Backbone Rate Escalators. The rates for Backbone Transmission Annual Firm services are based on the following negotiated escalators. These are designed based on (a) the declining revenue requirement for Backbone Transmission described in Section 8.1, (b) a 76.5 percent backbone load factor agreed to for 2007 (the same as that agreed to in the Gas Accord III Settlement), (c) setting the Baja path rate $0.025 per dth higher than the Redwood noncore path rate, and (d) assuring that the total CGS revenue responsibility, based on their backbone firm capacity holdings, declines at -1 percent each year.2 The backbone rate surcharge specified in Section 8.5, below, is additive to the backbone rates after the escalators are applied. Backbone Path Rate Escalators Line No. On-System Backbone Service 2008 2009 2010 1 Redwood Path – Core Vintage -9.6% -1% -1% 2 Redwood Path – Noncore -4.4% -1% -1% 3 Baja Path – All +5.8% -1% -1% 4 Silverado Path -1% -1% -1% 5 Mission Path -1% -1% -1% The Seasonal Firm, As-Available rates, and Off-System rates continue to be derived from the Annual Firm On-System rates based on the same prior Gas Accord methodologies.
