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TARIFF FOR GAS SERVICE TXU GAS COMPANY <br /> <br />RATE SCHEDULE: 23 Service Rules and Regulations - Obtaining Gas Service <br /> <br />APPLICABLE TO: Distribution System REVISION: 0 <br /> DATE: <br />EFFECTIVE DATE: PAGE: 3 of 6 <br /> <br /> Failure of Company to terminate an Agreement for Gas Service at any time after default <br /> or breach by Customer of such Agreement for Gas Service or to resort to any other legal <br /> remedy or its exercise of any one or more of such remedies will not affect Company's <br /> right to resort thereafter to any one or more of such remedies for the same or any future <br /> default or breach by Customer. <br /> <br /> If Customer unjustifiably terminates an Agreement for Gas Service, or Company <br /> terminates such Agreement due to a default or breach by Customer, in addition to the <br /> amount then due Company, there immediately will become due and payable to Company <br /> as liquidated damages, and not as a penalty, a further sum equal to the minimum amount <br /> specified in the applicable Rate Schedules or guaranteed in the Agreement for Gas <br /> Service for the un-expired term of the Agreement for Gas Service. <br /> <br /> (2) Length of Agreement for Gas Service <br /> An Agreement for Gas Service under any Rate Schedule, except as otherwise therein <br /> provided, will be for a term of not less than one year. <br /> <br /> C. Customer Deposits <br /> Company may require an Applicant for Gas Service to provide a deposit or establish credit in a <br /> manner that is satisfactory to Company, in Company's sole discretion, but such establishment of <br /> credit will not relieve any Customer from complying with rules for prompt payment of bills. <br /> <br /> (1) Deposit for Residential Applicants <br /> A deposit for residential service required under these Service Regulations will not exceed <br /> an amount equivalent to one-sixth (1/6th) of the estimated annual billings. If actual use is <br /> at least twice the amount of the estimated billings, a new deposit requirement may be <br /> calculated and an additional deposit may be required within ten (10) days. If such <br /> additional deposit is not made, then Company may disconnect service under the <br /> standard disconnection procedure for failure to comply with deposit requirements. <br /> <br /> (2) Deposits for Temporary or Seasonal Service <br /> Company may require a deposit sufficient to reasonably protect it against the assumed <br /> risk of temporary or seasonal service and for weekend or seasonal residences, provided <br /> such a policy is applied in a uniform and nondiscriminatory manner. <br /> <br /> (3) Deposits for Commercial and Industrial Applicants <br /> Company may require a deposit from commercial and industrial Applicants sufficient to <br /> reasonably protect Company, but such deposit wilt not exceed the sum of Customer's <br /> estimated highest two (2) months billing. If additional gas equipment is installed, a new <br /> deposit requirement may be calculated and an additional deposit may be required. <br /> <br /> (4) Residential Exemption <br /> A residential Applicant will not be required to make a deposit if: <br /> <br /> (a) the residential Applicant has been a Customer of any utility for the same <br /> kind of service within the last two (2) years, is not delinquent in payment of any <br /> such utility service account, during the last twelve (12) consecutive months of <br /> <br /> -56- <br /> <br /> <br />