DATE: September 22, 2014 TIME: 4:00 P.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #953) - Revised
Proposal #1: From Iroquois/TGP Wright SMS Schoharie (412181) Receipt Point to Berkshr/TGP Bousquet SMS Berkshire (420747)
For availability starting from March 1, 2015, through March 31, 2015, Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is offering 30,000 Dth/d of firm capacity available from the Iroquois/TGP Wright SMS Schoharie (412181) receipt point on the 200 line to the Berkshr/TGP Bousquet SMS Berkshire (420747) delivery point in Zone 6.
Tennessee will reject any bid (i) with a reservation rate less than Tennessee's applicable maximum reservation rate: or (ii) a commodity rate less than Tennessee's applicable maximum commodity rate.
Proposal #2: From Pooling Pt – Sta. 87 – Zone 1 (420828) to Zone 3 Dominion/TGP Broad Run Cornwell Kan (420044)
For availability starting November 1, 2015, through December 31, 2015, Tennessee is offering up to 100,000 Dth/d of firm capacity available from Pooling Pt – Sta. 87 (420828) to Zone 3 Dominion/TGP Broad Run Cornwell Kan (420044).
Tennessee reserves the right to reject bids that are less than Tennessee's maximum applicable reservation rate.
Tennessee will not accept bids with a commencement date prior to November 1, 2015, or a termination date later than December 31, 2015.
Terms of Bids
This open season is for capacity available for the receipt/delivery point path(s) specified above. As such, Tennessee reserves the right to reject any bid that does not specify capacity within the path(s) posted above. In order to be considered eligible to be awarded capacity following this open season, a potential shipper must submit a bid that specifies a term, volume, and delivery point consistent with the respective dates, quantity, and associated delivery zone(s) outlined above. Bids cannot exceed the stated maximum volume.
A successful bidder's reservation and commodity rates shall apply to all secondary receipts and deliveries in the path(s) and zone(s) described above. In addition, Shipper shall also pay ACA, applicable Fuel and Loss Retention (F&LR) and Electric Power Cost Recovery (EPCR) charges and all applicable surcharges specified in Tennessee's Effective FERC Gas Tariff (“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 Tennessee's Tariff, commencing at 2:00 P.M. CDT, Monday, September 22, 2014 and ending at 4:00 P.M. CDT, Friday, September 26, 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 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. Consistent with this open season notice, 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 bids will be considered binding until a successful bidder has been identified.
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
TQ = Contract TQ
R = Incremental monthly revenue
i = Monthly Discount Factor of 0.8333%
All bids should include a primary receipt meter and a primary delivery meter, and refer to Open Season #XXX. Tennessee reserves the right to accept any one bid or combination of bids that will result in the largest aggregate NPV for the aforementioned package.
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. 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