Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 08/01/2007, Docket: RP07-490-000, Status: Effective

Sixth Revised Sheet No. 50A Sixth Revised Sheet No. 50A : Effective

Superseding: Fifth Revised Sheet No. 50A

GENERAL TERMS AND CONDITIONS

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(continued)

 

19. DISCOUNTING POLICY.

As stated in Section 4.2 of Rate Schedules FT, EFT, LFT and IT and in Section 4.1 of Rate Schedule MC of

this FERC Gas Tariff, Second Revised Volume No. 1, Transporter may from time to time selectively adjust any

or all of the rates charged to any individual Shipper for which maximum and minimum rates are stated on

Sheets 4, 4A, and 5A of this FERC Gas Tariff, Second Revised Volume No. 1. Discounting of rate charges

shall, however, be done in the following order:

 

1. Reservation Fee

2. Utilization Fee, but not below the stated minimum charge.

 

 

19.1 In addition to a basic discount as provided in Section 4.2 of Rate Schedules FT, EFT, LFT, and IT and in

Section 4.1 of Rate Schedule MC, Shipper and Transporter may from time to time agree in writing to a

specified discount of the otherwise applicable rates and charges. Such specified discounts, as described in

this Section 19.1, shall not constitute a material deviation from Transporter's applicable pro forma

Service Agreement. In all circumstances the specified discounted rate, as described in Shipper's Service

Agreement, shall be between the maximum rate and the minimum rate applicable to the service provided. Such

specified discounted rate may:

 

1. apply only to certain specified quantities (MDQ or utilization quantities) under the

Agreement;

 

2. apply only if specified quantity levels are achieved (with different rates, charges, and

fees applicable to all quantities above such levels, or to all quantities under the Agreement

if the specified levels are not achieved);

 

3. apply in a specified relationship to quantities actually transported (i.e. that the

rates shall be adjusted in relationship to quantities actually transported);

 

4. apply only during specified time periods;

 

5. apply only to specified points, zones, markets, transportation paths, or other defined

geographical areas, or for specific direction of gas flow;

 

6. apply to production reserves committed by the Shipper;

 

7. apply to quantities conditioned upon implementation and completion of a construction

project or acquisition of facilities;

 

8. provide that if one rate component which was equal to or within the applicable maximum and

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 rates

and/or minimum rates, so that such rate component must be adjusted downward or upward to equal the

new applicable maximum or minimum rate, then other rate components may be adjusted upward or

downward to achieve the agreed-upon overall rate, so long as none of the resulting rate components

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

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

order accepts the applicable revised maximum and minimum rates. 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;

 

9. be based on published index price point differentials, or arrived at by formula. Point prices

shall be based on published index prices for specific receipt and/or delivery points or other

agreed-upon pricing reference points for price determination. The discounted rate shall

not change the underlying rate design nor include any minimum bill or minimum take provision that

has the effect of guaranteeing revenue. Any service agreement containing such a discount will

identify what rate component (i.e. reservation charge or usage charge or both) is discounted, and

any formula will produce a reservation rate per unit of contract demand.