Questar Overthrust Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 04/25/2007, Docket: RP07-360-000, Status: Effective

Original Sheet No. 111 Original Sheet No. 111 : Effective

 

GENERAL TERMS AND CONDITIONS

 

aspect from the applicable form of service agreement or Overthrust will file

the agreement pursuant to § 154.112(b) of the Commission's Regulations.

 

31.4. Rate Case Treatment.

 

(a) Subject to the limitations set forth in subsections (b) and

(c) below, Overthrust shall be allowed to seek a discount adjustment to the

level of its recourse rates in general rate cases initiated by Overthrust

under Section 4 of the Natural Gas Act or by others under Section 5 of the

Natural Gas Act. Overthrust shall be allowed to seek inclusion of negotiated

rates in discount adjustments whenever the negotiated rate is below the

posted maximum rate under the applicable rate schedule for all or part of the

12-month base period and/or the nine-month rate case adjustment period.

However, if the negotiated rates were not in effect during the base period,

the negotiated rates may still be included in a discount adjustment when they

are projected to be in effect at a level below the otherwise applicable

maximum recourse rate as of the end of the nine-month rate adjustment period.

 

(b) The following measures shall serve to limit inappropriate

cost shifting from negotiated-rate services to recourse-rate services:

 

(i) A discount adjustment to recourse rates shall only be

allowed to the extent that Overthrust can meet the standards required of an

affiliate discount adjustment, including requiring that Overthrust shall have

the burden of proving that any discount granted is required to meet

competition.

 

(ii) Overthrust shall be required to demonstrate that any

discount adjustment does not have an adverse impact on recourse-rate

shippers.

 

Overthrust may comply with item (ii) above by:

 

1. Demonstrating that, in the absence of Overthrust's

entering into the negotiated-rate agreement, Overthrust would not have been

able to contract for the related capacity at any higher rate, and that

recourse rates would otherwise be as high or higher than recourse rates that

result after applying the discount adjustment; or