Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 04/01/2010, Docket: RP10-21-000, Status: Effective

Second Revised Sheet No. 261 Second Revised Sheet No. 261

Superseding: Substitute First Revised Sheet No. 261

 

GENERAL TERMS AND CONDITIONS

(continued)

 

 

h. Order of Discounting. If Transporter charges a usage and/or reservation charge less than the

maximum rate, then the order of discounting shall be the Base Tariff Rate first, then surcharges;

provided, however, the Unit Fuel Surcharge and the ACA Surcharge shall not be discountable.

 

i. Types of Discounts. From time to time Shipper and Transporter may agree in writing on a level of

discount of the otherwise applicable rates and charges in addition to a basic discount from the

stated maximum rates. For example, Transporter may provide a specific discounted rate:

 

(1) to certain specified quantities under the Service Agreement;

 

(2) if specified quantity levels are actually achieved or with respect to quantities below a

specified level;

 

(3) to production reserves committed by the Shipper;

 

(4) during specified time periods;

 

(5) to specified Points of Receipt, Points of Delivery, supply areas, transportation paths or

defined geographical areas; or

 

(6) in a specified relationship to the quantities actually transported (i.e. that the rates

shall be adjusted in a specified relationship to quantities actually transported);

 

(7) subject to rate cap;

 

(8) that is determined monthly within the maximum and minimum rate based on market

conditions; or

 

(9) based on published index prices for specific receipt or delivery points or other

agreed upon pricing reference points for price determination (Such discounted rate may

be based on the published index price point differential or arrived at by formula.

Any service agreement containing an index based discount will identify what rate

component is discounted. To the extent the firm reservation charge is discounted, the

index price differential rate formula shall be calculated to state a rate per unit of

MDTQ.); provided, however, that any such discounted rate set forth above shall be

between the maximum rate and minimum rate applicable to the service provided under

this agreement.

 

The discount may include a provision that if one rate component which was at or below the

applicable maximum rate or at or above the minimum rate at the time the discount agreement was

executed subsequently exceeds the applicable maximum rate or is below the applicable

minimum rate due to a change in Transporter's maximum and/or minimum rates, such rate

component may be adjusted downward or upward to equal the new applicable maximum or

minimum rate and the other rate components must be adjusted upward or downward to achieve

the agreed overall rate, so long as none of the resulting rate components exceed the

maximum rate or are below the minimum rate applicable to that rate component. Such

changes to rate components shall be applied prospectively commencing with the date a

Commission order accepts revised tariff sheets. However, nothing contained herein shall

be construed to alter a refund obligation under applicable law for any period during

which rates which had been charged under a discount agreement exceeded rates which

ultimately are found to be just and reasonable.

 

In all circumstances the discounted rate shall be between the maximum rate and the

minimum rate applicable to the service provided.