Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-463-000, Status: Effective

Original Sheet No. 531 Original Sheet No. 531 : Effective



Applicable to Agreements Executed After April 1, 2002

Firm Transportation Service - Market Area (continued)



[In the event of agreement or settlement related to an expansion of Transporter's system:]


4.3 Notwithstanding Section 4.1 above, as of the in-service date and during the primary


term of this Agreement, Shipper shall pay Transporter, for all services rendered hereunder, the


lower of: (1) the rates established under Transporter's Rate Schedule FTS-2 (inclusive of all


applicable surcharges), as filed with and approved by the FERC and as said Rate Schedule may


hereafter be legally amended or superseded, or (2) the Final Rate Cap as determined below:


(a) The Base Rate Cap shall be as follows: $ ________/MMBtu/d


(b) The Base Rate Cap assumes the levelized rate methodology through March 31, 2005,


and thereafter, the traditional cost of service methodology. For purposes of this


section with respect to this Agreement, a "levelized rate" shall mean a rate


designed by adjusting the annual depreciation expense such that it results in a


levelized annual cost of service .


(c) The Base Rate Cap is stated in nominal dollars, and shall exclude all applicable


surcharges and fuel.


(d) [If an escalator is agreed to:] Beginning on _____, and annually thereafter


("Escalation Date"), the Base Rate Cap then in effect shall be escalated in


accordance with the following formula; provided that in no event shall the Base


Rate Cap, as it may be escalated pursuant to this subsection (d), exceed


$0.___ per MMBtu. On each Escalation Date, the Base Rate Cap to be effective for


the subsequent twelve (12) month period shall be the sum of: (i) 0.70 multiplied by


the Prior Base Rate Cap, which is defined herein as the Base Rate Cap that was


effective for the twelve (12) month period immediately preceding the Escalation


Date, and (ii) 0.30 multiplied by the Prior Base Rate Cap, which product shall be


escalated (but not decreased) by multiplying it by a fraction, wherein the


numerator shall be the GNP Implicit Price Deflator, as set forth in the most recent


publication of Survey of Current Business published by the U.S. Department of


Commerce ("GNP Deflator") (or any substitute index that the parties mutually agree


to in writing), for the most recent calendar quarter published in the Survey of


Current Business as of the Escalation Date ("Numerator Calendar Quarter"), and the


denominator shall be the GNP Deflator for the calendar quarter preceding the


Numerator Calendar Quarter by one calendar year.