Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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Effective Date: 09/01/1998, Docket: RP98-359-000, Status: Effective

First Revised Sheet No. 232A.1 First Revised Sheet No. 232A.1 : Effective

Superseding: Original Sheet No. 232A.1

GENERAL TERMS AND CONDITIONS (Continued)

 

10. ALLOCATION OF UNCOMMITTED CAPACITY (Continued)

 

detrimental operational impacts, Transporter will use a net

present value per unit of demand calculation described herein to

determine the priority of operationally feasible requests. The

net present value calculation will be performed by discounting

the revenues to be received (i.e., the stream of cash flows

created by the reservation/demand charges) utilizing the amount

of capacity requested and the term of service (or period over

which the cash flows will be generated) and a discount rate

equivalent to the overall return on rate base underlying

Transporter's currently effective rates. The present value of

the revenues to be received will be divided by the MDDQ or MSDQ,

as applicable, to arrive at the net present value per unit of

demand. In the event a request specifies a term greater than

twenty (20) years in length, the term-portion of the net present

value calculation will be limited to twenty (20)

 

 

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