Enbridge Pipelines (AlaTenn) L. L. C.

FOURTH REVISED VOLUME NO. 1

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Effective Date: 05/06/2005, Docket: RP05-329-000, Status: Effective

Original Sheet No. 117A Original Sheet No. 117A : Effective

 

GENERAL TERMS AND CONDITIONS (continued)

 

or Commodity Rate or both), and any formula will

provide a reservation rate per unit of contract demand

(Maximum Daily Quantity). To the extent the firm

Reservation Rate 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

Transporter’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.

 

(ii) To the extent that Transporter elects to provide

service pursuant to this FERC Gas Tariff at a discounted

rate, transportation rate components shall be discounted in

the following order:

 

(a)The Reservation Rate component, if applicable, shall

be the first component discounted and shall be the

only component discounted until such component has

been reduced to the level established as the Minimum

Rate for the applicable Rate Schedule, but in no case

shall Transporter discount to a level which would

allow the Reservation Rate component to equate to less

than a Minimum Rate specified by Transporter for the

applicable Rate Schedule.