Negotiated Rates Filing - Williams

Transcontinental Gas Pipe Line Company, LLC 2800 Post Oak Boulevard (77056) P.O. Box 1396 Houston, Texas 77251-1396 (713) 215-2000

August 1, 2012

Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426 Attention: Kimberly D. Bose, Secretary Reference:

Transcontinental Gas Pipe Line Company, LLC Negotiated Rate Tariff Filing Docket No. RP12-__________

Ladies and Gentlemen: Pursuant to Section 4 of the Natural Gas Act (“NGA”) and Part 154 of the Federal Energy Regulatory Commission’s (“Commission”) regulations thereunder, Transcontinental Gas Pipe Line Company, LLC (“Transco”) hereby submits for filing with the Commission Version 0.0.0 of Part II, Sections 13.7 and 13.8 to its FERC Gas Tariff, Fifth Revised Volume No.1 (“Tariff”). The tariff records are proposed to be effective September 1, 2012. Statement of Nature, Reasons and Basis The tariff records submitted herewith for inclusion in Part II, Sections 13.7 and 13.8 summarize the essential elements of two executed service agreements that contain negotiated rates under Rate Schedule FT between Transco and Carolina Power & Light Company, LLC d/b/a Progress Energy Carolinas, Inc. (“Progress Energy”) and Transco and the City of LaGrange, Georgia. The negotiated rates will be effective on the in-service date of Phase 1 of Transco’s Mid-South Expansion Project (“Project”), currently anticipated to be on September 1, 2012. On August 25, 2011, the Commission issued an “Order Issuing Certificate” in Docket No. CP11-18-000 pursuant to which Transco was granted a certificate of public convenience and necessity to construct and operate its Mid-South Expansion Project that will add, in two phases, a total of 225,000 dt per day of incremental firm transportation capacity to Transco’s system.1 Ordering paragraph (E) of the August 25 Order contains a requirement that Transco 1

Transcontinental Gas Pipe Line Co., LLC, 136 FERC ¶ 61,129 (2011).

Federal Energy Regulatory Commission August 1, 2012 Page 2

file either its Rate Schedule FT negotiated rate service agreements or tariff records describing the transaction for each shipper under the Project paying a negotiated rate at least 30 days, and not more than 60 days, prior to the commencement of service. Accordingly, pursuant to the Commission’s Alternative Rate Policy Statement and the provisions of Transco's Rate Schedule FT that permit Transco to negotiate rates,2 Transco submits herewith for filing tariff records reflecting summaries of the negotiated rate service agreements between Transco and Progress Energy (Contract No. 9126450) and Transco and City of LaGrange, Georgia (Contract No. 9126432). The summaries include the exact legal name of the customer, the applicable charge, the applicable rate schedule for the service, the receipt and delivery points, the quantity of gas to be transported under the service agreement and the term of the negotiated rate. Transco affirms that the above identified service agreements do not deviate in any material aspect from the Rate Schedule FT form of service agreement in Transco’s FERC Gas Tariff. The agreements contain a single, non-material deviation in Article V.1, paragraph 2.3 However, the agreements conform to the form of service agreement that was in effect at the time the service agreements were executed, and the agreements contain a Memphis clause. Effective Date and Waivers The tariff records submitted herein are proposed to be effective September 1, 2012, the anticipated in-service date of Phase 1 of the Project. Transco will commence billing for the Project beginning on the actual in-service date as authorized by the Commission. Materials Submitted Herewith In accordance with Section 154.7(a)(1) of the Commission’s regulations, the following material is submitted herewith: An eTariff XML filing package, filed as a zip (compressed) file, containing: (1) (2) (3)

2

The tariff records in RTF format with metadata attached; A transmittal letter in PDF format; A clean version of the tariff records in PDF format for publishing in eLibrary;

Alternatives to Traditional Cost-of-Service Ratemaking for Natural Gas Pipelines and Regulation of Negotiated Transportation Services of Natural Gas Pipelines (Alternative Rate Policy Statement), 74 FERC ¶ 61,076, reh'g and clarification denied, 75 FERC ¶ 61,024, reh'g denied, 75 FERC ¶ 61,066 (1996). Transcontinental Gas Pipe Line Corp., 76 FERC ¶ 61,318 (1996) and Section 3.5 of Transco’s Rate Schedule FT. 3 Specifically, the agreements include descriptive language – “by and between Seller and Buyer” – that subsequently was removed from the form of service agreement in an August 16, 2011 filing in Docket No. RP11-2382-000 and accepted by Commission letter order dated September 13, 2011.

Federal Energy Regulatory Commission August 1, 2012 Page 3

(4) (5)

A marked version of the tariff records in accordance with Section 154.201(a) of the Regulations; and A copy of the complete filing in PDF format for publishing in eLibrary.

Posting and Certification of Service In accordance with the provisions of Section 154.2(d) of the Commission’s regulations, copies of this filing are available for public inspection, during regular business hours, in a convenient form and place at Transco’s main office at 2800 Post Oak Boulevard in Houston, Texas. In addition, Transco is serving copies of the instant filing to its affected customers, interested state commissions, and other interested parties. Any communications in regard to this filing should be sent to: David A. Glenn Senior Counsel P.O. Box 1396 Houston, Texas 77251 (713) 215-2341 [email protected]

Respectfully submitted, TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC

By _________________________________ Marg Camardello Manager, Certificates & Tariffs 713-215-3380 [email protected]

Transcontinental Gas Pipe Line Company, LLC FERC Gas Tariff Fifth Revised Volume No. 1

Part II - Statement of Rates and Fuel Section 13.7 - Summary of Negotiated Rate Agreements Version 0.0.0

STATEMENT OF NEGOTIATED RATES 1/

Shipper: Carolina Power & Light Company, LLC d/b/a Progress Energy Carolinas, Inc. Contract Number: 9126450 Rate Schedule: FT – Mid-South Expansion MDQ (Dt): 93,000 Negotiated Daily Reservation Rate per Dt: $0.96 2/ 3/ Primary Receipt Point(s): 1000105 Pooling Station 85 Zone 4 9004982 Pine View (Choctaw Co., AL) 9003962 Scott Mountain (Choctaw Co., AL) Primary Delivery Point(s): 1003398 Grover (Cherokee Co., SC) 1003266 Iredell (Iredell Co., NC) 1002977 Cardinal Pipeline Company, LLC (Rockingham Co., NC) Contract Term: September 1, 2012 or the date that all of Seller's Mid-South facilities necessary to provide firm transportation service to Buyer have been constructed and are ready for service as determined in Seller's sole opinion and shall remain in force and effect for a primary term of twenty (20) years. Rate Effective Date: The term of the negotiated rate is coterminous with the contract primary term.

1/ This negotiated rate agreement does not deviate in any material respect from the current Form of Service agreement contained in Seller’s Tariff. 2/ In addition to the negotiated rate set forth above, Buyer shall be responsible for compressor fuel and line-loss makeup retention and shall pay the electric power charges, commodity charges and all applicable surcharges for Seller’s Rate Schedule FT service to Shipper under MidSouth as approved by the FERC. The fuel and line-loss makeup retention, electric power charges, commodity charges, and applicable surcharges are subject to change from time to time as approved by the FERC. 3/ Buyer agrees not to file or cause to be filed with the FERC any action, claim, complaint, or other pleading under Section 5 of the NGA, or support or participate in any such proceeding initiated by any other party, requesting a change to or in any way opposing the negotiated rate set forth above. Seller agrees not to file or cause to be filed with the FERC under Section 4 of the NGA to seek to modify the negotiated rate set forth above.

Filed: August 1, 2012

Effective: September 1, 2012 Page 1 of 1




Shipper: City of LaGrange, Georgia Contract Number: 9126432 Rate Schedule: FT – Mid-South Expansion MDQ (Dth): 2,000 Negotiated Daily Reservation Rate per Dt: $0.28000 2/ 3/ 4/ Primary Receipt Point(s): 1000105 – Pooling-Station 85 Zone 4 9004982 – Pine View (Choctaw Co., AL) 9003962 – Scott Mountain (Choctaw Co., AL) Primary Delivery Point(s): 9004922 – La Grange, GA (Coweta Co., GA) Contract Term: September 1, 2012 or the date that all of Seller’s Mid-South facilities necessary to provide firm transportation service to Buyer have been constructed and are ready for service as determined in Seller’s sole opinion and shall remain in force and effect for a primary term of twenty (20) years. Rate Effective Date: The term of the negotiated rate is coterminous with the contract primary term. 1/ This negotiated rate agreement does not deviate in any material respect from the current Form of Service agreement contained in Seller’s Tariff. 2/ In addition to the negotiated rate set forth above, Buyer shall be responsible for compressor fuel and line-loss makeup retention and shall pay the electric power charges, commodity charges and all applicable surcharges for Seller’s Rate Schedule FT service to Buyer under MidSouth as approved by the FERC. The fuel and line-loss makeup retention, electric power charges, commodity charges, and applicable surcharges are subject to change from time to time as approved by the FERC. 3/ Buyer agrees not to file or cause to be filed with the FERC any action, claim, complaint, or other pleading under Section 5 of the NGA, or support or participate in any such proceeding initiated by any other party, requesting a change to or in any way opposing the negotiated rate set forth above. Seller agrees not to file or cause to be filed with the FERC under Section 4 of the NGA to seek to modify the negotiated rate set forth above. 4/ Unless the Service Agreement is terminated at the end of the Primary Term, after the Primary Term Buyer shall pay the total maximum recourse rates and the electric power charges, commodity charges and all applicable surcharges, and shall be responsible for compressor fuel and line-loss makeup retention, pursuant to Seller’s FERC Gas Tariff, as the same may be revised from time to time, for firm transportation service under Mid-South, unless otherwise agreed to by the Parties.






Shipper: Carolina Power & Light Company, LLC d/b/a Progress Energy Carolinas, Inc. Contract Number: 9126450 Rate Schedule: FT – Mid-South Expansion MDQ (Dt): 93,000 Negotiated Daily Reservation Rate per Dt: $0.96 2/ 3/ Primary Receipt Point(s): 1000105 Pooling Station 85 Zone 4 9004982 Pine View (Choctaw Co., AL) 9003962 Scott Mountain (Choctaw Co., AL) Primary Delivery Point(s): 1003398 Grover (Cherokee Co., SC) 1003266 Iredell (Iredell Co., NC) 1002977 Cardinal Pipeline Company, LLC (Rockingham Co., NC) Contract Term: September 1, 2012 or the date that all of Seller's Mid-South facilities necessary to provide firm transportation service to Buyer have been constructed and are ready for service as determined in Seller's sole opinion and shall remain in force and effect for a primary term of twenty (20) years. Rate Effective Date: The term of the negotiated rate is coterminous with the contract primary term.

1/ This negotiated rate agreement does not deviate in any material respect from the current Form of Service agreement contained in Seller’s Tariff. 2/ In addition to the negotiated rate set forth above, Buyer shall be responsible for compressor fuel and line-loss makeup retention and shall pay the electric power charges, commodity charges and all applicable surcharges for Seller’s Rate Schedule FT service to Shipper under MidSouth as approved by the FERC. The fuel and line-loss makeup retention, electric power charges, commodity charges, and applicable surcharges are subject to change from time to time as approved by the FERC. 3/ Buyer agrees not to file or cause to be filed with the FERC any action, claim, complaint, or other pleading under Section 5 of the NGA, or support or participate in any such proceeding initiated by any other party, requesting a change to or in any way opposing the negotiated rate set forth above. Seller agrees not to file or cause to be filed with the FERC under Section 4 of the NGA to seek to modify the negotiated rate set forth above.






Shipper: City of LaGrange, Georgia Contract Number: 9126432 Rate Schedule: FT – Mid-South Expansion MDQ (Dth): 2,000 Negotiated Daily Reservation Rate per Dt: $0.28000 2/ 3/ 4/ Primary Receipt Point(s): 1000105 – Pooling-Station 85 Zone 4 9004982 – Pine View (Choctaw Co., AL) 9003962 – Scott Mountain (Choctaw Co., AL) Primary Delivery Point(s): 9004922 – La Grange, GA (Coweta Co., GA) Contract Term: September 1, 2012 or the date that all of Seller’s Mid-South facilities necessary to provide firm transportation service to Buyer have been constructed and are ready for service as determined in Seller’s sole opinion and shall remain in force and effect for a primary term of twenty (20) years. Rate Effective Date: The term of the negotiated rate is coterminous with the contract primary term. 1/ This negotiated rate agreement does not deviate in any material respect from the current Form of Service agreement contained in Seller’s Tariff. 2/ In addition to the negotiated rate set forth above, Buyer shall be responsible for compressor fuel and line-loss makeup retention and shall pay the electric power charges, commodity charges and all applicable surcharges for Seller’s Rate Schedule FT service to Buyer under MidSouth as approved by the FERC. The fuel and line-loss makeup retention, electric power charges, commodity charges, and applicable surcharges are subject to change from time to time as approved by the FERC. 3/ Buyer agrees not to file or cause to be filed with the FERC any action, claim, complaint, or other pleading under Section 5 of the NGA, or support or participate in any such proceeding initiated by any other party, requesting a change to or in any way opposing the negotiated rate set forth above. Seller agrees not to file or cause to be filed with the FERC under Section 4 of the NGA to seek to modify the negotiated rate set forth above. 4/ Unless the Service Agreement is terminated at the end of the Primary Term, after the Primary Term Buyer shall pay the total maximum recourse rates and the electric power charges, commodity charges and all applicable surcharges, and shall be responsible for compressor fuel and line-loss makeup retention, pursuant to Seller’s FERC Gas Tariff, as the same may be revised from time to time, for firm transportation service under Mid-South, unless otherwise agreed to by the Parties.

