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TSP/TSP Name:  1939164-TENNESSEE GAS PIPELINE Critical: N
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  01/23/2019 8:00:01AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  1/23/2019 8:00:01 AM Notice ID: 370243
Reqrd Rsp:  5 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  AVAILABLE FIRM CAPACITY - OS #1198
Notice Text:

DATE:  January 23, 2018                                                                   TIME: 8:00 AM CST

TO:      ALL TENNESSEE GAS PIPELINE COMPANY, L.L.C. CUSTOMERS

RE:      AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1198)

Open Season Timeline

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 AM CST, Wednesday, January 23, 2019, and ending at 4:00 PM CST, Friday, January 25, 2019 (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.  Therefore, 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.  Tennessee intends to enter into Negotiated Rate Agreements at Tennessee's Applicable Base Reservation Rates for all proposals.

 

Proposal #1 Receipt Zone 5 to Delivery Zone 6 Capacity Proposed Contract Terms

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

 

The pre-arranged deal is for 15,000 Dth/d.

 

Tennessee will reject competing bids with a TQ higher than the TQ listed above.

 

Term:    

 

April 1, 2019 through October 31, 2019

Competing bids for this proposal must have a term identical to the proposal.

 

Primary Receipt Points(s):

412181 – Iroquois/TGP Wright SMS Schoharie

Primary Delivery Point(s):

420901 – Berkpwr/TGP Berkshire Power Sales Ham

Secondary Receipt Point(s) at

which Rates

specified below apply:

All Zones 5 and Zone 6 Receipt Points

Secondary Delivery Point(s) at

which the Rates

specified below apply:

All Zones 5 and Zone 6 Delivery Points

Monthly Reservation Rate:

 

A Negotiated Reservation Rate which shall be equal to $6.9882 per Dth.

 

Tennessee will reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.

 

 

Commodity Rate for Primary

And Secondary 

Deliveries:

 

 

Tennessee's applicable Minimum Commodity Rate per Dth.

 

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.

 

 

Proposal #2 Receipt Zone 5 to Delivery Zone 6 Capacity Proposed Contract Terms

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 identical to the proposal.

 

Primary Receipt Points(s):

412181 – Iroquois/TGP Wright SMS Schoharie

Primary Delivery Point(s):

 

420285 – AGT/TGP Mendon Mass Tie Over Worche (13,000 Dth/d)

420901 – Berkpwr/TGP Berkshire Power Sales Ham (7,000 Dth/d)

 

Secondary Receipt Point(s) at

which Rates

specified below apply:

All Zones 5 and Zone 6 Receipt Points

Secondary Delivery Point(s) at

which the Rates

specified below apply:

All Zones 5 and Zone 6 Delivery Points

Monthly Reservation Rate:

 

A Negotiated Reservation Rate which shall be equal to $6.9882 per Dth.

 

Tennessee will reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.

 

Commodity Rate for Primary

And Secondary 

Deliveries:

 

Tennessee's applicable Base Commodity Rate per Dth

 

Tennessee will reject bids for less than Tennessee's applicable Base Commodity rate per Dth.

 

Other Charges:

 

Shipper shall also pay ACA, F&LR, EPCR charges, and all other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.

 

 

Proposal #3 Receipt Zone 1 to Delivery Zone 4 Capacity Proposed Contract Terms

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

 

The pre-arranged deal is for 43,933 Dth/d.

 

Tennessee will reject competing bids with a TQ higher than the TQ listed above.

 

Term:    

 

April 1, 2019 through October 31, 2019

Competing bids for this proposal must have a term identical to the proposal.

 

Primary Receipt Points(s):

 

420828 – Pooling Pt. – Sta. 87 – Zone 1

 

Primary Delivery Point(s):

420867 – Pooling PT – 200 Leg Zone 4

Secondary Receipt Point(s) at

which Rates

specified below apply:

All Zones L/1, 2, and 4 Receipt Points

Secondary Delivery Point(s) at

which the Rates

specified below apply:

All Zones L/1, 2, and 4 Delivery Points

Monthly Reservation Rate:

 

A Negotiated Reservation Rate which shall be equal to $14.5399 per Dth.

 

Tennessee will reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.

 

Commodity Rate for Primary

And Secondary 

Deliveries:

 

Tennessee's applicable Base Commodity Rate per Dth

 

Tennessee will reject bids for less than Tennessee's applicable Base Commodity Rate per Dth.

 

Other Charges

 

Shipper shall also pay ACA, F&LR, EPCR charges, and all other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.

 

 

Proposal #4 Receipt Zone 0 to Delivery Zone 3 Capacity Proposed Contract Terms

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

 

Up to 30,000 Dth/d

 

Tennessee will reject bids with a TQ higher than the TQ listed above.

 

Term:    

 

April 1, 2019 through October 31, 2019

Bids for this proposal must have a term identical to the proposal.

 

Primary Receipt Points(s):

 

420826 – Pooling PT – 100 Leg – ZN 0 - North

 

Primary Delivery Point(s):

420866 – Pooling PT – Broad Run Spur

Secondary Receipt Point(s) at

which Rates

specified below apply:

All Zones 0, L/1, 2, and 3 Receipt Points

Secondary Delivery Point(s) at

which the Rates

specified below apply:

All Zones 0, L/1, 2, and 3 Delivery Points

Monthly Reservation Rate:

 

Tennessee will reject bids for less than Tennessee's applicable Base Reservation Rate per Dth.

 

Commodity Rate for Primary

And Secondary 

Deliveries:

 

Tennessee will reject bids for less than Tennessee's applicable Base Commodity Rate per Dth.

 

Other Charges:

 

Shipper shall also pay ACA, F&LR, EPCR charges, and all other applicable surcharges specified in Tennessee's Tariff, as may be in effect from time to time.

 

Reservations

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.

Submission of 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 #1198. 

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. CDT, 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. 

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.

Evaluation Method

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

Scott Minear                (713) 420-5177

Adrienne Reid             (713) 369-8413

Adam Ledet                 (713) 420-4813

 

E-mail                          TGPBidroom@kindermorgan.com