DATE: November 2, 2018 TIME: 8:00 AM CST
TO: ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS
RE: AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1193)
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 8:00 CST Friday, November 2, 2018, and ending at 4 PM CST Tuesday, November 6, 2018 (the “Open Season Period”). The capacity offered in this open season is the subject of a pre-arranged deal pursuant to Article XXVI, Section 5.9 of the GT&C of Tennessee's Tariff, the terms and conditions of which are disclosed below. The pre-arranged deal was entered into as a result of the Request for Proposals issued on October 25, 2018. The customer under the pre-arranged deal (the “Pre-Arranged Shipper”) has the right to match the highest net present value (“NPV”) bid received in this open season.
Rate Schedule:
FT-A
Transportation Quantity (“TQ”):
The pre-arranged deal is for 20,000 Dth/d.
Tennessee will reject competing bids with a TQ higher than the TQ listed above.
Term:
November 1, 2019 through March 31, 2020
Competing bids for this proposal must have a term beginning on November 1, 2019 and ending on March 31, 2020.
Primary Receipt Point(s):
420891 – Pooling Pt – 300 Leg – Zone 4
Primary Delivery Point(s):
420207 – AGT/TGP Mahwah New Jersey Bergen
Secondary Receipt Point(s) at
which Rates
specified below apply:
All Zones 4 and 5 Receipt Points
Secondary Delivery Point(s) at
which the Rates
All Zones 4 and 5 Delivery Points
Monthly Reservation Rate:
The pre-arranged deal is for a fixed Negotiated Rate of $5.5711 per Dth.
Tennessee will reject bids for less than the applicable Base Reservation Rate per Dth.
Tennessee intends to enter into a Negotiated Rate Agreement(s) at the Applicable Base Reservation Rate(s).
Commodity Rate for Primary
And Secondary
Deliveries:
Tennessee will not accept bids for less than the applicable Base Commodity Rate.
Other Charges:
Shipper shall also pay ACA, applicable Fuel and Loss Retention (“F&LR”), 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.
The pre-arranged deal is for a TQ of:
100,000 Dth/d (1/1/2019-2/28/2019); and
47,350 Dth/d (3/1/2019 – 3/31/2019)
Tennessee will reject bids with a TQ greater than 100,000 Dth/d.
January 1, 2019 through March 31, 2019
Competing bids for this proposal must have a term beginning on January 1, 2019 and ending no later than December 31, 2019.
420826 – Pooling Pt – 100 Leg Zone 0
420866 – Pooling Pt – Broad Run Spur Zone 3
All Zones 0, L/1, 2, and 3 Receipt Points
All Zones 0, L/1, 2, and 3 Delivery Points
The pre-arranged deal is for a fixed Negotiated Rate of $15.5246 per Dth.
Tennessee will reject bids for less the applicable Base Reservation Rate per Dth.
Shipper shall also pay ACA, applicable F&LR, 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. 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.
2. 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.
3. 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.
4. To reject any bid that does not specify capacity within the paths posted above.
5. To award capacity to mutually agreeable alternate receipt or delivery points if capacity is unavailable at the meters specified in the bid.
6. To award capacity for a quantity less than the bid quantity, if sufficient capacity is not available to award the entire bid quantity.
7. To reject any bid that will result in a reduction of reservation charges.
8. 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 #1193.
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 or submit a binding bid via facsimile at (713) 369-9305. 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. CST, 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.
The Pre-Arranged Deal and all of its terms and conditions are subject to Tennessee's Tariff, as amended from time to time, and to all valid and applicable laws, orders, directives, rules, and regulations of duly constituted authorities having jurisdiction. In accordance with Article XXVI, Section 5.9 of the General Terms and Conditions of Tennessee's Tariff, Tennessee is posting the terms of the Pre-Arranged Deal on DART in this open season for competitive bidding as provided, and the Pre-Arranged Shipper shall have a one-time right within 2 business days of notification to match any bids with a higher NPV in order to obtain the capacity.
The above-specified Contract Terms represent the minimum Contract Terms that Tennessee is willing to accept for the capacity underlying the respective Proposal. Bids for less than the minimum Contract Terms will be rejected.
In the event that bids are received in the open season with a higher cumulative NPV than the Pre-Arranged Deal, the Shipper may either match the cumulative NPV of the bid(s) or forfeit its rights to all of the capacity included in the Pre-Arranged Deal.
All final bids for each Proposal received during the open season will be evaluated on an NPV basis using the following factors:
NPV = En [R*(1 / (1+i)**n)]
En = Summation of months 1 through n (Sigma)
n = term in months
R = Incremental monthly revenue
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).
For further information, please contact:
Kenny Durio (713) 420-5307
Adam Ledet (713) 420-4813
Scott Minear (713) 420-5177
Adrienne Reid (713) 369-8413
E-mail TGPBidroom@kindermorgan.com