Cheyenne Plains Gas Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 07/26/2010, Docket: RP10-876-000, Status: Effective

First Revised Sheet No. 240 First Revised Sheet No. 240

Superseding: Original Sheet No. 240






4.11(a) Discounting (Continued)


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

index prices for specific receipt and/or delivery

points 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 usage

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 minimum 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, then 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.