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TSP/TSP Name:  1939164-TENNESSEE GAS PIPELINE Critical: Y
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  03/08/2018 8:59:59AM Notice End Date/Time:  04/07/2018 9:00:00am
Post Date/Time:  3/8/2018 8:59:59 AM Notice ID: 366659
Reqrd Rsp:  1 Rsp Date:  03/08/2018
Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  AVAILABLE FIRM CAPACITY - OS #1149
Notice Text:
June 2, 1998

DATE:  March 8, 2018                                                                            TIME: 9:00 A.M.

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

RE:       AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1149)

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 (“GT&C”) of its FERC Gas Tariff, as may be in effect from time to time (“Tariff”) commencing at 9:00 AM CST, Thursday, March 8, 2018, and ending at 4:00 PM CDT, Wednesday, March 14, 2018 (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.

 

 

Proposal:  Receipt Zone 4 to Delivery Zone 4 Capacity Proposed Contract Terms:

 

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

30,000 Dth/d

Term:    

April 1, 2018 through March 31, 2023

Primary Receipt Point:

420867- Pooling Pt- 200 Leg- Zone 4

Primary Delivery Point:

420060- Col Gas/TGP Dungannon OH Columbiana

Secondary Receipt Points:

All Zone 4 Receipt Points

Secondary Delivery Points:

All Zone 4 Delivery Points

Monthly Reservation Rate:

 

Tennessee's applicable Base Reservation Rate per Dth

 

Commodity Rate for Primary

And Secondary 

Deliveries:

Tennessee's applicable Base 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 applicable surcharges specified in Tennessee's Tariff.

 

 

 

 

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 points 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 #1149. 

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. CST, 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 a 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.

 

Evaluation Method

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).

For further information, please contact:

Kenny Durio                  (713) 420-5307

Scott Minear                 (713) 420-5177

Adam Ledet                  (713) 420-4813

Adrienne Reid               (713) 369-8413

 

E-mail                           TGPBidroom@kindermorgan.com

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