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:  03/23/2017 3:15:37PM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  3/23/2017 3:15:37 PM Notice ID: 37239
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  AOS1703-1 MIDCONTINENT TO LOUISIANA
Notice Text:
TEXOK to MARKET

ADDITIONAL OPEN SEASON – AOS1703-1

 

MIDCONTINENT TO LOUISIANA – SW OPTION

FTS TRANSPORTATION

 

This is an Additional Open Season (AOS) for firm transportation capacity from Natural's Midcontinent Receipt Zone to Natural's Texok and Louisiana Delivery Zone (as further described in the Capacity Available Section hereof), pursuant to Section 5.1(c)(4) of the General Terms and Conditions of Natural's FERC Gas Tariff. In this AOS, Natural is soliciting bids for firm transportation capacity in an SFV Rate Form as provided below.  

 

CAPACITY AVAILABLE (Dth./day)/TERM 

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

The capacity described below is available based on expected operational conditions.

 

48,000 dth/d is only available for receipt from April 1, 2017 through October 31, 2017 at TARGA MC/NGPL STEPHENS (LOC 44652) in Segment 2 of the Midcontinent Receipt Zone.

 

7,000 dth/d is only available for delivery from April 1, 2017 through October 31, 2017 to either KMTEJAS/NGPL HARRISON (LOC 10863) or ENABLEMR/NGPL HARRISON (LOC 900955) in Segment 26 of the Texok Delivery Zone.   

 

41,000 dth/d is only available for delivery from April 1, 2017 through October 31, 2017 to any delivery point in Segments 23 and 24 of the Louisiana Delivery Zone.

 

The firm forward haul segment capacity available in this AOS is offered in Segments 2, 15, 17, 25, 23 and 24. The firm back haul segment capacity available in this AOS is offered in Segment 26.

 

CONTRACTUAL EXTENSION

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

The firm forward haul capacity made available in this AOS will include a contractual rollover provision in accordance with Section 22.4 of the General Terms and Conditions of Natural's FERC Gas Tariff, providing that Natural and Bidder may elect to extend the term of all, or any portion, of the capacity at mutually agreeable rates, terms and conditions by August 31, 2017.

 

CAPACITY SHAPING REQUIREMENT

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

A bidder desiring to bid on less capacity than the Available Contract MDQ will be required to bid in the same zone quantity ratio as the Available Contract MDQ below. 

 

REQUIRED ZONE QUANTITY RATIO

Midcontinent to Texok      14.48%

Midcontinent to Louisiana  85.42%

 

AVAILABLE RECEIPT POINT

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

The following receipt point is the only point that may be utilized for bids in this Additional Open Season and has available capacity equivalent to or greater than the corresponding segment capacity available in this AOS:

 

LOC #   Primary Receipt Point Name              Segment

44652   TARGA MC/NGPL STEPHENS                     2

 

AVAILABLE DELIVERY POINTS

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

The following delivery points are the only points that may be utilized for bids in this AOS to Segment 26 in the Texok Delivery Zone and have available capacity equivalent to the corresponding available segment capacity in this AOS:

 

LOC #    Primary Delivery Point Name           Segment   

10863    KMTEJAS/NGPL HARRISON                  26

900955   ENABLEMR/NGPL HARRISON                 26

 

The following delivery points in the Louisiana Delivery Zone may be utilized for bids in this AOS and have available capacity equivalent to or greater than the corresponding available segment capacity in this AOS:

 

LOC #    Primary Delivery Point Name           Segment  

7936     FGT/NGPL VERMILION                     24

3952     SABPL/NGPL HENRY HUB VERMILION         24

 

Bidders interested in other primary delivery points in Segment 23 and 24 of the Louisiana Delivery Zone should contact their Account Director at Natural prior to bid submission.

 

BID PARAMETERS

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

POSTING and BIDDING PERIOD: March 24, 2017 – March 29, 2017.

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on March 29, 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 April 1, 2017 which shall be the Discount Date as that term is used in this posting.

 

BID REQUIREMENTS AND AOS TERMS AND CONDITIONS 

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

 

OPTIONAL SERVICES

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

The optional service of SW (system-wide) service option shall apply to all bids received in this AOS and is included in the evaluation of the capacity included in this AOS.

 

The optional services of LN (late nominations) and NB (no balancing) are not applicable to the evaluation of the capacity included in this AOS, 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 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 the bid reservation rate which is less than the applicable maximum rate set forth in Natural's tariff, the bid reservation rate will apply to all secondary receipt points under Natural's tariff which are applicable to the SW Option.

 

For any capacity awarded to a bidder at a rate which includes the SW option, the bid reservation rate will apply to the following secondary delivery points:

All secondary delivery points in the Midcontinent, Louisiana, and Texok zones, as well as the following delivery points in the Market Delivery zone: Nicor (LOC 9258), PGLC (LOC 909285), NIPSCO (LOC 909260), MidAmerican (LOC 10568), all Market Area interstate pipeline interconnects excluding Horizon (LOC 39755, LOC 39855), CE-MRT (LOC 900169), CE-IGTC (LOC 44941)and Crossroads (LOC 10751).

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, for SFV rate bids.  

 

Tier 1 Secondary Delivery Points

$0.03/Dth.

LOC

 

 

IPLC/NGPL CDP

25250

IPLC/NGPL CDP Clinton

901028

Black Hills

41074/909406

AmerenIL/NGPL  AM CDP

46594

AmerenIL/NGPL  GC CDP

46595

CE-MRT

CE-IGTC

900169

44941

Crossroads

10751

Horizon Pipeline 

39755/39855

 

Tier 2 Secondary Delivery Points

$0.05/Dth.

 

 

North Shore Gas

9254

 

 

Tier 3 Secondary Delivery Points

$0.10/Dth.

 

 

 

Wisconsin Electric

909294/907112

Ameren/Union Electric

909442

All direct-connect end user delivery points existing as of the date of this posting, including power generation facilities 

 

 

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

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

Midcontinent to Texok with SW Option: $8.56

 

Midcontinent to LA with SW Option: $9.02

 

Blended rate applicable to the contract path available in this AOS with SW Option: $8.95        

 

Monthly Base Rates shown above are per Dth of Contract MDQ, and are exclusive of applicable surcharges.  The Monthly Base Reservation Rate shown above is based on the blended contract path described in the “Capacity Available” section of this AOS posting.

 

BID REQUIREMENTS

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

Any bid submitted for a specified rate equal to the applicable blended maximum tariff rate shown above 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 (including the SW option rate, 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 and reservation 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 the Bidder's awarded Contract MDQ as a result of any segmentation. Firm deliveries made on any day in excess of the applicable contract MDQ as a result of any segmentation, 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

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

An Advance Payment will not increase the value of a bid received in this AOS.

 

BID EVALUATION METHODOLOGY

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

All bids for this AOS 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://webapps.elpaso.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  ____________________      AOS1703-1

 

BIDDER/SHIPPER NAME

_________________________________________________

 

                                MONTHLY BASE RESERVATION RATE  

                                    OFF-PEAK RATE

SERVICE TYPE: FTS with SW Option    ________        

 

 

CONTRACT MDQ BID  __________

   

                           

TERM START DATE April 1, 2017    TERM END DATE October 31, 2017

 

PRIMARY RECEIPT AND DELIVERY POINT(S) AND POINT MDQ(S)

 

                 POINT NAME                LOC      CONTRACT MDQ

 

 RECEIPT(S)     TARGA MC/NGPL STEPHENS    44652     _________

 

 

                POINT NAME            LOC      CONTRACT MDQ

 

 DELIVERY(S)  KMTEJAS/NGPL HARRISON  10863     _____________

 

              ENABLEMR/NGPL HARRISON 900955    _____________     

              

              FGT/NGPL VERMILION     7936       ____________

              

              SABPL/NGPL HENRY HUB   3952      _____________

           

              ____________________    _____     ____________

 

              ____________________    _____     ____________

 

              ____________________    _____     ____________

 

 

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.