Northwest Pipeline Corporation

First Revised Volume No. 1-A

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 04/17/1992, Docket: RP92-141-002, Status: Effective

Substitute Original Sheet No. 517 Substitute Original Sheet No. 517 : Effective

 

FORM OF TRANSPORTATION AGREEMENT

(APPLICABLE TO RATE SCHEDULE TF-1)

(Continued)

 

EXHIBIT "C"

to the

TRANSPORTATION AGREEMENT

DATED __________________

between

NORTHWEST PIPELINE CORPORATION

and

______________________________

 

 

ELECTION OF FACILITY COST-OF-SERVICE CHARGE REIMBURSEMENT OPTION

 

1. DESCRIPTION OF NEW FACILITIES:

 

The new facilities contemplated by Section 1(b) of Rate Schedule TF-1, which are

necessary to provide service under this agreement include the following:

 

[description of project]

 

2. RESPONSIBILITY FOR NEW FACILITY COSTS:

 

Based upon the application of the economic test in Section 11 of Rate Schedule

TF-1, Shipper initially is responsible to pay for all or a portion of the actual cost of

the new facilities described above, as set forth below.

 

Shipper elects to pay for its share of new facility costs through a monthly

Facility Cost-of-Service Charge as described in Section 11(c)(2) of Rate Schedule TF-1.

 

3. TERMS AND CONDITIONS OF FACILITY COST-OF-SERVICE CHARGE:

 

a. Total Reimbursable Cost of Facilities $__________.

 

b. Initial monthly charge $____________. 1/

 

c. Term of monthly Facility Cost-of-Service Charge: _________ years. 2/

 

(Shipper may elect at any time to cease paying the Facility Cost-of-Service Charge

by paying Transporter for the then remaining net book value of the facilities,

including any related income taxes, consistent with Section 11 of the TF-1 Rate

Schedule.)

___________________

1/ The monthly cost of service will be redetermined annually. The initial monthly

charge will be calculated based upon Transporter's estimate of the cost of service

for the first calendar year divided by twelve and will be billed monthly through

March 31 of the subsequent year. In subsequent years, effective April 1 of each

year, the monthly charge will be based upon the true-up cost of service for the

prior calendar year (annualized if the actual true-up period is less than twelve

months) divided by twelve and will be billed monthly for the period from April 1

through March 31. An annual cost-of-service "true up" will be calculated each

year, on a calendar-year basis, by March 31 of the subsequent year. The actual

cost of service, using the methodologies underlying Transporter's currently

effective transportation rates and, for depreciable life purposes, the term of the

cost-of-service charge as specified in c. above, will be compared with billings

received during the previous calendar year, and Transporter will pay Shipper

within 30 days (or the Shipper will reimburse Northwest within 30 days) for the

difference between the actual cost of service and the revenues collected for the

previous calendar year. A cost-of-service charge which terminates before December

31 of any calendar year will be subject to a final true up within ninety days

following the termination of the charge.

 

2/ Contract term or a term agreed to among the parties, whichever is shorter.

 

 

_______________________ ______________________________

(Shipper) Northwest Pipeline Corporation