Granite State Gas Transmission, Inc.
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 03/22/2001, Docket: RP99-509-000, Status: Effective
Original Sheet No. 339 Original Sheet No. 339 : Superseded
GENERAL TERMS AND CONDITIONS
35. 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, FT-NN, and IT-1.
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 35 does not authorize the negotiation of terms and conditions of service.
35.3 Recourse Rate Availability
The recourse rate will be available to any customer that does not wish to
negotiate a rate.
35.4 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.
35.5 Bidding for Capacity
The cap for bidding for capacity under the right of first refusal provisions in
Section 30 of the General Terms and Conditions of this FERC Gas Tariff is the
maximum recourse rate.
35.6 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 negotiated rate exceeds the rate
paid by 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.
35.7 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
35.8 Filing Requirement
Transporter will file, prior to the commencement of service under a negotiated rate
agreement, a tariff sheet reflecting the customer's name, rate schedule, negotiated
rate, contract quantities, and points of receipt and delivery. Such sheet also affirms
that actual negotiated rate agreements do not deviate in any material respect from the
form of service agreements.