Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 06/01/2010, Docket: RP10-609-000, Status: Effective

Fifth Revised Sheet No. 616 Fifth Revised Sheet No. 616

Superseding: Fourth Revised Sheet No. 616

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

46. NEGOTIATED RATES

 

Algonquin and Customer may mutually agree on a Negotiated Rate or rate formula with respect

to rates, rate components, charges, or credits differing from the otherwise applicable tariff

rate under Rate Schedules AFT-E, AFT-ES, AFT-1, AFT-1S, AIT-1, TTT, AFT-CL, PAL and/or AIT-2.

 

46.1 Definition

 

A Negotiated Rate may be less than, equal to, or greater than the maximum Recourse

Rate and/or the minimum rate; may be a rate design other than the straight fixed-

variable; and may include a minimum quantity. The Recourse Rates will be available to

any Customer that does not wish to negotiate a rate.

 

46.2 Limitations

 

This Section 46 does not authorize the negotiation of terms and conditions of service.

 

46.3 Bidding for Capacity

 

The cap for bidding for capacity under the right of first refusal provisions of this

tariff is the maximum Recourse Rate.

 

46.4 Capacity Release

 

(A) Except as expressly provided for in Section 14 of the General Terms and

Conditions, the release of capacity under a Negotiated Rate agreement is capped

at the maximum Recourse Rate; provided, however, the Negotiated Rate Customer

will continue to be obligated to pay Algonquin the difference by which the

Negotiated Rate exceeds the rate paid by the Replacement Customer. Algonquin and

a Negotiated Rate Customer may agree upon payment obligations and crediting

mechanisms, which vary from or are different from those set forth in Algonquin's

capacity release provisions.

 

(B) To the extent that Algonquin agrees to a Negotiated Rate applicable to usage

and/or fuel charges, Algonquin will consider, if requested by the Negotiated

Rate Customer, and may agree with the Negotiated Rate Customer, on a not unduly

discriminatory basis, to the terms and conditions pursuant to which Algonquin

will offer such Negotiated Rate(s) to Replacement Customer(s). This agreement

to flow through the Negotiated Rates for usage and/or fuel charges to a

Replacement Customer will be documented as set forth in Section 46.7 below. A

Replacement Customer to whom such offer is made may elect to pay the usage

and/or fuel charges pursuant to Algonquin's recourse rates or pursuant to the

offered Negotiated Rate.

 

46.5 Accounting Treatment

 

Algonquin will establish a new sub-account to record the revenues received from any

Negotiated Rate transactions and shall maintain supporting information at a level of

detail that would be sufficient for Natural Gas Act Section 4 rate change filing

purposes. Algonquin will keep separate and identifiable each volume transported,

billing determinant, rate component, surcharge, and revenue associated with a

Negotiated Rate to permit filings in the form of Statements G, I, and J in future rate

proceedings.