Dominion South Pipeline Co., LP
Original Volume No. 1
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Effective Date: 03/01/2009, Docket: RP09-292-000, Status: Effective
First Revised Sheet No. 1046 First Revised Sheet No. 1046
Superseding: Original Sheet No. 1046
GENERAL TERMS AND CONDITIONS
15.2 Bidding Procedure (Cont.)
G. Within the posted bid period, a bidder seeking capacity at terms that meet or exceed
minimum terms of the release must post its complete bid on the Website.
1. Such bids must be in the most current form of Bid Agreement, as posted on the
Website, which when executed by Pipeline will constitute a binding contract.
2. The name of the bidder will not be revealed on the Website unless the bidder
submits a winning bid.
15.3 Evaluating Bids.
A. Pipeline shall determine the best bid, in accordance with the nondiscriminatory
criteria posted by Releasing Customer in the Release Notice; provided, however, that
Pipeline shall reject any bid that does not match any single minimum specification of
the posted notice. If there are multiple bids meeting all minimum conditions, Pipeline
will award the bids, best bid first, until all offered capacity is awarded.
B. Evaluation Criteria. In its posted notice, Releasing Customer must specify one of the
following bid evaluation mechanisms:
1. NPV Method. The net present value of the bid quantity, multiplied by the bid
price, discounted over the bid term by the Interest Rate.
2. Net Revenue Method. The value of the bid quantity, multiplied by the bid price.
3. If Releasing Customer does not designate an evaluation standard in the posted
notice of the release, the best bid shall be determined as follows: the bidder
submitting the highest bid rate, within the minimum and maximum rates, if
applicable, and in accordance with Section 15.2.F.7, above, shall win.
C. Tie-Breaking Method. If more than one bidder wins under the applicable evaluation
criteria, the capacity must be released in accordance with the tie-breaking method
specified in Releasing Customer's posted notice. If Releasing Customer does not
designate a tie-breaking method, then the capacity will be allocated as follows: first
to the winning bidder who submits a non-contingent bid, as opposed to bids on a
contingent basis. If more than one winning bid is non-contingent, then to the bidder
that is currently utilizing the subject capacity, or if no winning bidder is currently
utilizing the subject capacity, then to the bidder that submitted its winning bid first
in time; provided that if a Designated Replacement Customer submits a winning bid, then
Pipeline must contract with such Designated Replacement Customer.
D. Matching Period. In the event that Releasing Customer has a Designated Replacement
Customer in its posted notice under GT&C Section 15.2.F.12 that does not submit a
winning bid, then Pipeline must give such Designated Replacement Customer an
opportunity to match the terms and conditions of the winning bid.
E. Pipeline shall post the winning Bid Agreement on the Website, immediately after the bid
is awarded, including the name of the winning bidder.
F. A posted offer of release shall expire without award if Pipeline is unable to contract
with a bidder before the commencement of the term for the offered capacity.
G. Prior to the next nomination opportunity after the bid is awarded, Pipeline will
release any posted collateral to a non-winning non-creditworthy bidder unless otherwise
requested by such bidder. For cash forms of collateral, Pipeline will release such
collateral by wire transfer of Federal Funds in accordance with the instructions
provided by bidder pursuant to Section 15.1.C.1. For non-cash forms of collateral,
Pipeline will release such collateral by depositing such documentation for delivery by
overnight courier in accordance with the instructions provided by bidder pursuant to