American Midstream (AlaTenn), LLC

Fifth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-493-000, Status: Effective

Original Sheet No. 117A Original Sheet No. 117A

 

GENERAL TERMS AND CONDITIONS (continued)

 

or Commodity Rate or both), and any formula will provide a reservation rate per

unit of

Contract

Demand (Maximum Daily Quantity). To the extent the firm Reservation Rate is

discounted, the

index

price differential rate formula shall be calculated to state a rate per Dth.

Furthermore, such

discount

shall not change the underlying rate design of the service being provided or

include any

minimum bill or

maximum take provision that would have the effect of guaranteeing revenue.

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 or is less than the applicable minimum rate

due to a

change in

Transporter's maximum (minimum) rates so that such rate component must be

adjusted

downward

(upward) to equal the new applicable maximum (minimum) rate, the other rate

components may

be

adjusted upward (downward) to achieve the agreed overall rate, so long as none

of the resulting

rate

components exceed the maximum rate or are less than the minimum 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. 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.

 

(ii) To the extent that Transporter elects to provide service pursuant to this

FERC Gas Tariff

at a

discounted rate, transportation rate components shall be discounted in the

following order:

 

(a) The Reservation Rate component, if applicable, shall be the first

component discounted

and

shall be the only component discounted until such component has been reduced

to the level

established

as the Minimum Rate for the applicable Rate Schedule, but in no case shall

Transporter discount

to a

level which would allow the Reservation Rate component to equate to less than a

Minimum Rate

specified by Transporter for the applicable Rate Schedule.