GENERAL TERMS AND CONDITIONS

(Continued)


 


 

18.4 Capacity Release and Right of First Refusal: The rate at which capacity

subject to a negotiated rate may be released shall be capped at the maximum

applicable tariff rate. However, if the release is for a term of one (1)

year or less and if the release is to take effect on or before one (1) year

from the date on which the Seller is notified of the release, the rate at

which capacity subject to a Negotiated Rate may be released shall not be

capped at the maximum applicable tariff rate. For purposes of exercising

rights to continue service pursuant to Section 10.1(b) of these General

Terms and Conditions, the highest rate that the existing Customer capacity

holder must match if it desires to retain all or a portion of its capacity,

is the applicable Maximum Tariff Rate, including surcharges, for such

service.


 

18.5 Filing Requirements: No later than the Business Day on which Seller

commences service at a negotiated rate (or if the Day on which Seller

commences such service is not a Business Day, then the next Business Day

after Seller commences such service), Seller will file with the Commission

either its negotiated rate agreement or a numbered Tariff sheet stating the

name of the Customer, the actual negotiated rate or the formula used to

calculate the rate, the applicable receipt and delivery points, the quantity

of Gas to be transported, the applicable Rate Schedule for the service and

an affirmation that the negotiated rate agreement does not deviate in any

material aspect from the applicable Form of Service Agreement in Seller's

Tariff.


 

18.6 Accounting for Costs and Revenues: The allocation of costs to, and the

recording of revenues from, service at negotiated rate(s) will follow

Seller's normal practices associated with all of its services under this

Tariff. Seller will maintain separate records of negotiated rate transactions

for each billing period. These records shall include the volumes

transported, the billing determinants, the rates and surcharges charged and

the revenue received associated with such transactions. Seller will

separately identify such transactions in Statement G, I and J (or their

equivalents) filed in any general rate proceeding.


 

18.7 Rate Treatment: Seller shall have the right to seek in future general rate

proceedings discount-type adjustments in the design of its rates related to

negotiated rate agreements that were converted from pre-existing discount

agreements to negotiated rate agreements, provided that the type of pre-

existing service is not altered as a result of the conversion to a negotiated

rate. In these situations, Seller may seek a discount-type adjustment based

upon the greater of the negotiated rate revenues received or the discounted

rate revenues which otherwise would have been received.


 

18.8 Limitations: This Section 18 does not authorize Seller to negotiate terms

and conditions of service.