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TSP/TSP Name:  1939164-TENNESSEE GAS PIPELINE Critical: Y
Notice Type Desc (1):  TSP CAPACITY OFFERING Notice Type Desc (2):  TSP CAP OFFERING
Notice Eff Date/Time:  01/13/2021 8:00:50AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  1/13/2021 8:00:50 AM Notice ID: 377538
Reqrd Rsp:  1 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  AVAILABLE FIRM CAPACITY OS #1288
Notice Text:

DATE: January 13, 2021                                                                                                 TIME: 8:00 AM CT

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

RE:      AVAILABLE FIRM CAPACITY (OPEN SEASON POSTING #1288)

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 CT, Wednesday, January 13, 2021 and ending at 4:00 PM CT, Friday, January 15, 2021 (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.

 

Proposal #1 Receipt Zone 4 to Delivery Zone 5 Capacity Proposed Contract Terms

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

Up to 20,423 Dth/d

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

Term:    

November 1, 2021 through March 31, 2022

Tennessee will reject bids with a commencement date prior to November 1, 2021, or a termination date later than March 31, 2022.

Primary Receipt Point(s):

 

54301 – Pooling Pt. Marcellus – ZN.4

 

Primary Delivery Point(s):

420207 – AGT/TGP Mahwah New Jersey Bergen

 

Competing bids for this proposal must be identical to delivery point listed above.

Secondary Receipt Point(s) at

which Rates

specified below apply:

All Zone 4 and 5 Receipt Points within the Transportation Path as defined in Tennessee's Tariff.

Secondary Delivery Point(s) at

which the Rates

specified below apply:

All Zone 4 and 5 Delivery Points the within Transportation Path as defined in Tennessee's Tariff.

Monthly Reservation Rate:

The pre-arranged deal is at Tennessee's applicable Base Reservation Rate per Dth.

Commodity Rate for Primary

And Secondary 

Deliveries:

The pre-arranged deal is at Tennessee's applicable Base 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 L to Delivery Zone L Capacity Proposed Contract Terms

Rate Schedule:

FT-A

Transportation Quantity (“TQ”):

The pre-arranged deal is at 80,500 Dth/d. Tennessee will reject bids with a volume greater than 140,500 Dth/d.

Term:    

March 1, 2021 through December 31, 2021

Tennessee will not accept bids with a commencement date prior to March 1, 2021, or a termination date later than December 31, 2021.

Primary Receipt Point(s):

412882 – Kinetica/TGP Port Sulphur Plaquemin

Primary Delivery Point(s):

420999 – Pooling Pt. 500 Leg – Zone L

Secondary Receipt Point(s) at

which Rates

specified below apply:

All Zone L Receipt Points within the Transportation Path as defined in Tennessee's Tariff.

Secondary Delivery Point(s) at

which the Rates

specified below apply:

All Zone L Delivery Points within the Transportation Path as defined in Tennessee's Tariff.

Monthly Reservation Rate:

The pre-arranged deal is at Tennessee's applicable Base Reservation Rate per Dth.

Commodity Rate for Primary

And Secondary 

Deliveries:

The pre-arranged deal is at Tennessee's applicable Base Commodity Rate per Dth.

Other Charges

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.

 

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 reject bids received after the Open Season Period.

6.            To award capacity to mutually agreeable alternate receipt or delivery points if capacity is unavailable at the meters specified in the bid.

7.            To award capacity for a quantity less than the bid quantity, if sufficient capacity is not available to award the entire bid quantity. 

8.            To reject any bid that will result in a reduction of reservation charges.

9.            To reject negotiated rate bids. 

10.          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 #1288.

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 submit a binding bid via 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. CT, 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.

 

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:

Paul Gibson          (713) 420-5128

Caitlin Harris         (713) 420-2915

Adam Ledet          (713) 420-4813

Scott Minear         (713) 420-5177

Greg Pollard          (713) 420-7149

 

E-mail                          TGPBidroom@kindermorgan.com