DATE: June 14, 2019 TIME: 2:00 PM CDT
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: OPEN SEASON #1215 – NON-BINDING FROM ZONE 0, L, AND 1 RECEIPTS TO 500L DELIVERIES
Tennessee Gas Pipeline Company, L.L.C. (“Tennessee”) is holding this non-binding Open Season for Generally Available Capacity, commencing at 2:00 PM CDT, Friday, June 14, 2019, and ending at 4:00 PM CDT, Tuesday, July 2, 2019 (the “Open Season Period”).
Service will be provided under Tennessee's Rate Schedule FT-A, as more fully described in and pursuant to Tennessee's FERC Gas Tariff (“Tariff”), as it may change from time to time.
Tennessee is soliciting non-binding proposals to enter into Gas Transportation Agreement(s) under Rate Schedule FT-A of Tennessee's Tariff for the following:
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
Up to 282,000 Dth/d
Estimated Commencement Date:
As early as April 1, 2020
Primary Receipt Point(s):
Mutually agreeable receipt points, subject to available capacity
Primary Delivery Point(s):
420546 – TGP/SNG Rose Hill Miss Clarke
And/or
420999 – Pooling PT – 500 Leg – Zone L
Monthly Reservation and Commodity Rates:
A shipper may propose either (a) Tariff recourse rates (maximum or discounted), or (b) a negotiated 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 Tariff, as may be amended from time to time.
This Open Season is intended solely to solicit non-binding bids. Tennessee is not obligated to execute Gas Transportation Agreements under Rate Schedule FT-A. Tennessee will only proceed with executing Gas Transportation Agreements if the terms at which it is able to transact economically justify taking the necessary steps to proceed with executing Gas Transportation Agreements.
Without limiting or waiving any other rights that Tennessee may have with respect to this Open Season, Tennessee reserves the following rights, in its sole discretion:
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. To reject any bid which does not meet the general requirements of this Open Season.
4. To hold an additional open season(s) relating to this capacity, whether non-binding or binding.
5. To not award the capacity.
This Non-Binging Open Season is for potentially available capacity for the receipt/delivery point paths specified above. In order to submit a request for service in this Open Season, a potential shipper must submit prior to the close of the Open Season period:
Transportation Quantity
Capacity Path
Primary Term
Rate
Potential shipper may be required by TGP to provide creditworthiness information as set forth in Article XXVI, Section 4.1 of the General Terms & Conditions (“GT&C”) of the Transporter's Tariff.
All Bids should refer to Open Season #1215.
Available capacity volumes are contingent upon mainline, meter and lateral capacity.
Parties interested in this capacity should submit a non-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.
Tennessee will evaluate bids on a Net Present Value 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%
Although bids submitted in this Open Season are not binding, only valid bids received during the Open Season period will be considered for service. However, Tennessee, in its sole discretion may consider requests received after the close of the Open Season period, including requests to modify a participant's bid in the open season, but shall be under no obligation to do so.
Kenny Durio (713) 420-5307
Adam Ledet (713) 420-4813
Scott Minear (713) 420-5177
Adrienne Reid (713) 369-8413
E-mail TGPBidroom@kindermorgan.com