Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 396 Original Sheet No. 396 : Pending

 

 

GENERAL TERMS AND CONDITIONS

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15.6 DISCOUNTING POLICY

 

(a) In determining whether and the extent to which

Natural has discounted various elements of its rates under

Agreements for the purposes of its FERC accounts and for

determining collections under Sections 21, 38, 39 and 40 of these

General Terms and Conditions, the sequence of discounting set out

in this Section 15.6 shall apply. Nothing herein is intended to

modify as between the parties to any Agreement the provision of

such Agreement regarding the payment of various rate elements. Any

step in the sequence set out in this Section 15.6 shall not apply

to any Agreement to the extent such Agreement is exempt from the

relevant charge [see, e.g., Sections 21.3(d)(2) and 38.2(c)(1) of

these General Terms and Conditions].

 

(b) Where the rate assessed by Natural on any service

Agreement is less than the maximum rate applicable to that

Agreement plus all surcharges applicable to such Agreement, then

for the purposes stated above, Natural shall determine the rate

elements covered by the rate actually assessed (and thus the

elements which have been discounted) by the following procedure:

 

(1) Natural shall first apply all revenue under a

firm Agreement to the commodity rate (including the ACA Surcharge

under Section 40 of these General Terms and Conditions up to the

maximum level of the ACA Surcharge rate applicable to such

Agreement), if any, applicable to such Agreement.

 

(2) Natural shall next apply all revenue under a

firm Agreement in excess of that accounted for under subsection (1)

above to demand surcharges for the collection of gas supply

realignment costs under Section 38 of these General Terms and

Conditions, where applicable, up to the maximum surcharge rate

applicable to such Agreement under said Section 38.

 

(3) Natural shall next apply all revenue under a

firm Agreement in excess of that accounted for under subsections

(1) and (2) above to demand surcharges for the recovery of Account

No. 858 costs under Section 21 of these General Terms and

Conditions, where applicable, up to the maximum surcharge rate

applicable to such Agreement under said Section 21.