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. 242 First Revised Sheet No. 242






4.12 Negotiated Rate Authority (Continued)


(d) Subject to the limitations set forth below, Transporter may seek to

include negotiated rates in a discount-type adjustment to the level

of Transporter's recourse rates in general rate changes initiated by

Transporter under Section 4 of the Natural Gas Act and rate changes

initiated by others under Section 5 of the Natural Gas Act.

Transporter may seek to include negotiated rates in such recourse

rate adjustment whenever the rate for service is below the posted

maximum rate for service under the applicable rate schedule for all

or part of the 12-Month base period and/or the nine Month adjustment

period for such rate change proceeding. However, if the negotiated

rate TSA(s) was/were not in effect during the base period, such

discount may still be requested in the recourse rate adjustment when

the rate for service under the negotiated rate TSA is projected to

be in effect with rates below the otherwise applicable maximum

recourse rate as of the end of the 9-Month adjustment period

applicable to such rate proceeding.


(e) A discount adjustment to recourse rates shall only be allowed to the

extent that Transporter can meet the standards required of an

affiliate discount-type adjustment including requiring that the

Transporter shall have the burden of proving that any discount

granted is required to meet competition.


(f) Transporter shall be required to demonstrate that any discount-type

adjustment does not have an adverse impact on recourse rate



(i) Demonstrating that, in the absence of Transporter's entering

into such negotiated rate TSA providing for such discount,

Transporter would not have been able to contract for such

capacity at any higher rate, and that recourse rates would

otherwise be as high or higher than recourse rates which

result after applying the discount adjustment; or


(ii) Making another comparable showing that the negotiated rate

discount contributes more fixed costs to the system than could

have been achieved without the discount.


(g) Transporter may also seek to include in a discount-type adjustment

negotiated rate TSA that were converted from pre-existing discounted

Part 284 agreements to negotiated rate TSAs.


(h) This provision does not allow Transporter and Shipper to negotiate

terms and conditions of service.