Panhandle Eastern Pipe Line Company, LP


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Effective Date: 05/16/2010, Docket: RP10-611-000, Status: Effective

Second Revised Sheet No. 37 Second Revised Sheet No. 37

Superseding: First Revised Sheet No. 37







3.11 Negotiated Rates


Shipper and Panhandle may agree, on a prospective basis,

to a Negotiated Rate with respect to the charges

identified in Sections 3.1, 3.2 and 3.3 herein which may

be less than, equal to or greater than the Maximum Rate;

shall not be less than the Minimum Rate; may be based on a

rate design other than straight fixed variable; and may

include a minimum quantity. Such Negotiated Rate shall be

set forth on Exhibit B of the executed Service Agreement

and on the currently effective Tariff Sheet No. 21. The

Maximum Rate shall be available to any Shipper that does

not choose a Negotiated Rate.


Shippers paying a Negotiated Rate which exceeds the

Maximum Rate will be considered to be paying the Maximum

Rate for purposes of scheduling, curtailment and

interruption, and calculating the economic value of a

request for unsubscribed firm capacity. In addition,

a Shipper that does not agree to pay any surcharges

will not be granted a scheduling preference that deems

such surcharges have been paid. Replacement Shippers are

not eligible for Negotiated Rates. Replacement Shippers

may bid or pay a rate greater than Maximum Rate if the

release of capacity is for a period of one year or less

and the release is to take effect on or before one year

from the date on which Panhandle is notified of the



In the event that capacity subject to a Negotiated Rate

which is based on a rate design other than straight fixed

variable is released, Shipper and Panhandle may agree on

billing adjustments to the Releasing Shipper that may vary

from or are in addition to those set forth in Section 15.6

of the General Terms and Conditions in order to establish

the basis of accounting for revenues from a Replacement

Shipper as a means of preserving the economic bases of

the Negotiated Rate. Such payment obligation and

crediting mechanism for capacity release shall be set

forth on Exhibit B of the executed Service Agreement.

Nothing in this Section 3.11 shall authorize Panhandle or

Shipper to negotiate terms and conditions of service.




The Monthly Bill for service under this Rate Schedule shall be

equal to the Transmission Charge, the Gathering Charge, any

applicable overrun and balancing charges, plus all applicable