Texas Eastern Transmission Corporation
Sixth Revised Volume No. 1
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Effective Date: 09/23/1999, Docket: RP99-480-000, Status: Effective
Original Sheet No. 683 Original Sheet No. 683 : Superseded
GENERAL TERMS AND CONDITIONS
29. NEGOTIATED RATES
Pipeline and Customer may mutually agree on a negotiated rate or rate formula with respect to
rates, rate components, charges, or credits differing from the otherwise applicable recourse
rate under Rate Schedules CDS, FT-1, SCT, VKFT, LLFT, PTI, IT-1, VKIT, LLIT, SS-1, ISS-1,
A negotiated rate may be less than, equal to, or greater than the maximum recourse
rate; shall not be less than the minimum rate; may be a rate design other than
straight fixed-variable; and may include a minimum quantity. The recourse rates will
be available to any customer that does not wish to negotiate a rate.
This Section 29 does not authorize the negotiation of terms and conditions of service.
29.3 Allocation of Capacity
Under any circumstances where allocation of capacity is determined by the rate being
paid, a negotiated rate Customer paying a rate higher than the maximum recourse rate
will be deemed to be paying a rate equal to such maximum recourse rate.
29.4 Bidding for Capacity
The cap for bidding for capacity under the right of first refusal provisions in
Section 3.13 of the General Terms and Conditions of this FERC Gas Tariff is the
maximum recourse rate.
29.5 Capacity Release
The release of capacity under a negotiated rate agreement is capped at the maximum
recourse rate; provided, however, the negotiated rate Customer will continue to be
obligated to pay Pipeline the difference by which the negotiated rate exceeds the rate
paid by the Replacement Customer. Pipeline and a negotiated rate Customer may agree
upon payment obligations and crediting mechanisms, which vary from or are different
from those set forth in Pipeline's capacity release provisions.
29.6 Accounting Treatment
Pipeline will establish a new sub-account to record the revenues received from any
negotiated rate transactions and shall maintain supporting information at a level of
detail that would be sufficient for Natural Gas Act Section 4 rate change filing
purposes. Pipeline will keep separate and identifiable each volume transported,
billing determinant, rate component, surcharge, and revenue associated with a
negotiated rate to permit filings in the form of Statements G, I, and J in future rate
29.7 Filing Requirement
Pipeline will file, prior to the commencement of service under a negotiated rate
agreement, a tariff sheet reflecting the customer's name, rate schedule, negotiated
rate, quantities, and points of receipt and delivery. Such sheet also affirms that
actual negotiated rate agreements do not deviate in any material respect from the form
of service agreements.