Amendment No. 1 to Service Agreement No. 79028 between Columbia Gas Transmission Corporation and UGI Utilities, Inc.

Summary

This agreement is an amendment to a service contract between Columbia Gas Transmission Corporation and UGI Utilities, Inc. It sets the terms for natural gas storage services, specifying the maximum daily storage quantities and the contract period from November 1, 2004, to March 31, 2014. The agreement replaces previous contracts, outlines payment terms, and details how notices should be sent. It also includes provisions for rate adjustments and contract termination. Both parties must sign for the amendment to take effect.

EX-10.26 2 w69393exv10w26.txt AMENDMENT NO. 1 TO THE SERVICE AGREEMENT EXHIBIT 10.26 Columbia Gas Transmission A NISOURCE COMPANY 1700 MacCorkle Ave SE Charleston WV 25314 PO Box 1273 Charleston WV ###-###-#### ###-###-#### October 27, 2004 Mr. Tim Oaks UGI Utilities, Inc. P.O. Box 12677 Reading, PA ###-###-#### Re: Proposed Contract 79028-FSS For a Total Maximum Daily Storage Quantity (MDSQ) of 93,867 Dth/day Dear Mr. Oaks: Enclosed for execution are two originals of the above-referenced staggered term Agreement that supercedes and cancels 49883-FSS, 53002-FSS, and 77366-FSS effective November 1, 2004. Appendix A titled Revision No. 1 reflects an MDSQ of 79,859 Dth/day effective November 1, 2004, through March 31, 2012. Appendix A titled Revision No. 2 reflects an MDSQ of 14,008 Dth/day effective November 1, 2004, through March 31, 2014. The effect of these Appendices is as follows: The MDSQ effective 11/01/04 through 03/31/12 is 93,867 Dth/day. The MDSQ effective 04/01/12 through 03/31/14 is 14,008 Dth/day. Please execute and return both originals to me at the above address. Upon execution by Columbia, a fully executed original will be forwarded for your file. If you have any questions, feel free to contact me at 304 ###-###-####. Very truly yours, /s/ Jackie Sydnor Lead Customer Services Representative SERVICE AGREEMENT NO. 79028 CONTROL NO. 2004-05-27-0003 FSS SERVICE AGREEMENT THIS AGREEMENT, made and entered into this 1st day of November , 2004 by and between: Columbia Gas Transmission Corporation ("Transporter") AND UGI Utilities Inc. ("Shipper") WITNESSETH: That in consideration of the mutual covenants herein contained, the parties hereto agree as follows: Section 1. Service to be Rendered. Transporter shall perform and Shipper shall receive service in accordance with the provisions of the effective FSS Rate Schedule and applicable General Terms and Conditions of Transporter's FERC Gas Tariff, Second Revised Volume No. 1 (Tariff), on file with the Federal Energy Regulatory Commission (Commission), as the same may be amended or superseded in accordance with the rules and regulations of the Commission Transporter shall store quantities of gas for Shipper up to but not exceeding Shipper's Storage Contract Quantity as specified in Appendix A, as the same may be amended from time to time by agreement between Shipper and Transporter, or in accordance with the rules and regulations of the Commission. Service hereunder shall be provided subject to the provisions of Part 284.223 of Subpart G of the Commission's regulations. Shipper warrants that service hereunder is being provided on behalf of Shipper: Section 2. Term. Service under this Agreement shall commence as of November 1, 2004, and shall continue in full force and effect until March 31, 2014. Pre-granted abandonment shall apply upon termination of this Agreement, subject to any right of first refusal Shipper may have under the Commission's regulations and Transporter's Tariff. Section 3. Rates. Shipper shall pay Transporter the charges and furnish the Retainage as described in the above-referenced Rate Schedule, unless otherwise agreed to by the parties in writing and specified as an amendment to this Service Agreement. Transporter may agree to discount its rate to Shipper below Transporter's maximum rate, but not less than Transporter's minimum rate. Such discounted rate may apply to: a) specified quantities (contract demand or commodity quantities); b) specified quantities above or below a certain level or all quantities if quantities exceed a certain level; c) quantities during specified time periods; d) quantities at specified, points, locations, or other defined geographical areas; and e) that a specified discounted rate will apply in a specified relationship to the quantities actually transported (i.e., that the reservation charge will be adjusted in a specified relationship to quantities actually transported). In addition, the discount agreement may include a provision that if one rate component which was at or below the applicable maximum rate at the time the discount agreement was executed subsequently exceeds the applicable maximum rate due to a change in Transporters maximum rate so that such rate component must be adjusted downward to equal the new applicable maximum rate, then other rate components may be adjusted upward to achieve the agreed- overall rate; so long as none of the resulting rate components exceed the maximum rate applicable to that rate component. Such changes to rate components shall be applied prospectively, commencing with the date a Commission order accepts revised tariff sheets. However, nothing contained herein shall be construed to alter a refund obligation under applicable law for any period during which rates which had been charged under a discount agreement exceeded rates which ultimately are found to be just and reasonable. SERVICE AGREEMENT NO. 79028 CONTROL NO. 2004-05-27-0003 FSS SERVICE AGREEMENT Section 4. Notices. Notices to Transporter under this Agreement shall be addressed to it at Post Office Box 1273, Charleston, West Virginia ###-###-####, Attention: Manager - Customer Services and notices to Shipper shall be addressed to it at: UGI Utilities Inc. P.O. Box 12677 Reading, PA ###-###-#### ATTN: Timothy Oaks until changed by either party by written notice. SERVICE AGREEMENT NO. 79028 CONTROL NO. 2004-05-27-0003 FSS SERVICE AGREEMENT Section 5. Superseded Agreements. This Service Agreement supersedes and cancels, as of the effective date hereof; the following Service Agreements: See Appendix B. UGI UTILITIES INC. By: /s/ --------------------------------------- Name: David W. Trego Title: President & CEO UGI Utilities, Inc. Date: 11/1/04 COLUMBIA GAS TRANSMISSION CORPORATION By: _______________________________________ Name: _______________________________________ Title: _______________________________________ Date: _______________________________________ Revision No. 0 Control No. 2004-04-27-0003 Appendix B to Service Agreement No. 79028 Under Rate Schedule FSS Between (Transporter) Columbia Gas Transmission Corporation and (Shipper) UGI Utilities Inc. Superceded Agreements: FSS 49883 FSS 53002 FSS 77366 Revision No. 1 Control No. 2004-06-18-0012 Appendix A to Service Agreement No. 79028 Under Rate Schedule FSS Between (Transporter) Columbia Gas Transmission Corporation And (Shipper) UGI Utilities, Inc. Storage Contract Quantity 4,530,080 Dth Maximum Daily Storage Quantity 79,859 Dth per day CANCELLATION OF PREVIOUS APPENDIX A [X] Yes [ ] No (Check applicable blank) Transporter and Shipper have mutually agreed to a Regulatory Restructuring Reduction Option pursuant to Section 42 of the General Terms and Conditions of Transporter's FERC Gas Tariff. [ ] Yes [X] No (Check applicable blank) Shipper has a contractual right of first refusal equivalent to the right of first refusal set forth from time to time in Section 4 of the General Terms and Conditions of Transporter's FERC Gas Tariff. Service pursuant to this Appendix A, Revision No. 1 shall be effective from November 1, 2004 through March 31, 2012. [ ] Yes [X] No (Check applicable blank) This Appendix A, Revision No._____ shall cancel and supersede the previous Appendix A, Revision No._____ effective as of ____________, 20__ to the Service Agreement referenced above. With the exception of this Appendix A, Revision No. 1 all other terms and conditions of said Service Agreement shall remain in full force and effect. UGI UTILITIES INC. By: /s/ --------------------------------------- Name: David W. Trego Title: President & CEO UGI Utilities, Inc. Date: 11/1/04 COLUMBIA GAS TRANSMISSION CORPORATION By: _______________________________________ Name: _______________________________________ Title: _______________________________________ Date: _______________________________________ Revision No. 2 Control No. 2004-10-01-0002 Appendix A to Service Agreement No. 79028 Under Rate Schedule FSS Between (Transporter) Columbia Gas Transmission Corporation And (Shipper) UGI Utilities, Inc. Storage Contract Quantity 560,320 Dth Maximum Daily Storage Quantity 14,008 Dth per day CANCELLATION OF PREVIOUS APPENDIX A [X] Yes [ ] No (Check applicable blank) Transporter and Shipper have mutually agreed to a Regulatory Restructuring Reduction Option pursuant to Section 42 of the General Terms and Conditions of Transporter's FERC Gas Tariff. [ ] Yes [X] No (Check applicable blank) Shipper has a contractual right of first refusal equivalent to the right of first refusal set forth from time to time in Section 4 of the General Terms and Conditions of Transporter's FERC Gas Tariff. Service pursuant to this Appendix A, Revision No. 2 shall be effective from November 1, 2004 through March 31, 2014. [ ] Yes [X] No (Check applicable blank) This Appendix A, Revision No. ______ shall cancel and supersede the previous Appendix A, Revision No. ______ effective as of _________, 20_______ to the Service Agreement referenced above. With the exception of this Appendix A, Revision No. 2 all other terms and conditions of said Service Agreement shall remain in full force and effect. UGI UTILITIES INC. By: /s/ --------------------------------------- Name: David W. Trego Title: President & CEO UGI Utilities, Inc. Date: 11/1/04 COLUMBIA GAS TRANSMISSION CORPORATION By: _______________________________________ Name: _______________________________________ Title: _______________________________________ Date: _______________________________________