DATE: May 14, 2015 TIME: 9:00 A.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #990)
Proposal #1: From Receipt Point(s) between Station 315 and 317 to Pooling Pt – 200 Leg – Zone 4 (420867)
For availability starting from June 1, 2015, through June 30, 2015, Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is offering 25,000 Dth/d of firm capacity available from mutually agreeable receipt point(s) in Zone 4 between Station 315 and 317 to the Pooling Pt – 200 Leg – Zone 4 (420867).
Tennessee will reject any bid with (i) 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 beginning date earlier than June 1, 2015, or an end date after June 30, 2015.
Proposal #2: From Receipt Point(s) between Station 315 and 317 to Pooling Pt – 300 Leg – Zone 4 (420891)
For availability starting from June 1, 2015, through June 30, 2015, Tennessee is offering 25,000 Dth/d of firm capacity available from mutually agreeable receipt point(s) in Zone 4 between Station 315 and 317 to the Pooling Pt – 300 Leg – Zone 4 (420891).
Proposal #2: Storage - Northern (460018) to Pooling PT – 300 Leg – Zone 4 (420891)
For availability starting November 1, 2015, through March 31, 2016, Tennessee is offering up to 60,000 Dth/d of firm capacity available from Storage – Northern (460018) to Pooling Pt – 300 Leg- Zone 4 (420891).
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 other than March 31, 2016.
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 9:00 A.M. CST, Thursday, May 14, 2015 and ending at 4:00 P.M. CST, Thursday, May 21, 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 #990. 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. CST, Monday through Friday. For further information, please contact:
Jason Connelly (713) 420-2446
Kenny Durio (713) 420-3507
Rock Graham (713) 420-4241
Mary Limbaugh (713) 420-4576
Scott Minear (713) 420-5177