Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Superseded

Original Sheet No. 2107 Original Sheet No. 2107 GENERAL TERMS AND CONDITIONS Section 9 (Cont'd) 9.5.4 Capacity Release: (a) A negotiated rate shall not apply as a price cap for capacity release transactions under Section 16 of the General Terms and Conditions. (b) Texas Gas and a Releasing Customer may, in connection with their agreement to a negotiated rate hereunder, agree upon payment obligations and credit mechanisms that vary from or are in addition to those set forth Section 16.6 of the General Terms and Conditions, provided that such agreements are filed as nonconforming service agreements. 9.5.5 Filing Requirements: No later than the business day on which Texas Gas commences service at a negotiated rate (or if the day on which Texas Gas commences such service is not a business day, then the next business day after Texas Gas commences such service), Texas Gas will file with the Commission either its negotiated rate agreement or a numbered tariff sheet stating the name of the Customer, the actual negotiated rate or the formula used to calculate the rate, the applicable receipt and delivery points, the quantity of gas to be transported, the applicable Rate Schedule for the service, the contract term of any negotiated rate transaction, and an affirmation that the negotiated rate agreement does not deviate in any material aspect from the applicable form of service agreement in Texas Gas' tariff. 9.5.6 Accounting For Costs and Revenues: The allocation of costs to, and the recording of revenues from, service at negotiated rate(s) will follow Texas Gas' normal practices associated with all of its services under this Tariff. Texas Gas will maintain separate records of negotiated rate transactions for each billing period. These records shall include the volumes transported, the billing determinants, the rates charged and the revenue received associated with such transactions. Texas Gas will separately identify such transactions in Statements G, I and J (or their equivalents) filed in any general rate proceeding. Should Texas Gas negotiate surcharges or fuel retention amounts, it will credit full recourse rate surcharge amounts to its surcharge accounts and credit maximum recourse retainage levels to its retainage accounts for any such negotiated transactions that it enters into. 9.5.7 Rate Treatment: Texas Gas shall have the right to seek in future general rate proceedings discount-type adjustments in the design of its rates related to negotiated rate agreements that were converted from pre- existing discount agreements to negotiated rate agreements, provided that the type of pre-existing service is not altered as a result of the conversion to a negotiated rate. In these situations, Texas Gas may seek a discount-type adjustment based upon the greater of the negotiated rate revenues received or the discounted rate revenues which otherwise would have been received. For purposes of this Section 9.5.7, a pre-existing discount refers to those discount agreements that existed prior to September 1, 2000.