless terminated by the District. The term of the contract can be extended at the same rate where market conditions require such extension at the discretion of the District.
5. Contract shall provide for a monthly customer charge not less than the customer charge included in the customer’s applicable interruptible/firm service gas rate schedule.