Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-418-000, Status: Effective

Original Sheet No. 9M Original Sheet No. 9M

 

STATEMENT OF NEGOTIATED RATES

 

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, 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.

 

(ii) Promptly upon the earlier of (aa) the date on which Pipeline makes a final

determination of the actual Capital Costs of the Project or (bb) the last day of the

eighteenth (18th) month following the Service Commencement Date, Pipeline shall file

a second Cost Report with the Commission that reflects such final actual costs for

the Project (and, if necessary, any costs estimated to be incurred for final

completion of the Project) and adheres to the form of Cost Report required by Section

157.20(c)(3) of the Commission's regulations ("Final Cost Report"). In a transmittal

letter accompanying the filing of such Final Cost Report, Pipeline shall describe the

Final Cost Report as superseding and replacing the first Cost Report for the Project.

The monthly Reservation Charge in footnote 1 above shall be adjusted for a second

time, pursuant to the formula set forth above in 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 in such Final Cost Report.

For the sake of clarity, such second adjustment to the Reservation Charge shall be

inclusive of, and not in addition to, the adjustment set forth above in footnote

2(a)(i). The Parties acknowledge that Section 157.20(c)(3) does not contemplate the

filing of a second Cost Report, and any rejection by FERC of the filing of the Final

Cost Report shall have no effect on the Parties' agreement to make the adjustment to

the Reservation Charge contemplated in this footnote 2(a)(ii).

 

(b) The references to "2008 dollars" in footnote 2(a) are included only as points of

reference and are not included to suggest that the dollar amounts reflected in footnote

2(a) are to be adjusted to reflect year of construction or the actual Service

Commencement Date or for any other purpose. To be clear, the Parties intend that the

capital cost rate adjustments contemplated in footnote 2(a) will be based on the

difference between the actual dollars spent as estimated in the Cost Report or the Final

Cost Report, as applicable, and $300 million.

 

3/ True Up

 

(a)(i) Pipeline shall charge and Customer shall pay Pipeline for service under the Service

Agreement the applicable rates established in footnote 1 of this Agreement, without

the adjustment(s) required by footnote 2 of this Agreement, for the period extending

from the Service Commencement Date until the first Day of the first full calendar

month following the date on which Pipeline files the Cost Report with FERC.

 

(ii) For service under the Service Agreement from the first Day of the first full calendar

month following the date on which Pipeline files the Cost Report with FERC until the

first Day of the first full calendar month following the date on which Pipeline files

the Final Cost Report with FERC, Pipeline shall charge and Customer shall pay

Pipeline for such service the applicable rates established in footnote 1 of this

Agreement, as adjusted by footnote 2(a)(i) of this Agreement.

 

(iii)For service under the Service Agreement from the first Day of the first full

calendar month following the date on which Pipeline files the Final Cost Report with

FERC until the end of the term of this Agreement, Pipeline shall charge and Customer

shall pay Pipeline for such service the applicable rates established in footnote 1 of

this Agreement, as adjusted by footnote 2(a)(ii) of this Agreement.