DATE: April 24, 2014 TIME: 8:00 A.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #922)
Proposal #1: From Zone 6 Shelton Receipt (412180) to Zone 5 200 Line Pool (420868)
For availability starting May 1, 2014, through May 31, 2014, Tennessee Gas Pipeline Company, L.L.C. (Tennessee) is offering up to 10,000 Dth/d of firm capacity available from the Zone 6 Shelton Receipt meter (412180) to Zone 5 200 Line Pool (420868).
Tennessee reserves the right to reject bids that are less than Tennessee's maximum applicable reservation rate and maximum applicable commodity rate.
Tennessee will not accept bids with a termination date later than May 31, 2014.
Proposal #2: From Zone 5 Arlington (412803) to Zone 4 300 Line Pool (420891)
For availability starting May 1, 2014, through May 31, 2014, Tennessee is offering up to 15,000 Dth/d of firm capacity available from the Zone 5 Arlington (412803) to the Zone 4 300 Line Pool (420891).
Tennessee reserves the right to reject bids that are less than Tennessee's maximum applicable reservation rate.
Proposal #3: From Zone L 500 Leg Pool (420999) to Zone 4 200 Line Pool (420867)
For availability starting May 1, 2014, through May 31, 2014, Tennessee is offering up to 50,000 Dth/d of firm capacity available from the Zone L 500 Leg Pool (420999) to the Zone 4 200 Line Pool (420867).
Terms of Bids
This open season is for capacity available for the receipt/delivery point paths specified above. As such, Tennessee reserves the right to reject any bid that does not specify capacity within the paths posted above. In order to be considered eligible to be awarded capacity following this open season, potential shippers must submit a bid that specifies terms, volumes, and delivery points that are consistent with the respective dates, quantities and associated delivery zones outlined above. Bids cannot exceed the stated maximum volumes.
The reservation and commodity rates for shippers awarded capacity pursuant to this open season shall apply to all secondary receipts and deliveries in the paths and zones described above. In addition to such reservation and commodity rates, Shipper shall also pay ACA, applicable Fuel and Lost Retention (FL&R), Electric Power Cost Recovery (EPCR) charges, and all other applicable surcharges specified in Tennessee's Tariff.
Available capacity volumes are contingent upon mainline, meter and lateral capacity.
Tennessee is holding this open season in accordance with Article XXVI, Section 5 of the General Terms and Conditions of its FERC Gas Tariff, commencing at 8:00 A.M. CDT, Thursday, April 24, 2014, and ending at 5:00 P.M. CDT, Monday, April 28, 2014. All bids submitted during the open season may be replaced with a higher NPV bid during the open season period. Bids cannot be replaced with lower NPV bids. Tennessee reserves the right to reject any bid that will result in a reduction of reservation charges. Tennessee reserves the right to reject negotiated rate bids. Tennessee reserves the right to reject contingent bids. Tennessee has the right but not the obligation to clarify and finalize bids containing non-specific receipt or delivery meters. Tennessee has the right to award capacity to alternate receipt or delivery points if capacity is unavailable at the meters specified in the bid. Tennessee reserves the right to award capacity for a quantity less than the bid quantity, if sufficient capacity is not available to award the entire bid quantity.
Tennessee reserves the right, upon notice and in its sole discretion, at any time during this Open Season to terminate the Open Season or to extend its Open Season Period. In addition, Tennessee reserves the right to modify this Open Season. Tennessee reserves the right, on a not unduly nondiscriminatory basis, to reject any bid or service request that, in Tennessee's sole determination, is incomplete, is inconsistent with the terms of this Open Season, contains additions or modifications to the terms of the open season, is otherwise deficient in any respect (including failure to provided credit support as Tennessee deems necessary), or requests service outside the scope of the open season.
Upon completion of this open season, all remaining bids will be considered binding until a successful bid(s) has been awarded.
All final bids for each Proposal received during the open season will be evaluated on a Net Present Value (NPV) basis using the following factors:
NPV = En [R*(1 / (1+i)**n)]
En = Summation of months 1 through n (Sigma)
n = term in months
R = Incremental monthly revenue
i = Monthly Discount Factor (current FERC quarterly rate). This rate can be found at http://www.ferc.gov/legal/acct-matts/interest-rates.asp
All bids should include a primary receipt meter and a primary delivery meter, and refer to Open Season #921. Tennessee reserves the right to accept any one bid or combination of bids that will result in the largest aggregate NPV for the aforementioned packages.
Parties interested in this capacity should submit a binding Firm Transportation request through the DART system or submit a binding bid via facsimile at (713) 369-9305. Customers may also submit a binding bid via e-mail by e-mailing their bid to TGPBidroom@kindermorgan.com. Confirm Tennessee's receipt of any bid by contacting the Bidroom between 8 A.M. and 5 P.M. CST, Monday through Friday. For further information, please contact:
Jason Connelly (713) 420-2446
Rock Graham (713) 420-4241
Mary Limbaugh (713) 420-4576
Scott Minear (713) 420-5177