DATE: April 25, 2016 TIME: 3:00 PM CDT
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1044)
Tennessee Gas Pipeline Company, L.L.C. (“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 3:00 PM CDT, April 25, 2016, and ending at 3:00 PM CDT, May 2, 2016 (the “Open Season Period”). 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.
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
7,500 Dth/d Tennessee will reject bids with quantities that vary during the term of the bid.
Tennessee cannot accept bids for volumes greater than 23,300 Dth/day
Term:
May 1, 2016, through October 31, 2016
Primary Receipt Points(s):
412803 – Arlstor/TGP Arlington Storage Recei
Primary Delivery Point(s):
420891 – Pooling Pt – 300 Leg – Zone 4
Secondary Receipt Point(s) at
which Rates
specified below apply:
All Zone 4 and Zone 5 Receipt Points
Secondary Delivery Point(s) at
which the Rates
All Zone 4 and Zone 5 Delivery Points
Monthly Reservation Rate:
$3.9542 per Dth
Tennessee reserves the right to reject bids for less than Tennessee's Maximum applicable reservation rate per Dth for quantities bid past October 31, 2016.
Commodity Rate for Primary
And Secondary
Deliveries:
Tennessee's Minimum applicable commodity rate per Dth
EDS/ERS
Subject to conditions set forth in Section 4.9 of Rate Schedule FT-A, Tennessee hereby adjusts the base daily reservation rate to lesser of $0.05 per Dth or Tennessee's maximum applicable EDS reservation rate for deliveries to Zone 6. Tennessee's minimum applicable FT-A commodity rate per Dth/day will apply to all deliveries into Zone 6.
Other Charges
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, as may be in effect from time to time.
10,000 Dth/d Tennessee will reject bids with quantities that vary during the term of the bid.
Tennessee cannot accept bids for volumes greater than 37,700 Dth/day
The capacity offered as part of this Proposal #2 has been reserved for Tennessee's Northeast Energy Direct Project pursuant to Article XXVI, Section 5.8 of the General Terms and Conditions of Tennessee's Tariff. Accordingly, the term for this Proposal #2 has been made available to the Pre-Arranged Shipper on a limited-term basis, and service shall commence on November 1, 2016, and shall terminate on the earlier of: (i) October 31, 2019, or (ii) the date on which the Northeast Energy Direct Project is placed in service.
412181 – Iroquois/TGP Wright SMS Schoharie
Competing bids for this proposal must be identical to receipt point listed above.
420747 – Berkshr/TGP Bousquet SMS Berkshire
Competing bids for this proposal must be identical to delivery point listed above.
All Zone 5 and Zone 6 Receipt Points
All Zone 5 and Zone 6 Delivery Points
Tennessee's Maximum applicable reservation rate per Dth
Tennessee will reject bids for less than Tennessee's Maximum applicable reservation rate per Dth.
For the period of November 1, 2016 – October 31, 2017 Tennessee's Minimum applicable commodity rate per Dth
Tennessee will reject bids for less than Tennessee's Maximum applicable commodity rate per Dth for the term after October 31, 2017.
Subject to conditions set forth in Section 4.8 of Rate Schedule FT-A, Tennessee hereby adjusts the base daily reservation rate to lesser of $0.05 per Dth or Tennessee's maximum applicable ERS reservation rate for receipts from Zone 4. For the time period of November 1, 2016 through October 31, 2017 Tennessee's minimum applicable FT-A commodity rate per Dth/day will apply from all receipts from Zone 4.
Authorized Overrun
Subject to conditions set forth in Section 5.4 of the FT-A Rate Schedule, for volumes up to 7,500 Dth/d the authorized overrun rate will be a daily rate of $.10 per Dth. This rate is exclusive of ACA and all applicable surcharges.
Shipper shall also pay ACA, F&LR, EPCR charges, and all other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.
Without limiting or waiving any other rights that Tennessee may have with respect to this Open Season, Tennessee reserves the following rights:
1. At any time during this Open Season, upon notice and in its sole discretion, to terminate this Open Season, to extend the Open Season Period, or to modify this Open Season.
2. To clarify and finalize bids containing non-specific and/or ambiguous bid information (including, without limitation, rate, term, and receipt or delivery points) or discrepancies in bid information, provided that Tennessee shall have no obligation to do so.
3. 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 provide credit support as Tennessee deems necessary), or requests service outside the scope of this Open Season.
4. To reject any bid that does not specify capacity within the paths posted above.
5. To award capacity to mutually agreeable alternate receipt or delivery points if capacity is unavailable at the meters specified in the bid.
6. To award capacity for a quantity less than the bid quantity, if sufficient capacity is not available to award the entire bid quantity.
7. To reject any bid that will result in a reduction of reservation charges.
8. To reject negotiated rate bids.
9. To reject contingent bids.
This Open Season is for capacity available for the receipt/delivery point paths specified 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. All Bids should refer to Open Season #1044.
Available capacity volumes are contingent upon mainline, meter and lateral capacity. Bids cannot exceed the stated maximum volumes.
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.
All bids submitted during the open season may be replaced with a higher Net Present Value (“NPV”) bid during the Open Season Period. Bids cannot be replaced with lower NPV bids. Upon completion of this Open Season, all remaining bids will be considered binding until a successful bid(s) has been awarded.
In the event that bids are received in the open season with a higher cumulative NPV than the Pre-Arranged Deal, the shipper may either match the cumulative NPV of the bid(s) or forfeit its rights to all of the capacity included in the Pre-Arranged Deal.
All final bids for each Proposal received during the open season will be evaluated on an 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%
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(s).
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
E-mail TGPBidroom@kindermorgan.com