DATE: November 03, 2017 TIME: 9:00 AM
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1132)
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 09:00 AM CDT, Friday, November 3, 2017, and ending at 4:00 PM CST, November 9, 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 per dekatherm (“NPV/Dth”) bid received in this open season.
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
24,000 Dth/d
Tennessee will reject bids with a TQ greater than 24,000 Dth/d.
Tennessee will reject any bids with varying quantities.
Term:
January 1, 2018 through December 31, 2037
Primary Receipt Point:
412383- Egan Hub/TGP Egan Gas Storage Acadi
Primary Delivery Point:
420907- TVA/TGP Johnsonville Hickman
Secondary Receipt Points at
which Rates
specified below apply:
Zone L and 1 receipt meters
Secondary Delivery Points at
which the Rates
420942- Ammid BA/TGP Bamagas Colbert
421003- Cal Gen/TGP Lowndes
420307- Ammid AT/TGP Barton AL Colbert
420948- TVA/TGP Magnolia Benton
420937- TVA/TGP Kemper
421061 - Mnroe GS/TGP Monroe Gas Storage Rec
460017 - Storage-Bear Creek
420797- Gulfsth/TGP Petal Storage Field For
As well as any future delivery meter where the Pre-Arranged Shipper is an operator.
Pre-Arranged Shipper shall pay an incremental daily reservation rate equal to $0.03 for gas delivered by Tennessee on behalf of the Pre-Arranged Shipper to the following Secondary Delivery Points:
420822 - Egan Hub/TGP Egan Gas Storage Acadi
421043 - Pine Pra/TGP Pine Prairie North Rap
The Pre-Arranged Shipper will have the annual right to replace or reassign the discounted storage points; however the number of discounted storage points shall not exceed the number of discounted storage points upon the effective date of the Discounted Rate Agreement.
In the event that the sum of the discounted reservation rate below (converted to a daily rate) and the incremental daily reservation rate exceeds Tennessee's applicable Base Reservation Rate, the applicable Base Reservation Rate shall apply.
Monthly Reservation Rate:
$3.0417 per Dth
Commodity Rate for Primary
And Secondary
Deliveries:
Tennessee's applicable Base Commodity Rate per Dth
Contractual Path Exception:
The path of this capacity is as follows:
1. Primary Receipt Meter west to Station 823
2. Station 823 north to Station 40
3. Station 40 north to the Primary Delivery Meter
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.
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 #1132.
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/Dth basis using the following factors:
NPV/Dth = En [R*(1 / (1+i)**n)]/TQ
En = Summation of months 1 through n (Sigma)
n = term in months
R = Incremental monthly revenue
i = Monthly Discount Factor of 0.8333%
TQ = Contract TQ
Tennessee reserves the right to accept any one bid or combination of bids that will result in the largest aggregate NPV/Dth for the aforementioned package(s).
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