DATE: April 22, 2015 TIME: 11:00 A.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #988- Revised)
Proposal #1: Firm Storage Availability under Rate Schedule FS-MA
For availability starting on November 1, 2015, Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is offering firm market area storage capacity at the Storage - Northern (460018) point in Zone 4. The following volumes are the maximum available in this open season.
MSQ
Deliverability per Dth MSQ
Deliverability
3,834,291 Dth
0.007034 Dth/d
26,970 Dth
This storage service is offered under Tennessee's Rate Schedule FS. The maximum applicable monthly Deliverability Rate as set forth in Tennessee's FERC Gas Tariff for this market area storage service is $1.54 per Dth. The maximum applicable monthly Space Rate for this market area storage service is $0.0211 per Dth/d.
Tennessee will reject any bid with (i) a Space Rate less than Tennessee's applicable maximum Space Rate, (ii) an Injection Rate less than Tennessee's applicable maximum Injection Rate, (iii) a Withdrawal Rate less than Tennessee's applicable maximum Withdrawal Rate, (iv) Deliverability per Dth MSQ greater than that specified above, or (v) a term of less than one calendar year.
Revision - Proposal #2: From Pooling PT – 200 Leg – Zone 4 (420867) to UGIPENN/TGP Uniondale PA Susquehanna (420203)
For availability starting November 1, 2015, Tennessee is offering 18,609 Dth/d of firm capacity available from the Zone 4 200 Leg Pool (420867) to UGI Penn/TGP Uniondale PA Susquehanna (420203).
The capacity offered in this Proposal #2 is “Expired Contract Capacity” as that term is defined in Article XXVI, Section 5.8 of the General Terms and Conditions of Tennessee's Tariff. Tennessee will reject any bid for the capacity offered in this Proposal #2 (i) with a reservation rate less than Tennessee's applicable maximum reservation rate; (ii) a commodity rate less than Tennessee's applicable maximum commodity rate; or (iii) a term of less than one calendar year.
New - Proposal #3: From Pooling PT – 300 Leg – Zone 4 (420891) to UGIPENN/TGP Uniondale PA Susquehanna (420203)
For availability starting November 1, 2015, Tennessee is offering 23,768 Dth/d of firm capacity available from the Zone 4 300 Leg Pool (420891) to UGI Penn/TGP Uniondale PA Susquehanna (420203).
The capacity offered in this Proposal #3 is “Expired Contract Capacity” as that term is defined in Article XXVI, Section 5.8 of the General Terms and Conditions of Tennessee's Tariff. Tennessee will reject any bid for the capacity offered in this Proposal #3 (i) with a reservation rate less than Tennessee's applicable maximum reservation rate; (ii) a commodity rate less than Tennessee's applicable maximum commodity rate; or (iii) a term of less than one calendar year.
Terms of Bids
This open season is for storage and transportation capacity available at the specified storage point and/or for the receipt/delivery point path(s) specified above, as applicable. As such, Tennessee reserves the right to reject any bid that requests storage capacity at another storage point or does not specify transportation capacity within the path(s) posted above, as applicable. In order to be considered eligible to be awarded capacity following this open season, a potential shipper must submit a bid that is consistent with the respective dates, quantities, zone(s), and other terms and conditions outlined above. Bids cannot exceed the stated maximum volume.
A successful bidder's reservation and commodity rates for transportation service 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”) for either transportation or storage service.
Available transportation capacity volumes are contingent upon mainline, meter, and lateral capacity. Available storage capacity volumes are contingent upon space and deliverability 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 3:00 P.M. CDT, Monday, April 20, 2015 and ending at 4:00 P.M. CDT, Wednesday, April 29, 2015. 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
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 #988. 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 request for service 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:
Kenny Durio (713) 420-3507
Rock Graham (713) 420-4241
Mary Limbaugh (713) 420-4576
Scott Minear (713) 420-5177
Jason Connelly (713) 420-2446