Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 12/31/2008, Docket: RP09-113-000, Status: Effective

Second Revised Sheet No. 57I Second Revised Sheet No. 57I

Superseding: Substitute First Revised Sheet No. 57I

 

RATE SCHEDULE LFT

LIMITED FIRM TRANSPORTATION SERVICE

___________________________________

(continued)

4.5Negotiated Rates

 

Notwithstanding any provision of Transporter's effective FERC Gas Tariff to the contrary,

Transporter and Shipper may mutually agree in writing to a Negotiated Rate (including a

Negotiated Rate Formula) with respect to rates, rate components, charges, or credits that are

otherwise prescribed, required, established, or imposed by this Rate Schedule or by any other

applicable provision of Transporter's effective FERC Gas Tariff. The Negotiated Rate may be

less than, equal to, or greater than the maximum applicable tariff rate; shall not be less than

the minimum applicable tariff rate; may be based on a rate design other than straight fixed

variable; and may include a minimum quantity. Transporter's recourse rates shall be available

to any Shipper that does not agree to a Negotiated Rate. Recourse rates are those set forth on

Sheet Nos. 4 and 4A of this FERC Gas Tariff. Nothing in the provisions governing Negotiated

Rate Agreements shall authorize Transporter or Shipper to violate FERC's policy with respect to

the negotiation of terms and conditions of service.

 

If Transporter agrees to a Negotiated Rate, then such Negotiated Rate shall be effective only

for the period agreed to by Transporter. During such period, the Negotiated Rate shall govern

and apply to the Shipper's service under the Negotiated Rate Agreement and the otherwise

applicable rate, rate component, charge, or credit which the parties have agreed to replace with

the Negotiated Rate shall not apply to, or be available to, the Shipper. Only those rates, rate

components, charges, or credits identified by Transporter and Shipper in writing as being

superseded by a Negotiated Rate shall be ineffective during the period that the Negotiated Rate

is effective; all other rates, rate components, charges, or credits prescribed, required,

established, or imposed by this Rate Schedule or Transporter's FERC Gas Tariff shall remain in

effect. At the end of the period during which the Negotiated Rate is in effect, the otherwise

applicable tariff rates or charges shall govern any service provided to Shipper.

 

Such Negotiated Rate shall be set forth on Appendix B to the Service Agreement and Transporter

shall make any filings with the Commission necessary to effectuate such Negotiated Rate.

 

Shippers paying a Negotiated Rate which exceeds the maximum applicable tariff rate shall be

considered to be paying the maximum applicable tariff rate for purposes of scheduling,

curtailment, and interruption, and calculating the economic value of a request for available or

unsubscribed capacity. Additionally, where Net Present Value (NPV) is utilized to calculate the

value of a request for available or unsubscribed capacity, NPV shall only include revenue

generated by the reservation rate, or any other form of revenue guarantee, as proposed in a bid

for the capacity. For bids proposing a reservation rate or other form of revenue guarantee

which exceeds the maximum applicable reservation rate during all or any portion of the term

proposed in the bid, the NPV calculated for the bid may not exceed an NPV that is calculated

assuming that the maximum applicable reservation rate shall be in effect during the term

proposed in the bid, in place of the reservation rate(s) or other revenue guarantee(s) proposed

in the bid. As used in this Subsection 4.5, "revenue guarantee" shall include, but not be

limited to, revenue based on any minimum throughput commitment proposed in a bid.

 

Replacement Shippers, as defined in Section 15.1 of the General Terms and Conditions, are not

eligible for Negotiated Rates.