DATE: July 28, 2014 TIME: 9:00 A.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #940)
From Lake Loomis Dehy (412864) to Zone 4–200 Leg Pooling Point (420867) Zone 4
For availability starting November 1, 2014, through October 31, 2019, Tennessee Gas Pipeline Company, L.L.C. (Tennessee) is offering 10,300 Dth/d of firm capacity available from Lake Loomis Dehy (412864) in Zone 4 for delivery to the Zone 4 – 200 Leg Pooling Point (420867) in Zone 4.
Tennessee will not accept bids that are less than Tennessee's maximum applicable reservation rate and maximum applicable commodity rate.
Tennessee will not accept bids with a commencement date earlier than November 1, 2014 or a termination date earlier than October 31, 2016,
Tennessee reserves the right to reject bids with a termination date later than October 31, 2019.
This capacity is an exception to TGP Pipeline Path Rules as described in file located at:
http://tennesseeadvantage.com -> Customer Information -> Presentations -> Pathing Rules.pdf
The path of this capacity is as follows:
1. Primary Receipt Meter West to Station 313
2. Station 313 North to Station 237
3. Station 237 West to the Primary Delivery Meter
This capacity does not have any rights in Zone 5.
Pursuant to Article XXI, Section 1 of the General Terms and Conditions of its FERC Gas Tariff, this capacity is not available for ROFR beyond October 31, 2027.
From Zone 0 North Pool (420826) to Zone 4 200 Line Pool (420867)
For availability starting November 1, 2015, through March 31, 2016, Tennessee is offering up to 200,000 Dth/d of firm capacity available from the Zone 0 North Pool (420826) to the Zone 4 200 Leg Pool (420867).
Tennessee reserves the right to reject bids that are less than Tennessee's maximum applicable reservation rate.
Tennessee will reject bids with varying quantity.
Tennessee reserves the right to reject bids with a start date other than November 1, 2015, or termination date other than March 31, 2016.
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. With respect to the first package of capacity identified above, Tennessee will not accept bids with a primary receipt point or primary delivery point in Zone 5. 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.
These rates apply to all secondary receipts and deliveries in the paths and zones described above. In addition, Shipper shall also pay ACA, applicable Fuel and Lost Retention (FL&R) and Electric Power Cost Recovery (EPCR) charges and all 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 9:00 A.M. CDT, Monday, July 28,2014, and ending at 4:00 P.M. CDT Friday, August 8, 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 discriminatory 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.
Tennessee reserves the right to agree to discounted rates on a point, volume, term, and condition specific basis. 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 of .8333%
All bids should include a primary receipt meter and a primary delivery meter, and refer to Open Season #940. 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 written or electronic communication. 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. CDT, 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