General Sales Service (SC-3)

This is the primary service rate used by most small-volume (less than 5,000 Mcf) non-residential customers. The charges for this service are unbundled into two primary service charges: delivery charges and natural gas supply charges. Customers under this service can choose to receive natural gas supply service from a supplier other than National Fuel.

Load Balancing Technology Sales Service (SC-5)

This is a firm sales service for customers using gas in high-load-factor equipment such as Cogeneration, Gas Cooling, Natural Gas Vehicles, etc.

Sales Service for Customers Operating Natural Gas Vehicles (SC-7)

This is a firm sales service for customers using gas in Natural Gas Vehicles utilizing either National Fuel-owned or customer-owned filling facilities.

Seasonal Air Conditioning Sales Service (SC-8)

This is a firm sales service for customers using gas in air conditioning equipment between the months of May and September.

Small Cogeneration Sales Service (SC-9)

This is a firm sales service for customers using gas in a qualified cogeneration facility no larger than 500 kilowatts.

Sales Service for Customers Operating Cogeneration Facilities (SC-10)

This is an off-peak firm sales service for customers using gas in a qualified cogeneration facility with an annual consumption greater than 2,000,000 Mcf.

Supplemental Sales Service (SC-4)

This is a firm sales service for customers with an independent supply of gas (e.g., gas supply from a local gas well) who wish to supplement this supply by purchasing gas from National Fuel.

Interruptible Supplemental Sales Service (SC-6)

This is a sales service for customers with an independent supply of gas (e.g., gas supply from a local gas well) who wish to supplement this supply by purchasing gas from National Fuel on an interruptible basis.

Primary Services

Monthly Metered Transportation Service (SC-13M)

This is the primary transportation service used by most large-volume (greater than 5,000 Mcf/yr) unbundled customers. The customer is billed for their entire transportation usage, regardless of whether the gas supplies are purchased from National Fuel and/or a marketer. Transportation rates are based on six annual volumetric categories. This rate is for firm transportation and requires firm capacity on all upstream pipelines.

Daily Metered Transportation Service (SC-13D)

This is an alternative transportation service realistically suitable to only a small group of unbundled customers. It requires telemetering, installed at the customer’s expense, to monitor daily deliveries and usage, since imbalances between the two are calculated every day (as opposed to monthly for SC-13M). Although less expensive than SC-13M, SC-13D requires more work for the customer and leaves less room for error in nominations.

Customer Balancing and Aggregation (CBA) Service (SC-18)

This is a service that relieves the customer of any financial liability associated with transportation imbalances (over-deliveries or shortfalls). An “Aggregator” (in most cases a marketer) takes over the liability of the net imbalances of all the customers they represent. The customer pays only transportation charges to National Fuel, regardless of differences between deliveries and usage, giving the customer a much more predictable gas bill.

Supplier Transportation Balancing and Aggregation (STBA) Service (SC-19)

This service provides a third option to the current transportation service options of:

• Conventional transportation service where the end user is financially liable for the minimum charge, transportation charge and any imbalance charges.
• Customer Balancing and Aggregation (CBA) service where the end user is only financially liable for the minimum charge and the transportation charge, not any imbalance charges.

The concept of STBA service is that, except for service-related matters, National Fuel terminates its relationship with the end use customer. National Fuel bills the marketer for the minimum charge, transportation charge and any net imbalance charge of all customers in the marketers’ STBA group. The marketer then bills each customer for all appropriate charges, including the gas commodity charge for the gas supplied by the marketer. The customer receives no bill from National Fuel. STBA service is mandatory for all individual customers using less than 3,500 Mcf/Yr., and optional for any transportation customer using greater than 3,500 Mcf/Yr.

Large Industrial Incentive Transportation Service (SC-15)

This is an interruptible transportation service for customers planning a plant expansion or new construction of at least $30 million, a minimum employment increase of 5% and an incremental annual increase in consumption of 300,000 Mcf. The rate and terms shall be negotiated between National Fuel and the customer.

Bypass Response Transportation Service for Customers Operating Large Facilities (SC-16)

This is an interruptible transportation service for customers exhibiting a real and demonstrated bypass threat with an annual consumption greater than 200,000 Mcf. The rate and terms shall be negotiated between National Fuel and the customer.

Transportation Service to Cogeneration Customers (SC-17)

This is an interruptible transportation service for customers using gas in a qualified cogeneration facility with an annual consumption greater than 5,000 Mcf. The rate and terms shall be negotiated between National Fuel and the customer.

Basic Gas-for-Electric Generation Service (SC-21)

This is an interruptible transportation service for customers using gas in a dual-fueled electric-generation facility having capacity of at least 50 megawatts.

Deficiency Imbalance Sales Service (SC-11)

This is the primary backup sales service to cover any unplanned shortfalls when customer usage exceeds supplier deliveries. It is an interruptible sales service with no monthly guarantee on availability or price. Rates are seasonal and indexed to National Fuel Distribution’s monthly weighted average cost of gas (WACOG). If a customer takes SC-11 during a period of unauthorized overruns, a surcharge of $7/Mcf plus the seasonal WACOG will be imposed.

Standby Sales Service (SC-12)

This is a “reserved” back-up sales service which acts as insurance against any unplanned shortfalls. It is a firm sales service, with higher reliability than SC-11, since it is ordered ahead of time. SC-12 also has a higher certainty of price, since the customer will not pay any unauthorized overrun surcharges as in SC-11. Critical Service customers without dual-fuel backup capabilities who are transporting are required to have SC-12 standby service or released, firm upstream capacity.

Contracted Sales Service (SC-14)

This is an elected interruptible sales service, not a backup sales service as in SC-11 or SC-12. “Posted” rates are indexed to National Fuel Distribution’s monthly weighted average cost of gas (WACOG) and are available to any unbundled customer. “Discounted” rates below the posted price are available on a customer-class basis or an individual customer basis. Currently, the only discounted rates are for #6 fuel oil or coal dual-fuel boiler customers.