Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 07/09/2004, Docket: RP04-325-000, Status: Effective

First Revised Sheet No. 270A First Revised Sheet No. 270A : Effective

Superseding: Original Sheet No. 270A

 

GENERAL TERMS AND CONDITIONS

 

 

27. DISCOUNTING POLICY (Continued)

 

27.2 From time to time Shipper or Buyer and Company 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.

 

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

the minimum rate applicable to the service provided.

 

For example, Company may provide a specific discounted rate:

 

(a) to certain specified quantities under the agreement (referred to as

quantity rate type); or

 

(b) if specified quantity levels are actually achieved or with respect to

quantities below a specified level (referred to as quantity level rate

type; or

 

(c) during specified time periods (referred to as time period rate type or

contract rate type); or

 

(d) to points of receipt (referred to as point rate type), points of delivery

(referred to as point rate type, transportation paths (referred to as

point to point rate type) or defined geographical areas (referred to as

zone rate type); or

 

(e) 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) (referred to as relationship rate type); or

 

(f) to 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 Company'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

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 (referred to as rate component rate type); or

 

(g) based upon published index prices for specific Receipt and/or Delivery

Points or other agreed-upon published pricing reference points for price

determination. (Such discounted rate may be based upon the differential

between published index prices or arrived at by formula and shall be

referred to as index price differential rate type.) Each service

agreement entered into pursuant to this Subsection 27.7 shall not change

the underlying rate design; 2) shall not include any minimum bill or

minimum take provision that has the effect of guaranteeing revenue;

3) shall define the rate component(s) to be discounted.