Reservation Charge. (i) Operator will develop the LTD Expansion Rate by classifying all Fixed Costs in the cost of service for the Terminal Expansion to the reservation charge pursuant to the Straight Fixed Variable rate design methodology. The reservation charge will be calculated by dividing the Fixed Costs for the Terminal Expansion by the total LTD Expansion service annual reservation quantities (9,600,000 Dth = 12 months x MDDQ). (ii) The reservation charge produced by Operator’s calculations in Sections 5.2(a), 5.2(b) and 5.2(c)(1)(i) will be set to reflect the actual expected cost of service based on the Terminal Expenditures, but in no case will the monthly reservation charge exceed $***/Dth or the unit rate (assuming 100% load factor utilization of capacity) exceed $***/Dth.
Appears in 2 contracts
Sources: Terminal Expansion Agreement (Dominion Midstream Partners, LP), Terminal Expansion Agreement (Dominion Midstream Partners, LP)