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TSP/TSP Name:  1939164-TENNESSEE GAS PIPELINE Critical: Y
Notice Type Desc (1):  TSP CAP OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  10/31/2014 10:00:02AM Notice End Date/Time:  11/30/2014 9:00:00am
Post Date/Time:  10/31/2014 10:00:02 AM Notice ID: 353804
Reqrd Rsp:  1 Rsp Date:  10/31/2014
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  AVAILABLE FIRM CAPACITY OPEN SEASON #963
Notice Text:
June 2, 1998

DATE: October 31, 2014                                                                                 TIME: 10:00 A.M.

 

TO:      ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS

 

RE:      AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #963)

 

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 10:00 A.M. CDT, Friday, October 31, 2014, and ending at 4:00 P.M.CST, Wednesday, November 5, 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.

 

 

Proposal #1:  Receipt Zone 0 to Delivery Zone 4 Capacity Proposed Contract Terms:

 

Rate Schedule:                         FT-A

 

Transportation Quantity (“TQ”): 20,500 Dth/d  June 1, 2015 to October 31, 2015

                                                22,000 Dth/d  November 1, 2015 to March 31, 2016

                                               

Term:                                       June 1, 2015 to March 31, 2016

 

Primary Receipt Points(s):        420826 – Pooling Pt – 100 Leg – Zn 0 - North

 

Secondary Receipt Point(s)

at which the  Rates

specified below apply:             All Zone 0, L/1, 2, and Zone 4 Receipt Points

 

Primary Delivery Point(s):       420867 – Pooling Pt – 200 Leg – Zone 4

 

Secondary Delivery Point(s)

At which the Rates

specified below apply:             All Zone 0, L/1, 2, and Zone 4 Delivery Points

                                               

Monthly Reservation Rate:      $17.9562 per Dth

             

Commodity Rate for all Primary

and Secondary Deliveries:       Tennessee's minimum applicable commodity rate per Dth

 

Competing bids for this proposal must have (1) receipt/delivery points within the path specified above and (2) a term beginning no earlier than June 1, 2015

 

Tennessee will reject bids for Proposal #1 with a proposed reservation rate less than $17.9562 per Dth.


 

Proposal #2:  Receipt Zone 0 to Delivery Zone 3 Capacity Proposed Contract Terms:

 

Rate Schedule:                         FT-A

 

Transportation Quantity (“TQ”): 21,000 Dth/d  June 1, 2015 to October 31, 2015

                                                140,500 Dth/d  November 1, 2015 to March 31, 2016

                                               

Term:                                       June 1, 2015 to March 31, 2016

 

Primary Receipt Points(s):        420826 – Pooling Pt – 100 Leg – Zn 0 - North

 

Secondary Receipt Point(s)

at which the  Rates

specified below apply:             All Zone 0, L/1, 2, and Zone 3 Receipt Points

 

Primary Delivery Point(s):       June 1, 2015 to October 31, 2015

                                                21,000 420044 – Dominion/TGP Broad Run Cornwell

                                               

                                                November 1, 2015 to March 31, 2016            

                                                40,000 420044 – Dominion/TGP Broad Run Cornwell 

                                                100,500 420866 – Pooling Pt – Broad Run Spur

 

Secondary Delivery Point(s)

At which the Rates

specified below apply:             All Zone 0, L/1, 2, and Zone 3 Delivery Points

                                               

Monthly Reservation Rate:      $16.3417 per Dth

             

Commodity Rate for all Primary

and Secondary Deliveries:       Tennessee's maximum applicable commodity rate per Dth

 

Competing bids for this proposal must have (1) receipt/delivery points within the path specified above and (2) a term beginning no earlier than June 1, 2015.

 

Tennessee will reject bids for Proposal #2 with a proposed reservation rate less than $16.3417 per Dth or a proposed commodity rate less than Tennessee's maximum applicable commodity rate per Dth.

 

 

Proposal #3:  Receipt Zone 4 to Delivery Zone 6 Capacity Proposed Contract Terms:

 

Rate Schedule:                         FT-A

 

Transportation Quantity (“TQ”): 22,000 Dth/d

                                               

Term:                                       November 1, 2015 to March 31, 2016

 

Primary Receipt Points(s):        420867 – Pooling Pt – 200 Leg – Zone 4

 

Secondary Receipt Point(s)

at which the  Rates

specified below apply:             All Zone 4, 5, and Zone 6 Receipt Points

 

Primary Delivery Point(s):       420285 – AGT/TGP Mendon Mass Tie Over

Secondary Delivery Point(s)

at which the Rates

specified below apply:             All Zone 4, 5, and Zone 6 Delivery Points

                                               

Monthly Reservation Rate:      $8.3778 per Dth

             

Commodity Rate for all Primary

and Secondary Deliveries:       Tennessee's maximum applicable commodity rate per Dth

 

Competing bids for this proposal must have (1) receipt/delivery points within the path specified above, (2) volume no higher than 22,000 Dth/d, (3) a term beginning no earlier than November 1, 2015, and (4) a term ending no later than March 31, 2016.

 

Tennessee will reject bids for Proposal #3 with a proposed reservation rate less than $8.3778 per Dth or a proposed commodity rate less than Tennessee's maximum applicable commodity rate per Dth.

 

 

Proposal #4:  Receipt Zone 1 to Delivery Zone 2 Capacity Proposed Contract Terms:

 

Rate Schedule:                         FT-A

 

Transportation Quantity (“TQ”): 152,000 Dth/d

                                               

Term:                                       November 1, 2015 to March 31, 2016

 

Primary Receipt Points(s):        420828 – Pooling Pt – Sta. 87 – Zone 1

 

Secondary Receipt Point(s)

at which the  Rates

specified below apply:             All Zone L/1 and Zone 2 Receipt Points

 

Primary Delivery Point(s):       420886 – TGT/TGP Dry Creek Sales

 

Secondary Delivery Point(s)

At which the Rates

specified below apply:             All Zone L/1 and Zone 2 Delivery Points

                                               

Monthly Reservation Rate:      $10.9704 per Dth

             

Commodity Rate for all Primary

and Secondary Deliveries:       Tennessee's maximum applicable commodity rate per Dth

 

Competing bids for this proposal must have (1) receipt/delivery points within the path specified above and (2) a term beginning no earlier than November 1, 2015.

 

Tennessee will reject bids for Proposal #4 with a proposed reservation rate less than $10.9704 per Dth or a proposed commodity rate less than Tennessee's maximum applicable commodity rate per Dth.

 

 

Proposal #5:  Receipt Zone 5 to Delivery Zone 5 Capacity Proposed Contract Terms:

 

Rate Schedule:                         FT-A

 

Transportation Quantity (“TQ”): 75,000 Dth/d

                                               

Term:                                       November 1, 2015 to March 31, 2016

 

Primary Receipt Points(s):        410902 – Transcan/TGP UDP Niagara River – Zone 5

 

Secondary Receipt Point(s)

at which the  Rates

specified below apply:             All Zone 5 Receipt Points

 

Primary Delivery Point(s):       420870 – Pooling PT – Niagara Spur

 

Secondary Delivery Point(s)

At which the Rates

specified below apply:             All Zone 5 Delivery Points

                                               

Monthly Reservation Rate:      $5.6505 per Dth

Commodity Rate for all Primary

and Secondary Deliveries:       Tennessee's minimum applicable commodity rate per Dth

 

Competing bids for this proposal must have (1) receipt/delivery points within the path specified above and (2) a term beginning no earlier than November 1, 2015.

 

Tennessee will reject bids for Proposal #5 with a proposed reservation rate less than $5.6505 per Dth.

 

 

Other Conditions

Of the Pre-arranged Deal:        In addition to the reservation and commodity rates 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.

 

For each proposal, the total amount of primary receipt point capacity and primary delivery point capacity shall be equal.

 

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 the Pre-Arranged 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 this capacity.  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, the Pre-Arranged 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.

 

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 = 0.833%

 

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 CDT, Monday through Friday.  For further information, please contact:

                                    Mary Limbaugh           (713) 420-4576

Rock Graham              (713) 420-4241          

                                    Scott Minear                (713) 420-5177                      

Jason Connelly            (713) 420-2446

                                    Kenny Durio                (713-420-5307

                                   

 

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