Notice Detail
           
Return To Results
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:  03/03/2017 4:15:43PM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  3/3/2017 4:15:43 PM Notice ID: 37182
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  IOS1703-1 Midcontinent to Market
Notice Text:
TEXOK to MARKET

AMARILLO LEG DELIVERIES

MIDCONTINENT TO MARKET

FTS TRANSPORTATION

INITIAL OPEN SEASON – IOS1703-1

 

 

In this open season, Natural is soliciting bids for firm transportation capacity.  This is an Initial Open Season (IOS) pursuant to Section 5.1(c)(1) of the General Terms and Conditions of Natural's Tariff.

 

CAPACITY AVAILABLE (Dth./day)/TERM 

----------------------------------

5,500 Dth./d of forward haul capacity is available in Segment 3 beginning April 1, 2017.

 

15,500 Dth./d of forward haul capacity is available in Segments 6, 10, 11, 12, 13, 14, 34 and 36 beginning April 1, 2017. 15,500 Dth./d of back haul capacity is available in Segment 28 beginning April 1, 2017.

 

Bids may be submitted with varying start dates and daily quantities for periods commencing no earlier than the respective date the segment capacity is available in this Initial Open Season.  See “Extended Capacity Terms” section below for more detail regarding segment capacity availability.  

 

AVAILABLE RECEIPT POINTS

------------------------

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 #       Primary Receipt Point Name             Segment

----        ---------------------------            -------

5556       EMP-EOIT/NGPL BECKHAM                     6

 

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

 

AVAILABLE DELIVERY POINTS

-------------------------

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 #       Primary Delivery Point Name            Segment

----        ---------------------------           -------

900130      NIPSCO/NGPL NORTH HAYDEN KANKAKEE        36

 

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

 

BID PARAMETERS

--------------

POSTING and BIDDING PERIOD: March 6, 2017 – March 9, 2017

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on March 9, 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

---------------------------------------------

 

OPTIONAL SERVICES

-----------------

The optional services of SW (system-wide) service option, LN (late nominations) and NB (no balancing) are not applicable to the evaluation of this capacity included in this IOS, and therefore, any charges for such service options will not be taken into account for bid evaluation purposes.   Such Optional services may be separately requested by shippers, and the applicable rate (for LN and SW) shall be the maximum rate specified in Natural's Tariff unless Natural and Shipper agree to a different rate.

 

BID RATE SECONDARY RECEIPT/DELIVERY POINTS

------------------------------------------ 

For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in Natural's tariff, the bid reservation rate will apply to: 

 

(1) all secondary receipt points in the zones traversed by the primary path, excluding secondary receipt points to the extent permitted under the “opposite leg rights” provision of Section 5.5(a)(2) of the General Terms and Conditions of Natural's FERC Gas Tariff, as may be revised from time to time; and

 

(2) the following secondary delivery points:

 

Nicor (Pin 9258), MidAmerican (Pin 10568), PGL&C (Pin 909285), NIPSCO (Pin 909260), Northern Natural (Pin 900203), Northern Border (Pin 908090), Alliance (Pin 37207), ANR (Pin 906104 & 904758), Midwestern (Pin 906107 & 25400), Guardian Pipeline (Pin 40400), and Panhandle (Pin 906103), and all storage and pooling points within the zones traversed by the primary path included in bidder's bid.

 

INCREMENTAL RATE SECONDARY DELIVERY POINTS 

------------------------------------------

In addition to the bid reservation rate, for any capacity awarded to a bidder at the bid reservation rate which is less than the applicable maximum rate set forth in Natural's tariff, bidder shall pay Natural the following incremental volumetric daily reservation rates for all quantities transported on a firm basis on any day to the Incremental Rate Secondary Delivery Points set forth below. These incremental rates shall be subject to the applicable maximum rate set forth in Natural's tariff for service to such points, as may be revised from time to time. To the extent that bidder is awarded primary point capacity at any of the Incremental Rate Secondary Delivery Points, the specified incremental reservation rate for service to such point shall not apply.  

 

Tier 1 Secondary Delivery Points

$0.03/Dth.

      PIN

 

IPLC/NGPL CDP

    

      25250    

IPLC/NGPL CDP Clinton

     901028

AmerenIL/NGPL AM CDP

      46594

AmerenIL/NGPL GC CDP

      46595

CE-MRT

     900169

Crossroads

      10751

Horizon Pipeline

  39755/39855

 

Tier 2 Secondary Delivery Points

$0.05/Dth.

 

 

North Shore Gas

   9254

 

Service provided on a firm basis to all other secondary delivery points not specifically set forth in this section will be provided at the applicable maximum rate set forth in Natural's FERC Gas Tariff, as may be revised from time to time, for service to such points.  

 

CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATE FOR AVAILABLE CAPACITY FROM MIDCONTINENT TO MARKET:

--------------------------------------------------------------

Without SW Option:

Peak     Off-Peak

$9.18    $7.73

 

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

 

EXTENDED CAPACITY TERMS

-----------------------

Bidders may locate firm pipeline segment capacity availability information, for 15 months following the month of this posting, on Natural's internet website at: http://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=NGPL. This website also contains information on firm receipt and delivery point capacity availability for the same 15 month period.  Any bid submitted for capacity extending beyond this 15 month period will be subject to Natural's determination that sufficient capacity is available beyond the 15 month period to permit Natural to accept any such bid.  Bidders interested in a bid term extending beyond the 15 month period should therefore contact their Account Director at Natural prior to bid submission in order to determine whether the desired capacity is available.

 

FFTS CAPACITY AVAILABLE

-----------------------

Any capacity which is available for bid under Rate Schedule FTS is not available for bid under Rate Schedule FFTS.

 

RESERVE PRICE MATRIX

--------------------

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 quantity multiplied by the applicable Reserve Price as established by Natural in the Reserve Price Matrix for the relevant firm capacity.

 

 

OBLIGATION TO AWARD CAPACITY

----------------------------

Natural is not obligated to award firm capacity based on any bid for a term of less than one year, under which service is to commence more than sixty (60) days following the close of the open season (winter only, e.g.) pursuant to its Tariff (Section 5.1(d)(4)).

 

BID REQUIREMENTS

----------------

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

----------------------------

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.

 

COMMODITY CHARGES AND SURCHARGES

--------------------------------

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 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 all applicable commodity charges and surcharges at the applicable maximum rate contained in Natural's Gas FERC Tariff, as may be revised from time to time. 

 

FUEL AND GLU CHARGES

--------------------

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 Natural's FERC Gas Tariff, as may be revised from time to time. 

 

Quantity Limitations/

AUTHORIZED OVERRUN SERVICE

-------------------------

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 Natural'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 Natural's FERC Gas Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

----------------

Advance payments will not increase the evaluation of any bid. 

 

BID EVALUATION METHODOLOGY

--------------------------

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”.

 

BID AGGREGATION 

---------------
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

--------------------------------------------------------

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

--------------------------

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 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  ____________________   IOS1703-1

 

BIDDER/SHIPPER NAME

_________________________________________________

 

SERVICE TYPE – FTS     

 

Contract MDQ __________

                                                     

                                PEAK       OFF-PEAK

 

MONTHLY BASE RESERVATION RATE ________    ________

(No SW Option)

 

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.