ANR Storage Company

Original Volume No. 1

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Effective Date: 11/01/2007, Docket: RP08- 16-000, Status: Effective

First Revised Sheet No. 155E First Revised Sheet No. 155E : Effective

Superseding: Original Sheet No. 155E

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

18. NEGOTIATED RATES

 

18.1 Availability: Seller and Customer may mutually agree to negotiate rates

under any Part 284 Rate Schedule that expressly provides for a negotiated

rate and references this Section 18. Seller's maximum effective rate

(maximum base rate plus all applicable surcharges) for service under any

such rate schedule is available as a recourse rate for any Customer that

does not desire to negotiate a rate hereunder.

 

18.2 Definition: Negotiated rates shall be mutually agreed and set forth in

writing. A negotiated rate is a rate: which is determined from a formula

rather than a stated rate between the maximum and minimum on the filed

rate sheets; or which is a stated rate that is or may be greater than the

Maximum Rate; or which may have components which are less than the

minimum charge for such components on the filed rate sheets; or which

uses a rate design other than the one used to establish the applicable

recourse rate (e.g., straight fixed variable). A negotiated rate may

include a minimum or maximum volume quantity for which charges will be

paid. A negotiated rate may also include the ability to having varying

terms for capacity or the ability to buyout of the term for some or all

of the capacity.

 

18.3 Capacity Allocation: In evaluating requests for firm service, where one or

more request uses a negotiated rate or negotiated rate formula, Seller will

consider, in assigning value to such requests, only reservation or demand

charge revenue or other revenue which is guaranteed to be received by

Seller. Pursuant to a capacity evaluation under Section 10.1 (a) of these

General Terms and Conditions, the net present value of any such bid for

firm service shall be capped by the net present value of the maximum

applicable reservation rate for such service over the contract term bid. In

performing a net present value evaluation of a negotiated rate bid

proposing a volumetric or usage rate along with a minimum throughput

commitment, Seller shall consider only the amounts required to be paid

regardless of actual usage.