Granite State Gas Transmission, Inc.
Fourth Revised Volume No. 1
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Effective Date: 03/01/2010, Docket: RP10-322-000, Status: Effective
Original Sheet No. 140 Original Sheet No. 140
GENERAL TERMS AND CONDITIONS
30. NEGOTIATED RATES
Pipeline and Customer may mutually agree on a negotiated rate
formula with respect to rates, rate components, charges, or
credits differing from the otherwise applicable recourse rate
under Rate Schedules FT-1, FT-NN, and IT-1.
A negotiated rate may be less than, equal to, or greater than
the maximum recourse rate; shall not be less than the minimum
recourse rate; may be a rate design other than straight fixed-
variable; and may include a minimum quantity.
This Section 30 does not authorize the negotiation of
terms and conditions of service.
30.3 Recourse Rate Availability.
The recourse rate will be available to any customer that
does not wish to negotiate a rate.
30.4 Allocation of Capacity.
Under any circumstances where allocation of capacity is
determined by the rate being paid, a negotiated rate Customer
paying a rate higher than the maximum recourse rate will be deemed
to be paying a rate equal to such maximum recourse rate.
30.5 Bidding for Capacity
The cap for bidding for capacity under the right of first
refusal provisions in Section 30 of the General Terms and
Conditions of this FERC Gas Tariff is the maximum recourse rate.
30.6 Capacity Release.
The release of capacity under a negotiated rate agreement
is capped at the maximum recourse rate; provided, however, the
negotiated rate Customer will continue to be obligated to pay
Transporter the difference by which the negotiated rate exceeds
the rate paid by the Replacement Customer. Transporter and a
negotiated rate Customer may agree upon payment obligations and
crediting mechanisms which vary from or are different from those
set forth in Transporter's capacity release provisions.
30.7 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 rate
30.8 Filing Requirement.
Transporter will file, prior to the commencement of
service under a negotiated rate agreement, a tariff sheet
reflecting the customer's name, rate schedule, negotiated rate,
contract quantities, and points of receipt and delivery. Such
sheet also affirms that actual negotiated rate agreements do not
deviate in any material respect from the form of service