DATE: May 26, 2017 TIME: 8:00 AM
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1102)
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, as may be in effect from time to time (“Tariff”) commencing at 8 AM, May 26, 2017, and ending at 4:00 PM May 31, 2017 (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”):
This pre-arranged deal is for a TQ of 3,814 Dth/d
Tennessee will reject bids with quantities that vary during the term of the bid.
Tennessee will not accept bids for volumes greater than 3,814 dth/d.
Term:
June 1, 2017 through March 31, 2018
Primary Receipt Point:
420891 – Zone 4 300 Leg Pool
Primary Delivery Point:
421079 – Transcan/TGP UDP Niagara River Delivery
Secondary Receipt Points at
which Rates
specified below apply:
All Zone 4 and 5 Receipt Points
Secondary Delivery Points at
which the Rates
All Zone 4 and 5 Delivery Points
Monthly Reservation Rate:
Tennessee's Base applicable Reservation Rate per Dth
Commodity Rate for Primary
And Secondary
Deliveries:
Tennessee's Base applicable Commodity Rate per Dth/d
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.
This pre-arranged deal is for a TQ of 1,227 Dth/d
Tennessee will not accept bids for volumes greater than 17,005 dth/d.
The pre-arranged deal is for a term of November 1, 2017 through March 31, 2018.
420526 – Honeoye/TGP UDP Honeoye New York
All Zone 5 Receipt Points
All Zone 5 Delivery Points
Tennessee's Minimum applicable Commodity Rate per Dth/d
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 #1102.
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 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 = 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
Mary Limbaugh (713) 420-4576
Scott Minear (713) 420-5177
Adrienne Reid (713) 369-8413
E-mail TGPBidroom@kindermorgan.com