Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-463-000, Status: Effective

Original Sheet No. 533 Original Sheet No. 533 : Effective



Applicable to Agreements Executed After April 1, 2002

Firm Transportation Service - Market Area (continued)




(g) Unless otherwise mutually agreed by the parties, after the expiration of the

primary term of this Agreement, Shipper shall pay Transporter the rates established

under Transporter's Rate Schedule FTS-2, as filed with and approved by the FERC.



(h) If Shipper proposes or supports a change in the rate design methodologies on which

the currently effective FTS-2 rates are based, as set forth in Sections III.2.c and

d, and III.3.b of the Phase III Settlement, and such proposals or changes are

approved by a final non-appealable order, the Final Rate Cap shall be deemed

waived. Notwithstanding the foregoing, if Transporter proposes, or any other party

proposes and Transporter either supports or does not oppose, a change to any of

such rate design methodologies in any Section 4 or Section 5 proceeding, then

Shipper may take a position on that particular rate design methodology in that

proceeding, whether or not consistent with the position taken by Transporter,

without waiving the Final Rate Cap, and unless otherwise agreed by Transporter and

Shipper, approval of such a proposed change in the rate design methodology by a

final non-appealable order, in such Section 4 or Section 5 proceeding, shall not

affect the continuing applicability of the Final Rate Cap. Specifically, the rate

design methodologies referenced in this section (h) are as follows:


(i) the straight fixed variable method of rate design, and of classifying and

allocating costs,


(ii) unless otherwise agreed to by both parties hereto, the system-wide postage

stamp rate for FTS-2 service to the Market Area,


(iii) the levelized rate methodology through March 31, 2005, and thereafter, the

traditional cost-of-service methodology, and


(iv) the methodology of allocating the operation and maintenance ("O&M") costs

between Rate Schedules FTS-1 and FTS-2; provided, however, that without

waiving its final Rate Cap under this section (h)(iv), and with respect to

the allocation of administrative and general ("A&G") expenses only, a

Shipper may challenge, on a prospective basis only, Transporter's use of

the Kansas-Nebraska methodology in the Section 4 rate case to be filed by

Transporter in accordance with Article XI of the Settlement approved by the

FERC in Docket No. RP04-12; and provided further, that Shipper may, without

waiving its Final Rate Cap (and regardless of any position taken by

Transporter), argue for any allocation methodology that allocates no more

O&M costs to Rate Schedule FTS-2 than would otherwise be allocated by use



(a) the Phase III Settlement methodology for allocating all O&M costs

except for A&G expenses, and


(b) the Kansas-Nebraska methodology for allocating A&G expenses.