The Commercial Group asked several weeks ago whether they can enter into  discount letters applicable to daily firm for as long as one year.
The  standard wording of the discount letter applicable to daily firm is such that  the discount is effective for as many one-day terms as the FTS-1 agreement  renews, but not beyond a specified date.
Typically TW enters into these  discount letters for a term of one month.
The marketers say that they were  once told that they could not make such a discount applicable for longer than  a 3-month term.
I see no basis for this limitation.
The term of the FTS-1  agreement is one day, renewable from day to day.
The discount is only  applicable for so long as the FTS-1 agreement renews.
If the FTS-1 agreement  does not renew, the discount is no longer applicable.
The basis for the  shipper's transportation rights is the FTS-1 agreement.
We are not  guaranteeing a shipper "daily" firm for longer than a one-day term.
The  discount letter merely states that, for so long as the FTS-1 agreement  renews, a particular discount applies, up to a certain cutoff date.
Does this make sense?
I realize you are swamped, but I need to get Steve an  answer so that the marketers know what is acceptable.
Drew and I have  discussed this and he is on board.
Thanks.

daily firm on TW

The Commercial Group asked several weeks ago whether they can enter into discount letters applicable to daily firm for as long as one year.
The standard wording of the discount letter applicable to daily firm is such that the discount is effective for as many one-day terms as the FTS-<NUMBER> agreement renews, but not beyond a specified date.
Typically TW enters into these discount letters for a term of one month.
The marketers say that they were once told that they could not make such a discount applicable for longer than a <NUMBER>-month term.
I see no basis for this limitation.
The term of the FTS-<NUMBER> agreement is one day, renewable from day to day.
The discount is only applicable for so long as the FTS-<NUMBER> agreement renews.
If the FTS-<NUMBER> agreement does not renew, the discount is no longer applicable.
The basis for the shipper's transportation rights is the FTS-<NUMBER> agreement.
We are not guaranteeing a shipper "daily" firm for longer than a one-day term.
The discount letter merely states that, for so long as the FTS-<NUMBER> agreement renews, a particular discount applies, up to a certain cutoff date.
Does this make sense?
I realize you are swamped, but I need to get Steve an answer so that the marketers know what is acceptable.
Drew and I have discussed this and he is on board.
Thanks.
make sense realize answer marketers know thanks typically tw enters renews fts number firm longer day weeks ago limitation term discount letter applicable transportation rights