Millennium Pipeline Company, L. L. C.
Original Volume No. 1
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Effective Date: 12/22/2008, Docket: CP98-150-011, Status: Effective
Original Sheet No. 240 Original Sheet No. 240
GENERAL TERMS AND CONDITIONS
20. DISCOUNT POLICY.
20.1 Order of Discounts. The first item discounted will be the base rate
reservation charge and then the ACA surcharge.
20.2 Types of Discounts. Transporter may agree to discount its rate to
Shipper below Transporter's maximum rate, but not less than Transporter's
minimum rate. Such discounted rate may apply to: a) specified quantities
(contract demand or commodity quantities); b) specified quantities above or
below a certain level or all quantities if quantities exceed a certain level;
c) quantities during specified time periods; d) quantities at specified
points, at specified locations, for specified transportation paths, or at
other defined geographical areas; and e) committed production or reserves.
Transporter may also agree that a specified discounted rate will apply in a
specified relationship to the quantities actually transported (i.e., that the
reservation charge will be adjusted in a specified relationship to quantities
actually transported). 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 due to a change in Transporter's maximum
rate so that such rate component must be adjusted downward to equal the new
applicable maximum rate, then other rate components may be adjusted upward to
achieve the agreed overall rate, so long as none of the resulting rate
components exceed the maximum 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. However, 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.