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
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.