Crossroads Pipeline Company

Original Volume No. 1

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Effective Date: 12/02/1999, Docket: RP00- 59-000, Status: Effective

Original Sheet No. 76A Original Sheet No. 76A : Effective

 

 

GENERAL TERMS AND CONDITIONS

(continued)

 

39. Negotiated Rates

 

Pipeline and Customer may mutually agree on a Negotiated Rate formula with respect to

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

Recourse Rate under Rate Schedules FT-1,IT-1 and GPS/GLS.

 

39.1 Definition

 

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

Rate; shall not be less than the minimum Recourse Rate; may be a rate design other

than straight fixed-variable; and may include a minimum quantity.

 

39.2 Limitations

 

This Section 39 does not authorize the negotiation of terms and conditions of service.

 

39.3 Recourse Rate Availability

 

The Recourse Rate will be available to any customer that does not wish to

negotiate a rate.

 

39.4 Rate Treatment

 

Transporter shall have the right to seek in future general

rate proceedings discount-type adjustments in the design of

its rates related to Negotiated Rate agreements that were converted

from pre-existing discount agreements to Negotiated Rate agreements,

provided that the type of pre-existing service is not altered as a

result of conversion to a Negotiated Rate. With respect to all Negotiated

Rate agreements resulting from conversions of pre-existing discount

agreements, Transporter may seek a discount-type adjustment based upon

the greater of: (a) the Negotiated Rate revenues received; or (b) the

discounted tariff rate revenues which otherwise would have been received.

 

39.5 Allocation of Capacity

 

Under any circumstances where allocation of capacity is determined by the rate being

paid, a Negotiated Rate Customer paying a rate higher than the maximum Recourse Rate

will be deemed to be paying a rate equal to such maximum Recourse Rate.

 

39.6 Bidding for Capacity

 

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

Section 35 of the General Terms and Conditions of this FERC Gas Tariff is the

maximum Recourse Rate.

 

39.7 Capacity Release

 

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 Transporter the difference by which the revenue due under the

Negotiated Rate agreement exceeds the revenue received from the Replacement Customer.

Transporter and a Negotiated Rate Customer may agree upon payment obligations and

crediting mechanisms which vary from or are different from those set forth in

Transporter's capacity release provisions.

 

39.8 Accounting Treatment

 

Transporter 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. Transporter 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.