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
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.
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.
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