DATE: July 30, 2020 TIME: 10:00 AM CT
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1265
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 CT on Thursday, July 30, 2020 and ending at 4:00 PM CT on Tuesday, August 4, 2020 (the “Open Season Period”).
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
Up to 27,076 Dth/d
Tennessee reserves the right to reject bids with a TQ higher than the TQ listed above.
Term:
November 1, 2020 through March 31, 2021 Tennessee will reject bids with a commencement date prior to November 1, 2020, or a termination date later than March 31, 2021.
Primary Receipt Point(s):
Tennessee will accept any mutually agreeable point between MLV 315 and MLV 321.
Primary Delivery Point(s):
420999 – Pooling Pt – 500 Leg – Zone L
420366 – FGT/TGP Carnes Mississippi Stone
420383 – GULFSTH/TGP Kiln Miss Exchange Hanc
Tennessee will accept bids with any combination of the above delivery points or any other mutually agreed delivery points between Zone 4 and 420383 – GULFSTH/TGP Kiln Miss Exchange Hanc
(excluding locations north of Station 219 on the 200L).
Secondary Receipt Point(s) at
which Rates
specified below apply:
All Zone L/1, 2, 4 Receipt Points
Secondary Delivery Point(s) at
which the Rates
All Zone L/1, 2, 4 Delivery Points
Monthly Reservation Rate:
Tennessee reserves the right to reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.
Commodity Rate for Primary
And Secondary
Deliveries:
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, (“FL&R), 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. To reject bids at less than Tennessee's applicable Base Reservation Rate or applicable Base Commodity Rate per Dth.
2. 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.
3. 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.
4. 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.
5. To reject any bid that does not specify capacity within the paths posted above.
6. To reject bids received after the Open Season Period.
7. To award capacity to mutually agreeable alternate receipt or delivery points if capacity is unavailable at the meters specified in the bid.
8. To award capacity for a quantity less than the bid quantity, if sufficient capacity is not available to award the entire bid quantity.
9. To reject any bid that will result in a reduction of reservation charges.
10. To reject negotiated rate bids.
11. 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 #1265.
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. 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. CT, 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.
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).
Paul Gibson (713) 420-5128
Caitlin Harris (713) 420-2915
Adam Ledet (713) 420-4813
Scott Minear (713) 420-5177
Greg Pollard (713) 420-7149
E-mail TGPBidroom@kindermorgan.com