Negotiated Rate?
An alternative to traditional cost of service rates where a rate for a service varies from a pipeline’s otherwise applicable tariff and is mutually agreed upon by a pipeline and its customer. At the time a customer is considering a negotiated rate, a recourse rate that is on file in the pipeline’s tariff must also be available to that customer. Also known as negotiated/recourse rates. What is a Netback Price? Wellhead price determined by subtracting transmission and distribution costs from the market price. What is the NGA? See Natural Gas Act. What is Nomination? Formal notification to a pipeline from a shipper indicating the amount of gas to be received, delivered or stored by the pipelines.
