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TSP/TSP Name:  808150895-MIDCONTINENT EXPRESS PIPELINE Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  01/30/2019 9:40:17AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  1/30/2019 9:40:17 AM Notice ID: 118485
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  Initial Open Season for Firm Transport
Notice Text:

MIDCONTINENT EXPRESS PIPELINE LLC

FTS TRANSPORTATION

INITIAL OPEN SEASON – IOS 01-30-2019

 

In this open season, MEP is soliciting bids for firm transportation capacity effective February  1, 2020.  This is an Initial Open Season (IOS) pursuant to Section 2.1(b)(1) of the General Terms and Conditions of MEP's Tariff.

 

CAPACITY AVAILABLE (Dth/day) Effective February  1, 2020

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Capacity is available in the following segments in MEP Zone 1:   

 

Zone 2

Segment 20055,990 dth/d

Segment 21055,990 dth/d

 

Bids may be submitted for all or part of the MDQ set forth above; however, the MDQ cannot vary during the contract term and it cannot include capacity rights outside of the segments being offered above.  The term of service applicable to bids for the capacity in this IOS can commence no earlier than February 1, 2020, and no later than April 1, 2020

 

AVAILABLE RECEIPT AND DELIVERY POINTS

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MEP ZONE 2 – RECEIPT POINT:      

Receipt 44988  MEP Boundary Transfer – Zone 2 for up to 55,990 dth/d

 

MEP ZONE 2 – DELIVERY POINT:

Delivery 44451 – Transco/MEP Del Choctaw for up to 55,990 dth/d

 

Note:  If a bidder is interested in bidding on other receipt or delivery points within the path of the available capacity, please contact your account manager to determine if capacity is available for the requested time period.

 

 

BID PARAMETERS

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POSTING and BIDDING PERIOD: January 30, 2019 – February 13, 2019

BID SUBMISSION: Bids must be received by MEP by 2:00 p.m. Central Clock Time on Thursday, February 14, 2020

 

Email: FTServiceRequest@kindermorgan.com

 

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED:  4.00%, discounted to February 1, 2020 which shall be the Discount Date as that term is used in this posting.

 

BID REQUIREMENTS AND IOS TERMS AND CONDITIONS

 

1.       BID RATE SECONDARY RECEIPT/DELIVERY POINTS

 

For any capacity awarded to a bidder at a bid reservation rate which is less than the applicable maximum reservation rate set forth in MEP's tariff, the bid reservation rate will apply to all secondary receipt and delivery points traversed by the primary path.   

 

2.      CURRENTLY APPLICABLE MAXIMUM MONTHLY BASE RESERVATION RATES FOR AVAILABLE CAPACITY FOR MEP ZONE 2:

Zone 2 - $10.23/Dth of MDQ per month

 

 The Monthly Base Reservation Rate is per Dth of Contract MDQ.

 

3.      BID RATE REQUIREMENTS

 

Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.

 

All bids must be submitted as a Reservation Rate  and must be within the applicable minimum and maximum rates for Zone 1 set forth in MEP's FERC Gas Tariff. Bids in the form of a Negotiated Rate or Negotiated Rate Formula will not be valid. 

 

4.      RESERVE PRICE MATRIX

 

MEP has established and provided to an Independent Third Party a Reserve Price Matrix for capacity offered in this IOS. 

 

In order to be eligible for a possible award of capacity, the rate bid must meet the applicable Reserve Price as established by MEP in the Reserve Price Matrix for the relevant firm capacity.

 

5.      CREDITWORTHINESS REQUIREMENT

All bidders must satisfy MEP's creditworthiness requirements, as stated in Section 12 of the General Terms and Conditions of MEP's FERC Gas Tariff, prior to submitting a bid.  Any bid submitted which causes bidder to exceed bidder's pre-determined level of creditworthiness is deemed an invalid bid.  Potential bidders are encouraged to contact MEP's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.

 

6.      COMMODITY CHARGES AND SURCHARGES

 

The Reservation Rate included in any bid must be for the Base Reservation Rate only.  Any applicable commodity charges and surcharges and reservation surcharges, will not be included in the guaranteed revenue stream considered for bid evaluation purposes.  Advance Payments are separately discussed below.  In addition to the awarded Base Reservation Rate, the winning Bidder will pay all applicable commodity charges and surcharges, at the applicable maximum rate contained in MEP's FERC Gas Tariff, as may be revised from time to time. 

 

7.      FUEL AND GLU CHARGES

 

The Reservation Rate included in any bid is exclusive of all applicable fuel and gas lost and unaccounted for (GLU) charges.   Bidder will be required to pay any and all applicable fuel and GLU charges set forth in MEP's FERC Gas Tariff, as may be revised from time to time. 

 

8.      Quantity Limitations/AUTHORIZED OVERRUN SERVICE

 

For any capacity which may be awarded at a discounted rate, the bid rate shall only apply to firm daily delivery quantities, including any related capacity release quantities, up to Bidder's awarded Contract MDQ. Firm deliveries made on any day in excess of the applicable contract MDQ, including any related capacity release quantities, shall be charged all applicable maximum rates, charges, and surcharges set forth in MEP's FERC Gas Tariff.  Without limitation of the foregoing, all Authorized Overrun Service provided to the Awarded Bidder shall be billed at the applicable maximum Authorized Overrun Rate set forth in MEP's FERC Gas Tariff, as may be revised from time to time.

 

9.      ADVANCE PAYMENTS

 

A Bid may include an Advance Payment.  Advance Payments will be included in the guaranteed revenue stream discounted back to the Discount Date for NPV purposes.  For evaluation purposes, the NPV of the Advance Payment and the NPV of the bid rate for the relevant capacity may not in the aggregate exceed the NPV at the applicable maximum rate over the bid term.

 

10.  BID EVALUATION METHODOLOGY

 

All bids for this IOS will be evaluated using the NPV formula which is posted on MEP's DART system on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes.  MEP's internet website may be accessed at: http://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=MEP.  The NPV formula for evaluating bids was posted on August 24, 2010, on MEP's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.

 

11.  BID AGGREGATION

 

In order to determine the successful Bidders, MEP shall aggregate acceptable bids (including prorated bids to the extent applicable) if aggregation would achieve the highest NPV in relation to the available capacity.  

 

12.  DETERMINATION OF HIGHEST ECONOMIC VALUE AND PRORATIONING

  

In any situation where the capacity associated with acceptable bids exceeds the available firm capacity, including situations in which the highest NPV is determined using bid aggregation, then any available capacity will be allocated among bids, up to the MDQ bid, to achieve the optimal solution (highest aggregate NPV for capacity available).  In order to determine the highest economic value of all acceptable bids received, MEP will calculate the NPV of all such bids in two ways: 1) assuming prorationing of bid capacity by one or more Bidders to the extent required to achieve the optimal solution regardless of any bid's stated minimum acceptable quantity and 2) assuming prorationing of bid capacity by all Bidders down to the minimum acceptable quantity set out in the respective bids.  If a bid indicates that the Bidder is not willing to prorate to the extent required by the optimal solution, the available capacity will first be allocated (Initial Allocation) among other bids which indicate that the Bidders are willing to prorate to the extent required by the optimal solution.  The Initial Allocation shall be consistent with the optimal solution for the Bidders participating in the Initial Allocation.  The Bidder(s) not willing to prorate to the extent required by the optimal solution will be afforded the opportunity (irrespective of any stated minimum acceptable quantity) to take any capacity, up to MDQ bid, not allocated to other Bidders under the Initial Allocation.  If allocation of capacity among Bidders in the preceding sentence is required, allocation will be implemented in order to achieve the optimal solution for the capacity remaining to be allocated (irrespective of any stated minimum acceptable quantity), provided that the quantity allocated to a Bidder may not exceed the MDQ bid by that Bidder.  In applying the above procedures, in the event that MEP receives two (2) or more acceptable bids or sets of acceptable bids for service, which produce the same NPV (and produce the highest aggregate NPV), then available capacity will be allocated prorata based on MDQ bid.

 

13.  NPV TIE BREAKER METHODOLOGY

 

If a tie for highest economic value between bids or sets of bids of identical value remains at the end of the prorationing process, MEP will apply the Tiebreaking procedures set forth in MEP's FERC Gas Tariff at Section 14.10 (d) of the General Terms and Conditions.

 

14.   AWARDS OF CAPACITY

 

Bids are binding on the bidder unless withdrawn prior to the end of the open season or until MEP notifies the bidder that it has not been awarded any capacity.  MEP will notify each bidder within 1 business day as to whether or not it has been awarded capacity pursuant to the terms of this open season.

 

If you have any questions regarding this Initial Open Season, please contact Darryl Outlaw at 205-325-7421 or your Account Manager. 

 

 

 


MIDCONTINENT EXPRESS PIPELINE LLC

BID FORM FOR FTS CAPACITY

 

In order to be valid, a bid must contain all of the applicable information required by this Bid Form. Any bid submitted for a specified rate equal to the applicable maximum tariff rate shall be deemed to be a bid at the applicable maximum tariff rate, as may be revised from time to time.  

 

DATE  ____________________   IOS 01-30-2019

 

BIDDER/SHIPPER NAME:

 

_________________________________________________

 

SERVICE TYPEFTS     

 

Requested Contract MDQ __________ Dth/day

 

                                               

MONTHLY BASE RESERVATION RATE BID, as applicable :

 

            Zone 2             $ ____________  /Dth/Month

                                               

ADVANCE PAYMENT AMOUNT (Optional)  $________   PAYABLE DATE ___________

 

TERM START DATE _________________   TERM END DATE ______________________

 

PRIMARY POINT(S) AND POINT MDQ(S)

 

RECEIPT POINT NAME

PIN #

Requested MDQ (Dth/day)

Minimum Acceptable MDQ (Dth/day)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

              

DELIVERY POINT NAME

PIN #

Requested MDQ (Dth/day)

Minimum Acceptable MDQ (Dth/day)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

COMPANY:                                                                                                                          

 

SIGNATURE:                                                                                                                       

 

NAME (please print):  ____________________________________________________

 

TITLE:  ______________________________________________________________

 

DATE:  ______________________________________________________________

 

 

 

Email to MEP at FTServiceRequest@ Kindermorgan.com by 2:00 pm on Thursday, February 14, 2019.