Independence Offers Negotiated Basis Rate
Independence Pipeline and ANR Pipeline are offering a new negotiated
basis rate option for shippers who sign on for 10 years starting Nov. 1,
2002 for firm transportation from Chicago to the Leidy Hub in Pennsylvania.
Interested shippers must provide the required information to ANR regarding
its Supplylink expansion and to Independence by Friday, June 9. The pipelines
said the new offering for up to about a third of the proposed 1 Bcf/d capacity
of Independence is in response to a FERC order giving them 60 days to show
market support for the 400 mile-long pipeline project. (See NGI, May 1)
"The Negotiated Basis Rate on each pipeline will be comprised of
a negotiated monthly demand charge and a negotiated commodity charge incorporating
a "sharing factor percentage (plus fuel retention and applicable surcharges),"
the pipelines said in a solicitation issued last week.
The charge would be calculated based on a complex formula incorporating
daily basis quotes between Chicago and Leidy. Questions about the proposed
rate may be addressed to Jeff Keck (313) 496-5674 for Supplylink or Ron
Kraemer (716) 857-7536 for Independence.
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