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TSP/TSP Name:  808150895-MIDCONTINENT EXPRESS PIPELINE Critical: N
Notice Type Desc (1):  TSP CAP OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  03/17/2017 8:32:11AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  3/17/2017 8:32:11 AM Notice ID: 116451
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  MEP IOS1703-2 INITIAL OPEN SEASON
Notice Text:
TEXOK to MARKET

MIDCONTINENT EXPRESS PIPELINE LLC

FTS TRANSPORTATION

INITIAL OPEN SEASON – IOS1703-2

 

In this open season, MEP is soliciting bids for firm transportation capacity.  This is an Initial Open Season (IOS) pursuant to Section 2.1(b)(1) of the General Terms and Conditions of MEP's Tariff.

 

CAPACITY AVAILABLE (Dth./day)/TERM 

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East Bound capacity is available within Zone 2 beginning February 1, 2020:

 

Zone 2

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Segment 200 –  198,510 dth/d

Segment 210 –  198,510 dth/d

 

Bids may be submitted with varying start dates and daily quantities for periods commencing no earlier than February 1, 2020. 

 

AVAILABLE RECEIPT AND DELIVERY POINTS

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The following receipt point may be utilized for bids in this IOS.  The point listed below has capacity available equivalent to the corresponding segment capacity available in this IOS.

 

Pin 44988 MEP/MEP ZONE BOUNDARY TRANSFER       Segment 200

 

The following delivery point may be utilized for bids in this IOS.  The point listed below has capacity available equivalent to the corresponding segment capacity available in this IOS.

 

Pin 44451  TRNSCO/MEP DEL CHOCTAW             Segment 210

 

Bidders interested in other primary receipt or delivery points should contact their Account Director at MEP prior to bid submission.

 

BID PARAMETERS

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POSTING and BIDDING PERIOD: March 17, 2017 – March 22, 2017

BID SUBMISSION: Bids must be received by MEP by 2:00 p.m. Central Clock Time on March 22, 2017.

Fax Number: 1-303-984-3600 to the attention of Peter O'Connor

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 3.71%, discounted to February 1, 2020 which shall be the Discount Date as that term is used in this posting.

 

BID REQUIREMENTS AND IOS TERMS AND CONDITIONS

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BID RATE SECONDARY RECEIPT/DELIVERY POINTS

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For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in MEP's tariff, the bid reservation rate will apply to all secondary receipt and delivery points in the zones traversed by the primary path.   

 

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FOR MEP ZONE 2:

 

Zone 2 - $10.23/Dth of MDQ  

 

Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.

 

RESERVE PRICE MATRIX

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MEP has established and provided to an Independent Third Party a Reserve Price Matrix for capacity offered in this IOS. 

 

In order to be eligible for a possible award of capacity, the Net Present Value (NPV) of a bid must meet the minimum NPV of the bid quantity multiplied by the applicable Reserve Price as established by MEP in the Reserve Price Matrix for the relevant firm capacity.

 

BID REQUIREMENTS

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Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.

 

All bids must be submitted in an SFV rate form and must be within the applicable minimum and maximum rates set forth in MEP's FERC Gas Tariff. Bids in the form of a Negotiated Rate or Negotiated Rate Formula will not be valid. 

 

CREDITWORTHINESS REQUIREMENT

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All bidders must satisfy MEP's creditworthiness requirements, as stated in Section 12 of the General Terms and Conditions of MEP's FERC Gas Tariff, prior to submitting a bid.  Any bid submitted which causes bidder to exceed bidder's pre-determined level of creditworthiness is deemed an invalid bid.  Potential bidders are encouraged to contact MEP's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.

 

COMMODITY CHARGES AND SURCHARGES

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The reservation rate included in any bid must be for the Base Reservation Rate only, which is exclusive of all applicable surcharges.  Any applicable commodity charges and surcharges and reservation surcharges, as well as the revenue from the Leased Capacity, will not be included in the guaranteed revenue stream considered for bid evaluation purposes.  Advance Payments are separately discussed below.  In addition to the awarded Base Reservation Rate, the winning Bidder will pay the Enogex Leased Capacity Charge, and all applicable commodity charges and surcharges, other than discountable third party surcharges, at the applicable maximum rate contained in MEP's Gas FERC Tariff, as may be revised from time to time. 

 

FUEL AND GLU CHARGES

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The reservation rate included in any bid is exclusive of all applicable fuel and gas lost and unaccounted for (GLU) charges.   Bidder will be required to pay any and all applicable fuel and GLU charges set forth in MEP's FERC Gas Tariff, as may be revised from time to time. 

 

Quantity Limitations/

AUTHORIZED OVERRUN SERVICE

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For any capacity which may be awarded at a discounted rate, the bid rate shall only apply to firm daily delivery quantities, including any related capacity release quantities, up to Bidder's awarded Contract MDQ. Firm deliveries made on any day in excess of the applicable contract MDQ, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in MEP's FERC Gas Tariff.  Without limitation of the foregoing, all Authorized Overrun Service provided to the Awarded Bidder shall be billed at the applicable maximum Authorized Overrun Rate set forth in MEP's FERC Gas Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

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Advance payments will not increase the Net Present Value of a bid. 

 

BID EVALUATION METHODOLOGY

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All bids for this IOS will be evaluated using the NPV formula which is posted on MEP's DART system on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes.  MEP's internet website may be accessed at: http://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=MEP.  The NPV formula for evaluating bids was posted on August 24, 2010, on MEP's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.

 

BID AGGREGATION 

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In order to determine the successful Bidders, MEP shall aggregate acceptable bids (including prorated bids to the extent applicable) if aggregation would achieve the highest NPV in relation to the available capacity.  

 

DETERMINATION OF HIGHEST ECONOMIC VALUE AND PRORATIONING  

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In any situation where the capacity associated with acceptable bids exceeds the available firm capacity, including situations in which the highest NPV is determined using bid aggregation, then any available capacity will be allocated among bids, up to the MDQ bid, to achieve the optimal solution (highest aggregate NPV for capacity available).  In order to determine the highest economic value of all acceptable bids received, MEP will calculate the NPV of all such bids in two ways: 1) assuming prorationing of bid capacity by one or more Bidders to the extent required to achieve the optimal solution regardless of any bid's stated minimum acceptable quantity and 2) assuming prorationing of bid capacity by all Bidders down to the minimum acceptable quantity set out in the respective bids.  If a bid indicates that the Bidder is not willing to prorate to the extent required by the optimal solution, the available capacity will first be allocated (Initial Allocation) among other bids which indicate that the Bidders are willing to prorate to the extent required by the optimal solution.  The Initial Allocation shall be consistent with the optimal solution for the Bidders participating in the Initial Allocation.  The Bidder(s) not willing to prorate to the extent required by the optimal solution will be afforded the opportunity (irrespective of any stated minimum acceptable quantity) to take any capacity, up to MDQ bid, not allocated to other Bidders under the Initial Allocation.  If allocation of capacity among Bidders in the preceding sentence is required, allocation will be implemented in order to achieve the optimal solution for the capacity remaining to be allocated (irrespective of any stated minimum acceptable quantity), provided that the quantity allocated to a Bidder may not exceed the MDQ bid by that Bidder.  In applying the above procedures, in the event that MEP receives two (2) or more acceptable bids or sets of acceptable bids for service, which produce the same NPV (and produce the highest aggregate NPV), then available capacity will be allocated prorata based on MDQ bid.

 

NPV TIEBREAKER METHODOLOGY

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If a tie for highest economic value between bids or sets of bids of identical value remains at the end of the prorationing process, MEP will apply the Tiebreaking procedures set forth in MEP's FERC Gas Tariff at Section 14.10 (d) of the General Terms and Conditions.

 


MIDCONTINENT EXPRESS PIPELINE COMPANY LLC

BID FORM FOR FTS CAPACITY

 

In order to be valid, a bid must contain all of the applicable information required by this Bid Form. Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.  

 

DATE  ____________________   IOS1703-2

 

BIDDER/SHIPPER NAME

 

_________________________________________________

 

SERVICE TYPE – FTS     

 

Contract MDQ  __________

 

MONTHLY BASE RESERVATION RATE 

 

MEP Zone 2            $________ per Dth of MDQ

 

ADVANCE PAYMENT AMOUNT (Optional)  _____   PAYABLE DATE ______                                                     

TERM START DATE _____________   TERM END DATE _________________

 

PRIMARY POINT(S) AND POINT MDQ(S)

 

            POINT NAME                      PIN        MDQ

 

RECEIPT(s)  _________________________   _________    _________

     

DELIVERY(s) _________________________   _________    _________

 

            _________________________   _________    _________

 

            __________________________   _________    _________

 

 

If Bidder will accept less than the Contract MDQ bid, state                          Minimum Acceptable MDQ _________________

 

 

________________________________  ___________________________

              NAME                             TITLE

 

________________________________

              DATE

 

Fax Number: 1-303-984-3600 to the attention of Peter O'Connor.