New Mexico Administrative Code
Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Chapter 10 - GAS SERVICES
Part 660 - NATURAL GAS TRANSPORTATION
Section 17.10.660.11 - CONTRACTS

Universal Citation: 17 NM Admin Code 17.10.660.11

Current through Register Vol. 35, No. 18, September 24, 2024

A. Modification of Transportation Contracts: A utility shall not enter into any contract for the Transportation of natural gas for a Transportation Customer which does not contain the following provision: This contract, and all its terms and provisions, shall at all times be subject to modification by order of the New Mexico Public Utility Commission [New Mexico Public Regulation Commission] upon notice and hearing and a finding of good cause therefor. In the event that any party to this contract requests the Commission to take any action which could cause a modification in the provisions of this contract, that party shall provide written notice to the other parties at the time of filing the request with the Commission.

B. Additional Reporting Requirements:

(1) In addition to the reporting requirements recited in NMPUC Rules 660.6(d), 660.6(e), 660.6(f), 660.10(b), 660.14(b), and 660.17(b) [Paragraphs 3, 4, and 5 of Subsection B of 17.10.660.10 NMAC, Paragraph 2 of Subsection F of 17.10.660.10 NMAC, Paragraph 2 of Subsection B of 17.10.660.11 NMAC and Paragraph 2 of Subsection E of 17.10.660.11 NMAC], a utility must provide the Commission, within thirty (30) days of the end of each year, the total quantities of natural gas transported by month for each Transportation Customer.

(2) Utilities must maintain logs showing all requests for Transportation and their disposition. Such a log shall be kept current and shall be made available to members of the public upon request during business hours at the utility's place of business or by photocopy by mail at a reasonable cost. The log will also be filed with the Commission and updated monthly. Such log should include information regarding the date of all Transportation requests; the identity of the Transportation Customer making the request; whether the service requested is interruptible or firm; the identity of the ultimate end-user or delivery point of the gas; the Transportation rates requested and received for such service; the disposition of the request by the utility; the date and an explanation for the disposition of the request; any complaints by the Transportation Customer or End-user concerning the requested or furnished service; and such other information as is required by the utility's commission-authorized rules and tariffs.

C. Current Sales Customers:

(1) Any current Sales Customer of a utility may obtain Transportation from that utility, pursuant to the terms and conditions of the Natural Gas Transportation Rule, for gas supplies which that customer obtains from a Seller supplemental to the customer's existing obligations to purchase gas supplies from that utility.

(2) Subject to waiver by the utility, any current Sales Customer must provide sixty (60) days' notice of intention to partially or fully become a Transportation Customer of the utility or of its intention to cease receiving service from the utility for alternative sources of gas supply and Transportation.

(3) Any current Sales Customer of a utility may elect to purchase natural gas from a Seller and to seek Transportation of those supplies by the same utility as a partial or complete substitute for its purchases of gas supplies from the utility and it may also seek Transportation from parties other than the utility. In either case a reduction in gas purchases by a current Sales Customer reduces the utility's obligation to serve (i.e., to provide gas supplies) by the same amount and proportionately reduces the utility's obligation to serve the customer's gas sales requirements under system peak demand conditions. If the Sales Customer completely leaves the system, the customer must reapply for gas service and the utility may charge said customer fees equivalent to those charged a new customer. The utility has no gas supply obligation to Transportation Customers or former End-users who have opted for other suppliers of Transportation and gas services, who are solely responsible for their own gas procurement.

(4) The utility will not refuse to provide natural gas service to any Transportation Customer who requests to reenter or increase its purchases from the utility's system gas supply and who has provided sixty (60) days' notice to the utility of its intention to reenter or increase purchases. The utility may waive or reduce the notice period at its option. Any Transportation Customer providing sixty (60) days' notice to the utility before reentry to or increased purchases from system supply, or for whom the notice period has been waived or reduced, will receive service from the utility as a Sales Customer and be billed under the applicable rate schedule according to its customer classification.

(5) The utility shall provide natural gas to a Transportation Customer who fails to give the utility at least sixty (60) days' notice of reentry or increased purchases if, as, and when such supply is available and the utility is able to provide such supply without curtailing any existing customers, unless the utility has waived or reduced the notice period. The gas shall be supplied at the greater of:
(a) the utility's rate schedule applicable to Sales Customers according to the classification otherwise applicable to the Transportation Customer, or

(b) the utility's actual price of the gas including any Transportation charges and any other related charges incurred by the utility in order to provide the gas.

(6) The utility shall use reasonable efforts to obtain the lowest cost gas which is reasonably available taking into consideration the volume of gas needed for the reentry or increased purchase, the amount of notice given to the utility, the reliability of the supply and the length of time such gas is needed. At the expiration of no more than sixty (60) days from the date of the Transportation Customer's request, it will receive gas service from the utility as a Sales Customer and be billed under the applicable rate schedule according to its customer classification.

D. Gas Under Contract: There shall be no assignment of gas purchase contracts or other gas purchase rights from a utility to its Marketing or Brokering Affiliate without the prior approval of the Commission.

E. Gas Releases:

(1) The utility shall be able to release gas without regard to the contract price of such gas and without any prior notice to the Commission. The utility shall not as a condition of release require a producer subsequently to sell the Released Gas to any Affiliate of the utility or in any other manner provide its Affiliate preferential treatment in the resale of said natural gas during the release period.

(2) The utility shall file a report with the commission within sixty (60) days of any release of natural gas and such report shall contain the following information:
(a) name of producer and/or Seller,

(b) period of release,

(c) volumes released,

(d) price of the gas,

(e) actual purchases under released contract for the twelve (12) months prior to release,

(f) brief explanation of the reason for the release, and

(g) impact on the PGAC and on the utility's ability to meet its peak day requirements during the period of the release.

(3) The utility shall publicly post on the first day of each month a listing of all gas released during the previous month.

(4) The utility shall make a copy of the release agreement available for inspection by Commission staff upon request.

F. Quality of Gas:

(1) A utility may require a Transportation Customer to render the gas transported to be of Pipeline Quality.

(2) If a utility has facilities available to render gas to be of Pipeline Quality, it shall upon request by a Transportation Customer make those facilities available to the Transportation Customer if Capacity is available at the appropriate time.

(3) Such utility may impose just and reasonable rates to render the gas of Pipeline Quality in accordance with NMPUC Rule 660.10 [Subsection F of 17.10.660.10 NMAC].

(4) If the utility does not have such facilities available, it shall be the obligation of the Transportation Customer to make the arrangements to deliver gas of Pipeline Quality to the utility.

G. Status of Investments: Any capital investment fully paid for by a Transportation Customer pursuant to NMPUC Rule 660.8 [Subsection D of 17.10.660.10 NMAC] to expand the Capacity of a utility to serve that customer, or pursuant to NMPUC Rule 660.11 [Subsection G of 17.10.660.10 NMAC] to deliver the gas to the utility and/or to complete delivery of gas to the point of end use, shall be treated as a contribution-in-aid of construction or as an advance-in-aid of construction depending on the utility's line extension policy. Refunds for advances-in-aid of construction shall conform to the refund policy for the utility's line extension rules.

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