DATE: October 27, 2016 TIME: 8:00 AM
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1073)
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 (“GT&C”) of its FERC Gas Tariff, commencing at 8:00 AM, October 27, 2016, and ending at 4:00 PM CDT, October 31, 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 per dekatherm (“NPV/Dth”) bid received in this open season.
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
10,000 Dth/d
Tennessee will reject bids with varying quantities
Competing bids for this proposal must have a TQ no higher than 110,124 Dth/d.
Term:
November 1, 2016 through October 31, 2017
Primary Receipt Point:
412538 – Maritime/TGP Dracut Middlesex
Primary Delivery Point:
420901 – Shell/TGP Berkshire Power Sales Ham
Secondary Receipt Points at
which the Discounted Reservation Rate
specified below apply:
420871 – Pooling PT – 200 Line – Zone 6
Secondary Delivery Points at
420871 - Pooling PT – 200 Line – Zone 6
420931 - Granirdg/TGP Granite Ridge Rockingh
420894 - GDF Suez/TGP Blackstone Worcester
420707 - Ocean St/TGP Providence
420926 - RISEC/TGP FPLE Rise Providence
420884 – Mill Pow/TGP Millennium Power Cogen
420751 - Bay St/TGP Monson Sales Hampden
Monthly Reservation Rate:
$2.4333 per Dth
Incremental Volumetric
Reservation Rate:
For the Secondary Receipt and Delivery Points listed above, Shipper shall pay Tennessee an incremental $.05 daily demand charge based on delivered scheduled quantity any time Shipper nominates a quantity of gas using a Secondary Receipt Point or a Secondary Delivery Point; provided, however, in no event shall the sum of the discounted reservation rate above (converted to a daily rate) and this incremental volumetric reservation rate exceed Tennessee's applicable Daily Base Reservation Rate.
Commodity Rate for Primary
And Secondary
Deliveries:
For the periods of November 1, 2016, through October 31, 2017, for deliveries to the Primary Delivery Point from the Primary Receipt Point, Shipper shall pay Tennessee's applicable Minimum Commodity Rates. For any receipts and/or deliveries using Secondary Receipt or Delivery Points, Shipper shall pay Tennessee's applicable Base Commodity Rate.
Other Charges
Shipper shall also pay ACA, applicable Fuel and Loss Retention (“F&LR”), Electric Power Cost Recovery (“EPCR”) charges, and all 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 #1073.
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 NPV/Dth bid during the Open Season Period. Bids cannot be replaced with lower NPV/Dth 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 NPV/Dth than the Pre-Arranged Deal, but for a lower volume than what was specified in the Pre-Arranged Deal, Pre-Arranged Shipper if electing to match shall be required to match that lower volume, higher NPV/Dth bid. The remaining volume of the Pre-Arranged Deal that was not bid on in the Open Season shall be contracted for according to the terms of 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/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).
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