Northwest Pipeline Corporation

First Revised Volume No. 1-A

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

First Revised Sheet No. 317-A First Revised Sheet No. 317-A : Effective

Superseding: Original Sheet No. 317-A

RATE SCHEDULE TF-1

Firm Transportation

(Continued)

 

11. FACILITIES REIMBURSEMENT (Continued)

 

(i) the volumes which will be transported through the

contemplated facilities are in excess of the volumes which

could be transported through existing metering facilities

considering both the capacity of the existing facilities and

currently effective priorities of service through such

meters; or

 

(ii) the volumes which will be transported are to a new end-

use customer or market, or to a customer or market which

hasn't been served for the twelve months prior to the date

of request for the facilities additions; or

 

(iii) the volumes which will be transported would not

otherwise flow through Transporter's system. To verify that

the volumes would not otherwise be transported through

Transporter's system, Shipper shall submit an affidavit to

Transporter including a statement certifying that unless

Transporter pays for the contemplated facilities, Shipper

will not flow the volumes through Transporter's system.

 

In calculating the incremental cost of service of the

facilities to be constructed, Transporter shall utilize the

methodologies for calculating cost of service which underlie its

currently effective transportation rates.

 

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.