Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 02/13/2010, Docket: RP10-308-000, Status: Effective

Fourth Revised Sheet No. 615 Fourth Revised Sheet No. 615

Superseding: Third Revised Sheet No. 615

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

45. DISCOUNT TERMS

 

45.1 Any Customer desiring a discount of the maximum Recourse Rates for service under

Algonquin's Open-access Rate Schedules must submit a valid request for such

discount pursuant to the procedures of this Section 45. To be considered a valid

request, Customer must complete and submit a request for discount via the LINK®

System, specifically including the information for all mandatory fields. Upon

receipt of a valid request for a discount, Algonquin will log such request and

either deny or grant such request.

 

45.2 In the event that Algonquin agrees to discount its maximum rates under any of its

Open-access Rate Schedules, Algonquin and Customer may agree to the types of

discounts specified herein without such discounts constituting a material deviation

from Algonquin's pro forma service agreement. Algonquin and Customer may agree

that a specified discounted rate will apply: (i) only to specified quantities under

the service agreement; (ii) only if specified quantities are achieved or only with

respect to quantities below a specified level; (iii) only during specified periods

of the year or for a specifically defined period; (iv) only to specified points,

combination of points, markets, transportation paths or other defined geographic

area(s); (v) only in a specified relationship to the quantities actually delivered

(i.e., that the reservation charge will be adjusted in a specified relationship to

quantities actually delivered); (vi) so that the applicable rate may be adjusted in

the following manner: when one rate component, which was equal to or within the

applicable maximum and minimum Recourse Rates at the time Customer received the

Discount Confirmation pursuant to Section 45.4 below specifying the terms of the

discount, subsequently exceeds the applicable maximum Recourse Rate or is below the

applicable minimum Recourse Rate, so that such rate component must be adjusted

downward or upward to equal the new applicable maximum or minimum Recourse Rate,

then other rate components may be adjusted upward or downward to achieve the

agreed-upon overall rate, so long as none of the resulting rate components exceed

the maximum Recourse Rate or are below the minimum Recourse Rate applicable to the

rate component (such changes to rate components shall be applied prospectively,

commencing with the date a Commission order accepts revised Statements of Rates;

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); and/or (vii) based upon published index prices for specific receipt

and/or delivery points or other agreed-upon published pricing reference points for

price determination (such discounted rate may be based upon a single published

index price or the differential between published index prices or arrived at by

formula; provided that the discounted rate shall not change the underlying rate

design, shall not include any minimum bill or minimum take obligation, and shall

define the rate component to be discounted). Notwithstanding the foregoing, no

discounted rate shall be less than the applicable minimum rate.

 

45.3 In the event that Algonquin rejects Customer's request for a discounted rate,

Algonquin shall notify Customer via e-mail of the reason for such rejection.