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TSP/TSP Name:  6931794-NATURAL GAS PIPELINE CO. Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  01/07/2021 8:29:44AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  1/7/2021 8:29:44 AM Notice ID: 41810
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  IOS2101-1 AMARILLO NSS
Notice Text:

AMARILLO LEG NSS CAPACITY

INITIAL OPEN SEASON – IOS2101-1

 

This is an Initial Open Season (IOS) pursuant to Section 5.1(c)(1) of the General Terms and Conditions (GT&C) of Natural Gas Pipeline Company of America LLC's (Natural's or NGPL's) FERC Gas Tariff (Tariff) for firm storage service under Rate Schedule NSS. Bidders may submit a bid in a manner consistent with NGPL's tariff procedures in GT&C Section 5.1(d). Bids must be submitted in the SFV Rate Form.

 

NSS CAPACITY AVAILABLE

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Amarillo Leg NSS Storage Capacity with an MSV of 2,000,025 Dth. and an MDQ of 26,667 Dth./d is only available for terms commencing on or after May 1, 2021.  The Bid MDQ must be the same for each month over the term bid. 

 

Monthly Base Rates are per Dth of Contract MDQ, and are exclusive of applicable surcharges.

 

BID PARAMETERS

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POSTING and BIDDING PERIOD: January 7, 2021 – January 12, 2021.

BID SUBMISSION: Bids must be received by Natural by 2:00 p.m. Central Time on January 12, 2021.

 

Email bids to NGPLMARKETING@KINDERMORGAN.COM

 

DISCOUNT RATE AND DATE TO WHICH BIDS ARE DISCOUNTED: 3.25%, discounted to May 1, 2021, which shall be the Discount Date as that term is used in this posting.

 

BID REQUIREMENTS AND IOS TERMS AND CONDITIONS 

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RESERVE PRICE MATRIX

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Natural 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 Net Present Value (NPV) of a bid must meet the minimum NPV of the bid volume multiplied by the Reserve Price as established by Natural in the Reserve Price Matrix for the relevant firm capacity.

 

BID REQUIREMENTS

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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 in an SFV rate form and must be within the applicable minimum and maximum rates set forth in Natural's FERC Gas Tariff.  Bids in the form of a Negotiated Rate or Negotiated Rate Formula will not be valid.

 

MAXIMUM MONTHLY BASE RESERVATION RATE

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NSS: $2.79/Dth of MDQ

 

CREDITWORTHINESS REQUIREMENT

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All bidders must satisfy Natural's creditworthiness requirements, as stated in Section 16 of the GT&C of Natural's 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 Natural's Credit Department prior to bid submittal to determine whether they have established sufficient credit for their bid.

 

SURCHARGES

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The reservation rate included in any bid must be for the Monthly Base Reservation Rate only, which is exclusive of all applicable surcharges.   Bidder will be required to pay any and all applicable surcharges set forth in Natural's FERC Gas Tariff, as may be revised from time to time.  No surcharges currently apply to NSS. 

 

STORAGE FUEL CHARGES

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The reservation rate included in any bid must be for the Monthly Base Reservation Rate only, which is exclusive of all applicable storage fuel charges.   Bidder will be required to pay any and all applicable storage fuel charges set forth in Natural's FERC Gas Tariff, as may be revised from time to time. 

 

AUTHORIZED OVERRUN AND SOURCING CHARGES 

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All Authorized Overrun Charges and other applicable charges or penalties, e.g., Sourcing Charge, incurred by the Awarded Bidder in accordance with Natural's Tariff shall be billed at the applicable maximum rates for overrun service and/or sourcing under Authorized Overrun  and Sourcing Charges, set forth in Natural's FERC Gas Tariff, as may be revised from time to time.

 

ADVANCE PAYMENTS

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Advance payments will not increase the evaluation of any bid.

 

OBLIGATION TO AWARD CAPACITY

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Natural is not obligated to award firm capacity based on the following types of bids pursuant to its Tariff (Section 5.1(d)(4)):

(1) on any bid for a term of less than one year, under which service is to commence more than sixty (60) days following the close of the open season (e.g., winter only); and

(2) any bid for a term which is not continuous from the commencement of service date to the termination of service date reflected in the bid.

 

BID EVALUATION METHODOLOGY

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All bids in this IOS will be evaluated using the NPV formula which is posted on Natural's internet website on the commencement date of the Posting and Bidding Period.  All bids will be discounted to the Discount Date for NPV purposes. Natural's internet website may be accessed at: https://pipeportal.kindermorgan.com/PortalUI/DefaultKM.aspx?TSP=NGPL. The NPV formula for evaluating bids was posted on April 17, 2020, on Natural's internet website under Informational Postings/Notices/Non-Critical and is titled “NET PRESENT VALUE FORMULA”.    

 

BID AGGREGATION 

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In order to determine the successful Bidders, Natural 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

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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, Natural 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 Natural 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

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If a tie between bids or sets of bids remains at the end of the prorationing process, Natural will apply the Tiebreaking procedures set forth in Natural's Tariff at Section 5.1(d)(6) of the GT&C. 

 

RESERVATIONS

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Natural reserves the right to clarify 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 Natural shall have no obligation to do so.
 

NATURAL GAS PIPELINE COMPANY OF AMERICA LLC

BID FORM FOR AMARILLO LEG NSS 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: ____________________ – IOS2101-1

 

Rate Schedule: NSS

Term Start Date: _________________________________________________________

Term End Date: ___________________________________________________________

Contract MDQ: _______________________________ Dth/d

Contract MSV (MDQ x 75): ___________________________ Dth

Amarillo Leg MDQ (% Contract MDQ): __100___%

If Bidder will accept less than the Contract MDQ bid, specify the Minimum Acceptable Contract MDQ: _____________________ Dth per day.

SFV Rate Bid:    

Monthly Base Reservation Rate

 (per Dth of Contract MDQ): _________________________                                                     

Is Bidder an affiliate of Natural (Y/N): ____________

Bids for this capacity must be received by Natural before 2:00 p.m. Central Time on the Posting End Date in order to qualify for consideration. Bids should be emailed to NGPLMARKETING@KINDERMORGAN.COM.

Bids are subject to the terms and conditions set forth in the Natural's FERC Gas Tariff.

 

 

Bidder Name: ________________________________________________

By: _________________________________________________________

Name: _______________________________________________________

Title: ______________________________________________________

Phone #/Fax #:_______________________/_______________________

Email: ______________________________________________________      

Email bids to NGPLMARKETING@KINDERMORGAN.COM