§ 69.16. Penalties.
Nonperformance penalties should be established at levels sufficiently high to deter NGSs from failing to comply with their delivery obligations.
(1) The penalties should be independent of and in addition to the costs incurred by the NGDC, or, in the alternative, the supplier of last resort, for replacement gas supplies, including pipeline penalties.
(2) NGDCs may take into consideration the operational costs and other liabilities NGDCs may be exposed to by virtue of an NGS’s failure to deliver in establishing penalties.
(3) Failure of an NGS to honor delivery obligations may lead to disqualification from NGDC programs, suspension or revocation of the NGSs license.
(4) The disqualification, suspension or revocation should not relieve the NGS of its obligations to pay all penalties and costs incurred by the NGDC as a result of the NGS’s failure to deliver.
Cross References This section cited in 52 Pa. Code § 69.11 (relating to definitions); and 52 Pa. Code § 69.19 (relating to operational and capacity councils).
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