Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 11/01/2009, Docket: RP10-98-000, Status: Effective

Fourth Revised Sheet No. 22 Fourth Revised Sheet No. 22

Superseding: Third Revised Sheet No. 22

 

STATEMENT OF EFFECTIVE RATES AND CHARGES

FOR TRANSPORTATION OF NATURAL GAS

(Continued)

 

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULES FTS-1 AND LFS-1

 

Explanatory Footnotes for Negotiated Rates

under Rate Schedules FTS-1 and LFS-1

 

/13 The per-Dth Reservation Rate shall be determined daily and will equal 50%

x (the Gas Daily Midpoint Price (The Gas Daily Daily Midpoint Price is the

price survey midpoint for PG&E, Malin and TCPL Alberta, AECO-C as published in

Gas Daily for the day of gas flow. Weekend and holiday prices will be

determined using the most recently available Gas Daily publication.) for PG&E,

Malin minus the Gas Daily Midpoint Price for TCPL Alberta, AECO-C minus the

sum of the following):

 

1) an allowance for the per Dth cost of upstream transportation

2) an allowance for the per Dth cost of GTN and Foothills B.C. system fuel

3) an allowance for the per Dth cost of delivery of volumes on the GTN

System equal to the maximum delivery rate applicable under GTN's FTS-1

Tariff for the volumes transported, multiplied by the distance

transported

4) an allowance for ACA of $0.0019/Dth or other such rate as may be

approved by FERC during the term of this Agreement to reflect its Annual

Charge Adjustment

 

For the purposes of the above Reservation Rate calculation:

 

The allowance for upstream transportation shall be calculated as the

sum of the 100% load factor equivalent rates in effect on the day of

flow for Foothills B.C. System FT Service and the TransCanada Alberta

System FT-D service, converted to U.S. dollars per Dth using the

U.S/Canadian dollar conversion rate as quoted in Gas Daily for the day

of flow, a conversion rate of 1.055056 GJ per Dth, and a heat value of

37.8 MJ/cubic meter; and

 

The allowance for GTN and Foothills B.C. System fuel shall be computed

as the Gas Daily Midpoint Price for TCPL Alberta, AECO-C (expressed in

$U.S./Dth), multiplied by {[1.0/ (1.0 - the GTN System fuel rate)]

multiplied by [1.0/ (1.0- the Foothills Zone 8 fuel rate)] minus 1.0},

where the GTN System fuel rate equals GTN's applicable mileage-based

fuel rate multiplied by the mileage of the path of the gas transported.

 

On any day when the foregoing Reservation Rate calculation produces a result

less than $0.04/Dth, the Reservation Rate shall be deemed to be $0.04/Dth. To

determine the Index Rate calculation applicable to volumes not nominated or

scheduled, the Kingsgate to Malin mileage will be applied to the calculation's

mileage-based components.

 

In addition to the Reservation Rate as calculated herein, Powerex shall pay

the Delivery Rate for volumes transported equal to the maximum delivery rate,

plus the ACA charge as applicable under GTN's FTS-1 Tariff. Powerex shall

provide fuel in kind in accordance with GTN's FTS-1 Tariff.

 

In the event that the indices for PG&E, Malin and/or TCPL Alberta, AECO-C are

not published on any given day (other than a weekend or holiday), prices will

be determined based on the last published information for such index. In the

event that the indices for PG&E, Malin and/or TCPL Alberta, AECO-C are not

published on at least three business days within a span of six business days,

either party may request negotiation of a replacement rate structure (a

"Renegotiation Request"). Upon such Renegotiation Request, GTN and Powerex

will use diligent, good faith efforts to come to a mutually agreeable

replacement rate structure. Firm Transportation Service Agreement F-10849 will

terminate on the fifteenth day following a Renegotiation Request in the event

the parties do not agree on a replacement rate structure prior to such

termination.