Enbriidge Pipelines (Midla) L. L. C.

FIFTH REVISED VOLUME NO. 1

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Effective Date: 05/06/2005, Docket: RP05-330-000, Status: Effective

Second Revised Sheet No. 188 Second Revised Sheet No. 188 : Effective

Superseding: Substitute First Revised Sheet No. 188

28. DISCOUNT POLICY

(a) In the event that Pipeline agrees to discount its rate to Customer

below Pipeline’s maximum rate under Pipeline’s Rate Schedules, the

following discount terms may be reflected on the applicable Service

Agreements and will apply without the discount constituting a material

deviation from Pipeline’s applicable pro forma Service Agreements;

provided, however, that any such discounted rates set forth below shall

be between the minimum and maximum rates applicable to the service

provided under the applicable Rate Schedule. Pipeline and Customer may

agree that a specified discounted rate will apply under the following

conditions:

 

(i) to specified quantities under Customer’s Service

Agreement(s);

(ii) to specified quantities above or below a certain level or

all quantities if quantities exceed a certain level;

(iii) in a specified relationship to quantities actually

transported (i.e., that the Reservation charge will be

adjusted in a specified relationship to quantities actually

transported);

(iv) to specified quantities during specified periods of time or

during specified periods of the year;

(v) to specified quantities at specific Point(s) of Receipt or

Point(s) of Delivery or other geographical locations;

(vi) to production reserves committed or dedicated by Customer;

and/or

(vii) that a specific discounted rate is based on published index

prices for specific Point(s) of Receipt and/or Point(s) of

Delivery or other agreed-upon published pricing reference

points (such discounted rate may be based upon the

differential between published prices or arrived at by

formula). Any agreement containing such discounted rate

shall specify the rate component(s) to be discounted (i.e.,

Reservation charge or Commodity charge or both), and any

formula will provide a reservation rate per unit of contract

demand (Maximum Daily Quantity). To the extent the firm

Reservation charge is discounted, the index price

differential rate formula shall be calculated to state a

rate per Dth. Furthermore, such discount shall not change

the underlying rate design of the service being provided or

include any minimum bill or maximum take provision that

would have the effect of guaranteeing revenue.

 

In addition, the discount agreement may include a provision that if one

rate component which was at or below the applicable maximum rate at the

time the discount agreement was executed subsequently exceeds the

applicable maximum rate or is less than the applicable minimum rate due

to a change in Pipeline’s maximum (minimum) rates so that such rate

component must be adjusted downward (upward) to equal the new applicable

maximum (minimum) rate, the other rate components may be adjusted upward

(downward) to achieve the agreed overall rate, so long as none of the

resulting rate components exceed the maximum rate or are less than the

minimum rate applicable to that rate component. Such changes to rate

components shall be applied prospectively, commencing with the date a

Commission order accepts revised tariff sheets. Nothing contained

herein shall be construed to alter a refund obligation under applicable

law for any period during which rates which had been charged under a

discount agreement exceeded rates which ultimately are found to be just

and reasonable.