DATE: October 31, 2014 TIME: 10:15 A.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #964)
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 10:15 AM 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.
Primary Receipt Points(s): 420826 – POOLING PT-100 LEG-ZN 0-NORTH
Primary Delivery Point(s): 420285 – AGT/TGP MENDON MASS TIE OVER WORCHE
Secondary Delivery Point(s) at
which the Rates
specified below apply: All Zone 0, L/1, 2, 4, 5, and 6 Delivery Points
Commodity Rate for all Primary
and Secondary Deliveries: Tennessee's maximum applicable commodity rate per Dth
Competing bids for Proposal #1 must have (1) receipt/delivery points in the path listed above, (2) TQ no higher than available capacity listed above, and (3) a term beginning no earlier than November 1, 2015, and ending no later than March 31, 2016.
Tennessee will reject bids for Proposal #1 with a proposed reservation rate less than $23.9133 per Dth or a proposed commodity rate less than Tennessee's maximum applicable commodity rate per Dth.
Primary Receipt Points(s): 410902 – TRANSCAN/TGP NIAGARA RIVER NIAGARA
Primary Delivery Point(s): 420870 – POOLING PT - NIAGARA SPUR - ZO
specified below apply: All Zone 5 Delivery Points
and Secondary Deliveries: Tennessee's minimum applicable commodity rate per Dth
Competing bids for Proposal #2 must have (1) receipt/delivery points in the path listed above and (2) a term beginning no earlier than November 1, 2015.
Tennessee will reject bids for Proposal #2 with a proposed reservation rate less than $5.6505 per Dth.
Primary Receipt Points(s): 420867 - POOLING PT - 200 LEG - ZONE 4
Primary Delivery Point(s): 420891 - POOLING PT - 300 LEG - ZONE 4
specified below apply: All Zone 4 Delivery Points
Competing bids for Proposal #3 must have (1) identical receipt/delivery points and (2) a term beginning no earlier than November 1, 2015.
Tennessee will reject bids for Proposal #3 with a proposed reservation rate less than $5.4225 per Dth.
170,268 Dth/d for period November 1, 2015 through March 31, 2016
Primary Receipt Points(s): 420828 – POOLING PT – STA. 87 – ZONE 1
Primary Delivery Point(s): 420865 – POOLING PT - 100 LEG - ZONE 2
specified below apply: All Zone L/1, 2 Delivery Points
Competing bids for Proposal #4 must have (1) receipt/delivery points in the path listed above and (2) a term beginning no earlier than June 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.
Primary Receipt Points(s): 412538 – MARITIME/TGP DRACUT MIDDLESEX
Primary Delivery Point(s): 420572 – BOSTN/TGP DRACUT MA MIDDLESEX
specified below apply: All Zone 6 Delivery Points
Competing bids for Proposal #5 must have (1) identical receipt/delivery points and (2) TQ no higher than available capacity listed above, (3) a term beginning no earlier than November 1, 2015.
Tennessee will reject bids for Proposal #5 with a proposed reservation rate less than $4.8698 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