Maritimes & Northeast Pipeline, L.L.C.
First Revised Volume No. 1
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Effective Date: 09/04/2008, Docket: RP08-488-000, Status: Effective
Second Revised Sheet No. 300 Second Revised Sheet No. 300
Superseding: First Revised Sheet No. 300
GENERAL TERMS AND CONDITIONS
24. NEGOTIATED RATES
Pipeline and Customer may mutually agree on a negotiated rate or
rate formula with respect to rates, rate components, charges, or
credits differing from the otherwise applicable recourse rate
under any rate schedule in this Tariff.
A negotiated rate may be less than, equal to, or greater than the
maximum recourse rate and/or the minimum rate; may be a rate
design other than straight fixed-variable; and may include a
minimum quantity. The recourse rates will be available to any
Customer that does not wish to negotiate a rate.
This Section 24 does not authorize the negotiation of terms and
conditions of service.
24.3 Allocation of Capacity
For purposes of allocating capacity pursuant to Sections 4.1, 8
and 9 of the GT&C of Pipeline's Tariff, a Customer is deemed to
have paid the reservation charge that it has agreed to pay or that
Customer actually pays with the following exceptions: (a) a
Customer that is willing to pay (i) a negotiated rate with a
reservation charge component that exceeds the maximum reservation
charge component of the Recourse Rate, or (ii) a volumetric or
formula-type negotiated rate with a revenue stream guaranteed by
the negotiated rate Customer that exceeds or is equal to the
maximum reservation charge component of the Recourse Rate, is
deemed to have paid the maximum reservation charge component of
the Recourse Rate; and (b) a Customer with a volumetric or
formula-type negotiated rate that is willing to guarantee a
revenue stream less than the maximum reservation charge component
of the Recourse Rate is deemed to have paid a reservation charge
equal to the amount of the guaranteed revenue stream.
24.4 Bidding for Capacity
For purposes of exercising rights to continue service pursuant to
Section 4.2 of the GT&C of Pipeline's Tariff, the highest rate
that a Customer must match (based on its reservation charge
component and any revenue guarantee) if it desires to retain all
or a portion of its capacity and continue to receive firm service
under the same Rate Schedule beyond the expiration date of such
Long-Term Firm Service Agreement is the maximum Recourse Rate.
24.5 Capacity Release
Except as expressly provided for in Section 9 of the General Terms
and Conditions, the release of capacity under a negotiated rate
agreement is capped at the maximum recourse rate; provided,
however, the negotiated rate Customer will continue to be
obligated to pay Pipeline the difference by which the negotiated
rate exceeds the rate paid by the Replacement Customer. Pipeline
and a negotiated rate Customer may agree upon payment obligations
and crediting mechanisms, which vary from or are different from
those set forth in Pipeline's capacity release provisions.