DATE: February 24, 2015 TIME: 9:30 A.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: Available Firm Capacity (Posting #978)
Proposal #1: From Zone 4 200 Leg Pool (420867) to AGT/TGP Mendon Mass Tie Over Worchester (420285)
For availability starting November 1, 2015, through March 31, 2016, Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is offering 2,000 Dth/d of firm capacity available from the Zone 4 200 Leg Pool (420867) to the AGT/TGP Mendon Mass Tie Over Worchester (420285) delivery point.
Tennessee reserves the right to reject any bids submitted at less than the maximum reservation and commodity rates, including surcharges, for this capacity.
Proposal #2: From Pooling Pt. – Sta. 87 – Zone 1 (420828) to KY Util/TGP E W Brown Garrard (420794)
For availability starting November 1, 2016, through March 31, 2017, Tennessee is offering 60,000 Dth/d of firm capacity available from Pooling Pt. – Sta. 87 – Zone 1 (420828) to KY Util/TGP E W Brown Garrard (420794).
Terms of Bids
This open season is for capacity available for the receipt and delivery paths specified above. As such, Tennessee reserves the right to reject any bid that does not specify the paths posted above. Also, in order to be considered eligible to be awarded capacity following this open season, potential shippers must submit a bid that specifies terms and volumes that are consistent with the respective dates and quantities outlined above. Bids cannot exceed the stated maximum volumes.
The reservation and commodity rates for shippers awarded capacity pursuant to this open season shall apply to all secondary receipts and deliveries in the paths and zones described above. In addition to such reservation and commodity rates, Shipper shall also pay ACA, applicable Fuel and Loss Retention (F&LR), Electric Power Cost Recovery (EPCR) charges, and all other 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 9:30 a.m. CCT Tuesday, February 24, 2015 and ending at 4:00 p.m. CCT, Wednesday, March 4, 2015. All bids submitted during the open season may be withdrawn and/or replaced with a higher NPV bid during the open season period.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 has a negative Net Present Value. Tennessee reserves the right to reject negotiated rate bids. Tennessee reserves the right to reject bids with deviations in monthly MDQ's. 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 and delivery meters. Tennessee has the right to award capacity to alternate receipt and 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 nondiscriminatory 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.
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 .08333%
All bids should include a primary receipt meter and a primary delivery meter, and refer to Open Season #978. Tennessee reserves the right to accept any one bid or combination of bids that will result in the largest aggregate NPV.
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. CST, Monday through Friday. For further information, please contact:
Kenny Durio (713) 420-5307
Rock Graham (713) 420-4241
Mary Limbaugh (713) 420-4576
Scott Minear (713) 420-5177
Jason Connelly (713) 420-2446