Northwest Pipeline Corporation

First Revised Volume No. 1-A

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 10/27/1993, Docket: RP93-199-000, Status: Effective

Second Revised Sheet No. 304-B Second Revised Sheet No. 304-B : Effective

Superseding: First Revised Sheet No. 304-B

RATE SCHEDULE TI-1

Interruptible Transportation

(Continued)

 

10. FACILITIES REIMBURSEMENT (Continued)

 

Based on the above listed criteria, the economic value of a

project shall be determined using the discounted cash flow rate of

return methodology with the minimum acceptable rate of return to

be published on Transporter's electronic bulletin board, as

amended from time-to-time. When the present value of the

incremental revenues from the project is greater than the present

value of the incremental cost of service, Transporter will pay for

the cost of the contemplated facilities. When the present value

of the incremental revenues from the project is less than the

present value of the incremental cost of service, Shipper shall

pay for the cost of the contemplated facilities in an amount equal

to the lesser of the actual cost of the facilities and the

difference between the present value of the incremental revenues

and the present value of the incremental cost of service.

 

When Transporter has previously paid for all or a portion of

receipt or delivery point facilities under this facilities

reimbursement policy, Shipper shall, nevertheless, promptly pay

Transporter for Transporter's net book value of such facilities

when either of the following events occurs: (1) when

Transporter's ability to fully recover such costs is denied in any

Section 4 or Section 5 rate proceeding, or (2) when Shipper ceases

operations at the end-use point or receipt point adjacent to where

the facilities were installed.

 

(b) Regardless of the outcome of the economic test, at its option,

Transporter will pay all costs of acquiring any rights to real

property upon which the contemplated facilities are to be

constructed, as well as costs related to rights of ingress and

egress. Unless otherwise agreed, any rights of ownership and

control associated with such real property will be retained by

Transporter.

 

(c) When Transporter installs facilities which require Shipper's

reimbursement under Section 10(a), Shipper may choose one of the

following options for payment:

 

(1) Shipper may pay Transporter for the subject facility

construction costs due pursuant to Section 10(a), and

related income taxes, in full upon completion of

construction; or