September 9, 2019
To All Elba Express Company Shippers RE: Open Season Announced for Firm Transportation Capacity
This is to announce an open season for bids for long-term firm transportation capacity (“FT”) that is available on a seasonal basis from November 1 through March 31 for more than one year on the north-to-south route of the Elba Express Company, L.L.C. ("EEC”) pipeline system. This capacity is available from the EEC interconnects with Transco at Transco / EEC Zone 4 Hart (pin 938510) and Transco / EEC Z5 Anderson (pin 938610) to DCGT / SNG Port Wentworth Chatham (pin 936500) and all delivery points in the path.
The capacity available to be awarded may not be available in the same increments to all locations along EEC's system or at certain receipt or delivery pins. Any bid with a start date earlier than November 1, 2019 will be rejected. EEC reserves the right to reject any bids at less than maximum tariff rate for bids that are less than one year. A reserve price has been set for this open season. Bids lower than the reserve price will be automatically rejected. If EEC accepts a bid at less than the maximum Tariff rate but above the reserve price for this capacity, EEC reserves the right to restrict such discount to specific receipt point(s) and delivery point(s) on a non-discriminatory basis. A portion of the available capacity is subject to a prearranged bid.
The open season will commence as of the date and time this notice is posted and end at 10:00 a.m. CCT on September 16, 2019. Shippers may submit bids to EEC for FT service by completing a standard transportation request form for FT service and emailing it to FTServiceRequest@kindermorgan.com. Please call your account manager if you need an FT Request Form or you can paste the following link in your browser and then click on EEC Service Request. http://pipeportal.kindermorgan.com/PortalUI/CommonForms.aspx?TSP=EEC
On the request form, Shippers should indicate the term (start and end date within the date range being offered), quantity (in dth/d), rate, delivery pins, and receipt pins being bid. Only valid requests for service under the terms of EEC's Tariff will be considered. All bids will be considered binding and, if accepted, EEC shall have the right to charge the winning bidder for the capacity awarded under the terms of the bid. The term of the service package will not contain an evergreen provision and the firm capacity available to be awarded may be restricted to a uniform hourly flow rate, depending on the location.
EEC will award the capacity from bids received during the open season on the basis of net present value (“NPV”) determined with reference to the rate, quantity, term and the date the service is to commence. Shippers may increase their NPV by bidding to buy supplemental capacity which is available in other locations on the system, such as capacity that is available from receipt pins at the Elba Island LNG Terminal or the SNG-Elba Express Interconnects to various delivery pins. The restriction on the term does not apply to any bids for supplemental capacity being bid in order to increase the net present value. Please note that offers to extend the term of existing firm contracts will not be utilized as consideration in calculation of the NPV in this open season.
In calculating the net present value, EEC will use a discounted cash flow factor of 10.24%. EEC will have the right to aggregate bids in a manner that generates the highest net present value to EEC. Comparable winning bids that cannot be awarded in full will be awarded on a pro rata basis. Shippers should indicate in their bids the minimum volume of capacity they are willing to take in the event the full contract quantity of the bid is not available or if EEC must prorate the bids. Shippers should also indicate in their bids if their bid is contingent upon being awarded the full term of the bid or if they will accept a partial term. If a bid is submitted in excess of the available capacity and the bids must be prorated, the bid in excess of the available capacity will be prorated as though the bidder bid for the maximum available capacity to be awarded. EEC will take no longer than ten (10) business days to award the bids. This open season is subject to the terms of Section 2.1 (b) of the General Terms and Conditions of EEC's Tariff. If you have any questions regarding the Open Season, please contact your Account Manager or Darryl Outlaw at 205-325-7421. EEC Marketing