Open Season Notice of Available Firm Capacity on WIC: Cheyenne Hub to Three Mile
Bid Deadline – 2:00 PM Mountain Time, March 15, 2017
WIC is conducting a binding Open Season for existing available capacity as outlined below:
Bidder should contact its WIC marketing or Asset Optimization representative to determine if bids with other Primary Points in the geographic vicinity of the listed Primary Points are acceptable bids in this Open Season.
*Please contact your WIC marketing or Asset Optimization representative for details on availability of eligible alternate receipt/delivery locations.
March 16, 2017 – 2:00 pm Mountain Time
Email attached Bid Sheet to KMWestBids@KinderMorgan.com
Bids must include the bidding party's name, Open Season Name (‘Cheyenne Hub to Three Mile'), quantity, term, and rate.
By submitting a bid, the bidding party certifies that:
(a) All information contained in the bid is complete and accurate.
(b) It satisfies, or will be able to satisfy, all the requirements of WIC's FERC Gas Tariff.
(c) The person submitting the bid has full authority to bind the bidding party.
The bid rate must be presented as follows:
The reservation rate per Dth/month or stated as the maximum tariff rate.
There will be no contractual ROFR offered with this capacity.
In addition to the bid rate, each bidding party shall be subject to the applicable maximum usage rate and maximum usage surcharges, all other maximum rates, charges and surcharges, including ACA, Fuel and L&U, and any other authorized surcharges assessed under the applicable Rate Schedule of WIC's FERC Gas Tariff as those amounts may be amended or superseded from time-to-time. This includes incremental lateral charges and any third party charges resulting from the use of capacity that WIC may hold on other pipelines.
WIC reserves the right to reject negotiated rate bids, bids that have rates less than the maximum recourse rate, bids stated as the dollar equivalent of the current maximum recourse rate, bids that are incomplete, contain offers of varying rates within the term, contain additional or modified terms or are inconsistent with the provisions of WIC's FERC Gas Tariff. WIC also reserves the right to reject bids for quantities that are not for the same quantity for the duration of the term.
WIC notes that FERC Order No. 894, in some cases, prohibits multiple affiliates of the same entity from bidding in an Open Season for capacity in which the pipeline may allocate capacity on a pro rata basis. It appears to WIC that the restrictions imposed by FERC Order No. 894 will be applicable in this Open Season and FERC recommends that potential bidders review and adhere to the requirements of that FERC Order.
Creditworthiness Criteria:
The successful bidder(s) must satisfy the creditworthiness requirements of WIC's FERC Gas Tariff. WIC will review the creditworthiness of each successful bidder to ensure they have credit support equal to this level. Bidders who fail to satisfy the creditworthiness requirements within a reasonable time will have their capacity award withdrawn. WIC will treat the financial statements provided by Shipper as confidential.
Each successful bidder and WIC shall enter into and execute an FTSA reflecting the terms of its bid as awarded by WIC. The FTSA will be in the form contained in WIC's FERC Gas Tariff.
Evaluation Criteria:
If WIC receives acceptable bids for capacity in excess of the actual amount of available capacity, then the capacity will be allocated based on the Present Value (PV) of each bid as calculated below; provided, however, WIC reserves the right to aggregate bids that generate the highest PV to WIC.
PV will be the sum of the present values for all of the months beginning with the first month capacity is available through the end date of the bid term.
The PV for each month will be calculated as follows:
PV = (R X Q)/((1+i) to the power of n)
Where:
R = the monthly reservation bid rate
Q = the monthly bid quantity
i = the monthly discount rate of 0.2917% (which is the annual discount rate of 3.50% divided by 12).
n = the number of months from the earliest date the capacity is available in the Open Season to the month the revenue will be received (the first month capacity is available n = 1, the second month n = 2, and so on).
If there is insufficient capacity available to meet all successful bids, and if two or more of the lowest accepted bids are of equal Present Value, unless such bidder(s) have elected not to have the bid(s) prorated, capacity will be allocated pro rata based on the Maximum Delivery Quantity of the bids that are tied.
Contact Information:
Questions concerning this Open Season should be directed to:
Randy Barton (719) 520-4667
Thania Delgado (719) 520-4482
Mark Iverson (719) 520-4587
Robin Janes (719) 667-7555
Tim Mang (719) 520-4373
Damon McEnaney (719) 520-4472
Steve Newell (719) 520-4341
Dan Tygret (719) 520-3765
Cheyenne Hub to Three Mile
Open Season Bid Sheet
Form of Service (i.e., FT):__________
Email Bid To: KMWestBids@KinderMorgan.com
A. Shipper Information
Legal Name of Bidder:__________________________
Name of Requesting Party:_______________________
Title of Requesting Party:________________________
DUNS Number:________________________________
Phone:_______________________________________
B. Term of Service (i.e., 1 Year):____________________________
Effective Start Date:___________________________________
Requested Term End Date:_____________________________
C. Transportation Contract Demand (TCD):
Will you accept a pro rata allocation of capacity if necessary Yes NO
Primary Receipt Point(s)
Primary Delivery Point(s)
Available Dth/day MDQ
Requested Dth/day MDQ
*The sum of the MDQs at the Primary Delivery Location(s) must equal the TCD.
D. Bid Rate (express as a monthly rate per Dth or maximum reservation rate):_________________
*By submitting a bid to Transporter, the bidding party certifies that (a) all information contained in the request is complete and accurate, (b) it satisfies, or will be able to satisfy, all the requirements of Transporter's FERC Gas Tariff, and (c) the person submitting the bid has full authority to bind the bidding party.