Hardy Storage Company, LLC
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective
Original Sheet No. 194 Original Sheet No. 194 : Effective
GENERAL TERMS AND CONDITIONS (Cont'd)
38. NEGOTIATED RATES
38.1 Availability. Seller and Customer may mutually agree to a
Negotiated Rate for service under any Rate Schedule, provided Customer has
not acquired its capacity as a temporary capacity release under Section 14
(Release and Assignment of Service Rights) of the General Terms and
38.2 Recourse Rate Availability. The Recourse Rate shall be available
to any Customer that does not wish to mutually agree to a Negotiated Rate.
38.3 Limitations. This Section 38 does not authorize the negotiation
of terms and conditions of service.
38.4 Allocations/Interruptions Based on Price. Under any circumstances
where the allocation or interruption of capacity is determined by the rate
being paid (including pursuant to General Terms and Conditions Sections
7.1(c) and 7.2(b), and pursuant to General Terms and Conditions Section
16.4(a)(1), Customers paying more than the Recourse Rate will be
considered to be paying the Recourse Rate.
38.5 Capacity Release. The maximum price cap for the release of
capacity under a Negotiated Rate agreement shall be the Recourse Rate.
Seller and a Releasor under Section 14 (Release and Assignment of Service
Rights) of the General Terms and Conditions may, in connection with their
agreement to a Negotiated Rate, agree upon payment obligations and
crediting mechanisms in the event of a capacity release that vary from or
are in addition to those set forth in General Terms and Conditions Section
38.6 Right of First Refusal. Unless otherwise mutually agreed to by
Seller and Customer pursuant to General Terms and Conditions Section
4.1(c)(1)(b), the right of first refusal provided with respect to certain
Customer's firm Service Agreements, as described in Section 4 (Auctions of
Available Firm Service) of the General Terms and Conditions, shall not
apply to firm Service Agreements with Negotiated Rates.
38.7 Assessing Negotiated Rate Bids for Available Firm Capacity. For
purposes of assessing bids for available firm capacity pursuant to General
Terms and Conditions Section 4, the net present value of Negotiated Rate
bids containing a reservation rate or other form of revenue guarantee which
exceeds the applicable Recourse Rate during all or any portion of the term
contained in the bid, shall not exceed the net present value that is
calculated assuming that the applicable Recourse Rate is in effect during
the full term contained in the bid, in place of the reservation rate or
other revenue guarantee contained in the bid.