NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Gas Service Tariff
Original Volume No. 5
Original Sheet No. 4.3

RIDER TO RATES 311, 315, 316, 317, 321 AND 325

FIXED GAS BILL RIDER

No. 1 of 4 Sheets

 

 

TO WHOM AVAILABLE

Service under this Rider shall be available to Customers who are otherwise eligible for service under Rate Schedule 311, 315, 316, 317, 321 and 325 and who satisfy, and agree to accept, the conditions of the Fixed Gas Bill Service contained in the Definitions and Conditions section of this tariff. The fixed bill quoted to each Qualified Customer electing to take service under this Rider shall apply in lieu of the applicable rates and applicable rate adjustments under which the Customer otherwise takes service (e.g. Rate Schedule 311, 315, 316, 317, 321 or 325).

The initial term of this Rider shall be four (4) years, upon approval of the Commission, and shall be available thereafter as extended by the Company in its sole discretion. The Company will annually establish: (1) a maximum enrollment level, and (2) a time limit for Customers to enroll for service, both of which may be increased in the Company’s sole discretion, based upon operational and administrative considerations that may affect its ability to provide the described service. The Company will annually provide its eligible Customers notification of the maximum number of Customers to be enrolled under this Rider. As described in the Definitions and Conditions section of this Rider, the Customers who are eligible for service under this Rider, shall be subject to qualification by the Company.

 

CHARACTER OF SERVICE

A Customer who elects to receive service under this Rider shall receive firm gas sales and delivery service. Election to receive service under this Rider shall be made by agreeing to the terms and conditions of service through either a telephonic communication with a Company Customer Service Representative, a direct response to a direct mail piece distributed by the Company or third party contractor or via a secure internet site. All telephonic communications will be taped and the Company or its third party contractor will retain such records. All outbound telemarketing will be in compliance with the terms and conditions of the Company’s policies and procedures. Election to receive optional service under this Rider shall be for a one (1) year term, subject to Customer rescission rights as contained in the Fixed Gas Bill terms and conditions agreement. The contact term will automatically be extended year-to-year with at least thirty (30) days notice to affected Customers. Each annual automatic extension shall be deemed to be a new service term for purposes of this Rider and may reflect an updated fixed bill amount. In the event service under this Rider is terminated, for any reason, as further described in the definitions and conditions section of the Rider, then Customers shall automatically return to the rate schedule under which they are eligible to receive gas sales service (e.g. Rate Schedule 311, 315, 316, 317, 321 or 325).

Original Sheet No. 4.3A

 

RIDER TO RATES 311, 315, 316, 317, 321 AND 325

FIXED GAS BILL RIDER

No. 2 of 4 Sheets

RATES AND CHARGES

The Monthly Fixed Gas Bill amount for gas sales service under this Rider shall be computed as follows:

Monthly Fixed Gas Bill Amount:

Each Qualified Customer accepting the terms of service under this Rider shall pay an individually-calculated fixed bill based upon that Customer’s unique annual historic consumption of natural gas normalized for actual weather variances. The rates applied to each Customer’s annual usage profile from the otherwise applicable rate schedule will be:

    1. The delivery charge including applicable Customer charge,
    2. Purchased gas demand charge,
    3. Take-Or-Pay and FERC Order 636 surcharges, if applicable,
    4. GCA variances for first year Fixed Bill Customers,
    5. Applicable taxes and rate adjustments from either Rate Schedules 311, 315, 316, 317, 321 or 325, whichever is otherwise applicable,
    6. A charge for commodity gas cost that will be fixed by the Company based on market conditions prior to the time of the Customer's enrollment.

This total amount will be increased by four percent (4%) prior to application of Indiana state sales tax. The total annual fixed bill calculation will then be divided by twelve (12) for billing purposes and will remain fixed for twelve (12) monthly billing periods.

EARLY TERMINATION PROVISIONS

In the event a Customer receiving service under this Rider terminates his/her Fixed Gas Bill Agreement for reasons described in paragraph No. 4 of the Definitions and Conditions section, prior to the end of the established contract term, the Customer shall be billed as follows:

  1. Customers who are removed from the program for any reason will be subject to a thirty dollar ($30.00) exit fee to cover administrative costs for early withdrawal.
  2. In addition, Customers who leave or are terminated from his/her Service Agreement prior to the end of the service term will be subject to fixed charges stated in the Customer’s Fixed Gas Bill Service Agreement to offset the cost of settling dedicated gas supply contracts. The appropriate fixed charge will be multiplied times the number of months remaining in the agreement following termination.
  3. A Customer who exits his/her Service Agreement before its Service Agreement end date, for any reason, will have his/her billing adjusted by an Early Termination Adjustment. The amount of the Early Termination Adjustment can be either a debit or credit, and is computed on a Customer-by-Customer basis. The amount is determined by subtracting the amount paid to date during the program year at the time of termination from the product of the Customer’s actual metered usage of natural gas and the applicable rates under the Rates and Charges section of this Rider.

Original Sheet No. 4.3B

 

RIDER TO RATES 311, 315, 316, 317, 321 AND 325

FIXED GAS BILL RIDER

No. 3 of 4 Sheets

 

DEFINITIONS AND CONDITIONS

1. Fixed Gas Bill gas sales service is available:

  1. To a Qualified Customer, as defined in paragraph 2 herein, at the current premises for the twelve billing periods following service initiation under this rate schedule, and
  2. For all gas usage during the Fixed Gas Bill term subject to the conditions of paragraph 4, herein.

2. Qualified Customer is defined as a Customer that has monthly gas usage that is predictable and sensitive to weather variations according to the algorithms of the computer model applied to gas usage at his/her residence or service address, and qualifies under the other requirements under this Rider.

3. The Company retains the right to terminate the Fixed Gas Bill Rider and return Customers to his/her otherwise applicable rate schedule during or at the conclusion of the term for a change in an applicable Indiana statute or Indiana Regulatory Commission Order, policy or regulation that adversely impacts this program. If service under this Rider is terminated by the Company at its discretion, Customer’s bills will be adjusted by the Early Termination Adjustment as described in paragraph No. 3 of the Early Termination section.

4. A Qualified Customer can be removed without financial recourse against the Company from the Fixed Gas Bill Service under this tariff for the following reasons:

    1. Customer has significantly altered customary usage patterns as further defined in paragraph No. 5, herein.
    2. A change in any statute, regulation or a decision or Order of a court, agency or other jurisdictional entity that prevents the completion of the twelve- (12-) month billing period.
    3. Customer is no longer receiving service from the Company at the original premises, either because Customer has moved from the original premises or has discontinued gas service at the original premises.
    4. Service is discontinued to the Customer for non-payment.

Original Sheet No. 4.3C

 

RIDER TO RATES 311, 315, 316, 317, 321 AND 325

FIXED GAS BILL RIDER

No. 4 of 4 Sheets

 

DEFINITIONS AND CONDITIONS (continued)

5. Customer taking service under this Rider agrees to act in good faith to maintain gas usage at historic levels and failure to do so shall be an act of default under the terms of this Rider. Examples of action taken by Customer that could change historic gas usage include, but are not limited to, increase in furnace and/or water heater settings, increases in Customer living space or addition of new gas appliances. If Customer’s monthly consumption increases by more than 15% from his/her historic profile for any reason other than the impact of weather, the Company has the right, but is not obligated, to remove the Customer from the Fixed Gas Bill Service without financial recourse against the Company

6. In all cases, Customers will be removed only after notification and will be given an opportunity to remedy the default.

RULES AND REGULATIONS

As a condition of service hereunder, Customer agrees to abide by, and is obligated to comply with, the Company’s rate schedules and General Rules and Regulations Applicable to Gas Service, as approved by the Indiana Utility Regulatory Commission from time to time, to the extent that they are not in conflict with or inconsistent with the specific provisions of the Rider.

Issued Date Issued By
Daniel D. Gavito, Vice President
Regulatory and Governmental Affairs
Effective Date
  Merrillville, Indiana