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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:  07/01/2015 4:29:59PM Notice End Date/Time:  07/31/2015 9:00:00am
Post Date/Time:  7/1/2015 4:29:59 PM Notice ID: 356296
Reqrd Rsp:  1 Rsp Date:  07/01/2015
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  AVAILABLE FIRM CAPACITY OPEN SEASON #996
Notice Text:
June 2, 1998

DATE: July 1, 2015                                                                 TIME: 4:30 P.M.

 

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

 

RE:                  AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #996)

 

Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is holding this 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 Effective FERC Gas Tariff (“Tennessee's Tariff”), commencing at 4:30 P.M. CDT, Wednesday , July 1, 2015, and ending at 4:3 0 P.M. CDT, Thursday, July 2, 2015.  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.  Therefore, the customer under the pre-arranged deal (the “Pre-Arranged Shipper”) has the right to match the highest net present value (“NPV”) bid received in this open season.

 

Proposal:  Receipt Zone 6 to Delivery Zone 5 Capacity Proposed Contract Terms:

 

Rate Schedule:                         FT-A

 

Transportation Quantity (“TQ”):          15,000 Dth/d

 

Term:                                       July 7, 2015 through July 31, 2015

 

Primary Receipt Points(s):        412538 - Maritime/TGP Dracut Middlesex

 

Primary Delivery Point:           420101 – Transco/TGP Rivervale New Jersey

 

                                               

Monthly Reservation Rate:      Tennessee's Maximum Applicable Monthly Reservation Rate per Dth

 

Commodity Rate for Primary

And Secondary 

Deliveries:                               Tennessee's Maximum applicable commodity rate per Dth    

 

 

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

 

Rate Schedule:                         FT-A

 

Transportation Quantity (“TQ”):          2,000 Dth/d

 

Term:                                       January 1, 2016 through March 31, 2016

 

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

 

Primary Delivery Point:           420867 - Pooling PT – 200 Leg – Zone 4

                                               

Monthly Reservation Rate:      Tennessee's Maximum Applicable Monthly Reservation Rate per Dth

 

Commodity Rate for Primary

And Secondary 

Deliveries:                               Tennessee's Minimum Applicable Commodity Rate per Dth/d

 

 

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 and Electric Power Cost Recovery charges, and all applicable surcharges specified in Tennessee's Tariff.

 

 

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 General Terms and Conditions of Tennessee's Tariff, Tennessee is posting the terms of the Pre-Arranged Deal on DART in this open season for competitive bidding as provided herein.

 

The above-specified Contract Terms represent the minimum Contract Terms that Tennessee is willing to accept for the capacity underlying the respective Proposal.  Bids for less than the minimum Contract Terms will be rejected.

 

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.

 

In accordance with GT&C Article XXVI, Section 5.2, all final bids for the 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 #996.  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.

 

In the event that in the open season, a customer submits a competitive bid(s) with a higher NPV than the Pre-Arranged Deal in total but for a lower volume than what was specified in the Pre-Arranged Deal, the Pre-Arranged Shipper, if electing to match, shall be required to match that lower volume, higher NPV bid. At the Pre-Arranged Shipper's election, the remaining volume of the Pre-Arranged Deal that was not bid on in the open season may be contracted for according to the terms of the Pre-Arranged Deal. If the Pre-Arranged Shipper elects not to match the partial bid, the Pre-Arranged Shipper will forfeit its rights to all of the capacity included in the Pre-Arranged Deal.

 

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

 

                                    Jason Connelly            (713) 420-2446

                                    Kenny Durio                (713) 420-5307

                                    Rock Graham              (713) 420-4241

                                    Mary Limbaugh           (713) 420-4576

                                    Scott Minear                (713) 420-5177

 

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