VARIABLE TARIFF METHODOLOGY Clause Samples

VARIABLE TARIFF METHODOLOGY. Section II-1. Maximum Allowable Interstate Rate (a) The Maximum Allowable Interstate Rate generated by the VTM in this Agreement is the Maximum Allowable Interstate Rate for Interstate Transportation on TAPS. In general, transportation may consist of one or more types of transportation depending upon the specific point at which petroleum is received into or delivered out of TAPS (e.g., whether transportation occurs between the origin at Pump Station 1 and the destinations at the Golden Valley Electric Association connection, the Petro Star ▇▇▇▇▇▇ Refinery and the Valdez Marine Terminal or between any other future origins or destinations). Interstate Transportation is the transportation of petroleum through TAPS in interstate commerce. Currently, there is only one type of Interstate Transportation on TAPS: from the origin at Pump Station 1 to the destination at the ▇▇▇▇▇▇ Marine Terminal. Intrastate Transportation is the transportation of petroleum through TAPS in intrastate commerce. Currently, there are three types of Intrastate Transportation from the origin at Pump Station 1 to the three destinations noted above. Any future changes in origins and destinations will be incorporated into the calculation of the Maximum Allowable Interstate Rate in a manner consistent with this Article II. (b) As more fully described in the remaining sections of this Section II, beginning with the 2018-2019 Maximum Allowable Interstate Rate, for the purpose of calculating the forward-looking Maximum Allowable Interstate Rate for each upcoming Annual Rate Period, the forecast shall be based on actual costs for the immediately preceding calendar year, including the actual year-end carrier property accounts for the immediately preceding calendar year and the actual throughput for the immediately preceding calendar year, with the exceptions and adjustments as provided for in the remaining sections of this Section II and as adjusted by the Net Carryover to the extent provided for under Section II-13. (c) No adjustment shall be made to rates based upon the physical characteristics of petroleum being transported, including but not limited to density and viscosity. If in the future the TAPS Carriers believe that adjustments based upon the physical characteristics of petroleum beyond what are contained in the TAPS Quality Bank Methodology are appropriate, the TAPS Carriers shall provide prior notice to the other Parties regarding the proposed adjustments and their manner of calculati...