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
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.