Cheyenne Plains Gas Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 07/26/2010, Docket: RP10-876-000, Status: Effective
First Revised Sheet No. 242 First Revised Sheet No. 242
GENERAL TERMS AND CONDITIONS
4. REQUEST FOR SERVICES (Continued)
4.12 Negotiated Rate Authority (Continued)
(d) Subject to the limitations set forth below, Transporter may seek to
include negotiated rates in a discount-type adjustment to the level
of Transporter's recourse rates in general rate changes initiated by
Transporter under Section 4 of the Natural Gas Act and rate changes
initiated by others under Section 5 of the Natural Gas Act.
Transporter may seek to include negotiated rates in such recourse
rate adjustment whenever the rate for service is below the posted
maximum rate for service under the applicable rate schedule for all
or part of the 12-Month base period and/or the nine Month adjustment
period for such rate change proceeding. However, if the negotiated
rate TSA(s) was/were not in effect during the base period, such
discount may still be requested in the recourse rate adjustment when
the rate for service under the negotiated rate TSA is projected to
be in effect with rates below the otherwise applicable maximum
recourse rate as of the end of the 9-Month adjustment period
applicable to such rate proceeding.
(e) A discount adjustment to recourse rates shall only be allowed to the
extent that Transporter can meet the standards required of an
affiliate discount-type adjustment including requiring that the
Transporter shall have the burden of proving that any discount
granted is required to meet competition.
(f) Transporter shall be required to demonstrate that any discount-type
adjustment does not have an adverse impact on recourse rate
(i) Demonstrating that, in the absence of Transporter's entering
into such negotiated rate TSA providing for such discount,
Transporter would not have been able to contract for such
capacity at any higher rate, and that recourse rates would
otherwise be as high or higher than recourse rates which
result after applying the discount adjustment; or
(ii) Making another comparable showing that the negotiated rate
discount contributes more fixed costs to the system than could
have been achieved without the discount.
(g) Transporter may also seek to include in a discount-type adjustment
negotiated rate TSA that were converted from pre-existing discounted
Part 284 agreements to negotiated rate TSAs.
(h) This provision does not allow Transporter and Shipper to negotiate
terms and conditions of service.