MIDCONTINENT EXPRESS PIPELINE LLC
OPEN SEASON FOR FTS TRANSPORTATION
07-23-2024
In this Open Season, MEP is soliciting bids for firm transportation capacity pursuant to Section 2.1(b)(2) of the General Terms and Conditions of MEP's Tariff as set forth below.
AVAILABLE CAPACITY AND PATH: 20,000 dth/d of Zone 1 to Zone 2 firm capacity commencing November 1, 2024 for 1-3 years:
Available Bennington Receipt Point in Zone 1:
HPL/Lamar (44440)
Primary Delivery Point:
TRANSCO/MEP Delivery Point (LOC 44451) or MEP will accept any mutually agreeable meter within the Capacity Path.
MEP will accept bids with any combination of the above delivery points as long as they do not exceed a combined MDQ greater than the MDQ of the open season.
The capacity available to be awarded may not be available in the same quantities at all receipt or delivery points within the capacity path. MEP reserves the right to reject bids that are from/to points outside of the capacity path offered in a nondiscriminatory manner.
TERM: A minimum term of one year and a maximum term of three years.
This capacity shall not have any contractual rollover rights or right of first refusal (ROFR) at the end of the contract term other than those provided in Section 16.2 of MEP's Tariff with regard to agreements with a term of one (1) year or greater and with a rate equal to the applicable maximum rate.
Bids may be submitted for all or part of the available capacity.
RESERVE PRICE MATRIX: MEP has established and provided to an Independent Third Party a Reserve Price Matrix for capacity offered in this open season.
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.
CONTINGENCIES: Any bids with contingencies will be rejected.
BID DEADLINE: Bids must be received by MEP by 2:00pm Central Time on July 29, 2024.
EMAIL BIDS TO: The attention of MEP at FTServiceRequest@kindermorgan.com
BID REQUIREMENTS AND TERMS AND CONDITIONS
Bids for capacity in Zone 1 and Zone 2 must include the Reservation Rate bid per Dth of MDQ per month, not to exceed the maximum Reservation Rates applicable to the rate zones for the service bid. The Reservation Rate bid will apply to all secondary receipt and delivery points in the zones traversed by the primary path.
All bids must be submitted utilizing the basic rate design in effect on MEP's system and must be within the applicable minimum and maximum rates set forth in MEP's FERC Gas Tariff for Zone 1 and Zone 2. 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 Reservation Rate, as may be revised from time to time. Bids in the form of a Negotiated Rate or Negotiated Rate Formula will not be valid and will be rejected.
No revenue other than the Reservation Rate bid will be included in the guaranteed revenue stream considered for bid evaluation purposes. Advance payments will not be considered part of the guaranteed revenue stream.
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.
OTHER CHARGES TO BE PAID
In addition to the awarded base Reservation Rate per Dth of MDQ per month for Capacity in Zones 1 and 2, the winning bidder will pay all applicable commodity charges, surcharges, overrun charges and applicable Fuel Gas and Unaccounted for Gas percentages at the applicable maximum rates contained in MEP's Tariff, as may be revised from time to time.
BID EVALUATION METHODOLOGY
All bids for this open season 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”.
DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 3.60%, discounted to November 1, 2022 which shall be the Discount Date as that term is used in this posting.
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.
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.
NPV TIEBREAKER 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.
OPEN SEASON: 07-23-2024
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 or higher than 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.
Shipper Name: ______________________________________Date:__________________
1. Service Type: FTS
2. Requested Contract MDQ: _____________________ Dth/d
3. Requested Monthly Base Reservation Rate for capacity in Zone 1: $__________/Dth of MDQ per Month
Requested Monthly Base Reservation Rate for capacity in Zone 2: $__________/Dth of MDQ per Month
4. Term of Service: Start Date: _____________ End Date: _________________
5. Primary Points and Point MDQs:
Point Name PIN MDQ Dth/day
Receipt ________________________ ________ _________
________________________ ________ _________
Delivery ________________________ ________ _________
6. If Bidder will accept less than the Contract MDQ bid, state:
Minimum Acceptable Contract MDQ: _______________ Dth/d
7. Requests will be binding on Shipper, unless withdrawn before the end of the open season or not accepted by MEP after the close of the open season.
8. Other Comments: ___________________________
Shipper represents that the person executing this Bid Form for Shipper has been duly authorized by Shipper to submit this request on Shipper's behalf and to bind Shipper to the foregoing for the term hereof.
Name: _________________________
Title: ________________________
Date: __________________________
EMAIL BIDS TO: The attention of MEP at FTServiceRequest@kindermorgan.com by 2:00 pm on Monday, July 29, 2024