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
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.
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.
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