TransGas Comprehensive Tariff
1.7) Financing Option TransGas will consider financing a Customer’s share of Customer Specific Facility costs. A minimum down payment of 25 percent is required. Security may be required. Financing will be available for up to 2 years for Interruptible Service or the length of a Firm Service term. The financing rate of interest will be set to provide TransGas with similar returns to those being earned by TransGas on its other activities. 1.8) Discounted Cash Flow Investment At its discretion, TransGas may utilize a discounted cash flow analysis to determine the appropriate level of TransGas Investment in a project. In utilizing the discounted cash flow analysis, TransGas will determine the appropriate required rate of return and the time frame over which that return will be earned. The standard cash flow analysis will recognize all incremental capital costs, operating costs, other costs, and revenues. To be eligible for TransGas Investment based on a discounted cash flow analysis, a longer term of Service may be required. 1.9) Transfer of Firm Demand Transfer requests from Points of Receipt or Delivery at which TransGas has invested will be considered providing the Customer reimburses TransGas for any remaining portion of the TransGas Investment. Such a reimbursement shall not remove Customer’s obligation for Demand Charge payments for the duration of the Service. [See General Business Policies A).II.g).6) Transfer of Firm Demand, for more information.] For Contract Demand transferred into a Point of Receipt or Delivery that utilizes a Customer Specific Facility within the initial 5 years, TransGas may invest in the remaining term of such Contract Demand, providing the remaining term is 1 month or longer. Remaining terms of 1 year or more may attract TransGas Investment at the time of the transfer. Investments in remaining terms of less than one year will be on a deferred basis. 2) System Line Designation 2.1) New Construction Any new construction may be considered System Line at the discretion of TransGas. Further, at TransGas’ discretion, any construction of System Line, including the construction of Storage Facilities, may be deemed Customer Specific Facilities Construction.
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Business Practices Overview 1.3 General Business Policies
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