East Tennessee Natural Gas, LLC
Third Revised Volume No. 1
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Effective Date: 09/01/2008, Docket: RP08-475-000, Status: Effective
Third Revised Sheet No. 401 Third Revised Sheet No. 401
Superseding: Second Revised Sheet No. 401
GENERAL TERMS AND CONDITIONS (Continued)
49. NEGOTIATED RATES
Transporter and Shipper may mutually agree on a negotiated rate or rate
formula with respect to rates, rate components, charges, or credits
differing from the otherwise applicable tariff rate under Rate Schedules
FT-A, FT-L, FT-GS, LNGS, IT, IT-L, and/or PAL.
A negotiated rate may be less than, equal to, or greater than the
maximum recourse rate and/or the minimum rate; may be a rate
design other than the straight fixed-variable; and may include a
minimum quantity. The recourse rates will be available to any
Shipper that does not wish to negotiate a rate.
This Section 49 does not authorize the negotiation of terms and
conditions of service.
49.3 Bidding for Capacity
The cap for bidding for capacity under the right of first refusal
provisions of this tariff is the maximum recourse rate.
49.4 Capacity Release
Except as expressly provided for in Sections 17 and 18 of the
General Terms and Conditions, the release of capacity under a
negotiated rate agreement is capped at the maximum recourse rate;
provided, however, the negotiated rate Shipper will continue to be
obligated to pay Transporter the difference by which the
negotiated rate exceeds the rate paid by the Replacement Shipper.
Transporter and a negotiated rate Shipper may agree upon payment
obligations and crediting mechanisms, which vary from or are
different from those set forth in Transporter's capacity release
49.5 Accounting Treatment
Transporter will establish a new sub-account to record the
revenues received from any negotiated rate transactions and shall
maintain supporting information at a level of detail that would
be sufficient for Natural Gas Act Section 4 rate change filing
purposes. Transporter will keep separate and identifiable each
volume transported, billing determinant, rate component,
surcharge, and revenue associated with a negotiated rate to
permit filings in the form of Statements G, I, and J in future