Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 08/01/2004, Docket: RP04-371-000, Status: Effective

Original Sheet No. 63A Original Sheet No. 63A : Effective






17. DISCOUNTING (Continued)


17.2 Types of Discounts (Continued)


For example, Company may provide a specific discounted rate:


(a) to certain specified quantities under the Agreement (referred to as

quantity rate type); or


(b) if specified quantity levels are actually achieved or with respect to

quantities above or below a specified level (referred to as quantity level

rate type; or


(c) during specified time periods (referred to as time period rate type or

contract rate type); or


(d) to receipt points (referred to as point rate type), delivery points

(referred to as point rate type), transportation paths (referred to as

point to point rate type) or defined geographical areas (referred to as

zone rate type); or


(e) in a specified relationship to the quantities actually transported (i.e.,

that the rates shall be adjusted in a specified relationship to quantities

actually transported) (referred to as relationship rate type); or


(f) to provide that if one rate component which was equal to or within the

applicable Maximum and Minimum Rate at the time the discount agreement was

executed subsequently exceeds the applicable Maximum Rate or is below the

applicable Minimum Rate due to a change in Company's Maximum Rates and/or

Minimum Rates, so that such rate component must be adjusted downward or

upward to equal the new applicable Maximum or Minimum Rate, then other

rate components may be adjusted upward or downward to achieve the agreed-

upon overall rate, so long as none of the resulting rate components exceed

the Maximum Rate or are below the Minimum Rate applicable to the rate

component. Such changes to rate components shall be applied

prospectively, commencing with the date the Commission issues an order

accepting applicable revised Maximum and Minimum Rates. 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 (referred to as rate component rate type).


(g) Based upon published index prices for specific receipt and/or delivery

points or other agreed-upon published pricing reference points for price

determination. (Such discounted rate may be based upon the differential

between published index prices or arrived at by formula and shall be

referred to as index price differential rate type.) Each service

agreement entered into pursuant to this Subsection 17.2(g) shall not

change the underlying rate design; 2) shall not include any minimum bill

or minimum take provision that has the effect of guaranteeing revenue;

3) shall define the rate component to be discounted.