Keyspan LNG, LP (Alng)

Third Revised Volume No. 1

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Effective Date: 01/27/2003, Docket: RP03-241-000, Status: Effective

Original Sheet No. 63 Original Sheet No. 63 : Effective

 

Joseph A. Vaszily, Vice President

 

GENERAL TERMS AND CONDITIONS

(continued)

 

14. CAPACITY RELEASE (continued)

 

(i) If there is only one valid bid, KLNG shall accept such bid.

 

(ii)If there is more than one valid bid and all such bids are

identical in terms, KLNG shall accept the bid that was received

first in time.

 

(iii) If there is more than one valid bid and all such bids are

not identical in terms, KLNG shall accept the offer that yields

the highest present value, taking into account the price, volume

and term of the bid and, where the terms of the competing bids

are different, the present value of the revenue stream expected

from any replacement contract at the end of a shorter-term bid.

For purposes of determining the present value of a bid, KLNG

shall use only the reservation charge (including reservation

charges stated on a volumetric basis) and shall use a discount

rate equal to the then effective interest rate prescribed by the

Commission for purposes of refunds. If more than one bid may be

accepted under this subsection (iii), KLNG shall accept the bid

that was received first in time.

 

(iv)In the event of a tie, a bid with no contingency shall be

accepted over a bid with a contingency even if received later.