Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 24 Original Sheet No. 24 : Effective

 

RATE SCHEDULE FTS

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5.8 REVENUE CREDITING MECHANISM

 

(a) Under its Amended Stipulation and Agreement in Docket

No. RP97-408 (Amended Stipulation and Agreement), Trailblazer agreed to

implement a revenue crediting mechanism ("RCM") under which Trailblazer

shall passback revenues attributable to firm transportation agreements of

less than one year in length (short-term revenues) as set forth below.

Overrun revenues under firm transportation agreements of less than one (1)

year represent interruptible revenues, a representative level of which was

included in the development of Trailblazer's rates, and are excluded from

the definition of short-term revenues.

 

(b) Trailblazer shall retain the first $1.4 million of

short-term revenues collected in each twelve-month period defined in (c)

occurring during the term of the Amended Stipulation and Agreement. For

short-term revenues collected in excess of $1.4 million but less than $2.4

million annually, Trailblazer shall passback 50 percent of such revenues

to firm Shippers with transportation agreements having a term of one (1)

year or more (long-term firm Shippers). For short-term revenues collected

in excess of $2.4 million, Trailblazer shall passback 65 percent of those

revenues to long-term firm Shippers.

 

(c) The RCM shall commence with the effective date of the

Amended Stipulation and Agreement and shall terminate concurrently with

the end of the day on December 31, 2002. Within 90 days after the

conclusion of the first twelve-month period and each succeeding twelve-

month period during the term of the Amended Stipulation and Agreement,

Trailblazer shall allocate short-term revenues based on each long-term

firm Shipper's pro-rata share of contract demand entitlements during the

applicable twelve-month period. Any short-term revenues allocated to

long-term firm Shippers who are classified as being a Contesting Party to

Trailblazer's Amended Stipulation and Agreement will be retained by

Trailblazer. All other applicable short-term revenues will be subject to

passback to the remaining long-term firm Shippers based on the allocation

method described herein. In the event the Amended Stipulation and

Agreement shall expire prior to the end of a twelve-month period, the

tiers and crediting formula set forth above shall be pro-rated to account

for the partial year.

 

(d) In applying the RCM, Trailblazer shall not take into

account any revenue under Expansion 2002 Agreements, or any Agreement to

which Expansion 2002 Recourse Rates are applicable. Trailblazer shall not

allocate any revenues for pass back to Expansion 2002 Shippers, or to any

Agreement to which Expansion 2002 Recourse Rates are applicable.