DATE: October 15, 2018 TIME: 10:00 AM CDT
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1188)
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 10:00 AM CDT, Monday, October 15, 2018, and ending at 4:00 PM CDT, Thursday, October 18, 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 15,000 Dth/d
Term:
November 1, 2018 through October 31, 2019
Primary Receipt Point:
412538 Maritime/TGP Dracut Middlesex
Primary Delivery Point:
421022 PSEG NY/ TGP Glenmont Sales Albany
Secondary Receipt Points at
which Rates
specified below apply:
412856 Empire/TGP Canandaigua Ontario
412181 Iroquois/TGP Wright SMS Schoharie
Secondary Delivery Points at
which the Rates
50680 200 Leg North Pool – Zone 6
420931 Calpine/TGP Granite Ridge Rockingh
420894 Dynegy/TGP Blackstone Worcester
420707 Ocean St/TGP Providence
420926 RISEC/TGP FPLE Rise Providence
420884 Mill Pow/TGP Millennium Power Cogen
420751 Bay St/TGP Monson Sales Hampden
420901 BERKPWR/TGP Berkshire Power Sales Hamp
420747 Berkshr/TGP Bousquet SMS Berkshire
Monthly Reservation Rate:
$2.4333 per Dth Applicable for the periods of November 1, 2018, through October 31, 2019, to Primary Delivery Point or Secondary Delivery Points listed above when received from the Primary Receipt Point or Secondary Receipt Points listed above.
Incremental Volumetric
Reservation Rate:
For the periods of November 1, 2018, through October 31, 2019, for the Secondary Delivery Points listed above, Shipper shall pay Tennessee the Discounted Monthly Reservation Rate and $.05 daily demand on the delivered quantity when received from the Primary or Secondary Receipt points listed above; provided, however, in no event shall the sum of the discounted reservation rate above (which has been converted to a daily rate) and this incremental volumetric reservation rate exceed Tennessee's applicable Daily Base Reservation Rate.
Commodity Rate for Primary
And Secondary
Deliveries:
For the periods of November 1, 2018, through October 31, 2019, for deliveries to the Primary Delivery Point from the Primary Receipt Point, Shipper shall pay Tennessee's applicable Minimum Commodity Rates. For receipts from 412856 Empire/TGP Canandaigua Ontario or 412181 Iroquois/TGP Wright SMS Schoharie to the Primary Delivery Point and to the Secondary Delivery Points listed above, Shipper shall pay Tennessee's applicable Base Commodity Rate
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.
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 #1188.
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.
The Pre-Arranged Deal and all of its terms and conditions are subject to Tennessee's Tariff, as amended from time to time, and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction. In accordance with Article XXVI, Section 5.9 of the General Terms and Conditions of Tennessee's Tariff, Tennessee is posting the terms of the Pre-Arranged Deal on DART in this open season for competitive bidding as provided, and the Pre-Arranged Shipper shall have a one-time right within 2 business days of notification to match any bids with a higher NPV in order to obtain the capacity.
The above-specified Contract Terms represent the minimum Contract Terms that Tennessee is willing to accept for the capacity underlying the respective Proposal. Bids for less than the minimum Contract Terms will be rejected.
In the event that in the open season, a customer submits a competitive bid(s) with a higher NPV/Dth than the Pre-Arranged Deal in total but for a lower volume than what was specified in the Pre-Arranged Deal, the 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 basis using the following factors:
NPV/Dth = En [R*(1 / (1+i)**n)] / Dth
En = Summation of months 1 through n (Sigma)
n = term in months
R = Incremental monthly revenue
Dth = TQ of Contract
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).
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