Commercial Natural Gas Rates
Rate Schedule 53



  • "Contract Amount" means the maximum amount of Firm Gas and Interruptible Gas a Customer may purchase from Athens Utilities Board on any Day as established by a written contract between Athens Utilities Board and the Customer.
  • "Customer" means a person or entity contracting with or otherwise receiving services from Athens Utilities Board for interruptible gas service under Rate Schedule "53."
  • "Day" means a period of twenty-four ("24") consecutive hours, beginning and ending at 8:00 a.m. prevailing Athens time.
  • "Determination Period" means the twelve-month period beginning July 1 and ending June 30, inclusive.
  • "Firm Gas" means that gas not subject to interruption or curtailment except for emergency or other causes as provided in the Rules and Regulations of Athens Utilities Board.
  • "Interruptible Gas" means that gas that is subject to interruption or curtailment by Athens Utilities Board at any time and to the extent, that Athens Utilities Board, in its sole discretion, deems necessary.
  • "Load Factor" means the quotient obtained by dividing the average daily sales to Customer for the Determination Period by the maximum daily sales to Customer for the Winter Period.
  • "Notice of Interruption" means the notice given by Athens Utilities Board to Customer that a Period of Interruption has commenced or will commence.
  • "Period of Interruption" means any period of time during which Athens Utilities Board shall interrupt or curtail the delivery of gas to Customer.
  • "Quantities of Gas Delivered:" For purposes of determining the quantity of Interruptible Gas delivered, all gas delivered in any one Day, up to the daily quantity contracted for as Firm Gas, shall be considered as Firm Gas and all additional gas delivered shall be considered Interruptible Gas. In case interruption or curtailment of Interruptible Gas is ordered for a period of time containing a part of a Day, Customer's entitlement to Firm Gas for such part of the Day shall be the amount obtained by multiplying the daily quantity of Firm Gas contracted for, by the ratio of the number of hours of curtailment or interruption in such part of a Day and 24 hours.
  • "Unauthorized Gas" means the quantity of gas (a) taken by Customer exceeding the contract amount, or (b) taken by Customer exceeding that permitted during a Period of Interruption.
  • "Winter Period" means the five-month period from November 1 to and including March 31 included in the Determination Period.



Service under Rate Schedule "53" is available to any commercial or industrial customer provided:

  1. The Customer is located within the service area of Athens Utilities Board; and 
  2. The Customer used 8,000 therms or more in three of the twelve months of the previous Determination Period; and
  3. The Customer's Load Factor is .50 or greater during the previous Determination Period; and
  4. The Customer shall be permitted to purchase only one therm of Firm Gas under Rate Schedule "53" for each two therms of Interruptible Gas which are purchased; and
  5. The Customer must have alternate fuel facilities of sufficient capacity capable of providing 100 percent of the Customer's Interruptible Gas service requirements during periods of gas interruption or curtailment. Customer shall maintain such facilities ready for operation at any time. Interruption or curtailment shall be immediately effective on verbal notification by Athens Utilities Board and Customer shall refrain from increasing or using gas until permitted to do so by Athens Utilities Board. It is understood and agreed that Athens Utilities Board will have the right to cut off gas service without further notice to Customer in the event Customer fails to curtail the use of gas in accordance with the verbal notice of interruption or curtailment given by Athens Utilities Board; and
  6. Athens Utilities Board must determine that its existing distribution system facilities are adequate and available for the requested service; and
  7. The Customer meets the following definition of a commercial or industrial customer: "Commercial customers are businesses primarily engaged in the sales of goods or services, including institutions and governmental agencies. Industrial customers are engaged primarily in a process that creates or changes raw or unfinished materials into another form or product including the generation of electric power."

In the event Customer shall fail to continue to meet conditions 1 through 7 during the previous Determination Period, service under Rate Schedule "53" shall no longer be available. Customer shall be reclassified to the appropriate rate schedule effective August 1 of each year.


A Customer may have multiple meters at each location. Each meter must meet the conditions imposed by 1 through 7 to qualify for Rate Schedule "53." If a meter fails to meet the conditions imposed by 1 through 7, the meter will be billed under Rate Schedule "32".



Service under Rate Schedule "53" is Interruptible Service. Interruptible Service is available only to the extent that Athens Utilities Board has gas available that is not required by firm customers. If Customer is served by gas purchased on an interruptible rate from a supplier of Athens Utilities Board, all conditions imposed by a supplier of Athens Utilities Board on the use of such Interruptible Gas shall likewise apply to such Customer as if Athens Utilities Board imposed the condition on Customer.


Gas purchased under Rate Schedule "53" shall be used only by the Customer at its facilities and shall be delivered at a single point of delivery or multiple points of delivery located within the service area of Athens Utilities Board and shall not be resold by the Customer.



The net rate for service under Rate Schedule "53" for each monthly billing period shall be the sum of the Customer Charge, Demand Charge, Commodity Charge, and Unauthorized Overrun Charge, each calculated as follows:

Customer Charge: $200.00 per month
Demand Charge: $0.1540 per therm of demand
Commodity Charge:  
For Firm Gas: $0.2070 per therm plus the cost per therm of gas sold to Customer; plus
For Interruptible Gas: $0.2000 per therm for the first 10,000 therms plus the cost per therm of gas sold to Customer; plus
  $0.1860 per therm from 10,001 therms to and including 20,000 therms plus the cost per therm of gas sold to Customer; plus
  $0.1720 per therm from 20,001 therms to and including 40,000 therms plus the cost per therm of gas sold to Customer; plus
  $0.1380 per therm for the excess over 40,000 therms plus the cost per therm of gas sold to Customer.
Unauthorized Overrun Charges: $1.50 per therm of Unauthorized Gas (which is in addition to the Interruptible Gas Commodity Charge).


In determining the appropriate rate block to bill Interruptible Gas, both Firm Gas volumes and Interruptible Gas volumes shall be combined. Firm Gas shall be the first gas through the meter each day.



The cost per therm of gas sold to Customer that is included in the Commodity Charge shall be subject to the Purchased Gas Adjustment of Athens Utilities Board.



The minimum bill for each monthly billing period shall be the sum of the Customer Charge and the Demand Charge. The minimum bill will be billed for each monthly billing period beginning with the date of initial service and ending with the date service is terminated at the request of the Customer, inclusive.



Bills for service under Rate Schedule "53" will be rendered monthly. Each bill rendered for service is due and payable on the date it is issued. The rates and charges under Rate Schedule "53" are net, the gross rate being five percent ("5%") higher. In the event the current monthly bill is not paid on or before the last date for payment as specified on the bill, the gross rate shall apply to any unpaid amount of the bill.



For the purposes of Rate Schedule "53," demand shall be the daily quantity of gas contracted for as Firm Gas by Customer. On July 1 of each year, Customer may change the specified quantity of Firm Gas by written notice to Athens Utilities Board. Such requested change shall become effective on August 1 of each year.



No Customer shall take Unauthorized Gas. Customer must immediately notify Athens Utilities Board if it has taken, or anticipates taking, Unauthorized Gas. In the event Customer takes Unauthorized Gas during a Period of Interruption, Customer shall be charged, in addition to the applicable Interruptible Gas Commodity Charge, a penalty of $1.50 per therm for all such Unauthorized Gas taken. In addition to the penalty, Athens Utilities Board may pursue any other remedy available to it under applicable law, including, but not limited to, suspension or termination of service. The existence of a penalty shall not be construed to give Customer the right to take Unauthorized Gas.



To the extent possible, Athens Utilities Board shall give Customer at least a one-hour Notice of Interruption before a Period of Interruption begins. A Notice of Interruption may be written or oral and shall be sufficient if given by Athens Utilities Board via telephone or in person to the person or persons designated from time to time by Customer as authorized to receive such notices, or by facsimile transmission to the telephone number designated from time to time by Customer, or if mailed or hand-delivered to Customer's premises. If a Period of Interruption involves only a reduction in the amount of gas that may be purchased, the Notice of Interruption shall state the daily and/or hourly quantity of gas that Customer may purchase. A Period of Interruption shall continue in effect until Athens Utilities Board notifies Customer that the Period of Interruption has terminated or until the time specified in the Notice of Interruption expires.



All requests for new or additional service or the transfer of existing service to higher priority end use will be supplied based on the judgment of Athens Utilities Board as to the available gas supply, the load factor or use pattern of the Customer, end use priority as may be specified by the Federal Energy Regulatory Commission ("FERC") or other appropriate governmental authority, impact on the local economy, and the laws of the State of Tennessee.



Each customer, who requires Firm Gas and receives service under Rate Schedule "53", shall execute a contract with Athens Utilities Board for at least one year to end on the August 1st specified in said contract.



All service provided hereunder is subject to the Rules and Regulations of Athens Utilities Board which may from time to time be revised.



Gas service under Rate Schedule "53" is subject to the curtailment provisions contained within the Rules and Regulations of Athens Utilities Board.