Gas Transmission Northwest Corp.

Third Revised Volume No. 1-A

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Effective Date: 01/01/2007, Docket: RP06-407-002, Status: Suspended

Second Revised Sheet No. 221 Second Revised Sheet No. 221 : Pending

Superseding: First Revised Sheet No. 221

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

 

35. MAINLINE REVENUE SHARING CREDITS

 

35.1 Applicability. Revenue sharing as set forth in this Paragraph

is contingent upon implementation of GTN's as-filed risk-

sharing and flexible service rate proposals in Docket No. RP06-

407-000. GTN will share a portion of its mainline

transportation service revenues with Eligible Shippers on an

annual basis under certain conditions, as set forth below. For

purposes of this paragraph, Eligible Shippers are defined as

maximum-recourse-rate, uniform-MDQ, long-term firm mainline

shippers that are receiving transportation service at the time

credits are disbursed. Shippers in default are not eligible

for revenue credits pursuant to this Paragraph.

 

35.2 Step 1. Within 45 days after December 31st of each year, GTN

shall determine the total annual flexible service revenues

received during the previous 12-month period. GTN will

additionally calculate threshold revenues that GTN would have

collected had it applied 1) long-term firm maximum recourse

rates for uniform MDQ, non-seasonal service to firm flexible

service shippers, and 2) a 100% load factor equivalent rate to

interruptible flexible service shippers. If total actual

revenues exceed threshold revenues, GTN will credit 75% of the

excess revenues to Eligible Shippers and GTN will retain the

remaining 25%. Credited and retained revenues from Step 1 will

not be factored into the Step 2 calculation described below.

 

35.3 Step 2. GTN will next determine total annual revenues received

from transportation services during the previous 12-month

period, net of any revenues credited or retained from Step 1.

If total actual revenues exceed the cost-of-service underlying

GTN's current transportation rates, net of any unsubscribed

capacity costs allocated to GTN through rate design, GTN will

credit 75% of the excess revenues to Eligible Shippers and GTN

will retain the remaining 25%.

 

35.4 Revenue Crediting. Revenue Sharing Credits, as determined

above, shall be reflected as a billing adjustment on March

invoices rendered to Eligible Shippers.

 

35.5 Allocation Method. Revenue Sharing Credits shall be credited

to each Eligible Shipper based on the proportion of each

shipper's uniform MDQ-miles, multiplied by the number of months

that Shipper's contract is in effect during the current year.

 

(Continued)