DATE: September 30, 2015 TIME: 3:30 P.M.
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1017)
Proposal #1: From Pooling Pt – 200 Leg – Zone 4 (420867) to AGT/TGP Mendon Mass Tie Over Worchester (420285) in Zone 6
For availability starting November 1, 2016, through March 31, 2017, Tennessee Gas Pipeline Company, L.L.C. (Tennessee) is offering up to 35,000 Dth/d of firm capacity available from Pooling Pt – 200 Leg – Zone 4 (420867) to AGT/TGP Mendon Mass Tie Over Worchester (420285) in Zone 6.
Tennessee will not accept bids that are less than Tennessee's maximum applicable reservation rate and maximum applicable commodity rate.
Tennessee will not accept bids with a commencement date prior to November 1, 2016, or a termination date later than March 31, 2017.
Tennessee will not accept bids with varying quantities.
Proposal #2: Pooling PT – Sta. 87 Pool – Zone 1 (420828) to Pooling PT - 200 Leg – Zone 4 (420867)
For availability starting November 1, 2016, through October 31, 2017, Tennessee is offering up to 90,000 Dth/d of firm capacity available from Pooling PT – Sta. 87 Pool – Zone 1 (420828) to Pooling PT – 200 Leg – Zone 4 (420867).
Tennessee will not accept bids that are less than Tennessee's maximum applicable reservation rate.
Tennessee reserves the right to reject bids that are less than Tennessee's maximum applicable commodity rate.
Tennessee will not accept bids with a commencement date prior to November 1, 2016, or a termination date later than October 31, 2017.
Proposal #3: Pooling PT - 500 Leg – Zone L (420999) to Gulfsouth/TGP Petal Storage Field (420797) in Zone 1
For availability starting November 1, 2016, through October 31, 2017, Tennessee is offering up to 200,000 Dth/d of firm capacity available from Pooling PT - 500 Leg – Zone L (420999) to Gulfsouth/TGP Petal Storage Field (420797) in Zone 1.
Terms of Bids
This open season is for capacity available for the receipt/delivery point paths specified above. As such, Tennessee reserves the right to reject any bid that does not specify capacity within the paths posted above. In order to be considered eligible to be awarded capacity following this open season, potential shippers must submit a bid that specifies terms, volumes, receipt points and delivery points that are consistent with the respective dates, quantities and associated receipt and delivery zones 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, Electric Power Cost Recovery 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 3:30 P.M. CDT, Wednesday September 30, 2015 and ending at 4:00 P.M. CDT, Thursday, October 8, 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 any bid that will result in a reduction of reservation charges. 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 bid information. 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.
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 discriminatory 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 = 0.833%
All bids should include specific terms, volumes, receipt points and delivery points that are consistent with the respective dates, quantities and associated receipt and delivery zones outlined above, and refer to Open Season #1017. Tennessee reserves the right to accept any one bid or combination of bids that will result in the largest aggregate NPV for the aforementioned packages.
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. CDT, 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
E-mail - TGPBidroom@kindermorgan.com