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Independence Offers Negotiated Basis Rate

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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