DATE: April 19, 2018 TIME: 4:45 PM CDT
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1155)
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 4:45 PM CDT, Thursday, April 19, 2018, and ending at 4:00 PM CDT, Thursday, April 26, 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 (“NPV”) bid received in this open season.
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
The pre-arranged deal is for 20,000 Dth/d
Tennessee will reject competing bids with a TQ higher than the TQ listed above
Term:
November 1, 2018 through March 31, 2019 Tennessee will reject bids with a commencement date prior to November 1, 2018 or a termination date later than March 31, 2019.
Competing bids for this proposal must have a term beginning no later than November 1, 2018 and ending no later than March 31, 2019.
Primary Receipt Points(s):
412181 – Iroquois/TGP Wright SMS Schoharie
Primary Delivery Point(s):
420285 – AGT/TGP Mendon Mass Tie Over Worche (17,000 Dth/d)
420901 – Shell/TGP Berkshire Power Sales Ham (3,000 Dth/d)
Secondary Receipt Point(s) at
which Rates
specified below apply:
All Zones 5 and Zone 6 Receipt Points
Secondary Delivery Point(s) at
which the Rates
All Zones 5 and Zone 6 Delivery Points
Monthly Reservation Rate:
Tennessee's applicable Base Reservation Rate per Dth
Tennessee will reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.
Commodity Rate for Primary
And Secondary
Deliveries:
Tennessee's applicable Base Commodity Rate per Dth
Tennessee will reject bids for less than 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 other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.
The pre-arranged deal is for 15,000 Dth/d
May 1, 2018 through October 31, 2018 Tennessee will reject bids with a commencement date prior to May1, 2018 or a termination date later than October 31, 2018.
Competing bids for this proposal must have a term beginning no later than May 1, 2018 and ending no later than October 31, 2018.
420901 – Shell/TGP Berkshire Power Sales Ham
Tennessee's applicable Minimum Commodity Rate per Dth
Shipper shall also pay ACA, F&LR, EPCR charges, and all other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.
November 1, 2018 through March 31, 2019 Tennessee will reject bids with a commencement date prior to November 1, 2018, or a termination date later than March 31, 2019.
420870 – Pooling PT – Niagara Spur – Zone 5
420867 – Pooling PT – 200 Leg Zone 4
All Zones 4 and Zone 5 Receipt Points
All Zones 4 and Zone 5 Delivery Points
Tennessee will reject bids for less than Tennessee's applicable Base Commodity Rate per Dth.
The pre-arranged deal is for 36,400 Dth/d
Tennessee will reject bids with a TQ greater than 50,000 Dth/d
May 1, 2018 through October 31, 2018 Tennessee will reject bids with a commencement date prior to May 1, 2018 or a termination date later than October 31, 2018.
420828 – Pooling Pt. – Sta. 87 – Zone 1
All Zones L/1, 2, and 4 Receipt Points
All Zones L/1, 2, and 4 Delivery Points
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 #1155.
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.
In the event that bids are received in the open season with a higher cumulative NPV than the Pre-Arranged Deal, the Shipper may either match the cumulative NPV of the bid(s) or forfeit its rights to all of the capacity included in 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 = 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:
Kenny Durio (713) 420-5307
Scott Minear (713) 420-5177
Adrienne Reid (713) 369-8413
Adam Ledet (713) 420-4813
E-mail TGPBidroom@kindermorgan.com