DATE: August 19, 2016 TIME: 11:10 AM
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1060)
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 11:10 AM CDT, Friday, August 19, 2016, and ending at 4:00 PM CDT, Friday, August 26, 2016 (the “Open Season Period”).
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
Up to 25,625 Dth/d Tennessee will reject bids with a TQ greater than 25,625 Dth/d
Term:
For a term not less than one year commencing no earlier than April 1, 2017.
Primary Receipt Point:
412180 – Iroquois/TGP Shelton Interconnect
Bids for this proposal must be identical to the receipt point listed above.
Primary Delivery Point:
For mutually agreeable delivery points between and including 420344 – Con Ed/TGP Rye NY Westchester and 412180 – Iroquois/TGP Shelton Interconnect.
Secondary Receipt Points at
which Rates
specified below apply:
All Zone 5 and Zone 6 receipt meters
Secondary Delivery Points at
which the Rates
All Zone 5 and Zone 6 delivery meters
Monthly Reservation Rate:
Tennessee will not accept bids for less than Tennessee's Maximum applicable reservation rate per Dth.
Commodity Rate for Primary
And Secondary
Deliveries:
Tennessee will not accept bids for less than Tennessee's Maximum applicable commodity rate per Dth.
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.
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 #1060.
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.
All final bids for each Proposal received during the open season will be evaluated on an NPV basis using the following factors:
NPV/Dth = En [R*(1 / (1+i)**n)]/Dth
En = Summation of months 1 through n (Sigma)
n = term in months
R = Incremental monthly revenue
i = Monthly Discount Factor of 0.8333%
Dth = TQ of Contract
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).
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