White River Hub, LLC

Original Volume No. 1

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Effective Date: 11/01/2008, Docket: RP08-645-000, Status: Effective

Original Sheet No. 147 Original Sheet No. 147

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

27.4. Rate Case Treatment.

 

(a) Subject to the limitations set forth in subsections (b) and

(c) below, White River shall be allowed to seek a discount adjustment to the

level of its recourse rates in general rate cases initiated by White River

under Section 4 of the Natural Gas Act or by others under Section 5 of the

Natural Gas Act. White River shall be allowed to seek inclusion of negotiated

rates in discount adjustments whenever the negotiated rate is below the posted

maximum rate under the applicable rate schedule for all or part of the 12-

month base period and/or the nine-month rate case adjustment period. However,

if the negotiated rates were not in effect during the base period, the

negotiated rates may still be included in a discount adjustment when they are

projected to be in effect at a level below the otherwise applicable maximum

recourse rate as of the end of the nine-month rate adjustment period.

 

(b) The following measures shall serve to limit inappropriate

cost shifting from negotiated-rate services to recourse-rate services:

 

(i) A discount adjustment to recourse rates shall only be

allowed to the extent that White River can meet the standards required of an

affiliate discount adjustment, including requiring that White River shall have

the burden of proving that any discount granted is required to meet

competition.

 

(ii) White River shall be required to demonstrate that any

discount adjustment does not have an adverse impact on recourse-rate Shippers.

 

White River may comply with item (ii) above by:

 

1. Demonstrating that, in the absence of White

River's entering into the negotiated-rate agreement, White River would not

have been able to contract for the related capacity at any higher rate, and

that recourse rates would otherwise be as high or higher than recourse rates

that result after applying the discount adjustment; or

 

2. Making another comparable showing that the

negotiated rate contributes more to fixed costs on the system than could have

been achieved without the negotiated rate.