Enbriidge Pipelines (Midla) L. L. C.

FIFTH REVISED VOLUME NO. 1

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Effective Date: 08/01/2009, Docket: RP09-808-000, Status: Effective

Original Sheet No. 194 Original Sheet No. 194

 

31.2 CAPACITY ALLOCATION

(a) To the extent the revenue level pursuant to the Negotiated Rate(s)

or Negotiated Rate Formula provided for in Section 31.1 above, as

calculated under Subsection (b) of this Section 31.2, exceeds the

comparable revenue level at the Recourse Rate, the Customer

bidding or paying such Negotiated Rate(s) or rate(s) under a

Negotiated Rate Formula shall be treated, for all capacity

allocation purposes, as if the rate(s) bid or paid had been equal

to the Recourse Rate. Any Customer, existing or new, paying the

Recourse Rate(s) has the same right to capacity as a Customer

willing to pay an equal or higher Negotiated Rate(s) or rate(s)

under a Negotiated Rate Formula. If the Negotiated Rate or the

rate under a Negotiated Rate Formula is higher than the

corresponding Recourse Rate, the Recourse Rate rather than the

Negotiated Rate will be used as the price cap for release capacity

pursuant to Section 4 of these General Terms and Conditions and

for any bidding for capacity pursuant to Section 7.4 of these

General Terms and Conditions. Where the Negotiated Rate(s) or

rate(s) under a Negotiated Rate Formula results in revenue which

is greater than the Recourse Rate during certain portions of the

relevant evaluation period but less than the revenue at the

Recourse Rate during other portions of the relevant evaluation

period (but the revenue pursuant to the Negotiated Rate(s) or

rate(s) under a Negotiated Rate Formula equals or exceeds that

which would be generated at the Recourse Rate for the entire

evaluation period), the value of bids and requests at the

Negotiated Rate(s) or rate(s) under a Negotiated Rate Formula

shall be evaluated as though the Recourse Rate applied under such

bid or request for the entire evaluation period. Where the

Negotiated Rate(s) or rate(s) under the Negotiated Rate Formula

result in revenue which is less than revenue at the Recourse Rate

over the relevant evaluation period, the value of the bids or

requests at the Negotiated Rate(s) or rate(s) under the Negotiated

Rate Formula shall be evaluated based on such lower revenue and

shall be afforded a correspondingly lower priority than bids or

requests at the Recourse Rate.

(b) In allocating capacity among competing requests where one or more

request is at a Negotiated Rate or Negotiated Rate Formula,

Pipeline will consider, in assigning value to such request(s),

only reservation or demand charge revenue or other revenue which

is guaranteed to be received by Pipeline (i.e., through a minimum

throughput condition or minimum bill). For capacity evaluation

purposes, the value of any such request shall be capped by the

value of the maximum applicable reservation rate for such service

over the contract term bid.