DATE: August 28, 2014 TIME: 12:00 P.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #948)
Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is holding an open season in accordance with Article XXVI, Sections 5.1, 5.2 and 5.9 of the General Terms and Conditions (“GT&C”) of Tennessee's FERC Gas Tariff (“Tennessee's Tariff”), commencing at 12:00 P.M. CST, Thursday, August 28, 2014 and ending at 4:00 P.M. CDT, Thursday, August 28, 2014. The capacity offered in this open season is the subject of a pre-arranged deal pursuant to Article XXVI, Section 5.9 of the GT&C of Tennessee's Tariff, the terms and conditions of which are disclosed below. The customer under the pre-arranged deal has the right to match the highest net present value (“NPV”) bid received in this open season.
Receipt Zone 5 to Delivery Zone 4 Capacity Proposed Contract Terms:
Primary Receipt Points(s): 412538- Maritime/TGP Dracut Middlesex
Primary Delivery Point(s): 420101 Trnsco/TGP Rivervale New Jersey Ber
Secondary Delivery Point(s) at
which the Discounted Rates
.
Commodity Rate for Primary
And Secondary
Deliveries: Tennessee's Maximum applicable commodity rate per Dth/d.
Other Conditions
Of the Pre-arranged Deal:
TGP cannot not accept bids with a term ending after September 30, 2014.
TGP cannot accept bids for volume greater than 15,000Dth/day
TGP will not accept less than max reservation and max commodity rates.
In addition to the reservation and commodity set forth above, Shipper shall also pay ACA, applicable Fuel and Loss Retention (“F&LR”), Electric Power Cost Rates (“EPCR”) charges and all other applicable surcharges specified in Tennessee's Tariff.
The total amount of primary receipt point capacity and primary delivery point capacity shall be equal, and the amount of each shall equal the cumulative above-described TQ.
Capacity temporarily released or assigned pursuant to Tennessee's Tariff shall be charged Tennessee's maximum daily commodity rates under Rate Schedule FT-A as well as the applicable F&LR, EPCR, and other surcharges under Rate Schedule FT-A. For a release under 18 C.F.R. § 284.8(h) to either an asset manager or a marketer participating in a state-regulated retail access program, Tennessee will determine whether to pass through any discounted commodity rates and applicable F&LR, EPCR, and other surcharges on a not unduly discriminatory, case-by-case basis.
The Pre-Arranged Deal and all of its terms and conditions are subject to Tennessee's Tariff, as amended from time to time, and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction. In accordance with Article XXVI, Section 5.9 of the GT&C of Tennessee's Tariff, Tennessee is posting the terms of the Pre-Arranged Deal in DART in this open season for competitive bidding as provided, and Shipper shall have a one-time right within 2 business days of notification to match any bids with a higher NPV in order to obtain the capacity.
The above-specified Contract Terms for the Proposal represent the minimum Contract Terms that Tennessee is willing to accept for the capacity underlying Proposals. Bids for less than the minimum Contract Terms will be rejected; provided, further, bids for less than the Pre-Arranged Deal in its entirety will be rejected.
In the event that bids are received in the open season with a higher cumulative NPV than the Pre-Arranged Deal, Shipper may either match the NPV of the bid(s) or forfeit its rights to all of the capacity included in the Pre-Arranged Deal.
In accordance with GT&C Article XXVI, Section 5.2, 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 / Dth = En [R*(1 / (1+i)**n)] / TQ
En = Summation of months 1 through n (Sigma)
n = term in months
TQ = Contract TQ
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
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 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 am and 5 pm 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