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TSP/TSP Name:  6931794-NATURAL GAS PIPELINE CO. Critical: N
Notice Type Desc (1):  TSP CAP OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  02/07/2017 8:50:28AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  2/7/2017 8:50:28 AM Notice ID: 37112
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  Gulf Leg NSS
Notice Text:
FTS CAPACITY AVAILABLE

GULF LEG NSS CAPACITY  

      INITIAL OPEN SEASON – IOS1702-1

 

In this Open Season, Natural is soliciting bids for firm storage service under Rate Schedule NSS.  This is an Initial Open Season (IOS) pursuant to Section 5.1(c)(1) of the General Terms and Conditions of Natural's Tariff.

 

NSS CAPACITY AVAILABLE

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Gulf Leg NSS Storage Capacity with a MSV of 2,062,500 Dth. and MDQ of 27,500 Dth./d is only available for terms commencing on or after April 1, 2017. 

 

The Bid MDQ must be the same for each month over the term bid.  

 

BID PARAMETERS

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POSTING and BIDDING PERIOD: February 7, 2017 – February 10, 2017

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on February 10, 2017

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

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 3.50%, discounted to April 1, 2017 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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CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE NSS CAPACITY:

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NSS: $2.98/Dth. of contract MDQ

 

RESERVE PRICE MATRIX

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Natural 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 volume multiplied by the Reserve Price as established by Natural 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 Natural'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 Natural's creditworthiness requirements, as stated in Section 16 of the General Terms and Conditions of Natural'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 Natural's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.

 

SURCHARGES

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The reservation rate included in any bid must be for the Monthly Base Reservation Rate only, which is exclusive of all applicable surcharges.   Bidder will be required to pay any and all applicable surcharges set forth in Natural's FERC Gas Tariff, as may be revised from time to time.  No surcharges currently apply to NSS service. 

 

FUEL AND GAS LOST CHARGES

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The reservation rate included in any bid must be for the Monthly Base Reservation Rate only, which is exclusive of all applicable fuel charges.   Bidder will be required to pay any and all applicable fuel charges set forth in Natural's FERC Gas Tariff, as may be revised from time to time. 

 

AUTHORIZED OVERRUN

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All Authorized Overrun Service provided to the Awarded Bidder shall be billed at the applicable maximum Authorized Overrun Rate set forth in Natural's FERC Gas Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

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Advance payments will not increase the evaluation of any bid. 

 

BID EVALUATION METHODOLOGY

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All bids for this IOS will be evaluated using the NPV formula which is posted on Natural's internet website on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes.  Natural's internet website may be accessed at: http://pipeportal.kindermorgan.com/portalui/DefaultKM.aspx?TSP=NGPL. The NPV formula for evaluating bids was posted on June 15, 2011, on Natural's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”. The posting may be found on Natural's Dart System under Informational Postings/Notices/Non-Critical.   

 

BID AGGREGATION

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In order to determine the successful Bidders, Natural 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, Natural 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 Natural 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 between bids or sets of bids remains at the end of the prorationing process, Natural will apply the Tiebreaking procedures set forth in Natural's FERC Gas Tariff at Section 5.1(d)(6) of the General Terms and Conditions.

 


NATURAL GAS PIPELINE COMPANY OF AMERICA LLC

BID FORM FOR NSS STORAGE CAPACITY

 

In order to be valid, a bid must contain all of the 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 ____________________________ IOS1702-1

 

BIDDER/SHIPPER NAME 

________________________________________________

 

SERVICE TYPE - NSS  

 

MONTHLY BASE RESERVATION RATE (per Dth. Of Contract MDQ):

 

$___________     

 

TERM START DATE: ___________   

 

TERM END DATE: _________________

 

GULF LEG MDQ _________________     

 

TOTAL CONTRACT MSV (MDQ X 75) _________________

 

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

 

 

________________________________   _________________________

              NAME                             TITLE

 

________________________________

              DATE