Questar Pipeline Company

First Revised Volume No. 1

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Effective Date: 06/21/2005, Docket: RP05-349-000, Status: Effective

Second Revised Sheet No. 99H Second Revised Sheet No. 99H : Effective

Superseding: First Revised Sheet No. 99H

PART 1

GENERAL TERMS AND CONDITIONS

(Continued)

 

(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 Questar can meet the standards required of an

affiliate discount adjustment, including requiring that Questar shall have the

burden of proving that any discount granted is required to meet competition.

 

(ii) Questar shall be required to demonstrate that any

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

 

Questar may comply with item (ii) above by:

 

1. Demonstrating that, in the absence of Questar's entering

into the negotiated-rate agreement, Questar 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

 

2. Making another comparable showing that the negotiated

rate contributes more to fixed costs on the system than could have been

achieved without the negotiated rate.

 

(c) Questar shall also have the right to seek discount

adjustments in future rate cases at the greater of (a) the negotiated-rate

revenues received, or (b) the discounted recourse-rate revenues that otherwise

would have been received under a pre-existing Part 284 service agreement.

 

30.5 Bidding for Firm Capacity. Questar and Shipper may negotiate,

and post for competitive bidding, a rate that exceeds the applicable maximum

reservation rate. If competing bids under § 5 of the General Terms and

Conditions reflect different rate forms, i.e., negotiated rates vs. recourse

rates, Questar shall award the capacity, or portion, using the evaluation

criteria of § 5 of these General Terms and Conditions; the negotiated

reservation