Northern Border Pipeline Company

First Revised Volume No. 1

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Effective Date: 09/16/2009, Docket: RP09-540-000, Status: Effective

Third Revised Sheet No. 300H.03 Third Revised Sheet No. 300H.03

Superseding: Second Revised Sheet No. 300H.03

 

GENERAL TERMS AND CONDITIONS

 

 

38. NEGOTIATED RATES (Continued)

 

38.3 Best Bid Evaluation (Continued)

 

38.32 The present value of a Negotiated Rate bid under

Method A pursuant to Subsection 27.61(a) of the

General Terms and Conditions will be capped at the

value of a Recourse Rate bid under comparable terms.

 

38.4 Filing Requirement

 

Company will submit to the Commission a tariff sheet stating

the name of the Shipper, the Negotiated Rate, and the Rate

Schedule applicable to any Agreement contracted on a

Negotiated Rate basis. Unless Company executes and files a

non-conforming Agreement, such tariff sheet will contain a

statement that the Negotiated Rate Agreement does not

deviate in any material aspect from the form of Agreement in

the tariff for the applicable Rate Schedule.

 

38.5 Rate Treatment

 

Company will not seek in future general rate proceedings

discount-type adjustments to demand charge billing

determinants for capacity converted from Recourse Rate

Agreements to Negotiated Rate Agreements, unless the

Recourse Rate had already been discounted. In those

situations where Company had granted a market-justified

discount to the Recourse Rate and subsequently converted the

Agreement to a Negotiated Rate Agreement, Company may seek a

discount-type adjustment, based on the greater of: (a) the

Negotiated Rate revenues received or (b) the discounted

Recourse Rate revenues which otherwise would have been

received, but Company will have the burden of proof to

demonstrate the appropriateness of both the existence and

level of any such adjustment. The procedural rights of all

parties will be preserved to contest the propriety of the

proposed adjustment.

 

Company will maintain separate and identifiable accounts for

volumes transported, billing determinants, rate components,

surcharges, and revenues associated with negotiated rate

transactions.