B-R Pipeline Company
Original Volume No. 1
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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective
Original Sheet No. 85 Original Sheet No. 85 : Effective
GENERAL TERMS AND CONDITIONS
18. NEGOTIATED RATES
18.1 Availability. Notwithstanding anything to the contrary contained
in this Tariff, Transporter and Shipper may mutually agree to negotiate
rates and contract term for all or any portion of the capacity under any
Part 284 service agreement, provided that Shipper has not acquired its
capacity under the capacity release provisions of Section 20. If only a
portion of the capacity under any service agreement will be priced at
Negotiated Rates, the original service agreement must first be
bifurcated, and Recourse Rates will continue to apply to the service
agreement not subject to the Negotiated Rates. Any Shipper may receive
service at applicable Recourse Rates.
18.2 Bids/Requests for Service. Transporter will not accept Negotiated
Rate bids or Negotiated Rate requests for any available capacity.
However, Transporter and any Shipper with a Part 284 service agreement,
except a Shipper using capacity acquired under a capacity release
arrangement, may mutually agree to convert that service agreement to one
subject to Negotiated Rates.
18.3 Filing Requirement. Transporter will submit to the Commission a
tariff sheet stating the name of the Shipper, the Negotiated Rate, the
rate schedule, the receipt and delivery points, and the contract
quantities applicable to any Negotiated Rate service agreement. Unless
Transporter executes and files a non-conforming service agreement, such
tariff sheet will contain a statement that the Negotiated Rate service
agreement does not deviate in any material aspect from the form of
service agreement in the tariff for the applicable rate schedule.
18.4 Rate Treatment. Transporter will not seek in future general rate
proceedings discount-type adjustments to demand charge billing
determinants for capacity converted from Recourse Rate service agreements
to Negotiated Rate service agreements, unless the Recourse Rate had been
discounted. In those situations where Transporter had granted a
market-justified discount to the Recourse Rate and subsequently converted
the service agreement to a Negotiated Rate service agreement, Transporter
may seek a discount-type adjustment. Such adjustment would be based on
the greater of: (i) the Negotiated Rate revenues received or (ii) the
discounted Recourse Rate revenues which otherwise would have been received.
18.5 Limitations. This section 18 does not authorize Transporter to
negotiate terms and conditions of service.