Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 01/17/2010, Docket: RP10-244-000, Status: Effective

First Revised Sheet No. 9B First Revised Sheet No. 9B

Superseding: Sub Original Sheet No. 9B

 

STATEMENT OF NEGOTIATED RATES

 

2/Reservation Charge Adjustment

 

(a)(i) Pipeline and Customer acknowledge that the Capital Costs

attributable to the Project facilities, which underlie the

Reservation Charge set forth in footnote 1 above, are reasonably

estimated to be $300 million (2008 dollars). The monthly

Reservation Charge in footnote 1 above shall be adjusted, pursuant

to the formula set forth in this footnote 2(a)(i), solely to

reflect any difference between the estimated $300 million amount

and the amount of Capital Costs attributable to the Project

facilities reflected by Pipeline in Pipeline's post-construction

cost report filed with the FERC for the Project facilities pursuant

to Section 157.20(c)(3) of the FERC's regulations ("Cost Report").

Such monthly Reservation Charge shall be adjusted by an amount per

Dth of MDTQ equal to $0.3042 (equivalent to $0.01 per Dth per Day)

for each $17 million (2008 dollars) increment of Capital Costs (as

reflected in the Cost Report) above or below the estimated $300

million amount. To be clear and for illustrative purposes, if the

Capital Costs reflected in the Cost Report are $291.5 million (an

$8.5 million decrease compared to the estimated $300 million

amount) or $325.5 million (a $25.5 million increase compared to the

estimated $300 million amount), the resulting adjustment to the

monthly Reservation Charge would be a reduction of $0.1521 per Dth

of MDTQ (equivalent to $0.005 per Dth per Day) or an increase of

$0.4563 per Dth of MDTQ (equivalent to $0.015 per Dth per Day),

respectively. For purposes of this Agreement, (1) the term

"Project" means an expansion project designed to construct only the

additional facilities necessary to accommodate service under the

Service Agreement and for which Pipeline is granted (and has

accepted) a certificate (and any amendments thereto) by FERC and

(2) the term "Capital Costs" means the total capital costs incurred

by Pipeline for the development and construction of the Project,

including, without limitation, the allowance for funds used during

construction, as such costs are reflected in the Cost Report,

including all costs incurred to the date of the Cost Report and

estimated to be incurred for final completion of the Project.

Nothing in this Agreement shall limit Customer's right to challenge

or contest the Capital Costs as reflected in the Cost Report.