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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:  04/20/2017 3:14:54PM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  4/20/2017 3:14:54 PM Notice ID: 363025
Reqrd Rsp:  1 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  AVAILABLE FIRM CAPACITY - OS #1099
Notice Text:

DATE:  April 20, 2017                                                                         TIME: 3:15 PM

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

RE:      AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1099)

Open Season Timeline

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 3:15 PM, Thursday, April 20, 2017, and ending at 4:00 PM, Tuesday, April 25, 2017 (the “Open Season Period”).

 

Proposal #1 Receipt Zone 5 to Delivery Zone 6 Capacity Proposed Contract Terms

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

Up to 32,000 Dth/d May 1, 2017 through October 31, 2017 and

Up to 15,000 Dth/d November 1, 2017 through March 31, 2018


Tennessee will reject bids with a TQ higher than the TQ listed above

Term:    

May 1, 2017, through March 31, 2018

Tennessee will not accept bids with a commencement date other than May 1, 2017 or a termination date other than March 31, 2018. 

Primary Receipt Point:

412181 – Iroquois/TGP Wright SMS Schoharie

 

Primary Delivery Point:

420285 – AGT/TGP Mendon Mass Tie Over Worche

Secondary Receipt Points at

which Rates

specified below apply:

All zone 5 & zone 6 receipt meters.

Secondary Delivery Points at

which the Rates

specified below apply:

All zone 5 & zone 6 delivery meters.

Monthly Reservation Rate:

Tennessee will reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.

Commodity Rate for Primary

And Secondary 

Deliveries:

Tennessee will reject bids for less than Tennessee's applicable Base Commodity Rate per Dth.

 

Other Conditions of the Open Season:

Tennessee reserves the right to reject bids with volumes for the November 1, 2017 through March 31, 2018 that are higher than the volumes for the May 1, 2017 through October 31, 2017 period.

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.

 

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

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

Up to 30,000 Dth/d

Term:    

May 1, 2017 through October 31, 2017

Primary Receipt Points(s):

420828 – Pooling Pt – Sta. 87 – Zone 1

Primary Delivery Point(s):

420867 – Pooling Pt – 200 Leg – Zone 4

Secondary Receipt Points at

which Rates

specified below apply:

All zone L/1, 2 & zone 4 receipt meters.

Secondary Delivery Points at

which the Rates

specified below apply:

All zone L/1, 2 & zone 4 delivery meters.

Monthly Reservation Rate:

Tennessee reserves the right to reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.

Commodity Rate for Primary

And Secondary 

Deliveries:

Tennessee reserves the right to reject bids for less than Tennessee's applicable Base Commodity Rate per Dth.

Other Charges

Shipper shall also pay ACA, applicable F&LR, EPCR charges, and all applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.

Reservations

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.

Submission of 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 #1099. 

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. 

Evaluation Method

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). 

For further information, please contact:

Jason Connelly           (713) 420-2446

Kenny Durio                (713) 420-5307

Mary Limbaugh           (713) 420-4576

Scott Minear                (713) 420-5177

Adrienne Reid             (713) 369-8413

E-mail                          TGPBidroom@kindermorgan.com